The special $62 million distribution reflects the cooperative’s commitment to share its financial success
OMAHA, NEBRASKA – June 7, 2021 – Farm Credit Services of America (FCSAmerica) announced today that eligible customer-owners will receive a second cash-back dividend from the financial cooperative’s 2020 net earnings. The special estimated $62 million payout will be mailed the week of June 24 to farmers and ranchers served by FCSAmerica in Iowa, Nebraska, South Dakota and Wyoming.
The special payout is an addition to the $276.7 million returned to eligible customer-owners in January through FCSAmerica’s regular distribution of cash-back dividends. Combined, the two payouts equal an estimated $339 million, the largest amount FCSAmerica has returned to customer-owners in a single year. The regular cash-back dividend represented 1% of a customer’s eligible daily balance in 2020; the special payout returned an additional .25% to eligible customer-owners.
FCSAmerica has spent decades building the financial strength needed to serve agriculture through both good and tough times. The special dividend reflects FCSAmerica’s commitment to share its success with customer-owners.
“As a customer-owned cooperative, we use our financial strength for the benefit of ag producers,” said Mark Jensen, CEO and president of FCSAmerica. “Returning not just one but two cash-back dividends in a single year is one of the most tangible ways FCSAmerica can make a difference for rural communities.”
The Board has approved a cash-back dividend each of the past 17 years. Since 2004, FCSAmerica has returned $2.3 billion to eligible customer-owners. Paying two dividends from 2020 net earnings is testament to FCSAmerica’s commitment to its cooperative business model, Jensen said.
The FCSAmerica Board of Directors has approved a regular cash-back dividend for 2021. The Board has announced its intention to return the equivalent of 100 basis points to eligible customer-owners for the foreseeable future.
About Farm Credit Services of America
Farm Credit Services of America is a customer-owned financial cooperative proud to finance the growth of rural America, including the special needs of young and beginning producers. With nearly $33 billion in assets and $6.3 billion in members’ equity, FCSAmerica is one of the region’s leading providers of credit and insurance services to farmers, ranchers, agribusiness and rural residents in Iowa, Nebraska, South Dakota and Wyoming. Learn more at fcsamerica.com.
