COVID-19 RESOURCES 800.800.4865 CONTACT LOCATIONS FINANCING INSURANCE AG INSIGHTS ABOUT US SECURE LOGIN About Us CASH PATRONAGE DISTRIBUTION This year, our Board voted to approve our cash patronage distribution at a full 1%, resulting in a record $142 million cash back to you, our loyal customers. We’ve paid out more than $834 million to our customers since 2005. Video Player https://www.agloan.com/wp-content/uploads/2021/03/Patronage-Social-2021.mp4 00:00 00:00 IT PAYS TO BE A MEMBER Want to receive your patronage faster? You can sign up for ACH transfer of your patronage distribution starting in 2022. LEARN MORE HOW IT WORKS Due to our structure as a cooperative, American AgCredit borrowers are more than just customers. They’re customer owners, members of the cooperative. As well as having a voice in how we operate, they are entitled to share in our success through a cash patronage distribution. At the end of each fiscal year, our Board of Directors assess the total income of the cooperative. They forecast our future financial needs and determine how much of our earnings should be retained to provide strength in order to serve our customers through agriculture’s ups and downs. The rest is returned to our customer-owners. HOW IT’S CALCULATED The cash patronage distribution is based upon the average daily balance of your loan(s). For example, with a patronage distribution of 1%, as paid out for 2020, and an average loan balance of $500,000, you would receive a cash distribution of $5,000. WHY NOT REDUCE INTEREST RATES UP FRONT? For two reasons: one, because federal regulations prohibit us from charging below-market interest rates. And two, as a cooperative, ensuring we maintain our financial strength year after year positions us to serve our customers going forward, regardless of the ups and downs of their industry. DISTRIBUTION Cash Patronage is distributed to customers via ACH direct deposit to the external account of their choice. The payment is delivered at the beginning of the following year. For example, patronage for 2020 is based on average loan balance in 2020 and paid at the beginning of 2021. ARE CASH PATRONAGE DISTRIBUTIONS TAXABLE? Yes. Cash patronage distributions are taxable as earnings and we’ll send you an IRS Form 1099-PATR for each year patronage is paid. Consult your tax advisor about your specific situation. PATRONAGE PAID OUT SINCE 2015 (IN MILLIONS) Year | Total Paid (in millions) Branch Locations Insurance Agent Locator Loan Inquiry Calculate Your Payments Privacy & Compliance Fraud & Security Contact Us Careers Accessibility Site Map Whistleblower Program Board Elections ©2021 American AgCredit TOP