Capital Farm Credit returns $56.7 million to borrowers
BRYAN, Texas – This month, Capital Farm Credit (CFC) is returning $56.7 million in cash to its member customers in the form of patronage dividends.
“Our patronage dividend program is what sets us apart from other lenders,” said Ben Novosad, CFC’s chief executive officer. “Since 2007, we have returned more than half a billion dollars to our member borrowers through our patronage dividend program. As the largest cooperative ag lender in Texas, the secret to our long-standing success is our cooperative structure.”
Borrowers who do business with CFC become members in the cooperative, entitling them to share in its earnings through its long-standing patronage dividend program. CFC’s customers own the business, and patronage payments are one of the unique benefits of this customer-owned cooperative.
CFC has a long history of returning nearly all its net income to its customers, making its patronage dividend program one of the best in the nationwide Farm Credit System.
Based on continued strong earnings and a solid capital position, CFC’s board of directors in December approved a $137.6 million total patronage declaration on its 2015 net income of $139.3 million. Borrowers will receive $56.7 million of this amount in cash this month, and the remainder is set aside in their names until eligible for cash distribution in the future.
“Our customers don’t just do business with us, they are in business with us,” added Novosad. “Our earnings and capital belong to our members, and we manage it to their benefit.
“We bring value to our customers by delivering credit and other financially related services to them effectively and efficiently. As we return the earnings through our patronage dividend program, we effectively lower the cost of borrowing for these farmers and ranchers which helps to strengthen the agricultural economy and rural communities we serve.”
Capital Farm Credit has provided financing to Texas farmers, ranchers, rural property owners and agribusinesses for nearly a century. Headquartered in Bryan, it has offices spanning most of Texas. For more information about its patronage program, financial services and office locations, visit www.CapitalFarmCredit.com.
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