Central Texas Farm Credit to Return $6.5 Million to Customers
EARLY, Texas — Central Texas Farm Credit customers will receive a record $6.5 million refund in March 2019, thanks to the rural financing cooperative’s strong financial results in 2018.
As a borrower-owned co-op, Central Texas Farm Credit keeps only the earnings it needs for growth and stability, and returns the rest to its members through its patronage program. Patronage refunds lower customers’ borrowing costs by giving back a portion of the interest they paid on their loans.
“Sharing our success with members is one of the ways we thank them for their business,” said Robby Halfmann, chairman of the cooperative’s board. “The patronage declaration that our board of directors approved in December effectively reduces borrowers’ interest rates by an average of 1.5 percentage points.”
When customers get their fair share of Central Texas Farm Credit’s 2018 earnings in the spring, it will mark the 25th consecutive year that the co-op has distributed capital to its members.
“We make sure we manage our operation with our customers’ best interests in mind so we can provide personal service and affordable financing,” said Jimmy Chambers, Central Texas Farm Credit chief executive officer. “Our borrowers get competitive interest rates up front, and also get back surplus earnings in cash when the co-op does well. It’s a win-win.”
Central Texas Farm Credit provides financing for all types of rural real estate, including farms, ranches, rural homes and land. The lender also finances livestock, equipment and the working capital needs of farmers, ranchers and agribusinesses. Part of the nationwide Farm Credit System, it is headquartered in Early and has branch offices in Brady, Coleman, Comanche, Early, Haskell, San Angelo and San Saba.