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 was very surprised the dividend I got back the first year. Farm Credit is competitive to start with, but the cash-back dividend really turns the tables."

Mary & Marlan

Grain Producers, Nebraska

Mary & Marlan

Cash-Back Dividend Payments

In December 2020, the Board of Directors approved a cash-back dividend equal to 1% of a customer’s eligible daily loan balance for a total payout of over $275 million that is being distributed in January 2021. Since 2004, we’ve returned more than $2.2 billion in earnings to customer-owners.

Our ability to consistently pay a cash-back dividend for 17 years and counting reflects a remarkable financial strength. In fact, the Board has targeted a cash-back dividend of at least 100 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
2017 82
2018 90
2019 100
2020 100
2021 Target 100

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 2020 to our customer-owners in counties near you with this interactive map.

2020 Distribution Map l 2020 Distribution Map m 2020 Distribution Map s 3

Select a state to see county-by-county cash-back dividends paid in 2020.

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

FCSAmerica will return a portion of our 2021 net income earned from eligible customers through the 2021 patronage program. The Board of Directors intends to target a cash-back dividend of 100 basis points, barring unforeseen events and significant change in economic conditions.
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 patronage program provides for distribution of patronage-sourced earnings from a general pool, which applies to the majority of our customer-owners, and a separate pool that applies to eligible participation loans purchased by Frontier Farm Credit.

In each pool, the amount of a customer’s 2021 patronage distribution will be based on his or her eligible average loan volume with Frontier Farm Credit during 2021. 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 2022 for cash-back dividends paid in 2021. 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 you, our customer-owner, succeed.
The cash-back dividend check payee will be the “payor of record” (primary customer) in our loan accounting system as of December 31, 2021. 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 100 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 (net), partial or full. All the customer’s loans are ineligible for seven years from the date of most recent charge-off, unless fully recovered, including any loans originated subsequent to the charge-offs.
  • Bankruptcy, voluntary or involuntary. All the customer’s loans are ineligible for seven years from the date of discharge or similar proceeding and concluding on December 31st of that seventh year.
  • Sales contract (Contract for Deed) resulting from a restructured loan.
  • Accelerated loans as of December 31. 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.
  • Insurance products, as required by regulations prohibiting the distribution of insurance income directly to customers who generate it.
  • Leases, as required by the lease agreement with our lease processor, Farm Credit Leasing.
  • AgDirect equipment financing made after April 11, 2010.
  • Young and Beginning Development Fund loans.
  • Paycheck Protection Program (PPP) loans made through the U.S. Small Business Administration.
  • Consumer-purpose loans secured by real estate except those previously issued with patronage pricing before April 15, 2018 and:
    • 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 Terms greater than 3 months
      • Payment Extensions or Deferments or
      • An additional advance closed on or after April 15, 2018.
        (*Partial-year eligibility is based on servicing action date.)
    • A loan participation or a multi-lender syndicated loan, unless the contract with the borrower specifically provides for the payment of patronage.

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.