As farmers grapple with tight profit margins and stubbornly high input costs, Farm Credit Mid-America said it will return $280 million to eligible customer-owners this month through its annual patronage program — a move the cooperative says is designed to bolster balance sheets ahead of the spring planting season.
The March distribution pushes the total amount the lender has returned to borrowers over the past decade to more than $1.75 billion, reflecting what executives describe as the financial strength of its loan portfolio and its cooperative ownership model.
“Returning capital to our customers is a core part of who we are as a cooperative,” said Tara Durbin, Chief Lending Officer for Agriculture with Farm Credit Mid-America. She noted that producers can use the payments to improve liquidity, reduce debt or position themselves for the coming growing season.
Farm Credit Mid-America, which operates across Indiana, Ohio, Kentucky, Tennessee, Missouri, and Arkansas is owned by the farmers and rural customers it serves, meaning borrowers share in the institution’s profits.
Patronage payments are distributed in proportion to the amount of eligible business customers conduct with the association. Farmers commonly apply the funds to pay down operating or term loans, offset seed and fertilizer costs, reinvest in land or equipment, or strengthen working capital amid ongoing volatility in commodity markets.
The cooperative said the board of directors approves the patronage payout each year. In addition to the annual distributions, Farm Credit Mid-America invests about $5 million annually in rural communities through education initiatives, youth programs and leadership development efforts aimed at supporting the next generation of agricultural producers.
Durbin said the structure is designed to keep capital circulating locally. “That capital stays in local communities where it supports farms, families and rural communities,” said Durbin.
To learn more about Farm Credit Mid-America’s patronage program, eligibility requirements, and customer-owner experiences, visit fcma.com/patronage.
