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The Lexington branch of Farm Credit of the Virginias (FCV), a customer- owned financial cooperative, announced it paid just over $800,000 in cash to their customerowners in the form of a patronage dividend.
Farm Credit of the Virginias’ cooperative framework allows the association to return a portion of its profits back to customer-owners on an annual basis. During 2023, agricultural producers and rural homeowners faced another year of challenges with inflated input costs and interest rates, said a company spokesperson.
Nevertheless, Farm Credit of the Virginias’ financial position remained strong and its board of directors elected to return 81% of their net profits to their customer-owners, with the hope that this patronage distribution would allow their customer-owners to feel poised to navigate continued economic uncertainties affecting the agricultural industry and our rural communities, said the spokesperson.
The patronage program effectively lowers the cost of borrowing from Farm Credit of the Virginias. This year’s combined $32 million distribution equates to having an interest- free loan for more than three months and represents approximately 27% of the interest accrued on loans.
The Lexington branch is located at 152 Maury River Road.
