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.
About Frontier Farm Credit
Frontier Farm Credit operates in alliance with Farm Credit Services of America to provide credit and insurance services to agriculture and rural communities in eastern Kansas. The association has nearly $2.6 billion in assets and $547 million in members’ equity. Learn more at frontierfarmcredit.com.