At Western AgCredit’s Board Meeting held September 21, 2021, the Board of Directors voted to return an anticipated $10.5 million dollars in patronage to customers this year. In addition to the 0.75% patronage traditionally paid, Western AgCredit anticipates paying a special patronage of 0.50% for a total of 1.25% for the year.
“We are pleased that the Board of Directors authorized a special patronage to help assist customers during the worst drought our region has seen since 1956,” President David Brown said. “We are grateful we had unanticipated resources that allowed us to increase patronage when stockholders need it most, truly demonstrating the cooperative spirit in action!”
A number of factors made this special patronage possible. Prudent financial management has resulted in financial strength and capacity, a lower Association growth rate in 2020 and 2021 required less dollars needed to build capital, receipt of increased patronage from Western AgCredit’s funding bank, CoBank, and reduced capital requirements from CoBank in 2022 and beyond.
Patronage is paid to eligible stockholders based on the amount of their net interest margin, effectively reducing the cost of doing business with Western AgCredit. Unlike some cooperative patronage programs, Western AgCredit’s program pays all of its qualified patronage in cash to our membership. Patronage earnings are generally delivered to customers semi-annually. Eligible stockholder should receive a patronage check sometime near the first of October.