cash-back.fcsamerica.comCash-Back Dividends

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Markets & Weather Loan Calculator Office Locator 800-884-FARM Home About Cooperative Model Play Video Discover the benefits of working with a customer-owned lender. Along with having a voice in what we do, our customer-owners receive cash-back dividends. The more eligible business you have with us, the more you can benefit from our patronage program. Each year, our customer-elected Board of Directors determines the amount distributed. Earnings are either returned to customer-owners as cash-back dividends or retained on our balance sheet to support agriculture through economic cycles and to fund development of new products that help our customers succeed. "I like that you own part of the cooperative -- and realize those profits. The dividend is all on top; it's all profit for us." Jo & Matt Grain & Beef Producers, Nebraska PLAY VIDEO Cash-Back Dividend Payments In December 2019, the Board of Directors approved a cash-back dividend equal to 1% of a customer’s eligible daily loan balance for a total payout of over $260 million that is being distributed in January 2020. Since 2004, we’ve returned more than $2 billion in earnings to customer-owners. Our ability to consistently pay a cash-back dividend reflects a remarkable financial strength. In fact, the Board has targeted a cash-back dividend of at least 100 basis points for the 2020 program, barring unforeseen events and significant changes in the environment. in Basis Points in Basis Points Year Millions 2016 69 2017 82 2018 90 2019 100 2020 Target 100 Cash-back dividends are based on eligible loan volume and Association financial results. Prior distributions should not be interpreted as guarantees of future performance. CASH-BACK DIVIDENDS 2020 DISTRIBUTION MAP Cash-back dividends offer a significant annual benefit and are based on each customer-owner's average loan volume during the calendar year. Explore what has been paid in 2020 to our customer-owners in counties near you with this interactive map. Select a state to see county-by-county cash-back dividends paid in 2020. State cash-back dividend payment amounts are rounded to the nearest $100,000. FREQUENTLY ASKED QUESTIONS What is the 2020 patronage program? FCSAmerica will return a portion of our 2020 net income earned from eligible customers through the 2020 patronage program. For 2020, the Board of Directors has targeted a cash-back dividend of 100 basis points, barring unforeseen events and significant change in economic conditions. What changes have been made to the 2020 patronage program? The 2020 patronage program provides for distribution of patronage-sourced earnings from a general pool, which applies to the majority of our customer-owners, and a separate pool that applies to eligible purchased participation loans purchased by FCSAmerica. Distributions will continue to be calculated based on eligible average loan volume during 2020. However, the Board of Directors has the discretion to distribute different amounts of cash-back dividends to each pool. Why does FCSAmerica offer cash-back dividends? Cash-back dividends are a component of FCSAmerica’s customer value proposition and are one of the unique benefits of doing business with a customer-owned financial cooperative. Cash-back dividends are a way to reduce the cost of borrowing from FCSAmerica by sharing in the cooperative’s profits. How will my 2020 cash-back dividend be calculated? The amount of your 2020 patronage distribution will be based on your eligible average loan volume with FCSAmerica during 2020. Generally, the more a customer borrows from us, the more he or she will benefit, financially, from the program. Because your eligible average loan volume and the amount of approved patronage can change each year, your cash-back dividend likely will change from one year to the next. Is my cash-back dividend subject to tax? Yes. Eligible customers generally should include the cash-back dividend in their taxable income in the year that it was received. We encourage customers to consult with a tax advisor about their specific situation. Non-corporate customers will receive an IRS Form 1099-PATR early in 2021 for cash-back dividends paid in 2020. IRS regulations do not require distribution of 1099-PATR forms for corporations. Why doesn’t FCSAmerica distribute all of its earnings in cash? Retained earnings not distributed in cash-back dividends help FCSAmerica build the necessary capital to fund future growth and to develop new products and services that help you, our customer-owner, succeed. Who will be the payee on the cash-back dividend checks? The cash-back dividend check payee will be the “payor of record” (primary customer) in our loan accounting system as of December 31, 2020. This is the same person whose taxpayer identification number appears on any IRS reporting associated with the customer’s account. Why doesn’t FCSAmerica lower interest rates and eliminate the patronage program? FCSAmerica is dedicated to providing industry expertise, quality customer service and competitive rates. In order to attract investors for Farm Credit System funding, FCSAmerica must demonstrate the ability to generate strong earnings. The program allows FCSAmerica's Board to determine the amount of the cash-back dividend distribution after financial results for the year are known. Will FCSAmerica distribute a cash-back dividend every year? Our Board currently intends to distribute cash-back dividends each year. For 2020, the Board and our financial plan targets a cash-back dividend equal to 100 basis points, barring unforeseen events and significant change in economic conditions. The earnings retained by FCSAmerica are used to build the cooperative’s financial capacity to continue serving agriculture. Who is eligible/ineligible for cash-back dividends? WHO IS ELIGIBLE? Generally, customers whose loans are capitalized by stock are eligible for cash-back dividends. These loans include operating and agriculture real estate loans, as well as some consumer-purpose loans secured with real estate (see excluded products). If a customer paid off a loan during the program year, he/she is eligible for patronage for the period the loan was outstanding, provided no exclusions to eligibility apply. WHO IS INELIGIBLE? Non-accrual loans past due as of December 31. Forbearance or restructured loan agreements that include patronage waivers. Charge-offs (net), partial or full. All the customer’s loans are ineligible for seven years from the date of most recent charge-off, unless fully recovered, including any loans originated subs...