Patronage refunds benefit borrowers by reducing their cost of borrowing. AgCredit charges competitive rates on its loans/rates comparable to those charged by other lenders for similar loans.
However, a major difference between AgCredit and other lenders is that AgCredit returns its profits to its borrowers. When you receive a patronage refund from AgCredit, your effective cost of borrowing is reduced.
Since AgCredit distributes refunds based on the amount of interest earned on each member's loan, the more business you do with AgCredit, the larger your potential patronage refund.