Some Mid-Columbia farmers, ranchers and other agricultural producers may have lower loan balances after the agricultural lending cooperative distributed the funds as part of its patronage program. 

The funds were distributed as cash patronage dividends to the cooperative’s customer-members, according to a release. Amounting to 1.25% of customers’ eligible average daily loan balances in 2024, the dividends will help reduce borrowing costs for eligible farmers, ranchers, timber producers and others across the West. 

“Our ability to return value to our members underscores the resilience and dedication of our cooperative,” said Doug Filipponi, AgWest Board Chair, in a release. “This is just one of the ways we ensure that our members actively share in our success.” 

The amount of dividends distributed by patronage program is determined by AgWest’s board each year. Board members evaluate net earnings to decide how much to retain for long-term capital strength and how much to distribute to members. Patronage dividends are based on eligible average daily loan balances, which provides competitive interest rates as well as direct financial returns. 

AgWest Farm Credit was established on Jan. 1, 2023, through the merger of Farm Credit West and Northwest Farm Credit Services. It has approximately $32 billion in total assets. In the Mid-Columbia, it maintains branch offices in Pasco, Walla Walla and Sunnyside.