The Power of Ownership
Farm Credit Services of America is, financially, one of the strongest lenders in agriculture. And because of that financial strength, we are able to offer a patronage program that returns earnings to our customer-owners through cash-back dividends.
No other lender is better at financing agriculture, or giving back to it.
Locally, cash-back dividends benefit the customer-owners we serve, and the 281 counties and even more communities they call home.
More than the results of a "good year," the cash-back dividend represents good business, the effort of every employee working to help our customers grow.
In December 2016, the Board of Directors approved a $160 million cash-back dividend for 2016. Cash-back dividend checks were mailed to eligible customer-owners in March 2017.
The Board of Directors also approved a 2017 patronage program. The Board will determine the cash-back dividend for 2017 in December 2017. For specific questions on the 2016 patronage program and cash-back dividends, view the Customer Q and A.
What you should know about patronage
The Farm Credit Services of America patronage program returns earnings through cash-back dividends, an exclusive financial benefit for eligible customers-owners.
We are able to offer cash-back dividends through our patronage program because of the financial strength we have achieved — a strength that can help us weather unexpected changes in the agricultural economy while supporting future growth and sustaining a program that offer cash-back dividends in the years to come.
The $160 million cash-back dividend for 2016 is the 13th in FCSAmerica’s history and brings the total cash distributions since 2004 to more than $1.3 billion. During this same 13-year period, FCSAmerica’s capital (members’ equity) has grown from $1.5 billion to $4.7 billion and net income has grown from $294 million to $344 million (as of September 30, 2016).
We offer attractive interest rates and the patronage program.
Our earnings are either returned in the form of cash-back dividends or retained on our balance sheet to help us continue serving agriculture through all its ups and downs.
Cash-back dividend payments are taxable. We encourage recipients to consult with their tax advisors about their specific situations.
The FCSAmerica Board will evaluate a variety of business factors, including earnings, growth and economic conditions to determine the appropriate amount of cash-back dividends each year. The program is expected to distribute cash-back dividends annually, but the amount is not predetermined.
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