CoBank Board Approves Special All-Cash Patronage Distribution for 2021
- Incremental Payment Will Represent an Approximate 18% Patronage Increase for Most Eligible Customer-Owners.
- CoBank Also Announces 2022 Board Officers.
DENVER (December 15, 2021) — CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit Associations throughout the United States, today announced that its board of directors has unanimously approved a special all-cash patronage distribution for eligible customer-owners.
The distribution, totaling an estimated $111 million, will be made in March 2022 in addition to the patronage program payments the bank had initially targeted to make to member-borrowers under its various patronage programs. For most eligible borrowers, the distribution will represent an approximate 18% increase in patronage.
“CoBank has delivered exceptional business and financial results in 2021,” said Kevin Riel, retiring chair of the CoBank board of directors. “As a financial cooperative, customer-owners benefit from this success through patronage, which remains a core element of the CoBank value proposition. Our board is pleased to approve this special distribution, and is committed to supporting our customer-owners as they grow and expand in their markets.”
This special patronage distribution to eligible customer-owners was unanimously approved at the board’s recently concluded December meeting. It will be based on average daily loan balances held by the bank during the year and vary by patronage pool, as detailed in the following table.
|Customer or Loan Type||Patronage||Special Patronage|
|Agribusiness, Communications & Project Finance||95 bps||17 bps||18%|
|Rural Electric & Water||80 bps||14 bps||18%|
|Affiliated Associations||45 bps||8 bps||18%|
|Loans Purchased from Farm Credit Institutions||95 bps||17 bps||18%|
|Nonaffiliated Farm Credit & Other Financing Institutions||30 bps||4 bps||13%|
|* Final patronage amounts, including both distributions, will be announced in February 2022 based on 2021 average loan balances and CoBank’s full year financial results.|
Also today, CoBank announced board officers for 2022. The CoBank board elects its officers to serve a one-year term commencing January 1 and expiring December 31 each year.
Kevin Still has been elected as the new board chair. Still has been a director since 2002 and is the president and chief executive officer of Co-Alliance Cooperative, Inc., a cooperative supplying energy, agronomy and animal nutrition, producing swine and marketing grain in Avon, Indiana. He is also the owner and president of Still Farms, LLC, a grain farm, and serves as an officer or director of various agricultural retail and energy cooperatives.
Jon Marthedal will serve as first vice chair. Marthedal has been a director since 2013 and is the owner and operator of Marthedal Farms, a grape, raisin and blueberry farming operation in Fresno, California. Marthedal is the board chair of The Farm Credit Council and serves as a director of several agricultural cooperatives and trade associations.
Brandon Wittman will serve as second vice chair. Wittman has been a director since 2018 and is the chief executive officer and general manager of Yellowstone Valley Electric Cooperative, Inc., an electric distribution cooperative in Huntley, Montana. Wittman also serves as a director of The Farm Credit Council and Montana Electric Cooperatives Association.
“I am honored to be elected as the new board chair for CoBank and look forward to working closely with Jon, Brandon and the rest of the board in the coming year,” Still said. “We are dedicated to fulfilling our mission across the Farm Credit System and leveraging our long-term financial strength to deliver dependable credit and financial services to our customers.”
CoBank’s 2022 board will consist of 14 directors elected by customer-owners from six voting regions across the country, as well as two outside directors and two appointed directors.
CoBank is a $155 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and maintains an international representative office in Singapore.
Certain of the statements contained in this news release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual future business may differ materially and adversely from our expectations expressed in any forward-looking statements. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “target,” “may,” “will,” “should,” “would,” “could,” or similar expressions. Although we believe that the information expressed or implied in such forward-looking statements is reasonable, we can give no assurance that such projections and expectations will be realized or the extent to which a particular plan, projection or expectation may be realized. These forward-looking statements are based on current knowledge and subject to risks and uncertainties. We encourage you to read our Annual Report and Quarterly Reports located on the bank’s website at www.cobank.com. We undertake no obligation to revise or publicly update our forward-looking statements for any reason.