Customers of AgTexas Farm Credit Services recently benefited from a cash patronage payment that effectively reduced their 2013 interest rate by an average of 0.70 percent, or 70 basis points. Patronage checks were distributed in early March.
The AgTexas Board of Directors declared the patronage based on the rural lending cooperative’s strong financial results for 2013. This year’s patronage distribution totaled $3.165 million.
“Patronage payments help to lower the cost of borrowing from AgTexas, and they are a cornerstone of doing business with our cooperative. The fact that we have been able to share our earnings with our customers for two decades proves the effectiveness of our co-op business model,” said Mitchell Harris, AgTexas chief executive officer.
“We are particularly pleased that we were able to distribute checks in time to help defray farmers’ spring planting expenses for 2014 crops,” Harris said.
Every year, the AgTexas board of directors reviews the co-op’s financial position and determines the amount of patronage, if any, that can be distributed to its customers, who are also the owners of the business. This is the 20th consecutive year that AgTexas has distributed patronage to its customer-owners.
For more information, visit www.agtexas.com.