The special $4 million distribution reflects the cooperative’s commitment to share its financial success
OMAHA, NEBRASKA – June 7, 2021 – Frontier Farm Credit announced today that eligible customer-owners will receive a second cash-back dividend from the financial cooperative’s 2020 net earnings. The special estimated $4 million payout will be mailed the week of June 24 to farmers and ranchers served by Frontier Farm Credit in eastern Kansas.
The special payout is an addition to the $19 million returned to eligible customer-owners in January through Frontier Farm Credit’s regular distribution of cash-back dividends. Combined, the two payouts equal an estimated $23 million, the largest amount Frontier Farm Credit 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.
Frontier Farm Credit has spent decades building the financial strength needed to serve agriculture through both good and tough times. The special dividend reflects Frontier Farm Credit’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 Frontier Farm Credit. “Returning not just one but two cash-back dividends in a single year is one of the most tangible ways Frontier Farm Credit can make a difference for rural communities.”
The Board has approved a cash-back dividend each of the past 17 years. Since 2004, Frontier Farm Credit has returned $137 million to eligible customer-owners. Paying two dividends from 2020 net earnings is testament to Frontier Farm Credit’s commitment to its cooperative business model, Jensen said.
The Frontier Farm Credit 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.
For more on the special 2020 payout, visit frontierfarmcredit.com/cashbackbonus.
About Frontier Farm Credit
Frontier Farm Credit is a customer-owned financial cooperative proud to finance the growth of rural America, including the special needs of young and beginning producers. With $2.3 billion in assets and $504 million in members’ equity, Frontier Farm Credit is one of the leading providers of credit and insurance services to farmers, ranchers, agribusiness and rural residents in eastern Kansas. Learn more at frontierfarmcredit.com.