Patronage

One of the financial benefits of being an AgTexas member-borrower is having the opportunity to share in the Association’s profits.  Most businesses and banks share their profits with the owners, not their customers!

After each fiscal year, our Board of Directors determines what portion of  the Association’s net income to distribute to our member-borrowers, while maintaining a safe and sound capital position to meet the future needs of its borrowers.

Each member's patronage refund is based on the proportion of interest earned on his or her loan to the total interest earned by the Association. A patronage refund may be paid in cash, allocated surplus, stock, or any combination of these items. The distribution of profits to our members effectively reduces the cost of borrowing money.

AgTexas FCS Returns $2 Million to Customers

April 2008 - AgTexas Farm Credit Services recently returned $2 million in earnings to its borrowers, following a year of outstanding growth. The amount was distributed as a cash patronage and was based on the association’s financial performance in 2007.

This latest patronage payment reduced AgTexas customers’ average interest rate by 58 basis points in 2007, and highlighted the co-op’s solid 2007 financial results. The cooperative reported net year-end loan volume of $416 million at Dec. 31, 2007, a 39.1 percent increase from Dec. 31, 2006.

“We had another successful year during 2007,” said Mitchell Harris, AgTexas, FCS, chief executive officer. “Our new loan growth exceeded our goals, which in turn, meant more earnings to continue a strong patronage program. We will continually strive to increase growth, enhance financial stability and expand patronage in the years to come.”

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