FCSAmerica distributes $2.2 million Farm Credit Services of America (FCSAmerica) customers in the Yankton and Sioux City, IA areas, which includes Bon Homme, Charles Mix, Clay, Hutchinson, Turner, Union and Yankton counties in South Dakota, Cedar, Knox, Dakota, Thurston and Dixon counties in Nebraska and Plymouth, Woodbury and Monona counties in Iowa, are receiving cash patronage refunds totaling approximately $2.2 million this month.
The cash patronage refund for all eligible FCSAmerica customers in Iowa, Nebraska, South Dakota and Wyoming totaled over $50 million.
FCSAmerica's 2004 patronage program is based on 0.75 percent of an eligible customer's 2004 annual average loan and lease balance.
For example, eligible customers with an average loan and lease balance of $100,000 in 2004 would receive $750 in cash. This patronage is different from many cooperative patronage plans that allocate patronage "on paper" but don't distribute cash for many years after the fiscal year.
"Offering patronage is one more great reason why producers should do business with Farm Credit Services of America," said Paul Folkerts, board chairman. "We've had a remarkable year because of the success of our customers and the dedication of our teams. It's because of this commitment that we are now able to offer patronage."
Farm Credit Services of America board intends to pay cash patronage to eligible customers every year. The FCSAmerica board has already approved a patronage program for 2005. The 2005 program will be based on each eligible customer's contribution to FCSAmerica's net interest income and related fees.
The more loan and lease business a customer has with the organization, the more they will benefit, financially, from patronage. The board will determine the amount of cash patronage each December when financial results for the year are available.
With 60,000 customers, assets of more than $8 billion, and a patronage program, FCSAmerica is one of the largest providers of credit and insurance services to farmers, ranchers, agribusiness and rural residents in Iowa, Nebraska, South Dakota and Wyoming. Learn more at www.fcsamerica.com.