Patronage FAQs

Patronage is a percentage of the average daily loan balance a cooperative, like American AgCredit, returns to its customer owners annually. As members of a financial cooperative, our borrowers / customers are also owners and receive this benefit as a member of the Association.

We are pleased to return a portion of our profits to our customer owners. Patronage is a tangible demonstration of the value of ownership in American AgCredit. These cash distributions are indicative of the value we place on our customer owners and their business and are indicative of the excellent financial health of our organization.

Due to our structure as a cooperative, American AgCredit borrowers are more than just customers. They’re customer owners, members of the cooperative. As well as having a voice in how we operate, they are entitled to share in our success through a cash patronage distribution.

Returning patronage to our customer owners is a decision determined by our Board of Directors each year. To make this determination, the Board considers the total eligible income of the cooperative, forecasts our future financial needs and determines how much of our earnings should be retained to provide strength in order to serve our customers through agriculture’s ups and downs.

For two reasons: one, because federal regulations prohibit us from charging below-market interest rates. And two, as a cooperative, ensuring we maintain our financial strength year after year positions us to serve our customers going forward, regardless of the ups and downs of their industry.

In general, eligible patronage recipients include holders of Class C Common Stock and Participation Certificates with or for whom the Association conducts patronage business during the year. Please note certain exclusions apply. Contact your relationship manager with any questions regarding your eligibility for patronage.

Patronage will be distributed to the primary borrower of the account. If the primary borrower is a company, the distribution will be made in the company’s name. For single member LLCs, we are obligated to issue the patronage check only to the primary borrower of record.

American AgCredit will issue a full 1% cash patronage distribution – an estimated $182 million – back to our members for 2022.

The cash patronage distribution is based upon the average daily balance of your loan(s). For example, with a patronage distribution of 1% as paid out for 2022, and an average daily loan balance of $500,000, you would receive a cash distribution of $5,000.

Cash patronage is distributed to customer owners via ACH direct deposit to an external account of the primary borrower’s choice or via mailed check. The payment is delivered the spring of the following year. For example, patronage for 2022 is based on average daily loan balance in 2022 and paid in 2023.

Yes. Cash patronage distributions are taxable as earnings. We will send your IRS Form 1099-PATR for each year patronage is paid no later than January 31 of the subsequent year. In 2023, you will receive a 1099-PATR for the amount of patronage paid to you in Spring 2022. Consult your tax advisor about your specific situation.

ACH payments will be initiated on March 1 for eligible customers. Patronage checks will also be mailed on March 1.

Please note: Eligible customers with participation loans will receive the full amount of combined AAC and participant patronage in April. Letters will be mailed to customers with ACH on April 4 and checks will be mailed or ACH will be initiated on April 17.

Please contact your Relationship Manager or our Customer Support Team at 800-800-4865 or CustomerService@Agloan.com.

Contact your Relationship Manager or our Customer Support Team at 800-800-4865 or CustomerService@Agloan.com if you still have questions.

If for some reason you need to change the account currently on record for your ACH deposit, please contact our Customer Support Team by phone at 1-800-800-4865 no later than February 17, 2023, for standard customers and April 12, 2023, for participated customers.

This year as in the past, customer relationship teams will not be hand-delivering checks to ensure our customers receive their payments efficiently. Customers will receive patronage via ACH or mailed check.

All eligible customers will receive a patronage distribution in the form of cash (either check or ACH), as approved by the Board of Directors. This gives you the control and flexibility to move and apply the funds as you wish. For 2022 patronage, customers receiving checks can return the unendorsed check along with their application instructions to have their patronage amount applied to their loan principal balance or placed in their Funds Held account or deposit the check through mobile check capture. Please contact our Customer Support Team at 1-800-800-4865 for guidance on when and how to do this safely.

Your check must be cashed by May 31, 2023.

We will use the billing address we have on file for the primary borrower. If you need to update your address, please contact our Customer Support Team at 1-800-800-4865 by January 31, 2023.

Please contact Customer Support at 800-800-4865 or CustomerService@Agloan.com before May 31, 2023.

For accounts with multiple signers, the primary borrower will receive the patronage payment. This cannot be changed.

No, the primary borrower will receive the full patronage payment in one distribution.

We cannot change the Payee. Patronage will be sent to the primary borrower listed on the account.

Changing the primary borrower on the account is not a simple process and should not be considered solely for the purpose of patronage distribution.

Customers can use mobile check capture to deposit the patronage check. If a customer is not registered for online banking, please contact our Customer Support Team at 1-800-800-4865.