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Lone Star Ag Credit Returns Record $12.8 Million to Borrowers

FORT WORTH, Texas – Lone Star Ag Credit distributed $12.8 million to its borrowers on March 15, when the lending cooperative celebrated National Agriculture Day at open houses and public ceremonies across its 48-county territory.

The payment is one of the ways that Lone Star Ag Credit shares its success with its customers, who are also stockholders and members of the borrower-owned cooperative. Based on Lone Star's strong financial performance in 2015, including $27.5 million in net income, its board of directors voted to return surplus earnings to eligible members through the co-op's patronage program. This year's patronage dividends effectively lower the interest rates on customers' loans by 1 percentage point.

"Patronage dividends can significantly reduce borrowing costs, a tangible benefit of our cooperative business structure," said Troy Bussmeir, Lone Star Ag Credit chief executive officer. "When Lone Star does well, we return a portion of the interest paid by our borrowers. No other type of lender offers such an advantage."

Lone Star Ag Credit provides financing for rural land, rural homes, agribusinesses, livestock, and agricultural equipment and operating expenses.

Headquartered in Fort Worth, Lone Star Ag Credit has credit offices in Abilene, Cleburne, Corsicana, Denton, Fort Worth, Hillsboro, Lampasas, New Boston, Paris, Round Rock, Sherman, Stephenville, Sweetwater, Temple, Waco and Weatherford.

It is part of the Farm Credit System, a nationwide network of cooperatives that supports rural communities and agriculture with reliable, consistent credit and financial services. The System is celebrating its centennial in 2016.

Published March 24, 2016