LET’S TALK PATRONAGE

PATRONAGE, HOW IT WORKS

When someone borrows money from AgCredit, they become a member of a local cooperative.

P A T R O N A G E D I S T R I B U T I O N S

Members then make payments on their loans, which includes interest based upon competitive market rates.

AgCredit makes a profit from the interest members pay on their loans and from the other financial services offered.

The board of directors, which is elected by the members, looks at AgCredit’s financial position.

Upon determining that the financial position is sound, the board can decide to return a portion of AgCredit’s profits back to the members.

Members receive patronage checks based on the amount of interest they accrued on their loans. This lowers their total cost on the already competitive loans.

LET’S TALK PATRONAGE! HOW DID WE OFFER A 45% RETURN THIS YEAR? LET’S TALK PATRONAGE! HOW DID WE OFFER A 45% RETURN THIS YEAR?

1. Profitability—We were fortunate to achieve a net income of $55.1 million in 2019, including a special $9.5 million patronage distribution from our funding bank, AgFirst. 2. Rate of Loan Growth—Low growth in 2019 meant that the Association didn’t need to retain as much income to capitalize growth. 3. Financial Strength—Being financially sound ensures that we can continue to serve our mission at a high level today and be here for future generations tomorrow. Members received 45 cents back on every dollar of interest paid in 2019. Loan rates were lowered by 45% on eligible loans which is the equivalent of lowering a 5% loan rate to 2.75%. IT PAYS TO BE A MEMBER OF AGCREDIT! WHAT DOES 45% RETURNED MEAN? 1. Profitability—We were fortunate to achieve a net income of $55.1 million in 2019, including a special $9.5 million patronage distribution from our funding bank, AgFirst. 2. Rate of Loan Growth—Low growth in 2019 meant that the Association didn’t need to retain as much income to capitalize growth. 3. Financial Strength—Being financially sound ensures that we can continue to serve our mission at a high level today and be here for future generations tomorrow. Members received 45 cents back on every dollar of interest paid in 2019. Loan rates were lowered by 45% on eligible loans which is the equivalent of lowering a 5% loan rate to 2.75%. IT PAYS TO BE A MEMBER OF AGCREDIT! WHAT DOES 45% RETURNED MEAN?

AgCredit.net

$ 41 Million

AgCredit distributed over $41 million to its members in 2020.

AgCredit.net

610 W. Lytle Street Fostoria, OH 44830 PRSRT STD US POSTAGE PAID COLUMBIA, SC PERMIT 1160

Give Us Your Best Shot! Enter our 2021 Calendar Photo Contest!

Enter up to five photos by completing the online entry form. Contest entry period is now through June 30, 2020. Winners will be notified August 1.

2020 Calendar Contest Guidelines: Ideas include: large and small farm operations, country kids, farm animals, flowers, outdoor landscape scenes, nature scenes, harvesting, sunrises, sunsets, barns, silos, wildlife, classic and/or antique farm equipment, and daily farm life.

The contest is open to all creative work—you don’t have to limit yourself to the ideas above. You may submit new ideas or any combination of the above.

• Who is eligible: Members, employees and their family members are invited to enter our 2021 Calendar Photo Contest. • Photos must be taken within our 18-county AgCredit territory. • Photos must be submitted by the person who took the photos, and each person is eligible for a maximum of two prizes. • All photos must be at least 1 MB in size. • Orientation of photos must be horizontal (landscape). • Please limit your entries to five photos. We will not accept more than five photos per person. • Deadline for submission is June 30, 2020. • All photos, used or unused, become the property of AgCredit.

Cash Prizes Awarded: 1st Place—$100 2nd Place—$75 3rd Place—$50

$25 prize to each of the other nine winning photos. Photos featured on the back will receive a calendar.

Winning entries will be announced and featured in the 2021 AgCredit Calendar, the AgCredit Leader, social media, and our website.

To submit an entry, go to AgCredit.net.

If you have any questions, please contact the marketing department at marketing@agcredit.net