Capital Farm Credit Returns $100.8M to Texas Agricultural Producers

COLLEGE STATION, TX – March 20, 2026 – Capital Farm Credit has announced it is returning $100.8 million in cash patronage to its members, a significant distribution that underscores the financial strength of the cooperative and its commitment to Texas agriculture. In addition to the direct cash payment, the lender’s board of directors also declared $94.5 million in allocated equities for potential future disbursement, bringing the total earnings shared to nearly $195.3 million.

This annual payout is a direct result of the institution's cooperative structure, where borrowers are also member-owners. Unlike traditional banks that deliver profits to external shareholders, Capital Farm Credit returns a substantial portion of its earnings to the farmers, ranchers, and rural landowners it serves.

“One of the most meaningful moments of our year is when we’re able to give back to the people who make this cooperative what it is,” said Jeff Norte, president and CEO of Capital Farm Credit, in a statement accompanying the announcement. “It’s a privilege to share our success with those we serve, and we’re proud that our Cooperative Returns Program remains one of the strongest in the nation.”

Since its patronage program began in 2006, the lender has distributed more than $2.9 billion in combined cash and allocated equities, providing a consistent and vital source of capital for the state's agricultural sector.

The Cooperative Advantage in Action

The patronage program is more than just a profit-sharing plan; it is a fundamental mechanism that lowers the effective cost of borrowing for its members. When a producer takes out a loan, they purchase stock in the association, becoming a member-owner and gaining eligibility for these returns. The amount each member receives is proportional to the interest they paid on their loans throughout the year.

This year's return is composed of two distinct parts. The $100.8 million in cash patronage provides an immediate infusion of capital that members can use to pay down loans, invest in equipment, or cover operational costs. The additional $94.5 million in allocated equities is held in members' names, representing their share of the cooperative's retained earnings. These funds are typically paid out in cash at a later date, often seven years after being declared, as determined by the board. This dual approach allows the cooperative to provide immediate benefits while also building a strong capital base for long-term stability and future growth.

“As a member-owned cooperative, we’re built to put our stockholders’ needs at the center of every decision we make,” noted Kenton Kimball, chairman of the Capital Farm Credit Board of Directors. “That structure aligns our interests and helps strengthen not only Capital Farm Credit, but the entire agricultural industry in Texas.”

A Financial Lifeline for Texas Farms and Ranches

The consistent and substantial nature of these returns has a profound impact across rural Texas. For many producers grappling with volatile commodity prices and rising input costs, the patronage dividend can be the difference between profit and loss. For example, research indicates that on a typical $500,000 loan with a 7.25% interest rate, a cash dividend could lower the effective rate to just 6.27%.

This financial relief is not lost on its recipients. One Central Texas rancher, who has been a member for over a decade, noted that the program is critical for sustainability. “It’s almost impossible to be in production agriculture anymore without the kind of support we get from our cooperative,” he stated, requesting anonymity. “That patronage check every spring is a vital part of our operation’s cash flow.”

The scale of the program, which has returned billions over nearly two decades, acts as a powerful economic stimulus. The funds are reinvested directly into local economies as producers purchase supplies from local dealers, hire local labor, and support other rural businesses.

“Supporting rural Texas isn’t just part of our mission; it’s something we care deeply about,” said Sally Lawson, chief financial officer. “We’re honored to provide producers with the capital they need to keep their operations strong and to help agriculture continue to thrive for generations to come.”

Beyond Patronage: Investing in Rural Communities

Capital Farm Credit’s commitment to its members extends beyond financial returns. As the state’s largest agricultural lender, serving 192 counties, the institution is deeply invested in the health and vitality of the communities it serves. This is demonstrated through a wide array of initiatives aimed at supporting education, youth development, and community projects.

The cooperative actively funds programs like 4-H and FFA, offering grants for projects ranging from community gardens to educational workshops. It also partners with organizations like Texas A&M AgriLife Extension to support agricultural education and help new producers get started, including programs specifically designed to assist military veterans transitioning into agriculture.

This community-centric philosophy distinguishes the cooperative model from many traditional financial institutions. By focusing on the long-term success of its members and their communities, the lender fosters a level of trust and partnership that reinforces the entire rural economy. Recent support has also included pledges for disaster relief, such as funds directed toward recovery efforts following devastating wildfires in the Texas Panhandle, further cementing its role as a cornerstone of rural Texas.

Navigating a Dynamic Agricultural Landscape

Capital Farm Credit operates within the national Farm Credit System, a network of borrower-owned institutions that is the single largest provider of credit to American agriculture, holding nearly half of the sector's total debt. This specialized focus allows it to offer a level of expertise and flexibility that commercial banks may not match.

While this year's cash patronage of $100.8 million is a slight moderation compared to the record-breaking distributions of the last few years—which saw cash returns approaching $200 million annually—it reflects a prudent and sustainable approach to capital management. The board of directors evaluates the cooperative's financial performance each year to strike a balance between returning profits to members and retaining sufficient capital to ensure the institution's strength through all economic cycles. This disciplined strategy is guided by a forward-looking 10-year capital management plan, ensuring the cooperative remains a reliable partner for Texas agriculture for generations to come.