How Is Patronage Determined?
Patronage is based on a percentage of our net income and the percentage of your purchases against the total purchases of all customers for our fiscal year that begins October 1st and ends September 30th. After the end of each fiscal year, the board of directors may authorize the issuance of patronage. When approved, the patronage is issued in June of the following year. This patronage is issued as a check, as long as your account is in good standing. The check is combined with form 1099-PATR for income tax purposes.
