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Patronage: Sharing Our Earnings with our Customers

Lone Star Ag Credit is a customer-owned lending cooperative. That means our borrowers are also owners who have the opportunity to share in our earnings. We believe in giving back to the valued stockholders who make our success possible.

How does patronage work? Part of our mission and tradition is the paying of a patronage dividend. Every year, Lone Star Ag Credit's board of directors reviews the Association's financial health and determines our ability to pay a cash dividend to eligible stockholders through our patronage program – typically in the spring. Other remaining earnings are retained as capital to keep our Association strong for the future.

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Importantly, if the Association does not generate positive Patronage Earnings for the year, there can be no patronage distribution. Also, even with positive Patronage Earnings, there may be instances when, in light of the Association's financial condition, a patronage distribution may not be made without the consent of the Association's funding bank or its regulator.