Skip to main content
Couple stands with show heifer in barn

Patronage Program

Another unique benefit of being part of the Farm Credit Mid-America cooperative.

Man explains patronage to customer.

More than $1.25 billion back in our customers’ hands over the last 8 years.

As a customer-owned cooperative, we know that a little extra capital can make a big difference in your operation—paying for new equipment, initial operating costs for the upcoming season, payroll and more.

The way we see it, the hard work and resilience of our customer-owners contributed to our success in 2023. Patronage allows us to give back a portion of what we earn directly to those who deserve it most.

In the Spring of 2024, we are returning $255 million—the largest amount we’ve ever distributed—to patronage-eligible customers through our Patronage† program.

More than $1.25 billion returned since 2016

Our purpose is to strengthen rural America’s farmers and agriculture, and to that end, patronage is one benefit of belonging to our cooperative. It means that Farm Credit Mid-America is in a strong position to provide sound credit through good and challenging times, now and in the future. In fact, over the last eight years, we’ve distributed a total of more than $1.25 billion to our customer-owners through patronage.

For more information about the patronage program, view:

Looking for new financing or insurance for your operation? See what we can offer you.

Browse Offerings

Share Your Thoughts

Max 255 characters. Responses will be reviewed by our staff and a select few will be quoted below.

Its assistance comes at a time of great expense. It is the most unique and amazing gesture I’ve ever witnessed from a lender.

Just one more of the many ways that I can say Farm Credit has contributed to making life on the farm better.

Will help us continue to grow during a time most are not. Thank you for all your team does.

Frequently Asked Questions

Can’t find the answers you’re looking for?
Reach out to us by phone, email, or visit a local branch.

Patronage is the name for the capital that a cooperative returns to its customers.

Eligible patronage recipients are Patrons that have conducted Patronage Business with Farm Credit Mid-America during the year which has positively contributed to the Association’s income. Eligible recipients include:

  • Holders of Common Stock
  • Farm Credit System institutions and other financial institutions
  • Borrowers and lessees

Patronage Business encompasses all loan and lease transactions done with or for a Patron except: (i) purchase money mortgages and sale contracts, (ii) acquired loan and lease participations and syndications unless the contract with the originating institution specifically provides for the payment of patronage, (iii) loans financed through the Association’s consume products program, and (iv) any loan or lease specified in advance as not eligible for patronage and for which the borrower has expressly waived patronage in advance. Patronage Business shall not include insurance products or related services.

A Patron will not be eligible for a patronage if any loan or lease to that Patron has been classified as non-accrual, non-performing, or is subject to litigation or formal collection action at the end of the fiscal year, unless those loan(s) and lease(s) are current in due payments and not subject to any formal restructuring involving a material compromise at the end of the fiscal year.

Patronage-eligible customers receive patronage that is proportionate to their transaction level with Farm Credit Mid-America.

Patronage is based on the customer’s contribution to the net income of the company, specifically a customer’s contribution to net interest income and origination fees in proportion to the association’s total net interest income and origination fees.

All patronage checks will be sent by mail in March 2024.

No. Patronage is based upon profitability and is not funded by rate increases and rates are not increased to pay patronage. Interest rates change daily and are market driven.

Capital not distributed as patronage is used to sustain your cooperative, invest for the future and keep your cooperative financially strong for unforeseen circumstances.

Patronage is generally taxable income. All customers will receive a 1099-PATR in early 2025 for the amount of their patronage received in March 2024. Please consult your tax advisor.

The patronage check payee will be the “payor of record” (primary customer) in our loan accounting system as of December 31, 2023. This is the person whose taxpayer identification number appears on any IRS reporting associated with the customer’s account.

Patronage enhances the relationship that Farm Credit Mid-America has with agriculture customers by returning capital directly to them. It also enables the cooperative to more optimally manage capital levels, as payout is determined at year end.

In addition to patronage, customer-owners can participate in annual Board of Director and Nominating Committee lections, and can vote on issues that might influence the operations of the association. Click to learn more about what it means to be a part of our cooperative. 

Returning patronage is a decision the Farm Credit Mid-America board considers and makes each year. It’s not a guaranteed payment, but rather a return of our earnings that is paid to patronage-eligible customers of Farm Credit Mid-America, according to board resolution.

Each year, the Board of Directors evaluates the Association’s net income and determines whether to pay patronage and the portion of capital to disburse if applicable.

Patronage is an annual program. The terms of the program and payout are determined on an annual basis. Your eligibility or loan type or terms may have changed. Future Patronage programs may or may not include certain customers or loan types, just as the potential exists to not have a patronage payout at all.

Please contact your local office to answer your patronage questions.

† Patronage is an annual decision made by the Board of Directors to return earnings to eligible customers. To learn more about patronage or patronage eligibility, please visit our Patronage page.

* Loans and leases are subject to credit approval. Additional terms and conditions may apply. Farm Credit Mid-America is an equal opportunity lender.

Farm Credit Mid-America territory includes Arkansas, Indiana, Kentucky, Missouri, Ohio and Tennessee. Arkansas includes Clay, Craighead, Crittenden, Cross, Desha (northeast of the White River), Greene, Lee, Mississippi, Phillips, Poinsett, and St. Francis counties. Missouri includes Carter, Ripley and Wayne counties. Kentucky excludes Ballard, Calloway, Carlisle, Fulton, Graves, Hickman, Marshall and McCracken counties. Ohio excludes Crawford, Hancock, Lucas, Marion, Ottawa, Sandusky, Seneca, Wood and Wyandot counties. We serve all counties in Indiana and Tennessee. 

You May Be Interested In

The Power of a Cooperative

A customer-owned lender is a locally-owned lender.

Agricultural Loans

A range of loans* designed with your operation in mind.

Customer Stories

Our customers are at the heart of everything we do.

Community Investments

Enriching our communities and the people we serve.