MECHANICSBURG, Pa. — AgChoice Farm Credit announces its distribution of $21.25 million in cash patronage to customer-owners. AgChoice’s Board of Directors, most of whom are also customer-owners, determined the total payout based on 2017 earnings.
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, share profits and lower the overall cost of borrowing to customer-owners. Annual cash payouts to customer-owners since 1999, including this year, total $275 million.
This year’s patronage program returns $0.28 for every $1.00 borrowers paid in interest on their AgChoice loans in 2017. For the average borrower, it lowers their effective interest rate by 1.50%.
“Patronage is mission-critical at AgChoice,” said president and CEO Darrell Curtis. “Especially when some local agricultural industries are experiencing challenging economic times, it’s an important reminder of our cooperative’s strength and commitment to our customer-owners.”
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.
— AgChoice Farm Credit