Frequently Asked Questions

What is patronage?

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.

How does patronage work?

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.

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.

Who is eligible for patronage?

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.

Who will receive the patronage distribution?

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.

How much in patronage will AAC distribute to its customers this year?

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

How is patronage 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 2022, and an average daily loan balance of $500,000, you would receive a cash distribution of $5,000.

When and how will patronage be distributed?

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.

Is patronage taxable income? When will I receive a tax document?

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.

When will I receive my 2022 patronage payment?

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.

What is the breakdown of my patronage by loan?

Please contact your Relationship Manager or our Customer Support Team at 800-800-4865 or

Who can I contact if I have questions about my patronage?

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


What if I need to change the account for my ACH deposit?

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.

Will American AgCredit be handing out any patronage checks in 2023?

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.

What happens if I typically have my payment made directly to my loan?

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.

When do I need to cash my check by?

Your check must be cashed by May 31, 2023.

Where will my check be mailed?

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.

What do I do if I lose my check?

Please contact Customer Support at 800-800-4865 or before May 31, 2023.

For accounts with multiple signers, who is patronage made payable to and can that be changed?

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

Can patronage be split into multiple checks made payable to multiple signers on the loan?

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

Can I change the payee / person who will receive patronage?

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

Can I change the primary borrower on my 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.

Can I deposit my patronage check through mobile check capture via American AgCredit’s mobile app?

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.

For Additional Questions

Contact your Relationship Manager or our Customer Service Team at 800-800-4865 or if you still have questions.



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.