May 3, 2023
Texas Farm Credit is returning a record $20 million in cashback dividends to its customers this year, marking it’s 25th consecutive year of declaring patronage. Approximately 4,500 checks are going out to members across the 100-county territory.
Patronage lowers borrowing costs by refunding a portion of the interest paid the previous year – a unique benefit of the cooperative business model. On average, a Texas Farm Credit borrower who had a 5.0% interest rate in 2022 effectively paid 4.0% as a result of this patronage dividend.
“The team at Texas Farm Credit continued standing tall with our customers in 2022, which was a year of unique challenges driven by market, environmental, and supply chain events,” said Mark Miller, Texas Farm Credit chief executive officer. “Many customers needed new levels of support and our experts rose to the challenge, helping our members with short-term needs with a view to long-term success. These numbers reflect that, and we’re grateful for the opportunity to help.”
Texas Farm Credit’s earnings totaled $46.8 million in 2022, a record year for net earnings surpassing 2021 earnings by nearly 3%, their previous best year. It exceeded the financial projections in its business plan by more than $3.7 million. The lending co-op finished the year with $2.3 billion in assets and its highest new loan volume ever. Credit quality remained strong, with 98.4% of loans classified as acceptable or special mention.
Also in 2022, the rural lending co-op distributed $21.1 million in cash to its customers: a portion of its 2021 earnings in April, followed in December by earnings that had been retained as capital in 2014 to fund growth.
Texas Farm Credit is an agricultural lending cooperative that provides competitive rates, flexible terms, and personal service to farmers, ranchers, rural residents, and agribusiness firms from the Red River to the Rio Grande Valley. Not only does Texas Farm Credit finance a wide range of farming and ranching operations, it also offers home and rural real estate mortgage loans, as well as provides a variety of insurance services to its members. Headquartered in Robstown, Texas Farm Credit serves 100 counties and is part of the Farm Credit System, a nationwide network of rural lending co-ops established in 1916.
For complete financial reports and other information, visit www.TexasFarmCredit.com.