Co-Op Information and Patronage Program

Legacy Ag Credit operates on a cooperative basis and is owned by more than 1,000 of its stockholders/customers while being governed by a seven member board of directors. Our customer-owners of the Association elect six directors with one director being appointed by the Board of Directors.

Each year, the Board approves a capital plan for the Association based on projected asset levels, earnings, economic conditions, possible loan losses, and other contingencies. When target capital levels are met, the Board typically approves the payment of a portion of net income to customers through the Legacy Ag Credit Patronage Program.

Cash patronage is allocated among stockholders based on their eligible average daily loan balance, and patronage is paid during the first quarter for the previous calendar year. Assuming the Association meets its financial goals and if other factors do not adversely impact the Association, the Board’s objective is to annually declare cash patronage of 1.0 percent of a customer's eligible average daily loan balance. In March 2016, Legacy Ag Credit paid a $2.25 million or a 1.0 percent patronage to its member-borrowers.