Farm Credit West Announces an Increase in Cash Dividends to Borrowers in 2018
Rocklin, CA. — December 20, 2018 - Farm Credit West, ACA, one of the nation’s largest agricultural lending cooperatives, is proud to announce they will once again be distributing patronage dividends to qualifying member-stockholders as a return on their equity from robust 2018 earnings. The Board of Directors approved at their meeting on December 13, 2018 an increase of 25 basis points (.25%) over the prior years’ rate, totaling an overall payout of 1.00% of average outstanding loan balances.
“Our ability to offer a 1.00% patronage dividend payment to customers is a testament to the strength and stability our association has always maintained,” said Joey Airoso, Chairman of the Board of Directors at Farm Credit West. “As a member-owned cooperative, we take great pride in being able to provide a predictable and durable dividend and in rewarding our member-stockholders for their loyalty.”
As owners of a financial cooperative, Farm Credit West’s customers have the opportunity to share in the financial success of the organization through patronage distributions. Since the program’s inception in 2002, Farm Credit West has distributed more than $590 million in patronage dividends to member-stockholders.
“Farm Credit West’s financial success comes from the financial strength of its customers and a highly efficient customer-focused business model,” added Mark Littlefield, CEO of Farm Credit West. “As stewards of our customers’ resources, our patronage program provides an added-value return to our customer-owners and is reflective of the efficient operation of their association.”
The cash patronage distribution is paid in addition to the highly competitive loan rates that Farm Credit West already provides. This unique program reduces the cost of doing business with Farm Credit West, indirectly lowering borrowers’ effective interest rate.
Farm Credit West will begin patronage distributions to customers for 2018 in February 2019.
Farm Credit West is a lending institution of the Farm Credit System with California branch offices in Bakersfield, Dinuba, Hanford, Imperial, Paso Robles, Santa Maria, Templeton, Tulare, Ventura, Woodland and Yuba City and Arizona branch offices in Tempe, Safford, and Yuma. The corporate headquarters is located in Rocklin, California. The Farm Credit System is a nationwide network of borrower-owned lending institutions and specialized service organizations created by Congress in 1916. The System provides loans, leases, and related services to farmers, ranchers, rural homeowners, agribusinesses and agricultural and rural utility cooperatives nationwide.