Central Texas Farm Credit is a proud member of the Farm Credit System, the largest provider of credit to American agriculture. We are a member-owned lending cooperative headquartered in Early, Texas. Our staff is committed to building genuine relationships, offering common-sense financial solutions, and helping our clients grow.
Central Texas Farm Credit shares its profits through a patronage program. As the local experts in agriculture and rural lending, our experts can make fast loan decisions and get to closings quickly.
A patronage dividend is a way of allocating Central Texas Farm Credit’s income to its member-stockholders. Patronage is based on the proportion of:
The amount of profit your loan(s) made for the association
The total profit generated by all of Central Texas Farm Credit’s loans
The more business you do with Central Texas Farm Credit, the larger your potential patronage dividend.
Your cash patronage distribution reduces the cost of doing business with Central Texas Farm Credit — the cash dividend lowers your effective interest rate.
Cash distributions vary, depending upon earnings and the overall financial goals of the organization. While it is not guaranteed, we strive to return approximately 70% of our net income in patronage refunds to our members each year.
Central Texas Farm Credit’s objective is to provide “superior service at competitive rates.” Bond investors (where the money we lend comes from) need to know that we have the ability to generate earnings. To that end, Central Texas Farm Credit builds capital and loss reserves to withstand the down cycles of the ag economy. Because of our financial strength and stability, we are able to borrow at very low interest rates, which we pass on to our customers.
If the board of directors approves payment of a cash patronage dividend from a particular year’s earnings, 100 percent of the patronage dividend is paid to you by check, typically in March of the following year.
Yes. In January of the year following your receipt of a cash patronage distribution, Central Texas Farm Credit will send you IRS Form 1099, showing the total of all patronage distributions issued to you during the previous year.
No. Because Central Texas Farm Credit operates very efficiently as a member-owned cooperative, we are able to offer very competitive interest rates and a patronage dividend.
