Patronage Program

Sharing Our Profits With Our Borrowers

At AgSouth Farm Credit you are more than a customer, you are a member of something bigger. That means when we do well, you share in the earnings. Our Patronage Program distributes a portion of our annual profits back to eligible borrowers, effectively lowering your cost of borrowing and strengthening your long-term success.

Why Patronage Matters

Every dollar is a dollar you can reinvest in your farm, land, family, or future.

Benefits of patronage include:

  • Lower effective interest costs
  • Improved cash flow during critical times of year
  • Savings that can be used for operations, land payments, or personal goals
  • Stronger financial stability for you and your operation
  • Support for local agriculture and your cooperative community 

Patronage is voted on every year by the Board of Directors. It is not guaranteed, however, we have returned patronage consecutively for over 35 years.

How Patronage Works

Patronage is one of the strongest financial benefits of working with a cooperative lender.

Here’s how it works:

  1. You borrow and pay interest on your loan.
  2. AgSouth uses those funds to operate and support agriculture across our territory.
  3. If the cooperative performs well, we distribute* a portion of our earnings to you.
  4. We deposit your patronage distribution in to your bank account via direct deposit.

This distribution reduces your effective interest rate - meaning your real cost of borrowing is lower than the rate on your loan.

Estimate Your Patronage Distribution

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Here is your estimated Patronage Distribution: ESTIMATED PATRONAGE

After receipt of your distribution, patronage effectively lowers your total interest cost for the first year of your loan from $XXXXX to: EFFECTIVE INTEREST EXPENSE

This effectively lowers your interest rate from XXXX to: EFFECTIVE INTEREST RATE

*This estimate is used for the general pool only. Results based on a term year average of 20%. Past performance not a guarantee of future payouts. Calculations do not account for time value of money or distinguish between returns made in cash and in allocated surplus. Talk to a loan officer for details.

Real Member Stories: How Customers Use Their Patronage 

Every member uses their patronage differently; to build their operation, reduce debt, or create meaningful experiences with their families. Here are a few ways AgSouth borrowers put their patronage to work.

How One Farmer Uses Patronage to Cover His Land Payment

A southeast Georgia farmer who grows corn, soybeans, and watermelons on his family farm uses his annual patronage refund to make the payment on a 115-acre recreational tract he purchased.

AgSouth customers use their patronage in various ways like paying on their recreational land loan.

The patronage check comes at a busy time when we’re trying to plant our crops and my land payment is due. It frees up funds for my farm operation by keeping me from having to come up with extra money for the land payment.

– Jason P., Georgia

Using Patronage to Build Family Savings and Experiences 

A full-time poultry farmer in North Carolina used their annual patronage to add to a dedicated savings account for family outings and a future vacation. 

AgSouth customers use their patronage in various ways like paying for a family vacation.

Every year, we use our patronage to enjoy a family outing or use it to plan a vacation. Knowing patronage is a benefit we can count on makes it easy to set aside something special beyond the farm so that we can create memories that matter.

– Amber, North Carolina

Applying Patronage to Pay Down a Land Loan Faster

A couple in South Carolina used their annual patronage to pay down the principal on their land loan and purchase. This lowered their borrowing costs and allowed them to accelerate their repayment schedule and reduce long-term interest costs, making their investment more sustainable.

AgSouth customers use their patronage in various ways like paying for their land loan.

It’s awesome having our patronage checks go straight toward our loan. It helps us chip away at the balance faster and saves us money in the long run without even thinking about it.

– Ann, South Carolina 

Patronage FAQ

What is patronage? 

Patronage is a distribution of a portion of AgSouth’s annual earnings back to eligible customers.

How is patronage calculated? 

The amount varies each year based on cooperative performance, loan volume, customer activity, and the Boards strategic direction.

Is patronage guaranteed? 

No. Patronage distributions are approved annually by the Board of Directors and are not guaranteed. AgSouth has returned patronage consecutively for over 35 years. 

Who qualifies for patronage? 

Typically, borrowers with eligible loan types who are active members of the cooperative. Home loans done through the secondary market are not eligible to receive patronage.  

How will I receive my patronage? 

Patronage is distributed via direct deposit.

When are patronage distributions typically issued? 

Distributions are often issued in the spring, but exact timing may vary each year.

Is patronage taxable? 

Patronage may be taxable. Members should consult a qualified tax professional and review their IRS Form 1099-PATR each year.

What if I pay off or refinance my loan? 

If you pay off your loan or refinance with a different lender, you will receive one final distribution during the upcoming patronage season. 

Have Questions About Patronage?

Our loan officers are here to help you understand how Patronage works and how it impacts your total cost of borrowing.

Legal Disclaimer

Patronage distributions are not guaranteed and are subject to approval by the AgSouth Board of Directors. The Patronage Calculator provides an estimate only. Actual Patronage amounts vary by year based on Cooperative performance, loan type, individual account activity, and other factors. Consult a tax professional regarding the tax treatment of patronage allocations.