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January 16, 2024
Citing high interest costs, softer pricing for many commodities and myriad harvest challenges, Fresno Madera Farm Credit has announced a record distribution of $19.4 million in cash patronage to its member borrowers.
This year’s distribution represents 1% of each member’s average daily borrowing in 2023 and reflects the board’s understanding of the current economic landscape, according to a FMFC release.
“It's not just about providing financial relief,” board Chairman Jeff Yribarren said. “It's a decision that demonstrates our understanding of the many challenges that came with higher interest costs, and other pressures that reduced the profitability of many of our members.”
A patronage dividend is a refund that a cooperative distributes to members as a share of its profits, SmartAsset Advisors, LLC explains. Unlike a regular stock dividend, a patronage dividend isn’t a return on investment; instead, it’s a rebate on the member’s purchases from the co-op during the previous fiscal year.
Founded in 1917, Fresno Madera Farm Credit is part of the national Farm Credit System.
Source: Fresno Madera Farm Credit
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