LUBBOCK, Texas —AgTexas Farm Credit customer-owners will receive a patronage equal to 13 percent of the accrued interest they paid to the cooperative in 2011. The qualified patronage is based on the lender’s 2011 record earnings.
Checks were mailed to customers in mid-March for 70 percent of the patronage, which was distributed as cash. The remaining 30 percent has been allocated for payment at a future date.
“As a co-op, we always place a high priority on sharing our earnings with our customer-owners through patronage. But after the drought-related adversity that so many farmers and ranchers faced in 2011, we are particularly heartened to return this much of the interest that our borrowers paid on loans last year,” said Mitchell Harris, AgTexas chief executive officer.
He said the patronage payment is effectively equivalent to a 68-basis-point interest-rate reduction in the cost of borrowing from AgTexas in 2011.
This is the 17th consecutive year that AgTexas has declared a patronage payment to its customer-owners.
“AgTexas Farm Credit was able to make this latest patronage distribution because of our all-time high net income and our continuing strong capital position,” Harris said. The cooperative had record net income of $10.3 million in 2011, an increase of 10.2 percent over 2010 net income. In addition, the lender reported strong credit quality and higher return on equity and return on assets at year-end 2011, compared with the previous year.
AgTexas finances agricultural production, agribusinesses, farm and ranch land, rural recreational property and country homes. The Lubbock-headquartered cooperative has branch offices in Brownfield, Burleson, Hillsboro, Levelland, Lubbock, Ralls, Seminole and Stephenville. It is part of the nationwide Farm Credit System.
For more information, visit www.agtexas.com.