Texas Farm Credit Distributes $20.9 Million to Stockholders

Texas Farm Credit is returning $20.9 million in cashback dividends to its customers this year, marking its 26^th consecutive year of paying patronage. Over 4,200 checks are going out to members across the 100-county territory.

Patronage lowers borrowing costs by returning a meaningful portion of earnings to members – a unique benefit of a cooperative business model. On average, a Texas Farm Credit borrower’s effective interest rate is 1.00% lower than the contractual interest rate after consideration of this patronage dividend.

“We are thankful for our loyal members and dedicated staff. The cooperative experienced much success in 2023, in spite of persistent inflation and elevated market interest rates that negatively impacted the agricultural sector and lending activity.” said Mark Miller, Texas Farm Credit chief executive officer. “Our members remain the focus of Texas Farm Credit’s strategic vision. We look forward to continuing to provide them with reliable credit and financial services to help achieve their goals.”

Texas Farm Credit’s earnings totaled $46.8 million in 2023, the association’s second highest ever — down just 0.07% from 2022. Net interest income was a record $60.2 million, and members’ equity in the cooperative increased by 8.4% in 2023. Credit quality remained strong in 2023, ending the year with 98.1% of loans being acceptable classed.

Texas Farm Credit, headquartered in Robstown, Texas, is a leading agricultural lending cooperative serving rural communities across 100 counties from the Red River to the Rio Grande Valley. As part of the Farm Credit System, established in 1916, Texas Farm Credit offers competitive rates, flexible terms, and personalized service to farmers, ranchers, rural residents, and agribusiness firms. From traditional agricultural and agribusiness financing to home and rural real estate mortgage loans, along with comprehensive insurance services, Texas Farm Credit is committed to supporting the agricultural community and rural America.