Texas Farm Credit Distributes $27 Million to Stockholders in Patronage Payouts

Texas Farm Credit is returning $27 million in cashback dividends to its customers this year, marking its 27^th consecutive year of paying patronage following the successful merger with Heritage Land Bank, ACA.

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.

Texas Farm Credit’s earnings totaled $47.9 million in 2024, exceeding the cooperative’s budget by approximately $6 million, underscoring their financial stability and operational efficiency. Members’ equity grew by 41.7% by volume, primarily driven by the effects of the December 1st merger.

“These accomplishments are a testament to the dedication of our employees, the commitment of our board, and the loyalty of our members.” said Mark Miller, Texas Farm Credit chief executive officer. “Looking ahead, we are energized by the potential of our expanded organization. By combining the strengths of Texas Farm Credit and Heritage Land Bank, we are better equipped to serve the diverse needs of our members, innovate in our financial solutions, and support the agricultural and rural industries that are vital to our communities and economy.”

Texas Farm Credit, headquartered in Robstown, Texas, is a leading agricultural lending cooperative serving rural communities across 101 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.

For complete financial reports and other information, visit www.TexasFarmCredit.com.