The Moorefield branch of Farm Credit of the Virginias, a customer-owned financial cooperative with more than a 100-year legacy of support for rural communities and agriculture, announced they paid just over $1 million in cash to their customer-owners in the form of a patronage dividend.
Due to Farm Credit of the Virginias’ cooperative framework, the association returns a portion of its profits back to customer-owners on an annual basis. During 2022, increased input costs, supply chain disruptions and rising interest rates made it difficult for their customer-owners to carry out their goals for the year. Nevertheless, Farm Credit of the Virginias’ financial position remained strong and their board of directors elected to return 70 percent of their net profits to their customer-owners, with the hope that this patronage distribution would allow their customer-owners to feel more confident in navigating the economic headwinds currently impacting the agricultural industry and their rural communities.
The patronage program effectively lowers the cost of borrowing from Farm Credit of the Virginias. This year’s combined $30 million distribution equates to having an interest free loan for three and a half months and represents approximately 30 percent of the interest accrued on loans.
Farm Credit of the Virginias chief executive officer, Brad Cornelius, said, “We’re pleased to be able to share our patronage with our customer-owners, especially in times when returning and reinvesting money in our rural communities is so vital.”
Cornelius continued, “We’re committed to being here for our customer-owners when they need us, and as they need us. Patronage dividends are our way of saying we’re here and we’re going to keep working to make sure that we’re always here, through good times and bad. Patronage is just one of the many benefits of doing business with a customer-owned cooperative.”
To discover the benefits of being a customer-owner, visit the FCV website at www.farmcreditofvirginias.com or call 1-800-919-FARM (3276) to learn more from a local representative.
The Moorefield branch is located at 550 South Main Street in Moorefield.