November 15, 2013
Because ArborOne is a customer-owned business, the earnings not needed to capitalize the association are returned to the customers in the form of patronage.
A patronage refund is a way of distributing profits to member/owners. The amount of patronage allocated to a member is based on the amount of interest those members paid on their loans. As a result, patronage effectively lowers each member's borrowing costs.
This payout indicates that ArborOne is financially strong. Before the board approved this retirement of Allocated Surplus, it closely reviewed the association’s financial position. The board has set minimum capital adequacy standards for ArborOne. Because those standards have been met, as well as applicable regulatory standards, the board, at its discretion, has approved this retirement of Allocated Surplus.
ArborOne Farm Credit is proud to be able to return this money to its customers. Since 1988, ArborOne has returned more than $72 million in patronage refunds. Just another indicator that through good times and bad - ArborOne Farm Credit is there for the farmers, ranchers, and rural land owners. Agriculture is our number one business!
Part of the national Farm Credit System, ArborOne Farm Credit has been partnering with farmers for almost 100 years providing dependable credit and operating as a cooperative. One of the most important financial benefits of doing business with a cooperative is that, as a customer, you are also a member/owner. This entitles you to a share in the profits through patronage refunds declared by the Association’s board of directors. Our board of directors is made up of and elected by the member/owners.
For more information on ArborOne Farm Credit, please visit www.arborone.com or call 800.741.7332.
Knowledgeable ag lenders, patronage refunds, friendly service and competitive rates - that's the ArborOne advantage.
We are with you every step of the way throughout the lending process. From small tracts to large tracts, new construction to renovations, lot purchase to recreational properties – ArborOne can do it all.