About Us

Cash Patronage Distribution

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 2020, 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.


Cash Patronage is distributed to customers via ACH direct deposit to the external account of their choice. The payment is delivered at the beginning of the following year. For example, patronage for 2020 is based on average loan balance in 2020 and paid at the beginning of 2021.

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.

Patronage Paid Out Since 2015 (in Millions)

 | 2019 - $115 – 1.0%
Year | Total Paid (in millions)