Rural finance co-op Farm Credit Mid-America has announced it will return US$280m in net earnings to eligible customer-owners this month through its patronage programme.
The co-op, which has provided loans for farmers and rural residents across Arkansa, Indiana, Kentucky, Missouri, Ohio and Tennessee for more than a century, says the news brings the total net earnings returned to customers over the past 10 years to more than $1.75bn.
It credit this success to the strength of its “diverse portfolio and commitment to support farmers through both good and challenging times”.
Farm Credit Mid-America‘s patronage scheme returns a portion of its earnings to eligible customer-owners based on the level of eligible business they conduct with the co-op.
“Returning capital to our customers is a core part of who we are as a co-operative,” said Tara Durbin, chief lending officer of agriculture. “Our customers are managing risk every day. Patronage can be used in a variety of ways, including to help strengthen their balance sheets, improve liquidity or provide flexibility as they plan for the season ahead.”
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Patronage payments, agreed annually by the co-op board, are commonly used by members to pay down debt, offset input and planting costs, reinvest in equipment, land or on-farm improvements and strengthen working capital and financial resilience, says the lender.
In addition to patronage, the co-op says it invests roughly $5m a year in rural communities through education, leadership development, youth programmes and support for the next generation of agriculture.
“Over the last decade, we’ve returned more than $1.75bn directly to the people who make agriculture work,” said Durbin. “That capital stays in local communities where it supports farms, families and rural communities, which is exactly what our co-operative system was designed to do.”
Earlier last month, the co-op announced extra educational resources for members to help them better understand their balance sheets and strengthen their financial footing. It says this is important at a time when farmers face tighter margins, higher interest costs and ongoing market volatility.
“Today’s farm economy requires more than hard work and good yields, it requires clarity around the numbers that tell the true story of an operation’s financial health,” said Dakota Everts, head of customer engagement. “When farmers understand their balance sheet, they’re better equipped to make informed decisions, navigate uncertainty and plan confidently for the future.”
The co-op says the resources offer plain-language explanations of assets and liabilities, common financial benchmarks lenders use when evaluating credit, and tools farmers can use to assess and track their own financial position over time. They include an example of a balance sheet, glossary of balance sheet terms, a series of educational videos and interactive game to help farmers test their knowledge.
“Financial education is a core part of our responsibility as a co-operative,” added Everts. “By giving farmers access to clear, relevant information, we’re helping them strengthen their operations and better prepare to navigate agricultural cycles that are inevitable.”
