Farm Credit Provides Special $10 Million Patronage Payment To Farmers
March 15, 2021Featured
In response to last year’s unprecedented conditions faced by agriculture and the overall economy, the Farm Credit Illinois (FCI) Board of Directors declared a one-time $10 million preseason patronage distribution being delivered this week to the cooperative’s farm family members.
Additionally, $30 million will be paid to members the week of June 14, as the traditional annual cash patronage. FCI will also distribute $2.7 million of patronage separately to qualified loans in its Capital Markets Group agribusiness loan portfolio – bringing the cooperative’s total patronage to $42.7 million. This represents 48.5% of the Association’s 2020 net earnings returned to borrower-members in 2021.
In true cooperative spirit and demonstrating Member Economic Participation – a guiding principle of all cooperative businesses – patronage is distributed equitably based on the business value each borrower contributed to the cooperative in 2020.
Cash patronage is a tribute to generations of farm family cooperative members. Together, FCI and farm families celebrate the legacy of disciplined management from borrowers and cooperative managers alike, which allows FCI to deliver additional cooperative value.
“This year’s special preseason patronage recognizes the unusual circumstances and challenges members faced in 2020,” says Eric Mosbey, FCI Board Chair. “Cash patronage is a tangible demonstration of the value of cooperative membership.”
“As farmers prepare for a new crop year, FCI celebrates cooperative participation by delivering two separate patronage payments in 2021,” says Aaron Johnson, FCI President and CEO. “Even through volatile economic times, FCI is positioned to fulfill its mission of Helping Farm Families Succeed through cash patronage.”
Farm Credit Illinois (FCI) is a farmer-owned and directed agricultural cooperative serving 16,000 farmer, rural landowner, and agribusiness voting stockholder members in the southern 60 counties of Illinois. Dedicated to Helping Farm Families Succeed, FCI provides competitive and flexible financing, crop insurance expertise, and Rural 1st® country life lending. FCI manages a $4.8 billion loan portfolio, sells 1.4 million acres of crop insurance coverage, and employs 244 staff based in the Mahomet headquarters and 14 regional office locations. The Association will deliver additional cooperative value by returning $40 million of 2020 earnings as cash patronage to member-owners in 2021. The U.S. Farm Credit System supports rural communities, farm families, and agriculture with reliable, consistent credit and financial services today and tomorrow.