Wheat Grower’s Board of Directors approved a record $16 million qualified patronage allocation for 2015, with $6.4 million paid in cash.
“This dividend is possible thanks to solid financial results for the fiscal year and the continued strength of our balance sheet,” Chief Financial Officer Blake Bomesberger says.
In addition to working with a trusted team of neighbors and friends, Wheat Growers member-owners, over the last six years, have received over $47 million in cash through Patronage programs and Loyalty Rewards. The return of savings back to member-owners is one of the principles of the cooperative system and this year’s record setting distribution demonstrates Wheat Growers commitment to that principle.
Historic Old-Year Equity Payment
The Board of Directors also voted to pay out $4.2 million in equity. This represents 100 percent of patrons’ equity in Wheat Growers for 1998 and 1999.
“This record payment is the result of the strong financial position and performance by Wheat Growers for the past few years,” Board President Hal Clemensen says.
Non-Qualified Patronage Allocation
Wheat Growers patrons also received a record $10 million non-qualified patronage allocation for 2015.
“There are no tax consequences to the patron related to this non-qualified dividend in the year of allocation as the Cooperative pays the tax on the non-qualified amount” Bomesberger says.
Section 199 Tax Deduction
Over the past six years, Wheat Growers has also passed through $80 million of Domestic Production Activities Tax Deductions (Section 199) to member-owners. This year, given lower commodity prices and the Cooperative’s tax rate of 35 percent, the Board decided to retain this deduction at the cooperative level, which should result in the greatest tax savings for the Co-op and its member-owners as a whole.
Owned, Governed and Operated for You
Wheat Growers is member-owned, governed and operated for the mutual benefit of you, our members. Because our money stays local, we support the economic well-being of your 32 local, rural communities. Thanks to your support, Wheat Growers has made over $308 million worth of capital investments in facilities and equipment over the past six years. Innovation is one of our core values, so we conduct research and educate you about the latest agricultural technology.
Our success is due to the service and commitment of our dedicated employees, who service over two million acres every year – and do it safely and efficiently so that they can return home each night to their families. Our talented agronomists and grain marketing specialists provide you with unbiased crop input and grain marketing recommendations tailored to your operation.
Wheat Growers has a 90-plus year history of serving you and your communities, and we’re here to stay for another 90. Remember we’re just a phone call away – it’s easy to visit with your leadership team and board members at any time.