$10.1 Million in Patronage: A Year of Shared Success at Farm Credit of Central Florida

This year’s $10.1 million patronage return is more than a number. It is proof of what a cooperative model can deliver. When our organization performs well, that success flows directly back to the people who make it possible, our members!

As a member owned lender, Farm Credit of Central Florida is built to support agriculture and rural communities for the long-term. Rather than sharing earnings with outside shareholders, we keep capital working close to home. From operating and equipment loans, to land, agribusiness, and rural living, our role is to bring local insight, perspective, and steady financing so members can focus on what matters most. This approach is shown through patronage, where shared success becomes tangible and measurable.

Financing Options for Farmers, Ranchers, and Rural Communities in Central Florida

Members rely on Farm Credit of Central Florida for financing designed around the unique needs of Florida agriculture and rural businesses. If you’re seeking agricultural loans in Central Florida, we offer financing for:
•    Farm operating loans 
•    Farm real estate loans 
•    Equipment loans and leasing 
•    Land loans 
•    Rural home loans 
•    Construction loans 
•    Agribusiness financing 
•    Crop insurance and risk management services
•    Financing for young, beginning, and small (YBS) farmers and ranchers

What Is a Patronage Refund, and Who Is Eligible to Receive It?

Since we are owned by our members rather than outside shareholders, earnings may be returned to eligible members following a strong financial year. These refunds are generally tied to how much business a member conducts and are designed to recognize participation while keeping dollars invested in agriculture and rural communities.

Members who may be eligible for a patronage refund typically include:
• Member Status: You must be a member-owner, you make a minimum investment in the cooperative of $1,000 or 2% of your loan, whichever is less.
• Loan Type: Generally, loans for agricultural production (crops, livestock), timber, and agribusinesses are eligible, while certain home loans or leases are excluded.
• Performance: The loan must be in good standing (performing). Loans in default, non-accrual, or subject to legal collection at year-end typically do not qualify.
• Positive Contribution: The loan must contribute to the association’s income as determined by financial records.

Cooperative Lender vs. Traditional Lender: Key Benefits

How a $10.1 Million Patronage Return Creates Value for Members

A $10.1 million patronage return is a big deal. It demonstrates Farm Credit of Central Florida’s financial strength, prudent decision making, and commitment to a member focused structure. That strength translates into real, practical benefits for members by providing added flexibility they can use to support operations, manage cash flow, and plan for future needs. So, what can member-borrowers do with their patronage check?
• Prepare for land improvements and long-term goals: Use funds for fencing, drainage, irrigation, or future property plans.
• Invest in equipment and improvements: Upgrade or replace machinery, tools, or technology to improve efficiency.
• Cover operating and seasonal costs: Help manage expenses like seed, feed, fertilizer, fuel, or labor during peak seasons.
• Set aside funds for weather and market conditions: Provides peace of mind when conditions don’t go as planned.

FAQ: Understanding Patronage Refunds and Cooperative Membership

Are cooperatives only for large organizations or big farms?
No. Farm Credit of Central Florida serves a wide range of members, including small and mid-sized farms, agribusinesses, rural property owners, and individuals who are not farmers or ranchers. Membership is based on eligibility and participation, not the size or type of operation.

How is a patronage refund calculated?
Patronage refunds are set by the Board of Directors on an annual basis. The amount received by a member is directly correlated with the amount of business a member does with Farm Credit of Central Florida. Click here to see patronage explained in 90 seconds.

What happens to patronage if I pay off my loan?
If you pay off your Farm Credit loan, future patronage related to that loan ends because patronage is based on having an active loan balance. Since patronage is calculated using the average daily balance of eligible loans, paying off the loan removes the basis for future patronage distributions.

Is patronage taxable?
Yes, Farm Credit patronage dividends may be taxable, depending on how the refund is issued and the member’s individual tax situation. Members should consult a tax professional to understand how patronage applies to their specific circumstances.

Why not reduce interest rates up front?
Offering market rates up front allows Farm Credit of Central Florida to maintain long term financial strength so that the cooperative can continue serving members consistently, even through industry and economic cycles.

Which counties does Farm Credit of Central Florida serve?
Farm Credit of Central Florida proudly serves agricultural and rural communities in Brevard, Citrus, Hernando, Hillsborough, Lake, Orange, Osceola, Pasco, Pinellas, Polk, Seminole, Sumter, and Volusia counties.

The Cooperative Difference

A $10.1 million patronage return reflects a year of shared success at Farm Credit of Central Florida. Behind every number is an operation, a family, or a business moving forward, and our role is simply to help make that possible. From operating and equipment loans or support for land, agribusiness, and rural living, we work alongside you as you take the next steps.