Farm Credit of the Virginias issues $40M in cash dividends to customers
Farm Credit of the Virginias, a cooperative lending institution serving Virginia, West Virginia, and western Maryland, will return $40 million to its customers this month through their annual patronage program.
Due to Farm Credit of the Virginias’ cooperative framework, the association returns a portion of its profit back to customer-owners on an annual basis.
Despite COVID-19 disruptions, the association maintained its’ solid financial standing in 2020, and as a result, the cooperative’s member-elected board of directors voted to issue $40 million in cash dividends to customers this season.
The patronage program effectively lowers the cost of borrowing from Farm Credit of the Virginias. This year’s $40 million distribution equates to having an interest free loan for five months and represents approximately 44% of the interest accrued on loans.
Farm Credit of the Virginias CEO, Brad Cornelius, said, “We’re pleased to be able to once again share our profits with our customer-owners, especially in times when returning and reinvesting money in our rural communities is so important.”
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.”