Passing on the Benefits to You
Jul 11, 2020
We were fortunate to hold our annual meeting just days before the pandemic shut things down. Those in attendance heard about a solid year financially, with sales of $150 million, local savings of $1.184 million and total net earnings of $3.4 million.
Members also received their patronage checks, and I would like to expand on the patronage situation here. In 2019, the board chose to pass through our Section 199A deduction to our members who sell grain to the cooperative. Due to changes in IRS regulations and the fact that our fiscal year ends on Dec. 31, we were unable to notify the membership of the amounts to be included on the individual member’s 1099-PATR for calendar years 2019.
Financially speaking, this situation is comparable to patronage dividends, which are taxable to the patron when received rather than when the cooperative realizes the earnings. Therefore, the Section 199A deduction you earned in 2019 will now be included and deductible on your 2020 Form 1099-PATR, distributed in early 2021. You will still have the deduction — it is simply delayed by 12 months.
Tying this back to my earlier patronage comments, the deduction passes through a total of $907,000 to our members. That amounts to an additional 7 cents per bushel of grain — effectively raising grain patronage from 3 cents to 10 cents per bushel.
We also announced who was elected to the board of directors. I thank all of you for your willingness to step up and be involved in leading the company you own. The three directors elected by mail-in ballot were all incumbents: John Calovich, District 1; Gregg Beemer, District 2; and Francis Jirak, District 3.
AN UNPRECEDENTED SPRING
To say this has been an extraordinary spring season is an understatement. As an essential business and member of several rural communities, we wanted to do our best to serve our customers while keeping the health and safety of our patrons and employees front and center. Our goal was to make the best possible decision we could each day with the information we had. I hope we were able to accomplish that.
The pandemic has affected everyone, from the grain/livestock producers to those who saw their off-farm income reduced or cut off. From my chair, I’m thankful to be part of an essential business and living in rural America where we were buffered somewhat from the worst of the crisis. I’m proud of our employees for adapting to a constantly changing situation and getting the job done, and for our customers for your loyalty and patience.
Thanks for your business — we certainly appreciate you. I’m looking forward with you to a return to something resembling normal in the near future.
This article was featured in the Summer 2020 Trail Blazer
Written by Darel Anderson, General Manager
Members also received their patronage checks, and I would like to expand on the patronage situation here. In 2019, the board chose to pass through our Section 199A deduction to our members who sell grain to the cooperative. Due to changes in IRS regulations and the fact that our fiscal year ends on Dec. 31, we were unable to notify the membership of the amounts to be included on the individual member’s 1099-PATR for calendar years 2019.
Financially speaking, this situation is comparable to patronage dividends, which are taxable to the patron when received rather than when the cooperative realizes the earnings. Therefore, the Section 199A deduction you earned in 2019 will now be included and deductible on your 2020 Form 1099-PATR, distributed in early 2021. You will still have the deduction — it is simply delayed by 12 months.
Tying this back to my earlier patronage comments, the deduction passes through a total of $907,000 to our members. That amounts to an additional 7 cents per bushel of grain — effectively raising grain patronage from 3 cents to 10 cents per bushel.
We also announced who was elected to the board of directors. I thank all of you for your willingness to step up and be involved in leading the company you own. The three directors elected by mail-in ballot were all incumbents: John Calovich, District 1; Gregg Beemer, District 2; and Francis Jirak, District 3.
AN UNPRECEDENTED SPRING
To say this has been an extraordinary spring season is an understatement. As an essential business and member of several rural communities, we wanted to do our best to serve our customers while keeping the health and safety of our patrons and employees front and center. Our goal was to make the best possible decision we could each day with the information we had. I hope we were able to accomplish that.
The pandemic has affected everyone, from the grain/livestock producers to those who saw their off-farm income reduced or cut off. From my chair, I’m thankful to be part of an essential business and living in rural America where we were buffered somewhat from the worst of the crisis. I’m proud of our employees for adapting to a constantly changing situation and getting the job done, and for our customers for your loyalty and patience.
Thanks for your business — we certainly appreciate you. I’m looking forward with you to a return to something resembling normal in the near future.
This article was featured in the Summer 2020 Trail Blazer
Written by Darel Anderson, General Manager