MECHANICSBURG, Pa. — AgChoice Farm Credit is sharing $42.5 million in profits with eligible customer-owners in April, the largest distribution in the cooperative’s history.
“We always hope patronage checks provide a real boost to our local businesses, farms and families, but especially after a year like 2020,” said Rick Allen, Chairman of AgChoice’s Board of Directors and customer-owner. “With record earnings from a diverse loan portfolio, our cooperative remains financially strong to help our customers through whatever the future holds for agriculture.”
Patronage has been an integral part of AgChoice’s cooperative business model since the organization formed in 1999. The model allows AgChoice to build capital, invest in member services, share profits and lower the overall cost of borrowing to customer-owners. Annual cash payouts to customer-owners since 1999, including this year, total $388 million.
This patronage distribution amounts to $0.51 for every $1.00 in interest that borrowers paid on their AgChoice loans in 2020, returning slightly over one half of their interest cost.
“Despite last year’s market turbulence, AgChoice experienced growth in both business services and loan volume, especially in our home and land loan segment, driven by the low interest rate environment and a pandemic-related surge in country property sales,” explained Darrell Curtis, AgChoice president and CEO.
In addition to lending, AgChoice offers business services and educational programs aligned with its Shared Purpose: Inspiring Growth in Our Families, Businesses and Rural Communities.
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.
To learn more about AgChoice’s patronage and other programs, visit agchoice.com.
AgChoice Farm Credit specializes in providing farm and country property loans and financial services to help customers confidently reach their dreams in 52 Pennsylvania counties and four West Virginia counties. Learn more at agchoice.com or 1-800-998-5557.
–AgChoice Farm Credit