AgCredit of South Texas, ACA recently distributed $737,475 in patronage payments to its customers. The patronage refund effectively reduces the interest rate paid by borrowers last year by 64 basis points, or 0.64 percent.

This is the second consecutive year that AgCredit of South Texas has returned a portion of its annual earnings to its borrowers. With this latest patronage refund, the rural lender has distributed more than $1.58 million in patronage — nearly half of its net income — to its customers during the past two years.

“It is a great pleasure to share our earnings with our borrower-stockholders when we do well, which we did last year,” said Larry Wade, AgCredit of South Texas chief executive officer. “Patronage payments are an important benefit of doing business with a cooperative.”

Read the complete article from Farm Credit Update »