Farm Credit Announces Patronage Distribution to Members

Horizon Farm Credit recently announced a patronage distribution of over $91 million in cash to its members this year, significantly reducing their cost of borrowing.

“Our unique cooperative structure sets us apart from other lending institutions and allows our member-borrowers to share in the profits of their Association through patronage,” says Tom Truitt, Chief Executive Officer of Horizon Farm Credit.

Horizon Farm Credit was formed through the July 1, 2022 merger of AgChoice Farm Credit and MidAtlantic Farm Credit.  As a result of the mid-year merger, patronage earned during the first half of the year was calculated and distributed separately from that of the new Association. $38.2M in patronage was distributed in January, which covered earnings through both pre-merger entities.  $52.8M in patronage was distributed this week from Horizon Farm Credit, bringing the total patronage distribution for 2022 to $91M.   Going forward, Horizon Farm Credit expects to return to a single patronage disbursement in March/April.

Horizon Farm Credit is a part of the national Farm Credit System.  Each Association determines its patronage payout, which is dictated by its total income, expenses, market conditions, and the Association’s bylaws.  All patronage distributions are at the discretion of the Board of Directors, whose objectives are to ensure financial stability, fund future growth, and maximize returns to members.

 “Our cooperative structure has served our borrowers well for many years,” says Brian Rosati, Chief Financial Officer for Horizon Farm Credit, “and we are committed to ensuring that the patronage program remains strong.”

To learn more about Farm Credit’s patronage program and to calculate your patronage distribution, please visit horizonfc.com/patronage.