PATRONAGE ELIGIBILITY
Growers purchasing seed, fertilizer, or crop protection.
Homeowners using propane for heating.
Customers using our auto repair or tire services.
Residents purchasing fuel at Ag Plus Cenex locations.
At Ag Plus, your loyalty pays off. Patronage is your opportunity to earn dividends based on your contributions to the co-op’s success. Whether you’re a grower, homeowner, driver, or business owner, you can benefit from being part of our cooperative family. You're an essential part of our success.
Our Patronage program is based on a simple principle - the co-op's profits are shared with you. Dividends are determined by the co-op's annual profits, making this program a direct reflection of our collective success.
However, the decision to pay out dividends rests with our esteemed Board of Directors. Dividends are distributed across four key categories: Propane, Refined Fuels (including c-store fuel), Agronomy, and Other Merchandise (c-stores, shops, etc.).
To accurately track your patronage-eligible earnings, we require using your Ag Plus Local Card or charging purchases to your account at any retail location. This ensures that your contributions are accurately recorded, leading to fair and equitable dividends. We cannot track purchases made with cash or debit/credit cards. You can request as many Local Cards as you need for your household when you fill out our Credit App or from any one of our offices.
This members-only card is directly linked to your Ag Plus account and credit line, granting you the freedom to charge purchases at our c-stores and pumps effortlessly. But it's not just about convenience – it's about reaping the benefits of our patronage program. By using your Ag Plus Local Charge Card, you're not only streamlining your transactions but also contributing to traceable sales that make you eligible for potential patronage dividends.
If you're ready to share in the cooperative’s success, follow the steps below to begin earning patronage.
Download the credit application form by clicking the button below.
Provide your applicant information (and co-applicant if necessary), and check the boxes for which divisions you plan on purchasing from at Ag Plus. Agronomy applicants and Corporations should also provide a current financial statement.
Charge your purchases to your Ag Plus account or use your “Local Card” at Ag Plus locations to track your earnings.
How are dividends calculated and distributed?
Dividends are based on the co-op's annual profits and are determined by the Board of Directors. They are distributed across categories such as propane, refined fuels, agronomy, and other merchandise. Payments are made as a combination of cash and deferred equity, ensuring immediate and long-term benefits.
What happens to my patronage benefits at retirement?
The concept of patronage extends into the realm of retirement planning. Historical practices varied among different co-ops, with ages such as 75 (for members of FCA), 65 (for members of Lyon County Farm Service), and 72 (for members of Prairie Pride) being significant markers.
When all allocated funds have been paid out from the legacy co-ops, retirement payouts will be based on the age of equity, not age of patron, that defines your retirement benefit. The Patronage program serves as a tangible investment in your future.
Is patronage income taxable?
Yes, you will receive a 1099 form for all patronage income, and taxes are applicable. However, any deferred equity received as dividends will be taxable at the time of distribution/allocation, but not taxable when paid out at retirement on the deferred portion.
How are patronage dividends allocated?
At the end of each year, the Board of Directors works with the CEO and CFO to determine how dividends will be distributed. Dividends consist of both cash and deferred equity, ensuring you benefit immediately while building future financial equity.
Is there a minimum payment amount for receiving patronage dividends?
Yes, there is a minimum check amount set by the Board of Directors. This ensures the payment process is efficient. Dividends are distributed as a mix of cash and equity, offering both short-term benefits and long-term growth opportunities.
How does patronage work for retirement or estate handling?
For retirement or estate situations, Ag Plus provides a dedicated form to facilitate the payout of dividends. This ensures a seamless process for receiving your benefits, whether you’re retiring or managing an estate.
What makes patronage a good financial decision for my farm?
In addition to tax advantages at retirement, the combination of immediate cash dividends and deferred equity ensures that your patronage serves as both a short-term reward and a long-term financial investment in the co-op’s success.
ABOUT
Corporate Office
1100 East Main Street
Marshall, MN 56258
(507) 532-9686
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