Farm Credit Illinois pays out $40 million in membership patronage distribution

 

[June 11, 2024] 

Nearly 8,000 Farm Credit Illinois (FCI) borrowers receive their share of a $40 million cash patronage distribution this week. In true cooperative spirit, patronage is distributed proportionally based on the net interest margin contribution of each loan. Checks are delivered the week of June 10.

This is FCI’s sixth annual patronage distribution, totaling $206 million declared since 2019. In December, FCI’s Board of Directors declared a $40 million distribution after reviewing 2023 year-end financials and projecting capital and business needs for the coming year.

Cash patronage returns a portion of the interest accrued during the previous year. The $40 million cash patronage distribution lowers effective interest rates across the entire loan portfolio on average by 1%.

“Patronage is a tangible tribute to the diligent work and disciplined management our member-borrowers practice – especially during times of volatility and unpredictable economic challenges,” says Aaron Johnson, FCI President and CEO. “This week celebrates the value of cooperative membership and demonstrates FCI’s mission of Helping Farm Families Succeed.”

About Farm Credit Illinois

Farm Credit Illinois (FCI) is an agricultural financial cooperative owned by 18,900 farmer, rural landowner, and agribusiness voting stockholder members in the southern 60 counties of Illinois. Dedicated to Helping Farm Families Succeed, FCI provides competitive and flexible financing, crop insurance expertise, and Rural 1st® country life lending. FCI manages a $6 billion loan portfolio, sells 1.5 million acres of crop insurance coverage, and employs 280 staff in the Mahomet headquarters and 14 regional offices. The Association returned $40 million of 2023 earnings as cash patronage to member-borrowers in 2024. The U.S. Farm Credit System is a network of locally owned cooperatives supporting rural communities, farm families, and agriculture with reliable, consistent credit and financial services today and tomorrow.

[Rachel Hartman
Communication & Content Specialist]