No Other Lender Shares Its Success Like Farm Credit

At Farm Credit, it’s not enough to provide some of the most competitive interest rates available in agricultural lending. So we’ve implemented the High Plains Borrower Patronage Program for our customers. As a financial cooperative, the money we make contributes to our financial strength, helps finance customer growth, supports customers in challenging times and helps grow future generations in agriculture. What’s left is returned as cash patronage dividends that benefit our customers and the communities they call home. Our patronage program separates High Plains Farm Credit from other lenders.

WHAT IS A PATRONAGE DIVIDEND?

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 High Plain Farm Credit allocates patronage based on your average annual loan balance, the more business you with High Plains Farm Credit, the larger your potential patronage dividend.

 

HOW IS PATRONAGE DETERMINED?

As a cooperative, High Plains Farm Credit’s borrowers are more than just customers they are member-owners of the cooperative, or customer-stockholders. They have a voice in how we operate and are also entitled to share in our success through a cash patronage dividend.

At the end of the year, our Board of Directors assess the Association’s future needs and determine 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.

 

WHEN IS MY PATRONAGE DIVIDEND ISSUED?

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, typically by April of the following year.

 

DO I PAY TAXES ON MY PATRONAGE DIVIDEND?

Along with your patronage check, High Plains Farm Credit will send you an IRS Form 1099-PATR. Generally, patronage dividends are taxable. Please consult your tax advisor for guidance about your specific situation.

 

DOES HIGH PLAINS RAISE RATES TO PAY A PATRONAGE DIVIDEND?

No.  High Plains Farm Credit operates very efficiently as a member-owned cooperative so we are able to offer competitive interest rates and a patronage dividend.

 

WHY DON’T YOU LOWER INTEREST RATES UP FRONT AND ELIMINATE THE PATRONAGE PROGRAM?

High Plains Farm Credit offers competitive interest rates and the patronage 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.

High Plains Dividends Declared

$ in Millions | Percentage Paid