Annual patronage is a key part of the value proposition CoBank offers its customers. Under the bank’s capital plan, the vast majority of qualified borrowers can expect to earn 100 basis points (1 percent) of their average daily loan balance for the year in annual patronage. Patronage distributions, which must be approved annually by the Board of Directors, are composed of both cash and equity and effectively lower the overall net cost of borrowing for CoBank customers.

For a detailed explanation of patronage and the bank’s capital plan, contact your Relationship Manager. Information is also available from the CoBank Finance Division at 303-740-4338.