This year, our Board voted to increase our cash patronage distribution to a full 1%, resulting in a record $86 million cash back to you, our loyal customers. That’s $26 million more than last year.


We’ve paid out more than $500 million to our customers since 2005.

How it Works

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.

At the end of each fiscal year, our Board of Directors assess the total income of the cooperative. They forecast our future financial needs and determine how much of our earnings should be retained to provide strength in order to serve our customers through agriculture’s ups and downs. The rest is returned to our customer-owners.

How it’s Calculated

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 2018, and an average loan balance of $500,000, you would receive a cash distribution of $5,000.

Why Not Reduce Interest Rates Up Front?

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.


Customers may elect to receive a check or have the amount applied directly to their loan balance.

Are Cash Patronage Distributions Taxable?

Yes. Cash patronage distributions are taxable as earnings and we’ll send you an IRS Form 1099-PATR for each year patronage is paid. Consult your tax advisor about your specific situation.


2014 - $39.0 – 0.75% | 2015 - $43.5 – 0.75% | 2016 - $50.2 – 0.75% | 2017 - $59.8 – 0.75% | 2018 - $86.2 – 1.0%
Year | Total Paid (in millions) | Percentage Paid