Our unique cooperative structure

Patronage payments are a cornerstone of the cooperative business model and can significantly reduce the cost of borrowing for our member-borrowers.  As part of the nation-wide Farm Credit System, Mississippi Land Bank is cooperatively owned, meaning we are owned by our member-borrowers and that they, in turn, share in our financial success when the Association performs well. Since 1996, Mississippi Land Bank has been able to share its financial success with our stockholders through our patronage program. We have returned nearly $70 million to our customers over the past 27 years. Patronage distributions are dependent upon the financial health of the Association, which is measured by various metrics such as Net Income, Return on Assets, and Capital Adequacy.

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Consistent Patronage Returns

At the end of 2023, the Board of Directors approved a match to our highest patronage distribution ever of $7.5 million to stockholders to be paid in 2024. This is the second year in a row of returning $7.5 million. That means a decrease in our customers’ effective interest rate for 2023 by approximately 82 basis points (or 0.82%).

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Our patronage history

It is the board and management’s priority to maintain a consistent patronage payout each year.  Quality of earnings based on sound credit philosophy continues to be the primary driver of our ability to meet this priority.  The graph to the right shows Mississippi Land Bank’s most recent history of patronage distributions.  All distributions are paid in cash.

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