The board of directors of Lone Star Ag Credit, a rural financing cooperative, recently approved the payment of a record $20.3 million cash patronage refund to its member-borrowers, based on its solid earnings in 2018. Checks will be mailed to customers in late March.
As a customer-owned cooperative, Lone Star Ag Credit provides its members with agricultural and rural financing at competitive rates, and also returns surplus earnings to them after it has met its needs for a strong capital base. This record patronage — the largest in the co-op’s history —reduces the effective interest rate paid by each borrower in 2018 by an average of 1.5 percentage points.
“We are pleased that our cooperative has the financial strength to provide this all-cash patronage refund to our customers, who collectively own the business,” said Bill Melton, Lone Star Ag Credit interim chief executive officer. “This year’s distribution will increase the total amount of patronage Lone Star has paid to member-borrowers since 2000 to $122 million.”