About Us » Patronage

As an agricultural credit cooperative, River Valley AgCredit is owned by the member-borrowers who purchase stock/participation certificates in the cooperative. After each fiscal year, our Board of Directors may choose to retain the net income of the Association to strengthen our capital position or distribute some or all of the net income to members by declaring a dividend on stock or a patronage refund.

The distribution of profits to our members effectively reduces the cost of borrowing money. Our members own the bank, so it just makes sense that they will share in the profits. To learn more about Patronage Refunds, read our Frequently Asked Questions.

How do patronage refunds benefit AgCredit borrowers?

Patronage refunds benefit borrowers by reducing their cost of borrowing. AgCredit charges competitive rates on its loans/rates comparable to those charged by other lenders for similar loans.

However, a major difference between AgCredit and other lenders is that AgCredit returns its profits to its borrowers. When you receive a patronage refund from AgCredit, your effective cost of borrowing is reduced.

Since AgCredit distributes refunds based on the amount of interest earned on each member's loan, the more business you do with AgCredit, the larger your potential patronage refund.

How do patronage refunds benefit your AgCredit association?
How is my patronage refund issued?
What is a patronage refund?
What is allocated surplus?
What is the bottom line on patronage refunds?
Why can't I receive all of the patronage refund in cash at one time?
Will I receive a tax notification regarding my patronage refund?


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Profits in your Pocket

What sets us apart from other financial institutions is that our profits go right back to you, our member-borrowers. Sharing in our mutual success is the River Valley AgCredit way.