For the sixth year in a row, our Board approved our cash patronage distribution at a full 1%, an estimated $214 million cash back to you, our loyal customers.

For 19 consecutive years, we’ve been able to return a portion of our earnings to our customers, totaling nearly $1.4 billion.

What it is

Patronage is a percentage of the average daily loan balance a cooperative, like American AgCredit, returns to its customer owners annually.

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. Patronage is a tangible demonstration of the value of ownership in American AgCredit.

How it Works

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 2023, and an average 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 2023 is based on average loan balance in 2023 and paid in the spring of 2024.

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.

View more details and frequently asked questions here.

Patronage Paid Out Since 2005 (in Millions)

Patronage paid up to 2023



AAC systems – including online banking – will be unavailable from Sept. 29 at 8 p.m. MT through Oct. 2 at 9 a.m. MT.

If you require assistance during this time, please call 800-869-6034 for support.