As an agricultural credit cooperative, Puerto Rico Farm Credit, ACA is owned by the client-borrowers who purchase stock or participation certificates in the Association. The Board of Directors may choose to retain the net income of the Association to strengthen its capital position or distribute a portion of the net income to the owners of the Association, its client-borrowers.

The Association's Board declares dividends on an annual basis. During December of each year, dividends are declared on a patronage basis. Dividends have been declared and paid since 1993. The following table details declarations for the last five years:

 

	Year	Dividends
	2007	$3,250,000
	2006	$3,200,000
	2005	$3,000,000
	2004	$2,500,000
	2003	$2,000,000

A major difference between Puerto Rico Farm Credit and other lenders is that the Association shares a portion of its profits with its client-borrowers. Dividends, paid in cash, are a way to return a portion of the interest you paid on your loans. Thus, dividends effectively reduce the cost of borrowing, saving you money.

Additionally, as an agricultural cooperative primarily doing business on the island of Puerto Rico, patronage dividends paid to residents of Puerto Rico have been determined by the Department of the Treasury (Hacienda) to be exempt from income tax.

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