Patronage

It pays to be a member-owner.

When you trust your business with Compeer Financial, you become a valued partner who shares in the success of our cooperative. Our patronage program regularly returns a portion of our earnings to our member-owners, based on the business they had with us in the prior year. A strong patronage program benefits member-owners by essentially lowering the cost of funds borrowed, while maintaining the confidence of those who invest in our organization.

What is patronage?
Patronage is a unique benefit that returns a portion of Compeer Financial’s earnings back to our member-owners, essentially reducing the costs of the funds they’ve borrowed. When Compeer Financial does well, so do our member-owners, in terms of the amount of patronage they receive. Patronage dollars may be used however member-owners prefer, whether it’s to pay down their loan, make new investments in their farms or businesses, pay household bills or take a long-awaited vacation.

In 2023, Compeer Financial is returning $202 million back to member-owners.
 
How does it work? 
The Compeer Financial Board of Directors designed the patronage program to balance the needs of the organization with providing an appropriate return of the equity to those who utilize the cooperative. Each year, our Board evaluates the organization’s financial status to determine the amount of income to be distributed to member-owners as patronage. The amount of patronage paid to each member-owner aligns with the amount of business they have with Compeer Financial.
 
Overall, the patronage program allows us to reward our member-owners for trusting us with their business while keeping an eye to the future, ensuring that the organization stays financially stable through prosperous and challenging economic cycles.

*Patronage allocations, redemptions and payments remains at the discretion of the Board of Directors based on a combination of factors including the risk in our portfolio, earnings, and our current capital position.