Farm Credit of the Virginias, a cooperative lending institution serving Virginia, West Virginia and western Maryland, announced it would return $45 million to its’ customer-owners in April through its patronage dividend program.
Due to Farm Credit of the Virginias’ cooperative framework, the association returns a portion of its profit back to customer-owners on an annual basis. As a result of their continuing strong financial performance and desire to issue the greatest possible return, especially during challenging times, the association will deliver a record-breaking $45 million in patronage dividends back to their customer-owners.
The patronage program effectively lowers the cost of borrowing from Farm Credit of the Virginias. This year’s $45 million distribution equates to having an interest free loan for 6 months and represents approximately 51% of the interest accrued on loans in 2021. Since 2001, the cooperative has returned more than $403 million to its’ customer-owners in April.
“We’re particularly pleased to return record patronage this April to help our customer-owners and their families’ navigate the economic headwinds currently impacting the agriculture industry and our rural communities,” Brad Cornelius, Farm Credit of the Virginias CEO, said. “We’re committed to being here for our customer-owners when they need us, and as they need us. Patronage dividends are our way of saying we’re here and we’re going to keep working to make sure that we’re always here, through good times and bad. Patronage is just one of the many benefits of doing business with a customer-owned cooperative.”
Farm Credit of the Virginias provides over $2 billion in financing to more than 11,000 farmers, agribusinesses and rural homeowners throughout Virginia, West Virginia and western Maryland. Farm Credit is a cooperative capitalized largely through investments made by farmers, ranchers and the rural homeowners and businesses that borrow from them. In fact, as part of a nationwide network they are the largest single provider of agricultural credit in the United States and have been for over 100 years. Farm Credit helps maintain and improve the quality of life in rural America and on the farm through its constant commitment to competitive lending, expert financial services and for facilitating and sharing knowledge and resources through the Farm Credit Knowledge Center. For more information, visit www.FarmCreditofVirginias.com.