FORT WORTH, Texas — Farmers, ranchers and other customers of Lone Star Ag Credit can look forward to receiving financial support from the rural lending cooperative this fall.
“Lone Star Ag Credit will be advancing a portion of our expected 2020 patronage distribution to eligible stockholders at the end of October,” said Joe Hayman, Lone Star Ag Credit chief executive officer. “It’s part of our effort to support our customer-owners in good times and in COVID-19 times.”
The cash patronage distribution will total approximately $7 million. It is an advance payment of patronage from Lone Star Ag Credit’s 2020 estimated net earnings. Each borrower’s share will equal approximately 50 basis points of their eligible average daily loan balance for the first nine months of the year.
“As a cooperative, our business model is based on adding value to our customer-owners,” said David Harris, board chairman. “That model has not changed during this pandemic. In fact, the diversity of our portfolio, our strong capital and earnings levels, and our talented team are what allows us to take this unprecedented action to provide additional financial support through patronage.”
As a lending cooperative, Lone Star Ag Credit returns surplus earnings to its customer-owners. At the end of each year, the board determines how much income is required for capital needs. Then it distributes the remainder as patronage to its borrowers, as determined by their loan balance during the prior year.
Last March, Lone Star Ag Credit distributed $19.5 million in patronage to customer-owners based on its strong financial results in 2019. After distributing this advance patronage for 2020, Lone Star will have returned $147.5 million in patronage to borrowers over the past two decades.
With approximately $1.9 billion in assets, Lone Star Ag Credit provides financing for rural land, country homes, agribusinesses, livestock, agricultural equipment and operating expenses. The rural lender is headquartered in Fort Worth and has credit offices in Abilene, Cleburne, Corsicana, Denton, Fort Worth, Georgetown, Hillsboro, Lampasas, Mount Pleasant, New Boston, Paris, Sherman, Stephenville, Sweetwater, Waco and Weatherford.
For more information, contact a local Lone Star branch office or visit LoneStarAgCredit.com.