Farm Credit of Central Kansas is unique among agricultural lenders in that we can share our profits with our customers who are also our owners. As a loan customer of Farm Credit of Central Kansas, you can elect to participate in the patronage program. At the end of each fiscal year, Farm Credit of Central Kansas determines its net income before taxes. Your Board of Directors then analyzes the financial condition of the Association and determines the amount of cash patronage to be distributed.

What are the benefits of the cash
patronage refund?

The cash patronage refund reduces your cost of borrowing money and is a tangible reward for doing business with Farm Credit of Central Kansas. Your local community also benefits from the return of those dividends when you trade with local businesses.

How is the amount I receive determined?

The amount of the refund you receive is based on the amount of interest you paid in the previous fiscal year.

When is the cash patronage paid?

Cash patronage refunds are paid in the spring based on the previous year’s earnings.

Is the cash patronage that I receive taxable?

Generally the cash patronage that you receive is taxable, but each situation is unique and we recommend you consult with your tax advisor.

Why don’t other banks offer this?

Farm Credit is unique in the sense that we are a cooperative who is owned by its customers. Banks return their profits to investors who own the bank, but who may not even use the services of the bank.

Still have Questions?

Call your local Farm Credit of Central Kansas office and talk to one of our staff. They can give you all of the details and provide a comparison of the rate you are currently paying versus the rate after deducting the patronage refund.