An agricultural lender is rewarding its customer-owners with record amounts.
Farm Credit Services of America (FCSAmerica) next week will distribute $230 million in cash-back dividends to its customer-owners. Senior vice president of FCSAmerica Jim Knuth reports this is the highest cash-back dividend in the programs 15-year history.
?Since 2004, we have returned more than $1.7 billion to our customer-owners,? Knuth said. ?It?s a key benefit to our unique, customer-owned business model. Thanks to our Board of Directors, we?ve taken an unprecedented step in enhancing our patronage program to give our customer-owners greater certainty about cash-back dividends.?
The Board of Directors also announced its intentions to award similar profits in the future.
?As a mission-driven, agricultural lender, we?re using our financial strength to return a greater share of our net earnings to our customer-owners – to invest in their operations, their families and local communities,? Knuth said. ?The cash-back dividend we?re distributing, in March, is equivalent to 90 basis points, our highest ever.?
FCSAmerica rewards its customer-owners annually with cash-back dividends, as a way to share its financial success and thank its customer-owners for their financial business.
?Cash-back dividends are determined by customers? average daily loan balance throughout the year. Essentially, the more business you have with Farm Credit Services of America, the greater share of profit you get back as a cash-back dividend,? Knuth said. ?At 90 basis points, with an average loan balance of $250,000, your cash-back dividend check would be approximately $2,250. Over time, especially 15 straight years, the benefits add up.?
