Yosemite Farm Credit, ACA (“YFC”) is a cooperative, operating through its PCA and FLCA subsidiaries. As a cooperative, YFC is committed to delivering low rates while maintaining adequate capital for the long-term.
In addition to low rates and outstanding customer service, you have yet another reason to do business with YFC – the opportunity to share in a distribution of profits through YFC’s Patronage Program (“Patronage Program” or “Program”). Subject to annual approval of your Board of Directors, the Program allows YFC to refund a portion of YFC’s earnings to stockholders on a patronage basis, effectively reducing your cost of
doing business with YFC. Along with our competitive rates, terms, service, and agricultural expertise, our Patronage Program provides an exclusive financial benefit for stockholders. The more business you do with us, the more the patronage will benefit you. Visit our FAQs page for more information!
How the Program Works
Pursuant to YFC Bylaws and an obligating resolution adopted by the YFC Board of Directors, a copy of which is available to YFC members upon request, YFC is required to distribute to eligible customers an annual patronage refund equal to the amount of earnings above what the Board of Directors determines is a necessary addition to YFC’s capital. This is after first making applications required by Association Bylaws, and after providing for the transfer to unallocated surplus of the amount established by the Board for the reasonable and necessary reserves of the Association.
Under the Program, YFC will declare an annual patronage refund from the prior year’s earnings. It is anticipated that the refund will be in the form of a cash refund and/or a non-cash surplus allocation. The amount distributed from year to year in the form of a cash patronage refund will fluctuate depending on the level of earnings and YFC’s need to build capital for the future, including capitalizing future growth or cushioning against adversity. Patronage is a value-added benefit available year to year only when YFC’s earnings exceed capital needs. On an annual basis, the Board of Directors will review the Patronage Program and may make modifications to the Program consistent with YFC’s Bylaws. Visit our FAQs page for more information!
What are Patronage Refunds?
While a corporation distributes earnings to stockholders through dividends declared on stock, a cooperative distributes earnings to eligible customers through patronage refunds based on the volume or value of business they do with the cooperative (not on the basis of stock ownership). A patronage refund can be distributed in various ways, including the following:
- Allocated surplus
- Any combination of these items
Distributions under Yosemite Farm Credit’s Patronage Program
Under YFC’s Patronage Program, it is anticipated that all patronage earnings will be distributed, subject to Board approval, in the form of cash and/or non-cash surplus allocations. The mix of cash and non-cash allocations will depend on YFC’s capital and earnings needs at the time of distribution in light of actual and projected loan growth and other factors, as determined by the Board.