Patronage Refunds and Co-op Information

What is cash patronage?

Patronage dividends are what help us lower your interest rate. When things go as planned and the Association meets its financial goals, the Board is able to declare a percent of our earnings in the form of patronage to be paid to our borrowers. This means you win back some of the interest you've paid. This year, for example, our members received 1% of their average 2019 borrowing.

Cash patronage is divided among all of our 1,000+ customer-owners, during the first quarter for the previous calendar year. Shareholders receive different amounts of dividends, depending on their eligible average daily loan balance. The more business they do with us, the larger their potential patronage cash.

For our customers, one of the most awaited times of the year is when a Legacy Ag Credit loan officer personally delivers a generous patronage check. Many use the money to pay down their loans, reinvest in their businesses, pay household bills, or reward themselves with a vacation.

What is an agriculture cooperative?

Legacy Ag Credit is an agricultural cooperative or “co-op” of the Farm Credit System, meaning customers own the Association, not outside investors. From farmers to producers, we believe that everyone accomplishes more as a collective than as individuals.

This model allows farmers, ranchers, agribusinesses and rural homeowners who use our products and services to be the decision-makers.

What you gain by being a member:

  • Patronage
  • Reliable credit and financial services
  • An equal voice in the business

We make sure our customers have a say in the decision-making process. Six of the seven directors serving on the Legacy Ag Credit Board of Directors are elected by our customer-owners. The seventh one is appointed by the Board.

How does a co-op work?

Each year, the directors make a thorough assessment of projected asset levels, earnings, economic conditions, possible loan losses, and other contingencies. Then, they approve a capital plan for the Association.

Once Legacy Ag Credit hits its capital goal, the Board reinvests part of earning in the co-op, to maintain a strong capital position for investment in future opportunities. The other portion of the net income is returned to customers through the Legacy Ag Credit Patronage Program.


As a cooperative organization, we are a stable organization that can withstand challenging economical cycles while continuing to discover unique opportunities for our customers.

Patronage is a privilege reserved only for members of customer-owned financial institutions.

If you want to finance your agricultural plans while enjoying extra profits, consider becoming a Legacy Ag Credit member.

For more details on our Patronage program, contact one of our branches.