Member Dividends

We put money back into your pocket
and into our local communities.

Our unique cooperative structure allows us to return some of our profits to our borrowers. Each year, the Board of Directors reviews our financial position and determines if the Association’s capital position is strong enough to distribute a portion of our profits to our members.

If so, you’ll receive a check, based on the amount of interest you’ve paid in the previous year. Interested in determining your dividend amount?

The Farm Credit advantage: we pay dividends.

When you do business with Farm Credit,
you become a member. As a cooperative,
we return our profits to those who borrow
from us.

Calculate your potential member dividend.

Your estimated Member Dividend Distribution:


Which effectively lowers your total interest cost for the first year of your loan from $8,000 to:


This effectively lowers your interest rate from % to:


Loan amount:

Annual rate:

Member Dividend FAQs

What is a member dividend distribution?

A member dividend distribution is a way of distributing the association’s profits to its members. The amount of dividend distributed to a member is based on the amount of business the member conducts with the Association (in other words, how much you borrow).

Do member dividends affect my borrowing costs?

Absolutely—in a very positive way. The Association, like other lenders, offers competitive rates and terms, which typically results in a profit. When our board of directors elects to return a part of those profits, the distribution is based on the amount of interest members have paid on their loans. As a result, member dividends effectively lowers each member’s borrowing costs.

How do member dividends benefit the Association?

The Association may deduct qualified member dividends, including cash and the retirement of nonqualified surplus, from taxable income when computing its taxes. The result is a tax effective way of providing value to members.

How is the amount of a dividend determined?

The obligation to pay member dividends is established by the association’s bylaws and board resolutions. Pursuant to these governing documents, our association’s board of directors determines the overall amount of member dividends and form of dividends. These determinations are based on the association’s profits and capital needs. As a regulated financial institution, the association must build and maintain adequate capital to ensure we have the financial strength to continue serving our market. Distributions are made only if capital requirements are achieved.

Note that, in certain circumstances, your loan may not be eligible for a member dividend distribution. For example, if your loan is placed in nonaccrual status, you may not be eligible for member dividend with respect to that loan.

What forms of member dividends may be declared?

Member dividends may be paid in cash and/or any of the following forms of retained earnings, each of which is evidenced in a written notice form (usually in the member dividends distribution notice).

The Cash portion of your member dividend distribution may be issued to you by check or recorded on the association’s books in a special account. When any portion of a member dividend distribution is paid in cash, your board of directors may elect to set a minimum check amount as a means of controlling expenses. Cash distributions below the minimum check amount are recorded in a special account called Member Dividend Payable.

Nonqualified Allocated Surplus is similar to Qualified Allocated Surplus, except that the association does not deduct allocations of Nonqualified Allocated Surplus from its taxable income until it is redeemed or retired. Consequently, the member does not recognize Nonqualified Allocated Surplus as taxable income until cash received upon the redemption or retirement of the surplus.

Nonqualified Retained Surplus is an amount retained by the Association in the member’s name. However, unlike Qualified and Nonqualified Allocated Surplus, the board of directors considers Nonqualified Retained Surplus as earnings permanently invested in the Association. As such, there is no plan to retire or redeem Nonqualified Retained Surplus, except upon liquidation of the Association. The association does not deduct Nonqualified Retained Surplus from its income for tax purposes. Consequently, the member does not have to recognize an allocation of Nonqualified Retained Surplus as taxable income.

Member Dividend Chart

Southwest Georgia Farm Credit has a strong history of returning profits.

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Fiscal Year Ending in December Total Member Dividend Distribution Cash Allocated Surplus Allocated Surplus Distributed Percentage of Interest Earned
1991-2003 $61,660,750 $21,859,301 $39,801,449 $39,801,449 28.72%
2004 $5,430,937 $2,716,136 $2,714,802 $2,714,802 28.00%
2005 $7,234,490 $3,617,596 $3,616,894 $3,616,894 28.00%
2006 $7,647,269 $3,823,936 $3,823,333 $3,823,333 22.67%
2007 $5,874,720 $4,012,546 $1,862,174 $1,862,174 15.52%
2008 $0 $0 $0 $0 0.00%
2009 $0 $0 $0 $0 0.00%
2010 $2,845,969 $1,423,674 $1,422,296 $1,422,296 15.58%
2011 $2,247,262 $1,124,438 $1,122,825 13.17%
2012 $5,000,000 $2,500,525 $2,499,475 28.14%
2013 $5,500,000 $2,750,605 $2,749,395 28.56%
2014 $4,500,000 $4,500,000 $0 $0 21.25%
2015 $3,954,996 $3,954,996 $0 $0 16.44%
2016 $4,743,147 $4,743,147 $0 $0 16.78%
2017 $5,000,000 $5,000,000 $0 $1,122,825 16.56%
Total $121,639,541 $62,026,899 $59,612,642 $54,363,773 20.77%

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