Cash-Back Dividends

As a financial cooperative, we offer a patronage program that returns earnings to eligible customer-owners through cash-back dividends.

Discover the benefits of working with a customer-owned lender.

Along with having a voice in what we do, our customer-owners receive cash-back dividends. The more eligible business you have with us, the more you can benefit from our patronage program.

Each year, our customer-elected Board of Directors determines the amount distributed. Earnings are either returned to customer-owners as cash-back dividends or retained on our balance sheet to support agriculture through economic cycles and to fund development of new products that help our customers succeed.

"I like that you own part of the cooperative -- and realize those profits. The dividend is all on top; it's all profit for us."

Jo & Matt

Grain & Beef Producers, Nebraska

Jo & Matt

Cash-Back Dividend Payments

In December 2018, the Board of Directors approved a cash-back dividend equal to 0.90% of a customer’s eligible daily loan balance for a total payout of $230 million that was distributed in March 2019. Since 2004, we’ve returned more than $1.7 billion in earnings to customer-owners.

Our ability to consistently pay a cash-back dividend reflects a remarkable financial strength. In fact, the Board intends to target a cash-back dividend of 90 basis points for the foreseeable future, barring unforeseen events and significant changes in the environment.

Cash-Back Dividends in Basis Points

Cash-Back Dividends in Basis Points
Year Millions
2016 69
2017 82
2018 90
2019 Target 90
2020 Target 90

Cash-back dividends are based on eligible loan volume and Association financial results. Prior distributions should not be interpreted as guarantees of future performance.


Cash-back dividends offer a significant annual benefit and are based on each customer-owner's average loan volume during the calendar year.

Explore what has been paid in 2019 to our customer-owners in counties near you with this interactive map.

2018-Distribution-Map-l 2018-Distribution-Map-m 2018-Distribution-Map-s-3

Select a state to see county-by-county cash-back dividends paid in 2019.

State cash-back dividend payment amounts are rounded to the nearest $100,000.

FCSAmerica will return a portion of our 2019 net income earned from eligible customers through the 2019 patronage program. The Board of Directors intends to target a cash-back dividend of 90 basis points, barring unforeseen events and significant change in economic conditions.
We have historically mailed cash-back dividend checks during the month of March (i.e., 2018 cash-back dividend checks will be mailed in March of 2019). We are targeting an earlier delivery date in 2020 for our 2019 patronage checks.
Cash-back dividends are a component of FCSAmerica’s customer value proposition and are one of the unique benefits of doing business with a customer-owned financial cooperative. Cash-back dividends are a way to reduce the cost of borrowing from FCSAmerica by sharing in the cooperative’s profits.
The amount of your 2019 patronage distribution will be based on your eligible average loan volume with FCSAmerica during 2019. Generally, the more a customer borrows from us, the more he or she will benefit, financially, from the program. Because your eligible average loan volume and the amount of approved patronage can change each year, your cash-back dividend likely will change from one year to the next.
Yes. Eligible customers generally should include the cash-back dividend in their taxable income in the year that it was received. We encourage customers to consult with a tax advisor about their specific situation. Non-corporate customers will receive an IRS Form 1099-PATR early in 2020 for cash-back dividends paid in 2019. IRS regulations do not require distribution of 1099-PATR forms for corporations.
Retained earnings not distributed in cash-back dividends help FCSAmerica build the necessary capital to fund future growth and to develop new products and services that help our customer-owners succeed.
The cash-back dividend check payee will be the “payor of record” (primary customer) in our loan accounting system as of December 31, 2019. This is the same person whose taxpayer identification number appears on any IRS reporting associated with the customer’s account.
FCSAmerica is dedicated to providing industry expertise, quality customer service and competitive rates. In order to attract investors for Farm Credit System funding, FCSAmerica must demonstrate the ability to generate strong earnings. The program allows FCSAmerica's Board to determine the amount of the cash-back dividend distribution after financial results for the year are known.
Our Board currently intends to distribute cash-back dividends each year. The Board and our financial plans currently target cash-back dividends equal to 90 basis points for the foreseeable future, barring unforeseen events and significant change in economic conditions. The earnings retained by FCSAmerica are used to build the cooperative’s financial capacity to continue serving agriculture.
Generally, customers whose loans are capitalized by stock are eligible for cash-back dividends. These loans include operating and agriculture real estate loans, as well as some consumer-purpose loans secured with real estate (see excluded products). If a customer has paid off a loan, he/she is eligible for patronage for the period the loan was outstanding, provided it was capitalized at the time of payoff and no exclusions to eligibility apply.

  • Non-accrual loans past due as of December 31.
  • Forbearance or restructured loan agreements that include patronage waivers.
  • Charge-offs, partial or full. All the customer’s loans are ineligible for seven years from the date of a charge-off, unless fully recovered.
  • Bankruptcy, voluntary or involuntary. All the customer’s loans are ineligible for seven years from the date of discharge or similar proceeding.
  • Sales contract (Contract for Deed) resulting from a restructured loan.
  • Accelerated loans. One accelerated loan makes all the customer's loans ineligible.
  • A loan participation or multi-lender syndicated loan, unless the contract with the borrower specifically provides for the payment of patronage.
  • A loan made expressly on a non-patronage basis.
  • Cash-back dividends of less than $50.
  • Crop insurance, as required by regulations prohibiting the distribution of insurance income directly to customers who generate it.
  • Leasing, as required by the lease agreement with our lease processor, Farm Credit Leasing.
  • AgDirect financing made after April 11, 2010.
  • Young and Beginning Development Fund loans.
  • Consumer-purpose loans secured by real estate:
    • Closed on or after January 1, 2018.
    • With a completed loan servicing action on or after January 1, 2018, for the following:
      • All interest rate conversions
      • Maturity/Extension of Term greater than 3 months
      • Payment Extensions or Deferments
    • With loan servicing actions for an additional advance, closed on or after April 15, 2018.
    • Partial-year eligibility is based on servicing action date.

Ready to Talk?

Contact us if you have questions or need more information. Fill out the form, or connect with your local office using the Office Locator.

FCSAmerica serves farmers, ranchers, agribusinesses and rural residents in Iowa, Nebraska, South Dakota and Wyoming. For inquiries outside this geography, use the Farm Credit Association Locator  to contact your local office.