By Andi Anderson
Farm Credit Illinois (FCI) recently disbursed $40 million in cash patronage to nearly 8,000 borrowers, continuing its tradition of returning profits to its members.
This patronage distribution is based on each member's contribution to the net interest margin, reflecting the cooperative spirit of FCI. Checks were delivered the week of June 10, 2024.
This marks FCI’s sixth annual patronage distribution, totaling $206 million since 2019. The decision to distribute $40 million was made by FCI’s Board of Directors after reviewing the 2023 financials and projecting future capital and business needs.
Patronage is a significant benefit for FCI members as it returns a portion of the interest accrued during the previous year. This $40 million distribution is expected to lower effective interest rates across FCI’s loan portfolio by an average of 1%.
In the words of Aaron Johnson, President and CEO of FCI, "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.
This week celebrates the value of cooperative membership and demonstrates FCI’s mission of Helping Farm Families Succeed."
The distribution of patronage underscores FCI’s commitment to supporting its members and fostering a cooperative community in agricultural finance.
It highlights the importance of shared success and mutual support among farm families, particularly in navigating economic uncertainties.
Photo Credit: gettyimages-d-keine
Categories: Illinois, General