MidAtlantic Farm Credit announced an extra patronage distribution of nearly $10 million in cash to its members this month.
“We are proud to be able to return our profits to our members again this month,” says Tom Truitt, CEO of MidAtlantic Farm Credit. “Our patronage program is a unique benefit of Farm Credit’s cooperative structure that sets us apart from other lenders.”
MidAtlantic Farm Credit is a part of the national Farm Credit System. Their territory covers portions of Delaware, Maryland, Pennsylvania, Virginia, and West Virginia. Farm Credit is a member-owned cooperative, comprised of associations that are able to share a portion of their annual profits with their member-borrowers. Each association determines its total income and expenses at the close of each fiscal year. Once all expenses are deducted, the net income remaining can be distributed in accordance with the association’s bylaws.
Historically, MidAtlantic Farm Credit has returned patronage twice a year – once in April, which is determined upon the cooperative’s net income and borrower’s usage from the year prior, and again in December, which is based off of the cooperative’s net income and borrower’s usage from previous years. “This additional patronage distribution goes directly to our members, their families, and the communities we serve,” adds Truitt.
In 2019, the MidAtlantic Farm Credit distributed over $40 million in cash to its member-borrowers. To learn more about Farm Credit’s patronage program, please visit mafc.com/about/patronage.