The board of directors of the Central Texas Farm Credit, ACA, which serves a 20 county area in Central and West Texas, has announced that it has declared another cash patronage distribution to eligible association borrowers for fiscal year 2008. This marks the sixteenth consecutive year the association has returned excess capital to its borrowers. Including this year's patronage, Central Texas Farm Credit, ACA has distributed over $36 million in excess capital to its borrowers over the past 16 years. This capital has been distributed either through patronage distributions, dividends, stock reductions, or stock equalizations. Patronage distributions alone have accounted for approximately $25 million of the total amount of capital returned to association borrowers.
This year's $2.5 million patronage was distributed to borrowers on March 20th and amounts to over three-quarters percent reduction in the rate of interest borrowers paid on their loans during 2008.
In making the announcement, board chairman Cody B. Richmond stated that the board of directors and management were delighted to once again reduce the cost of borrowing to the association's stockholders and emphasized that this is only one of the many benefits of obtaining agricultural and rural area credit from the Central Texas Farm Credit, ACA. He noted that the association's growth and financial strength allows the board and management to maintain an efficient and profitable operation and to continue the policy of returning excess earnings back to our shareholders.
Association CEO James R. Isenhower also noted that although most Farm Credit institutions pay a patronage of some kind, Central Texas Farm Credit, ACA distributes its entire patronage in cash and does not allocate a part of such patronage for possible, but not guaranteed, payment at some later date.
The Central Texas Farm Credit, ACA, with over $420 million in loan assets, provides financing for agricultural, rural housing and certain agri-business purposes in Central and West Texas. Association headquarters are located in Coleman, with branch offices in Brownwood, Brady, Haskell and San Angelo. Board members include Cody Richmond, Chris West, Jerry Don Klose, Philip Hinds, Mike Finlay, Mickey Dillard, Larry Damron, Brent Heinze, Wayland Shurley, Robby Halfmann, and Glenn Miller. The board and management remain committed to maintaining the financial integrity of the association while offering competitive loan products that meet the financial needs of all eligible borrowers.
For more information contact Scotty Durst, Loan Officer for Central Texas Farm Credit, ACA, P.O. Box 1231, 203 South Blackburn Street, Brady, Texas 76825, or telephone number 325-597-2252 or toll free 888-597-3522.