It may sound like a cliché, but now, more than ever, it really does pay to do business with American AgCredit. In addition to our 100% focus on agriculture, competitive rates, agri-business expertise and local customer service, the Cash Dividends Program literally puts money back in your pocket.
As part of the Cash Dividends Program, American AgCredit will distribute cash dividends to qualified customers based upon the strength of the Association’s performance and the level of each customer’s “patronage”.
The Association has distributed more than $180 million
dollars in the cash dividend program since its
inception in 2006. Individual dividends were based
on the average daily balance of each qualified
customer’s loans during the year relative to the total
balance of all loans. At American AgCredit, the more
business you do, the more money you make.
Cash Dividends are a way of allocating a portion
of American AgCredit’s net income to its member
At the end of each fiscal year, American AgCredit’s
Board of Directors determines whether to distribute
some or all of the Association’s net income after all
expenses have been paid.
The Board can either elect to retain the net income to
strengthen the Association’s capital position or
distribute the net income in the form of a cash dividend.
All borrowers who own capital stock in the
Association qualify to receive cash dividends.
However, the Board of Directors may exclude certain
customers such as those with loans in default.
The Board of Directors determines how much cash
dividend-sourced earnings can be distributed while
still retaining adequate surplus to fund future growth.
Your cash dividend is based upon the average daily
balance of your loan(s) as a percentage of the total
loan balances owned by the Association. For example,
if you borrow $500,000 for the year and the balance
of all loans owned by the Association was $2 billion,
you would receive .025% ($500,000/$2 billion) of
any qualified cash dividend.
If the Board approves a cash dividend, your cash
dividend will be paid by check early in the following
year based on the prior year’s earnings. Checks may be distributed
anytime after February but before September 15th.
While the earnings distributed as cash dividends are
tax exempt to the Association, members receiving
cash dividends must pay taxes on their cash dividends
as earnings. Consult your tax advisor about your
Yes. Each January, American AgCredit will send you
an IRS Form 1099-PATR. This form will show the
total for all cash dividends issued to you during the
Cash dividends reduce the Association’s tax liability
on that portion of net income distributed as cash, which
means that customers share in more of the Association’s
earnings. Customers further benefit from the cash
dividends they receive, which effectively reduce their
For two reasons; one, because federal regulations
prohibit us from charging below market interest rates,
and two, because our ability to generate earnings is a
critical measure of stability and enables us to offer the
most competitive rates and services.
Yes, simply request this from your loan officer and return the check to
American AgCredit. Dividend amounts of $25 or less are automatically applied
to the outstanding loan balance.
Still have questions? Contact us at
(800) 800-4865 or firstname.lastname@example.org
to learn how you can enjoy the most competitive rates
possible and cash dividends on your loans.
American AgCredit is more than just our bank,
they are our partners. The Cash Dividend Program
further serves to reinforce that sense of partnership.”
– Laurence Sterling, Iron Horse Vineyards
“For those of us who have been with American AgCredit
for many years, through good and bad cycles, this
Patronage represents a much appreciated dividend.”
– Bill Pauli, Pauli Ranch
“In the 25 years that we’ve been customers, American
AgCredit’s rates and service have been unbeatable,
and now with cash dividends, it makes more sense
than ever to do business with them.”
– Dave Stix, Stix Cattle Co.
“I like that American AgCredit is local, that the staff knows
me and my business personally and that their Cash Dividend
program allows us to share in their financial success.”
– Richard Bass, Bass & Bass Ranch
“We really appreciate that American AgCredit has
the financial stability to maintain good rates and
provide us with a cash dividend.”
– Tony Ott, Carl Ott & Sons Dairy