We’re excited to announce that we’re paying a record $5.5 million cash patronage dividend to our member-owners in early 2020!
“This is the largest-ever cash patronage dividend to be paid by Premier Farm Credit,” said Wayne Midcap, Board Chairman. “Producers are really feeling the negative effects of prolonged low prices, challenging weather and other hardships. We want to help them succeed in any way we can, and paying a record-setting cash patronage dividend is one way we can show our commitment.”
This record payout will return approximately 38% of the cooperative’s 2019 earnings to its member owners and projects to reduce the effective average interest rate paid on direct loans in 2019 by 1.07%. Additionally, the checks will again be processed and mailed on an accelerated timeframe to give producers (who are predominantly local farmers and ranchers) earlier access to the funds.
“We are fortunate to be able to share such a large portion of Premier’s earnings with our member-owners this year,” said President and CEO Michael Grauberger, “while remaining financially sound, and focused on serving our customers for many years to come. By giving back as much as possible, and returning it early, we hope to make a positive difference for our customers at a time when they need it most.”
This marks the twenty-third consecutive year Premier Farm Credit has paid a cash patronage dividend back to their borrowers, bringing the total returned in that time frame to nearly $64 million. This is a significant benefit to the member-owners and also to local communities, where many of the producers conduct their business. It is also in line with the mission-driven approach of Premier Farm Credit, who works diligently to support agriculture and rural communities, today and tomorrow.
These meaningful and consistent cash patronage dividend payouts are a hallmark of the entirely member-owned Farm Credit System, established in 1916. As a part of the Farm Credit System, Premier Farm Credit has aggregate loan volume of nearly $715 million and has offices in Sterling, Fort Morgan, Yuma and Holyoke.
