Patronage Program

When Alabama Farm Credit does well financially, you benefit. As a cooperative, we support the cooperative principle of sharing our success with our customer-owners. That's the basic philosophy behind the patronage refund program. Investor-owned lenders pay dividends to their shareholders based on their ownership shares in the company.

In contrast, we pass our earnings along to customers in the form of patronage. Every borrower is also a stockholder who receives a part of the association's profits. The more you borrow, the bigger your share of earnings.

We understand the unique aspects of rural real estate financing, and we take a personal interest in each of our customers in an effort to meet their financing needs.

2019 Patronage Payout

Alabama Farm Credit had a successful year in 2018, and we were pleased to share our earnings with our borrowers by returning 62.05 percent of last year's patronage sourced net income as patronage.

Based on the cooperative’s solid performance in 2018, AFC’s Board of Directors has declared a record $9.38 million cash patronage payment to our stockholders.

Alabama Farm Credit has a long history of paying patronage — we have returned more than $82.4 million in patronage to our stockholders since 1999.

Patronage is a cornerstone of the co-op business model: It lowers our borrower’s effective interest rate and reduces the cost of borrowing. It’s our way of putting money back in our stockholder’s pocket.

We appreciate the opportunity to serve you. Please let us know if we can further assist with your rural financing needs.

Lowering Your Effective Interest Rate

The most important benefit of our patronage program is that it lowers your effective interest rate. You not only receive a competitive rate up front, but you could receive a patronage dividend in years when the association does well.

Every year, after the board of directors decides how much of the association's earnings need to be maintained as capital to fund the association's growth, we are able to return the remainder as a patronage refund to you.

At Alabama Farm Credit, we recognize that our success depends on you. Our mission is to serve you well by providing the financing you need to be successful.

Our commitment to sharing our profits with you comes from our cooperative structure. No other type of lender offers you such an advantage.