AgFirst announces patronage distribution of $394 million for 2020
AgFirst Farm Credit Bank’s board of directors has approved a total patronage distribution of $394 million for 2020. This record patronage amount is the result of robust earnings achieved in 2020 as the Bank took advantage of historically low interest rates by refinancing debt to lower costs. AgFirst also benefited from relatively stable credit quality despite economic turbulence largely due to the pandemic.
“The AgFirst board and I are very pleased to announce this distribution,” said AgFirst President and CEO Tim Amerson. “This year’s distribution represents a financial boost to our affiliated Associations following a year of unprecedented challenges.”
Patronage is a valuable benefit of membership in the Farm Credit System and its cooperative model because it ultimately reduces the cost of funds and services for the System’s member-borrowers, many of whom are farmers and small business owners keeping the wheels of American agriculture turning.