PATRONAGE PROGRAM Supporting Our Customers in Good Times and Bad In summer 2020, as the initial shutdowns began significantly impacting Farm Credit West customerowners, the Association’s Board of Directors voted in late June to distribute a mid-year patronage dividend to qualifying borrowers. The dividend was a partial advance payment of the 2020 end-of-year distribution and was a first in the patronage program’s
$1,014,000,000
18-year history.
Total cash dividends paid since 2002
“Everybody was just trying to hold on [at that time],” said Farm Credit West Board Chair, Sureena Bains Thiara. “This was in alignment with what we’ve always done — stick with our borrowers through thick and thin.” Building on that momentum, in December 2020, the Board took another historic vote: to distribute a patronage dividend to customer-owners equal to 150 basis points (bps), or 1.5% of eligible average outstanding loan balances. Distribution of the additional 100 bps cash patronage was planned for February 2021. “The dramatic events of 2020 imposed significant challenges to our customer-owners throughout our chartered service area, none of which could have been anticipated,” Bains Thiara said. “While growers and
18
$79.5/75 BPS
$82.7/75 BPS
$115.7/100 BPS
$122/100 BPS
2019 2018 2017 2016
Patronage Distribution (in millions) & Basis Points (BPS)
2020 $185/150 BPS
agribusinesses are very familiar with managing the
FARM CREDIT WEST | 2020 ANNUAL REPORT
unpredictable, as a member-owned Association we felt it was our duty to do everything in our power to support our customers during these challenging times.” The combined 150 bps patronage distribution for 2020 represents the highest payout Farm Credit West
