Patronage That Pays
Cooperative Returns Program
We're a cooperative, meaning our borrowers are also owners and share in our profits. A portion of profits are returned through our Cooperative Returns program, with benefits that include:
- A return of your share of the earnings
- Reduction of your borrowing cost
- Allocated equities recorded in your name for future disbursement consideration
Patronage Calculator
* Calculations based on as if the loan was made January 1, 2024.
The Association has consistently made capital distributions in each of the last several years. However, past distributions should not be construed as potential future distributions. Each year, the Association's board of directors will make a decision regarding capital distributions after evaluating the Association's total capital and overall financial condition.
Information provided above is for informational purposes only. Actual patronage dividends may vary.
How does it work?
A portion is distributed to eligible borrowers as cash in the spring. The remainder is reinvested back into the cooperative in what we call allocated equities accounts. As conditions allow, our board of directors will elect to return a portion of these accounts each year, usually in the fall.
How much can you receive?
What are cooperative returns?
What determines how much a borrower can receive?
How do cooperative returns benefit customers?
How do cooperative returns benefit the cooperative?
Is the cooperative returns program sustainable?
What sets Capital Farm Credit's cooperative returns program apart?
We’re one of few Farm Credit Associations that allocates nearly all of our earnings to members. Since 2006, the total cooperative return represents roughly 90% of the earnings during this period. Allocating equity with the intent to retire it at a future date allows the cooperative to return earnings to our members at this level.
Based on our solid financial results in 2024, our board of directors approved a total of $189.6 million in cooperative returns to our members. We distributed $111.5 million in cash this spring and set aside an additional $78.1 million in allocated equities for members until it is eligible for disbursement.
Cooperatives are formed by members to offer services that benefit or enhance their operations. As an extension of their operation, Capital Farm Credit puts the resources our members give us — their capital to use for their benefit. We return some of that capital in a cash distribution each year, and allocate some as non-qualified equities to retain for a period of time to capitalize the association. As a healthy cooperative grows, it generates new capital and is able to retire older capital from previous years.
Capital Farm Credit allocates (or puts a name on) its earnings, and they are called non-qualified allocated equities. By allocating these earnings, when a borrower pays off his or her loan, those allocated earnings rightfully belong to that member, and we will make every effort to pay it to them in the future.
Not every cooperative allocates its earnings. If earnings aren’t allocated, then a cooperative can use that capital, and never rightfully return it to the patron who contributed to those earnings. We believe customers shouldn’t have to capitalize the association after they cease to be members. That’s why we retire allocated equities as we are able, and distribute to members in cash.