More Than a Loan: How the Co-op Model Strengthens Agriculture in Southern Colorado

When it comes to financing in agriculture, not all lenders are created equal. Brandon Hays, Senior Loan Officer in Burlington, has seen both sides—working in a commercial bank and now in the cooperative system at Farm Credit of Southern Colorado. Since joining the team in 2007, Brandon has developed a deep appreciation for how the co-op model serves rural communities. And with October being National Co-op Month, it’s the perfect time to recognize the impact that cooperative lending has on farmers and ranchers across Southern Colorado.

Hays explains that the biggest difference is ownership. Unlike a traditional bank, where profits go to private owners or shareholders, a cooperative is owned by its members—the very people it serves. “Customer owners have a say in the direction of the cooperative and are voters of their Board of Directors,” he says. “With only about 1,200 borrowers, your voice matters here in a way it never could at a national bank.” That’s the power of the co-op system—your voice, your community, and your future all working together.

Why Patronage and Fair Rates Matter

Another unique advantage is patronage—returning a portion of the interest borrowers pay back to them at the end of the year. Hays notes, “Patronage reduces your net cost. Even if another lender’s rate is slightly lower, we can often beat it once patronage is factored in.” While patronage isn’t guaranteed, Farm Credit of Southern Colorado has paid it every year since 1989.

Rates also work differently in a co-op. In commercial banking, rates can be negotiable and often depend on how much a customer pushes back. Hays contrasts this with the cooperative approach: “We don’t make any more money if rates are low or high—that’s one of the big differences between us and commercial banks.” Rates are determined by a standard rate sheet, ensuring fairness and transparency for all members.

Local Leadership, National Strength

Local leadership plays a vital role as well. The co-op’s board members are local agricultural producers themselves, bringing firsthand knowledge of market conditions, crop prices, and community needs. “We have representation from here—people who know what’s going on in agriculture because they live it every day,” Hays says.

While deeply rooted in Southern Colorado, the cooperative is also part of a nationwide Farm Credit network, providing resources and consistency across the country without losing the personal touch of local service.

For Hays, the co-op model is especially valuable in agriculture and rural communities because it builds trust, fosters relationships, and ensures members aren’t just numbers—they’re partners. “My favorite part of the job is spending time with my clients and seeing their operations grow,” he says. “That’s what makes this more than just lending—it’s about investing in people and their success.”

This blog post is for informational purposes only and should not be considered financial, legal, or investment advice. Any information contained in this post is subject to change without notice and should not be relied upon without seeking the advice of a qualified professional. The views and opinions expressed in this post are those of the author and do not necessarily reflect the official policy or position of our Association. The author and Association are not responsible for any errors or omissions and are not liable for any losses or damages arising from the use of the information contained in this post.