Record Patronage Solid Earnings 2015
COLEMAN, Texas — The board of directors of Central Texas Farm Credit, a rural financing cooperative, recently approved the payment of a record $5.6 million cash patronage refund to its customers, based on its solid earnings in 2015. Checks will be mailed to customers in March.
The record patronage will reduce the effective interest rate paid by each borrower in 2015 by an average of 1.5 percent. Member payments will vary as patronage is calculated based on their contribution to the association's profitability.
"We are pleased that our cooperative has the financial strength to provide this patronage refund to our customers, who collectively own the business," said Jimmy Chambers, Central Texas Farm Credit chief executive officer. "We are committed to sharing our earnings with them, and are proud to be able to thank them for their business in this way."
As a customer-owned cooperative, Central Texas Farm Credit provides its members with financing at competitive rates and returns its surplus earnings to them after it has met its needs for a strong capital base. Borrowers become stockholders and part-owners in the business, which gives them the opportunity to share in its financial success.
Central Texas Farm Credit provides financing for all types of rural real estate, including farms, ranches, rural homes, and recreational property. The lender also finances livestock, equipment, and the working capital needs of farmers, ranchers, and agribusinesses. The Coleman-headquartered cooperative has branch offices in Brady, Brownwood, Coleman, Comanche, Haskell, San Angelo, and San Saba. It is part of the nationwide Farm Credit System, which celebrates its 100th anniversary this year.