Farm Credit Services Southwest: Notebook: In The News

When we make money, you make money.

Sort of re-defines “customer service,” doesn’t it?.

Farming and Ranching isn’t like any other business, so why should your lender be like any other bank? At Farm Credit Services Southwest, we’ve been helping farming and ranching businesses of all sizes for more than 90 years. And what’s more, when you get a loan from Farm Credit, you become a member – entitled to your share of the profits. We’ve distributed more than $20.5 million to our members over the last six years. Now that’s putting customers first! .

Borrowers receive $4.2 million in patronage refunds

In April, FCSSW was pleased to return $4.2million to Southwest borrowers across Arizona and California’s Imperial Valley in the form of patronage refunds. Now, once again, your Association is providing a refund to our stockholders for your “patronage.”

In fact, more than 850 farms, ranches and other agricultural businesses received refunds averaging $4,900. That’s a total distribution of $4.2 million, in all cash, with no portion held back for future allocation to members.

FCSSW Patronage Refunds: A Snapshot

2001—$2.5 million

2003—$3.2 million

2004—$3.3 million

2005—$3.5 mllion

2006—$3.8 mllion

2007—$4.2 mllion

Total to date:
$20.5 million

Note: In 2002, FCSSW did not pay patronage so we could capitalize our very strong loan growth of 16 percent.

FCSSW’s goal is to offer members a share in the success of the cooperative. Refunds are based on two criteria for 2006: our financial performance and the amount of interest paid by members. The $3.8 million is close to 10 percent of the total interest paid to our association.

2007 was a strong year for our association, so we were very pleased that we were able to provide such a generous refund to our members. On average, the refund effectively reduced member loan rates by one-half of a percentage point.

Of course, patronage is a value-added benefit, available only when the Association’s earnings exceed its capital needs. You can be assured that our Board and management’s goal is to pay patronage whenever it will not jeopardize the financial condition of your Association.

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