Patronage dividends are distributions of High Plains Farm Credit’s net income paid to customer-stockholders. These distributions are calculated based on the proportion of the average annual balance of your eligible loans to the total average balances of all patronage eligible loans at High Plains Farm Credit.

High Plains Farm Credit Patronage Dividends Program

Sharing Our Success Like No Other Lender Through Patronage Dividends

At Farm Credit, it’s not enough to provide some of the most competitive interest rates available in agricultural lending throughout the great state of Kansas. Our patronage dividends program goes the extra mile for our farmers and ranchers by also offering a benefit that puts customers at the center of our success.

As a financial cooperative, the money we make contributes to our financial strength, helps finance customer growth, supports customers in challenging times, and develops future generations in agriculture. What’s left is returned as cash patronage dividends that benefit our customers and the communities they call home.

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More Than a Customer…

Means More Benefits for You!

High Plains Farm Credit’s borrowers are more than just customers. When you join High Plains, you become a member-owner of the cooperative (or what we like to call a customer-stockholder)! As a result, you have a voice in how we operate and a share in our success through patronage dividends.

Discover the Process!

In 2025, High Plains Farm Credit declared a record-breaking patronage distribution of $22.1 million for farmers and ranchers.

Big News:

Record Patronage Dividends Declared in 2025

The High Plains Farm Credit team is excited to announce another record patronage return in 2025! This year, our customer-stockholders will receive $22.1 million in cash patronage.

Since 2022, High Plains has distributed more than $70 million to farmers and ranchers.

  • 2024: $19.2 million

  • 2023: $17.3 million

  • 2022: $15.4 million

Frequently Asked Questions About Patronage Dividends

A patronage dividend is a way of distributing High Plains Farm Credit’s net income to its customer-stockholders. It may be paid in the form of cash, allocated surplus, stock, or any combination of these.

Patronage is based on the proportion of the average annual balance of your eligible loans to the total average balances of all patronage eligible loans at High Plains Farm Credit. Since we allocate patronage based on your average annual loan balance, the more business you have with our association, the larger your potential patronage dividend.

At the end of the year, our board of directors assesses the association’s future needs and determines how much of our current year earnings should be retained to provide capital strength to serve our stockholders’ needs through agriculture’s cycles. The rest is returned as a patronage refund to our customer-stockholders.

Our intent is to pay patronage refunds every year.

If the board of directors approves a cash patronage dividend from a particular year’s earnings, 100% of the cash patronage dividend is paid to you by check or applied to your loan. This typically occurs by April of the following year.

When we send your patronage check, High Plains will also provide an IRS Form 1099-PATR. Patronage dividends are generally taxable. However, please consult your tax advisor for guidance about your specific situation.

No. High Plains Farm Credit operates very efficiently as a member-owned cooperative, allowing us to offer competitive interest rates and a patronage dividend.

High Plains is proud to offer competitive interest rates in addition to the patronage dividends program. Farm Credit investors gain confidence when we have the ability to generate earnings to build capital and loss reserves to withstand agriculture’s economic cycles.

Our earnings strength, capital position, and loss reserves result in lower-cost funds, which we pass on to our customer-stockholders.