Farm Credit Patronage

Choose a lender that pays you back

At Plains Land Bank, you’re more than a customer. You’re an owner.  You share in our financial success.

Since we are an agricultural cooperative or “co-op” of the Farm Credit System, our borrowers own the bank, and therefore receive a portion of our earnings. Farmers, ranchers, agribusinesses, and rural homeowners have the opportunity to receive patronage check annually. When we do well, you do too.

How does Farm Credit work?

The Farm Credit System (FCS) is a nationwide network of 72 independent, privately-owned lending institutions serving the needs of rural communities. Its mission is to support farmers and ranchers with reliable, consistent credit and financial services. 

We keep just enough earnings for stability and growth and return the rest to borrowers in the form of patronage dividends. Based on our strong financial results in 2019, we returned a record $8.5 million in cash to our borrower-owners. 

How our patronage program works

Here’s what it means to participate in our Patronage Program in two simple steps:

  1. Every new borrower buys stock in the cooperative and is automatically eligible for patronage. The stock equals 2% of the loan amount, up to a maximum investment of $1,000. You get this back when you pay off your loan.
  2. At the end of each fiscal year, our board evaluates financial performance and divides cash patronage among all of our customer-owners. 

Wondering how the patronage program will affect your interest rates? It’s important to understand that patronage effectively lowers borrowers’ interest rates. The program represents one of the most important financial benefits of doing business with a lending cooperative.

Contact one of our loan officers today to see how the patronage program could affect your interest rate. 

“We understand that land is an investment, not a get-rich-quick scheme. Some years will be good and others not so good, and no matter how much you plan for the season, many decisions will have to be made at a moment’s notice,” said Gregg Lloyd, Plains Land Bank CEO. “Like you, we know that there are no shortcuts to building a legacy.”

We believe in rural communities and finance their growth every day. Our Patronage Program is living proof of the financial stability that Plains Land Bank has built over the years. We were able to prosper in the face of challenging economic cycles and support our members in the process. Ask us how patronage can make a difference for you too.

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