The Van Wert County Courthouse

Friday, May. 29, 2020

AgCredit plans $18.4M patronage refund

Submitted information

FOSTORIA — AgCredit, one of northern Ohio’s largest lenders for farmers, rural homeowners, and agribusiness, recently declared a patronage refund of 24.57 percent for 2016 that results in $18.4 million being refunded to its member borrowers.

The patronage payment will provide a refund to the lending cooperative’s shareholders of 24 cents for every dollar they accrued in interest on their loans for the past year. The patronage refund is the equivalent of 1.21 percent net savings on interest.

Brian Ricker shares AgCredit's financial report. (photo submitted)
Brian Ricker shares AgCredit’s financial report. (photo submitted)

Over the past five years, AgCredit has averaged a 29.43 percent patronage refund rate and has paid patronage refunds for 30 consecutive years. During this time, it has distributed more than $246 million to its borrowers.

Earnings for 2016 were $49.6 million. AgCredit’s year-end numbers reflected a 4.66 percent growth rate and $80 million increase, as loan volume increased from $1.716 billion to $1.796 billion.

“Though our business continues to perform very well, due to the cyclical nature of agriculture, we are seeing an increasing number of farm operations being negatively impacted by lower net margins,” said AgCredit President and CEO Brian Ricker, who shared the co-op’s financial information with approximately 500 members and guests who attended its annual meeting April 12. “Many operations will need time to adjust to the lower margins. Even with the challenges facing agriculture, our mission to serve agriculture and our rural communities has never been stronger.”

lEven with historically high asset quality levels the cooperative lending association continues to mitigate credit risk as a preferred lender working with the United States Department of Agriculture’s Farm Service Agency’s guarantee program.

Nearly 30 percent of AgCredit’s loan volume is secured through this program which allows it to capitalize growth by using it as an effective capital leveraging tool to enhance credit quality and credit risk.

AgCredit is a member of the Farm Credit System, which was established by Congress more than 100 years ago. For additional information, visit

POSTED: 04/17/17 at 7:18 am. FILED UNDER: Farm