Returning profits to customers
As a stockholder of AgWest Farm Credit, you may be eligible to share in the profits of the cooperative through our patronage program.
AgWest’s profits are returned to the customer-owners we serve – farmers, ranchers, timber producers and commercial fishermen -- as patronage dividends, significantly reducing total borrowing costs.
At each fiscal year-end, the Board of Directors evaluates whether to retain AgWest’s net income to strengthen our capital position or to distribute a portion of the net income to customers by declaring a qualified/cash patronage dividend.
Cash patronage is allocated among stockholders based on their eligible average daily loan balance and paid out during the first quarter of the new year for the previous calendar year. Assuming the association meets its financial goals and other factors do not adversely impact the association, the board’s objective is to annually declare cash patronage of 1.25 percent of a customer's eligible average daily loan balance.
The total amount of cash patronage declared is a direct reflection of the financial strength of the association. Prior to being established as AgWest Farm Credit on January 1, 2023, the two associations that merged, Farm Credit West and Northwest Farm Credit Services, each distributed cash patronage to customers equal to 1.25% of eligible average outstanding loan balances in 2021. Qualified/cash patronage distributions are intended to reduce our customers’ interest costs. It’s an extension of our commitment to the food, fiber, timber and fishing industries we serve and a significant financial advantage for our customers.
If you’d like more information about our patronage program, visit our financial highlights page to view annual reports for Northwest FCS and Farm Credit West. You can also review annual reports for the Federal Farm Credit Banks Funding Corporation, the disclosure agent for the Farm Credit System.
If you have questions about our Patronage program, contact your local branch or a member of your lending team.