Patronage Dividend Program
Farm Credit East is a financial cooperative. That means we are owned by the customers we serve, governed by a customer-elected Board of Directors and our customer-shareholders can benefit from a patronage dividend program that returns a share of our net earnings.
What you should know about patronage dividends:
- Our customer-owners received $65 million in patronage dividends in 2018. Additionally, in October 2018, Farm Credit East paid a special, one-time $15 million patronage dividend on the first six month of 2018 earnings.
- Since the patronage program was first adopted, customer-owners of Farm Credit East (and predecessor cooperatives) have earned $793 million in dividends.
- 2019 marked the 23rd consecutive annual patronage payment we’ve paid.
- Our earnings are either returned in the form of patronage dividends or retained on our balance sheet to help us continue serving agriculture through all its ups and downs. Paid entirely in cash, patronage payments are equivalent to a percentage of the interest Farm Credit East customers paid that year.
- Patronage dividend payments are taxable. We encourage recipients to consult with their tax advisors about their specific situations.
- The Farm Credit East Board will evaluate a variety of business factors, including earnings, growth and economic conditions to determine the appropriate amount of patronage dividends each year.
Learn more about patronage dividends by contacting any one of our branch offices.
“Being able to consistently pay a healthy patronage dividend to our customer-owners reflects the strength of our cooperative. The board of directors is committed to maintaining a financially strong cooperative that combines in-depth expertise with strong customer-value and a long-term commitment to the industries we serve.”
- Matt Beaton, Farm Credit East Board Chair
“Paying patronage dividends, while also building capital levels, is a key part of the value-proposition of the Farm Credit East cooperative,” added Bill Lipinski, Farm Credit East CEO. “By focusing on strong earnings and sound lending practices, we continue to grow as the leading financial partner to the Northeast agriculture, commercial fishing and the forest products industry and do our part to maintain investor confidence.”
- Bill Lipinski, Farm Credit East CEO