[HASTINGS, NE December 31, 2020] — The Cooperative Producers, Inc. (CPI) Board of Directors has approved the allocation of $3,000,000 in patronage refunds to member-owners as a result of its fiscal 2020 financial performance. The patronage refunds will be paid out in 50% cash and 50% qualified deferred equity. With the addition of other equity retirements, CPI returned a total of $3,210,000 back to its member-owners in cash, redemptions, and deferred equity during the 2020 fiscal year.
“In a time of uncertainty and economic change, agriculture deserves support. The business done by our members and the hard work of our employees makes it possible for CPI to distribute these payments,” said Gary Brandt, CEO at Cooperative Producers, Inc. “With the Board of Directors’ leadership, and the loyalty of our member-owners, CPI is able to both add value and share success with area farmers.”
Patronage payments are calculated based upon the amount of business done by our members during the fiscal year, which began July 1, 2019 and ended June 30, 2020.
CPI is also passing $1,860,000 in Qualified Production Activities Income Deduction (IRC 199A(g) formally called Domestic Production Activities Deduction (DPAD)) to eligible patrons. Please consult with your tax advisor for further information on the 199A(g) New Domestic Production Activities Deduction and how it applies to your individual situation.
