MidAtlantic Farm Credit announced a special patronage distribution of nearly $9.5 million in cash to its customers this month.
“Our patronage program is something truly unique to the Farm Credit System,” says Tom Truitt, CEO of MidAtlantic Farm Credit. “We are proud to be able to return over $9 million in cash directly to our customers, their families, and our local communities this month.”
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. “Because our net income last year exceeded projections, our board of directors voted to return this special patronage distribution,” adds Truitt.
In 2017, the Association distributed nearly $29 million in cash to its member-borrowers. For more information about Farm Credit’s structure and patronage program, please visit mafc.com/about/patronage-program.