Lone Star Ag Credit returns a record $26.0 million in patronage to eligible customer-owners

Lone Star Ag Credit is returning a total of $26.0 million in patronage to its members, based on its continued strong growth in net income, earning assets and capital in 2022.

The cash patronage payment is a record for the rural lending cooperative.

“We’re proud that our continued financial strength allows us to pay out another record patronage dividend, even in the midst of a year where we’ve seen significant change to the economy,” said Joe Hayman, Lone Star Ag Credit chief executive officer. “We strive every year to return surplus earnings to our members and paying patronage dividends is a key element of the value our cooperative provides.”

Patronage dividend checks totaling $26.0 million will be mailed to eligible members in March.

“As a board, we work to maintain a financially strong cooperative that provides strong customer value,” said Brent Neuhaus, Lone Star Ag Credit chairman of the board.  “When we determine a patronage distribution, we look at a number of different economic and financial factors; as well as capital needs to sustain the organization over the long term. Although we’ve seen changes to the economy over the past year, the continued financial strength of the association allows us to distribute another solid patronage dividend.”

At the end of each year, Lone Star Ag Credit’s board determines how much income is required for capital needs. Then it returns the remainder as patronage dividends to members.

Lone Star Ag Credit has paid more than $165 million in patronage dividends to members over the last 10 years.

Lone Star Ag Credit provides financing for rural land, country homes, agribusinesses, livestock, agricultural equipment and operating expenses. The rural lender is headquartered in Fort Worth and has credit offices in Abilene, Cleburne, Corsicana, Denton, Fort Worth, Georgetown, Hillsboro, Lampasas, New Boston, Paris, Sherman, Stephenville, Sweetwater, Waco and Weatherford.

Financial results discussed here are preliminary and unaudited. Please visit our website this spring to see our complete results.