The board of directors of Lone Star Ag Credit, a rural financing cooperative, recently approved the payment of a $19.5 million cash patronage dividend to its member-borrowers, based on its solid earnings in 2019. Checks will be mailed to customers in late March.
“The board and staff of Lone Star Ag Credit are proud of our co-op’s solid performance, and we’re excited to be able to return more than $19 million to our member-borrowers,” said Joe Hayman, Lone Star Ag Credit chief executive officer. “Giving back through a patronage dividend is a great example of the cooperative model in action.”
Lone Star Ag Credit provides its members with agricultural and rural financing at competitive rates. Surplus earnings are returned to stockholders after the customer-owned cooperative has met its needs for a strong capital base. The patronage dividend returned to customers effectively reduces the interest rate paid by each borrower in 2019 an average of 1.5 percentage points. This year’s distribution will increase the total amount of patronage dividends Lone Star has paid to member-borrowers since 2000 to $141.5 million.
Lone Star Ag Credit is a full-service cooperative lender that specializes in financing rural land and agricultural operations through its branch network with locations in Abilene, Cleburne, Corsicana, Denton, Fort Worth, Georgetown, Hillsboro, Lampasas, New Boston, Paris, Sherman, Stephenville, Sweetwater, Waco, and Weatherford. It is a member of the nationwide Farm Credit System, the nation’s largest source of loans for agriculture, agribusiness, rural real estate and country homes.