Capital Farm Credit (CFC) recently returned a record $72 million in cash to member borrowers in the form of patronage dividends.
“Since 2007, we have returned over half a billion dollars to member borrowers through our patronage program,” said Ben Novosad, CFC’s chief executive officer. “As the largest cooperative ag lender in Texas, the secret to our long-standing success is our cooperative structure.”
Our member borrowers essentially own the business (as stockholders), entitling them to share in earnings through our long-standing patronage program.
Based on strong earnings and a solid capital position, our board of directors recently approved a $142 million total patronage declaration on 2014 net income. Borrowers will receive over half in cash in March, with the remainder set aside in their names until eligible for cash distribution in the future.
“Our earnings and capital belong to member borrowers, and we manage it to their benefit,” added Novosad. “Our board of directors was determined to return as much of our 2014 net income in cash as possible.”
Bringing Value to Borrowers
“We bring value to our borrowers by delivering credit and other financially related services to them effectively and efficiently. As we return the earnings through our patronage program, we effectively lower the cost of doing business for these farmers and ranchers which helps to strengthen the agricultural economy and rural communities we serve.”
Visit www.capitalfarmcredit.com/aboutus/patronage to learn more about patronage and our cooperative structure.
