Farm Credit of Florida Announces $15 Million Cash Patronage Distribution for 2025

Farm Credit of Florida is a member-owned cooperative lender serving farmers, ranchers, growers, and rural communities across the state. Thanks to our member-owners’ trust and continued business, 2025 was a strong year—and we’re pleased to share that our Board of Directors has approved a $15.0 million cash patronage distribution to eligible member-owners.

2025 Patronage: Key Details

• Total cash patronage approved: $15.0 million
• Portion of 2025 net earnings returned to members: 52%
• Why it matters: Returning more than half of our income directly to member-owners is a powerful demonstration of the cooperative model at work.

What Is Patronage and Why Farm Credit Is Different:

Patronage is one of the most meaningful benefits of doing business with a cooperative lender. Because Farm Credit of Florida is owned by the members we serve, earnings aren’t directed to outside shareholders. Instead, when the Association performs well and the Board declares a distribution, a portion of profits can be returned to member-owners as patronage.

We’re proud that the soundness of Farm Credit of Florida made it possible for the Board to declare this substantial distribution while also continuing to grow the capital of your Association. This combination of returning value to members while maintaining strength for the future supports reliable credit and long-term stability for Florida agriculture and rural communities.

To our member-owners: we respect the long days, early mornings, and hard work that sustain Florida’s agricultural economy. Farm Credit of Florida will continue to stand beside you as a reliable source of credit and support so your businesses and families can continue to grow.

“Farm Credit of Florida’s success is because of our member-owners and that success should be shared with our member-owners. This year’s patronage distribution reflects your trust in us and our commitment to ensuring the value created by this Association goes back to the people who make it possible.” — John Gregory, President and Chief Executive Officer

Patronage 101 (In Plain Terms)

Patronage can be a new concept if you haven’t done business with a cooperative lender before. Here’s the simple explanation: because Farm Credit of Florida is member-owned, we don’t have outside shareholders. When the Association has a strong year, our Board of Directors may declare that a portion of earnings will be returned to eligible member-owners as a cash patronage distribution.

• Member-owned cooperative: borrowers are also member-owners.
• Board-declared: the Board determines whether to pay patronage and the overall amount based on profits and capital needs.
• Based on eligible business: individual amounts are generally tied to the amount of eligible business conducted with the Association (often related to interest earned on eligible loans).
• Not guaranteed: patronage is declared at the Board’s discretion each year, and past distributions do not guarantee future distributions.

What to Expect

Patronage is distributed to eligible member-owners based on the business they conduct with the Association. If you’re eligible, you’ll receive a patronage return (patronage notice) showing your distribution details.

Patronage FAQ

Is patronage the same as a dividend? 
It’s similar in that it shares the cooperative’s success with its owners. But patronage is tied to doing business with the cooperative (eligible member business), rather than ownership by outside investors.

How is the overall patronage amount determined? 
The Association’s Board of Directors determines the overall amount and form of patronage based on the Association’s profits and capital needs. As a regulated financial institution, Farm Credit of Florida must maintain adequate capital to remain strong and ready to serve agriculture through changing market cycles.

How is my patronage amount calculated? 
Patronage is generally allocated based on the amount of eligible business a member conducts with the Association (often related to the interest earned on eligible loans during the year).

Does patronage affect borrowing costs? 
Yes. Farm Credit of Florida works to provide a competitive interest rate up front, and patronage can further reduce a member-borrower’s effective cost of borrowing because a portion of earnings may be returned after the fact. This year’s $15.0 million cash patronage distribution effectively reduces eligible member-borrowers’ interest paid—while still allowing the Association to remain financially sound for the long term.

Why not just lower everyone’s rate upfront? 
Farm Credit of Florida works to offer competitive rates up front, but federal regulations prohibit Farm Credit associations from charging below-market rates. Patronage is one way a cooperative can share success with eligible member-owners after the fact—while maintaining the financial strength needed to keep serving Florida agriculture through both good times and challenging times.

Is patronage guaranteed every year? 
No. All patronage distributions are at the discretion of the Board of Directors. Market conditions and interest rates can impact earnings, and past patronage distributions are not a guarantee of future disbursements.

Who is eligible? 
Eligibility depends on the type of relationship and whether the business is in a patronage-eligible pool. In general, eligible recipients include certain stockholders and participation certificate holders for whom the Association conducts patronage business during the year. If you’re unsure whether your account is eligible, your local office can help.

How will I receive my patronage and is it taxable? 
Cash patronage is delivered to eligible member-owners either by check or by ACH direct deposit (if enrolled). Cash patronage is generally taxable, and Farm Credit of Florida provides an IRS Form 1099‑PATR. Please consult your tax advisor about your specific situation.

Thank You, Member-Owners

Thank you for doing business with Farm Credit of Florida. For more than 100 years, Farm Credit has supported farmers and rural communities through good times and challenging times. We will continue to be here for you—today and tomorrow.

If you have questions about your patronage distribution or how to apply funds to your loan, please contact your local Farm Credit of Florida office.