Farm Credit of Central Florida announces a record $9.5 million cash patronage distribution
Farm Credit of Central Florida's Board of Directors announced its distribution of a record $9.5 million in cash patronage refunds to members all across Central Florida. This is the largest amount Farm Credit of Central Florida has ever distributed to Patronage eligible customers through the patronage program. On average, eligible customers received a 1.26% reduction in their interest rate as a result of this Patronage. Due to the record earnings in 2020, an additional 0.26% or 26 basis points above the normal 1% target was able to be paid.
One of the most important financial benefits of being a Farm Credit of Central Florida member-borrower is having the opportunity to share in the association's profits. The distribution of profits to our members effectively reduces the cost of borrowing money, and we know as a farmer-owned cooperative this can make a big difference in their operation. In fact, over the last five years, we have distributed more than $31 million to our member-borrowers through Patronage.
Farm Credit of Central Florida CEO, Reggie Holt had this to say, "With the economic challenges faced by so many as a result of the pandemic, we are proud to be able to return a higher level of Patronage than normal. Farm Credit of Central Florida is there for our agricultural and rural communities through the good times and the bad, and this larger patronage payment is another example of that commitment."
Farm Credit of Central Florida is a member-owned agricultural lending cooperative. Part of the nationwide Farm Credit System established in 1916, Farm Credit of Central Florida provides loans, leases, and crop insurance to farmers, ranchers, growers, and rural homeowners across Central Florida.