Patronage Dividends

Farm Credit East is a financial cooperative owned by the customers we serve. That means along with a share of voice, our customer-owners get a share of our earnings in the form of a direct payment called patronage.

About the Program

As a cooperative, Farm Credit East is owned by the customers we serve, governed by a customer-elected Board of Directors and our customer-shareholders can benefit from a patronage dividend program that returns a share of our net earnings.
Green co-op visualization graphic of Farm Credit East’s logo centered with varying shoots coming out from it showing different human icons.

Patronage Stats

Dollar sign with number 130 million
Paid in 2024
For the full year 2023, customer-owners received $130 million in patronage dividends. This included a $120 million planned patronage along with a one-time $10 million special patronage resulting from the Association’s strong financial results which exceeded financial targets. This patronage was paid to customers in February 2024 based on 2023 earnings.
1.25% icon
Of average eligible loan volume
In 2022, customer-owners received a 1.25% reduction in their effective interest rate as a result of this patronage distribution.
Dollar sign with number 1.4 billion
Paid since inception
Since the patronage program began, Farm Credit East (and its predecessor cooperatives) have paid $1.4 billion in cash dividends to our customer-owners.
From the Board Chair

"The board of directors is committed to maintaining a cooperative that combines in-depth expertise with financial strength to be a long-term partner to our members. The board’s philosophy is that funds not needed to operate or capitalize the business should be returned to members, and given the Association’s success in 2023, the board was pleased to approve a special patronage to members.”

– John Knopf, Farm Credit East Board Chair

2024 marked the 28th consecutive annual patronage payment

In February 2024, members received $120 million in patronage dividends. This is equivalent to 1.25% of average eligible loan volume. In addition, the board approved a special one-time $10 million patronage distribution based on 2023’s outstanding financial results.

Learn more about patronage dividends by contacting your local office.
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Bar chart showing five years of patronage dividend payments
From the CEO

"Paying patronage dividends is an essential component of our cooperative’s value proposition. Strong growth in our business, coupled with continued investments in strategic technologies and partnerships, enabled us to achieve strong financial results in 2023. We are very pleased to share our cooperative’s success with our members through this year’s patronage dividends."

– Mike Reynolds, Farm Credit East CEO

Patronage Dividends FAQs

Our earnings are either returned in the form of patronage dividends or retained on our balance sheet to help us continue serving agriculture through all its ups and downs. Paid entirely in cash, patronage payments are equivalent to a percentage of the interest Farm Credit East customers paid that year.

Patronage dividend payments are taxable. We encourage recipients to consult with their tax advisors about their specific situations.

The Farm Credit East Board will evaluate a variety of business factors, including earnings, growth and economic conditions to determine the appropriate amount of patronage dividends each year.

Have Additional Questions?

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