Alabama Farm Credit had a successful year in 2017, and we were pleased to share our earnings with our borrowers by returning 61.3 percent of last year’s patronage sourced net income as patronage.
Based on the cooperative’s solid performance in 2017, AFC’s Board of Directors has declared a record $9 million cash patronage payment to our stockholders. This cash patronage was paid to the stockholders on March 22, 2018.
Alabama Farm Credit has a long history of paying patronage — we have returned more than $64 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.