Yankee Farm Credit, ACA recently paid $3.3 million in patronage dividends to customers across three northeastern states. Yankee Farm Credit is the largest agricultural lending cooperative in Vermont, western New Hampshire and northeastern New York. This is the financial cooperative’s thirteenth consecutive annual patronage payment.
More than 1,200 farms and agribusinesses across Vermont, Clinton and Essex Counties in New York, and Coos, Grafton, Sullivan and Cheshire Counties in New Hampshire received patronage dividend checks in the mail. The dividend is paid as 100 percent cash.The average dividend check was over $2,700. For the typical member, this represented 1.20 percent of their average loan balance.
As owners of a successful cooperative, Yankee’s customers have the opportunity to financially share in that success through patronage dividends and maintaining capitalization from net earnings, rather than from upfront investment. Since the patronage program was first adopted, Yankee customers have been paid a cumulative $31 million from ownership of their cooperative.
Board Chairperson Paul E. Doton, of Barnard, VT, explains, “Yankee’s interest rates are very competitive with other lenders. If we keep credit quality sound and operate efficiently, then we have net earnings. We keep a portion of those earnings to capitalize our business and we return the rest to stockholders as patronage dividends.”
Doton added, “Yankee has an ongoing track record of trust between the cooperative and our members. Our customer-owners know that Yankee is committed to charging competitive rates and paying a significant share of earnings back as patronage dividends.”
George S. Putnam, president and CEO, added, “For all of us at Yankee, mailing patronage checks is a gratifying event. It’s much like when our customers see the fruits of their labor at harvest time. Our entire team works hard throughout the year to operate efficiently, responsibly and profitably. Returning earnings to our customer-owners as patronage dividends tells us that we succeeded.”
Putnam also commented on the teamwork that contributed to Yankee’s successful year. “Our employees focus on helping each customer get the most from our credit and financial services, whether it’s an operating line of credit, a mortgage, appraisal, or our financial services. In addition, our board of directors is exceptionally committed to supporting the industries we serve. Above all, Yankee’s customer-owners are the cornerstone of the cooperative’s continuing success.”
Yankee Farm Credit extends more than $335 million in loans from 5 local offices in its three-state service area. In addition to providing loans and leases to members, the organization also offers a full range of agriculturally specific financial services for businesses related to farming. An 11-person board of directors from the Association’s territory leads Yankee.
