[HASTINGS, NE September 20, 2021] — 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 2021 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 $4,646,900 back to its member-owners in cash, redemptions, and deferred equity during the 2021 fiscal year.
These payments to our member owners are only possible with local profits derived from the business we do with our customers. Fiscal 2021’s local savings of $4.2 million and total savings of $12.1 million continue to put CPI on a path of success and have allowed CPI to build agronomy and grain facilities to serve our customers.
“Continued economic uncertainty and the threat of inflation affects every aspect of agriculture. CPI will work tirelessly to support our farmers and their communities. The work of our members and our employees makes our success and this patronage possible.” said Gary Brandt, CEO at Cooperative Producers, Inc. “The Board of Directors’ leadership and the loyalty of our member-owners will continue to allow CPI to invest in facilities and rural Nebraska.”
Patronage payments are calculated based upon the amount of business done by our members during the fiscal year, which began July 1, 2020 and ended June 30, 2021.
CPI is also passing $2,800,000 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.