MECHANICSBURG, Pa. — AgChoice Farm Credit announces its distribution of $19.2 million in cash patronage to customer-owners this month. AgChoice’s Board of Directors, who are also customer-owners, determined the total payout based on 2016 earnings.
Patronage has been an integral part of AgChoice’s business model since the cooperative formed in 1999. The model allows the organization to build capital, share profits and lower the overall cost of borrowing to customer-owners. Annual cash payouts to customer-owners since 1999, including this year’s, total $250 million.
“Those dollars have a significant multiplier effect beyond putting profits in our members’ pockets,” said AgChoice president and CEO Darrell Curtis. “The patronage model supports profitability within the cooperative, which means AgChoice is there to support customer-owners, Pennsylvania agriculture and rural property owners through good and challenging times.”
In addition to lending, AgChoice offers business services and educational programs aligned with the cooperative’s Shared Purpose: Inspiring Growth in Our Families, Businesses and Rural Communities. AgChoice does not require that these customers also be borrowers.
Business services offered include farm succession and transition planning, dairy benchmarking, appraisals, business consulting, tax planning and preparation, record keeping, crop insurance products and many other accounting and risk management services.
The AgChoice Knowledge Center serves as a hub of information and educational resources for the agricultural industry. AgChoice collaborates with industry allies to offer programs and tools that help farmers be successful and grow Pennsylvania agriculture.
AgChoice Farm Credit is an Agricultural Credit Association with $1.8 billion in gross loan assets. Through 10 branch offices, it provides financial services to 8,264 customer-owners in 52 counties in central, western and northern Pennsylvania as well as four counties in West Virginia. To learn more about AgChoice Farm Credit and its financial programs, visit www.agchoice.com.
— AgChoice Farm Credit