Patronage - The Cooperative Difference

Being able to share profits with our members through patronage is something we get excited about. Most businesses don’t do this, but when you borrow from Farm Credit, you become a member-owner, and therefore, are eligible to receive profits of the Association as declared by fellow farmers that are elected to our Board of Directors. It’s one example of the cooperative model.

Because those who borrow from us are also our owners, service to our rural communities is ensured. We are better able to make a difference in agriculture and our communities. 

“Having a lending provider that follows the cooperative model gives me a peace of mind that, as an agricultural community, our interests and needs are not just understood but a priority. AgCarolina Farm Credit ensures my voice is heard. It goes beyond a simple loan,” said Bo Stone, local farmer and elected board member.

This year, the AgCarolina Farm Credit Board of Directors is excited to announce a $49 million dollar patronage refund to be distributed in early April 2024. 

Patronage refunds reduce the borrowers’ cost of borrowing. This is more than money back in your pockets, it makes a difference in agricultural operations, rural communities, and lives of families across the region. At AgCarolina Farm Credit, we invest to see our farmers and communities thrive because we have a passion for agriculture and rural areas; we live and work in these same communities. So, when we say we get excited about patronage, we mean it. 

There are several factors that come into play on why we can pay such a strong patronage but one of our favorite reasons is because of members’ loyalty and their encouragement to others to make AgCarolina Farm Credit their lender of choice. Our members recognize the benefits that borrowing from us provides and share their stories with others.

Patronage refunds are paid according to the accrued interest earned by our members’ loans. It’s a way to refund a portion of the interest paid on the loan. The more business you do with Farm Credit, the larger your potential refund. So, you can see how the loyalty and encouragement from our members continues to pay off. 

“We always look forward to this day. It truly helps us with our operations and this is just one of the many reasons we chose to borrow with AgCarolina Farm Credit. They are a different type of lender that truly cares about you, your family and operation,” includes David Etheridge, local farmer and member in Harnett County.

We are proud to be chosen as your lender, and even more proud to be able to give back to our farmers and rural residents through patronage. Patronage refunds are a direct result of our cooperative model. We believe it sets us apart as your local lending cooperative in addition to making a difference in the lives of our members and communities.