Patronage Distribution

Patronage FAQs

American AgCredit is pleased to announce we will be moving our Patronage Distributions to electronic ACH direct deposit. Beginning in 2021 a small group of customers will receive their Patronage payment via ACH, with the intention of moving all customers to receive distributions via ACH in 2022.

This change will allow us to provide you with a faster, more secure way of receiving your patronage distribution, along with these other advantages:

  • Safe, secure method of payment
  • Reduction of check fraud
  • Elimination of lost, misplaced, or stolen checks
  • Improvements in timing and certainty of payments, with no wait for paper checks to be delivered in the mail and then taken to a bank for deposit
  • In the event we are unable to do business in person we are still able to get you your patronage distribution.

Enrollment and General Questions

What will be the process to enroll in ACH for Patronage?

As of January 1, 2021, all new customers will be required to complete a Patronage Designation Authorization form when they sign up for a new loan. New customers will receive the form with their first set of loan documents and will be set up to receive patronage via ACH in 2022.

As of January 1, 2021, all current customers will be required to designate an account for their patronage distribution via ACH transfer in 2022. This will be a gradual process and we will have various ways of collecting the information throughout 2021.

How do I designate an account to receive my Patronage via ACH transfer?

Reach out to your Relationship Manager or Customer Service to request a Patronage Designation Authorization form. Forms may be completed in one of the 4 ways listed below:

  • With your next Loan or Renewal documents
  • DocuSign – You can request this from Customer Service, Operations, or your Relationship Manager
  • Online at – Pilot Customers and Customers receiving a patronage payment in 2021
  • Mail-in – Paper forms are available but may delay processing.

How long does the ACH enrollment process take?

The entire process takes about 5 minutes, this includes completing the form online or with your loan documents.

Are all customers required to receive patronage via ACH?

Yes, however, the change will be gradual as we receive designations for each customer.

A small group of customers will receive patronage via ACH in 2021. All other customers will receive patronage via check in 2021.

All new customers as of 1/1/2021 will receive patronage vial ACH in 2022.

All current customers with a new loan or renewal, after 1/1/2021, will receive patronage via ACH in 2022.

We will invite all 2021 customers who were paid patronage via check to complete the online designation to receive patronage via ACH in 2022.

We will have a campaign in the summer of 2021 to identify any customers who have not yet completed a Patronage Designation Authorization and request the designation be completed at that time.

Documentation Questions

Are we able to use the Patronage Designation Authorization interchangeably with the ACH or Easy Pay agreements?

No, customers must complete the Patronage Designation Authorization to designate the account on which they are the signer and wish to receive patronage funds.

We are not able to use the ACH/Easy Pay form for patronage designations, and vice versa, as the legal language on each form is specific to the use of each account/document.

How should the DocuSign form be processed as it may require 2 signatures?

  1. Determine if the entity requires more than one signature for documentation per the customer’s entity documents OR the financial institution’s requirements on deposits.
  2. If more than one signer is required, setup both signers on the DocuSign prior to sending OR use the dual signer form on

What information do I need to complete the Patronage Designation Authorization?

  • Photo ID (valid Driver’s License or Passport) – A valid photo ID is required for identity verification purposes
  • Tax ID number associated with the Primary Borrower’s account
  • Bank Account Information
  • Additional signers as needed – Two signers may be necessary according to your entity documents or depository account requirements. If two signers are required, please use the Dual Signer form or notify your Relationship Manager who the additional signer may be.

How do I know if my account information is received and accurately entered?

No matter how you complete the Patronage Designation Form, you should receive a completed copy of the form, showing the account information you specified as the deposit account. (If completed online, you will receive the completed form via email. If completed with a new loan or renewal, you will receive it with your loan documentation.) If you have any concerns or did not receive a copy of your designation, please contact your Relationship Manager or Customer Service.

Payment Methods and Details

What if I don’t have an external bank account to receive my patronage via ACH?

It will be an exception for a customer to not use an external bank account.

In the unlikely circumstance where the customer does not have an external bank account, we are able to set up or use the CCA (Customer Convenience Account) information associated with their RLOC as the ACH account, applying the patronage payment directly to the principal on the RLOC.

If the customer is using their RLOC as their patronage account, a Funds Held account must also be available in the event that the patronage amount exceeds the principal balance of the RLOC.

Will ACC be handing out any patronage checks in 2021?

Unfortunately, due to Covid-19 and the need to keep customers and employees safe, we will not be handing out checks in 2021. Our goal for 2021 is to get as many customers signed up for patronage distributions to be made via ACH, with the intention of paying all customers’ patronage via ACH in 2022. This does not mean that we cannot engage with customers, but that we will do so virtually in 2021 and reassess in 2022.

Can I use my CCA (Customer Convenience Account) as my Patronage Designation account?

No, the only exception to this rule is for a customer that doesn’t have an external bank account. See the question above: What if I don’t have an external bank account to receive my patronage via ACH?

Will AAC allow wires?

Wires will not be allowed.

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 the customer the control and flexibility to move and apply the funds as they wish. For 2021, customers receiving checks can return the unendorsed check along with their application instructions to have their patronage amount applied to their loan balance or placed in their Funds Held account. Please contact your local branch for guidance on when and how to do this safely.

In 2022, we will send the patronage distribution via ACH and you can move it to your loan.

What needs to happen if I need to change the account number or financial institution?

We ask that you complete a new Patronage Designation Authorization form. These can be requested from your Relationship Manager or our Customer Service Team at any time.

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