Texas Farm Credit Customers Receive 3,500 Checks Totaling $9.3 Million
Texas Farm Credit customers are receiving back from their lender this spring for the 20th year in a row.
The rural lending cooperative is distributing a record $9.3 million in patronage dividends to its customers, who are also co-op members and owners. About 3,500 checks are going out across its 100-county territory.
Patronage lowers borrowing costs by refunding a portion of the interest that customers paid on their loans.
On average, a Texas Farm Credit borrower who had an interest rate of 5 percent in 2017 effectively paid just 4.2 percent as a result of this month’s patronage dividend. Another $6.9 million of the co-op’s earnings from 2017 has been allocated for future distribution, which will decrease borrowing costs even further.
“Sharing our success with our borrowers through patronage is one of the defining principles behind our cooperative,” said Mark Miller, Texas Farm Credit chief executive officer. “This year we are returning much more in patronage to our members thanks to a record-breaking year in 2017.”
A Year of Growth for Texas Farm Credit
Earnings increased 22 percent year over year to a record $24.8 million in 2017. Strong loan growth resulted in a record $1.3 billion in loans and $1.4 billion in assets at year-end. Credit quality remained strong, with 98.2 percent of loans classified as “acceptable” or “special mention”.
Through its insurance program, Texas Farm Credit insured 192,000 acres of row crops and 3.2 million acres of pasture last year. It also expanded its insurance staff and service territory in 2017 by purchasing Wallace Crop Insurance in Bonham, Texas.
Patronage is just one way that Texas Farm Credit gives back. In keeping with its mission to support agriculture and rural communities, the co-op set a goal of donating 2 percent of earnings to charitable causes when it launched its Passion Forward program last year. Employees also receive at least two paid days per year to volunteer with nonprofit community organizations.
Texas Farm Credit finances agricultural operations, agribusinesses, homes and rural real estate, and offers a variety of insurance services. Headquartered in Robstown, Texas, it is part of the Farm Credit System, a nationwide network of rural lending cooperatives established in 1916.
For complete financial reports and other information, visit www.TexasFarmCredit.com.
Updated April 10, 2018