Farm Credit Services Southwest Announces an Increase in Cash Dividends to Borrowers in 2018

 
 

 


Rocklin, CA. — December 20, 2018 – Farm Credit Services Southwest, a wholly owned subsidiary of Farm Credit West, ACA, is proud to announce they will once again be distributing patronage dividends to qualifying member-stockholders as a return on their equity from 2018 earnings subject to approval from the Farm Credit Administration, the Farm Credit System regulator. The planned patronage payment is an increase of 25 basis points (.25%) over the prior years’ rate, totaling an overall payout of 1.00% of average outstanding loan balances.

 



“Our ability to offer a 1.00% patronage dividend payment to customers is a testament to the strength and stability our association has always maintained,” said Joey Airoso, Chairman of the Board of Directors. “As a member-owned cooperative, we take great pride in being able to provide a predictable and durable dividend and in rewarding our member-stockholders for their loyalty.”

 

As owners of a financial cooperative, customers have the opportunity to share in the financial success of the organization through patronage distributions. 



“Our association’s financial success comes from the financial strength of its customers and a highly efficient customer-focused business model,” added Mark Littlefield, President and CEO. “As stewards of our customers’ resources, our patronage program provides an added-value return to our customer-owners and is reflective of the efficient operation of their association.”

 

The cash patronage distribution is paid in addition to the highly competitive loan rates that the association already provides. This unique program reduces the cost of doing business by indirectly lowering borrowers’ effective interest rate.



Farm Credit Services Southwest will begin patronage distributions to customers for 2018 in February 2019.

 

 



One of the West’s leading agricultural lenders, Farm Credit West and its wholly owned subsidiaries are cooperatively-owned lending institutions providing financial services to farmers, ranchers, and agribusinesses. Our offices are located in Arizona and California’s Central Coast, Imperial Valley, South San Joaquin Valley, and Sacramento. The corporate headquarters is located in Rocklin, California. The Farm Credit System is a nationwide network of borrower-owned lending institutions and specialized service organizations created by Congress in 1916.