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Patronage Dividends

Patronage: Sharing Our Earnings with our Customers

Lone Star Ag Credit is a customer-owned lending cooperative. That means our borrowers are also owners who have the opportunity to share in our earnings through an all cash patronage dividend. We believe in giving back to the valued customer-owners who make our success possible.

Patronage Dividends

We’re pleased to advance a portion of our expected 2020 patronage distribution to eligible borrowers this fall.

$20.3 & $19.5M

patronage distributions on 2018 & 2019 earnings, the two largest distributions in Lone Star’s history


total distribution returned to borrowers since 2000


reduction of the effective interest rate paid by each borrower in 2018 & 2019


offices covering 48 counties throughout north and central Texas

How Does Patronage Work?

Part of our mission and tradition is the paying of a patronage dividend. Every year, Lone Star Ag Credit’s board of directors reviews the Association’s financial health and determines our ability to pay a cash dividend to eligible stockholders through our patronage program – typically in the spring. Other remaining earnings are retained as capital to keep our Association strong for the future.

This year’s robust patronage distribution. 

We are extremely pleased that in the spring of 2020, Lone Star Ag Credit paid an all cash patronage distribution on 2019 earnings equivalent to 150 basis points on average. This distribution reduces the effective interest rate paid by each borrower in 2019 by an average of 1.5 percentage points. This strong distribution of $19.5 million is a great indication of Lone Star’s continued financial health and commitment to our stockholders.

We’re also very happy to advance a portion of our expected 2020 patronage distribution to eligible stockholders this fall. It’s our way of supporting our owners during difficult COVID-19 times. This latest cash patronage distribution totals approximately $7 million and is an advance payment of patronage from our 2020 estimated net earnings.

With this distribution, Lone Star Ag Credit will have returned $148.5 million to our customer-owners since 2000!

People, Products and Patronage

Hear Senior Regional President Justin Wiethorn discuss these three keys to Lone Star’s business

Patronage FAQS

Lone Star Ag Credit is a cooperative. Therefore, everyone who obtains a loan through the Lone Star Ag Credit becomes an owner of the Association through the purchase of stock equal to 2 percent of their loan amount or $1,000.00, whichever is less. Funds for the stock can be included in the loan. Ownership of this stock gives you the right to participate in the business affairs of the Association, including election of the board of directors.

Traditionally, borrowers receive patronage refunds and/or dividends, which are paid into their interest-bearing Funds-Held Account. The Funds-Held Account is typically applied to the loan balance, thus further reducing the cost of borrowing for customers.

Lone Star Ag Credit follows the fundamental cooperative principle of sharing its earnings with its customer-owners in the form of patronage when it does well. Thus, a patronage refund is a distribution of the Association’s earnings — minus net expenses and necessary reserves — made to the cooperative’s stockholders. The board of directors determines annually if the Association will pay a patronage refund and the total amount of that refund.

Ownership of voting stock may make you eligible to receive patronage refunds based on business done with the Association or dividends based on the number of shares of voting stock or participation certificates you hold. This will take place when the Association board, at its sole discretion and upon review of the Association’s financial performance, declares a dividend or patronage distribution.

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