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Patronage: Sharing Our Earnings with our Customer-Owners

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 announce our 2020 patronage distribution to eligible customer-owners this spring.

$22 Million

in patronage distributions on 2020 earnings, one of the largest distributions in Lone Star’s history

$163.5 Million

total distribution returned to borrowers since 2000


reduction of the effective interest rate paid by borrowers in 2020


offices covering 48 counties throughout north and central Texas

This year’s robust patronage dividend distribution

We are extremely pleased that Lone Star Ag Credit was able to distribute $22 million in patronage dividends on 2020 earnings, equivalent to 150 basis points on average. The all-cash distribution effectively reduces the interest rate paid by each eligible customer-owner in 2020 by an average of 1.5 percentage points.

This record patronage is a great indication of Lone Star’s continued financial health and commitment to our stockholders and was paid out in two distributions. In October 2020, we advanced a portion of our expected 2020 patronage distribution to support our owners during the difficult COVID-19 times. A second patronage payment on 2020 net income was approved for distribution in March 2021.

With this $22 million distribution, Lone Star Ag Credit will have returned $163.5 million to our customer-owners since 2000!

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 customer-owners through our patronage program – typically in the spring. Other remaining earnings are retained as capital to keep our Association strong for the future.

What is a Patronage Dividend?

Financing rural land with Lone Star Ag Credit has great benefits.

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 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 customer-owners. 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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