Jeff Nielsen of United Farmers Cooperative (UFC) in Minnesota emphasized that strong earnings are necessary to invest in the infrastructure needed to compete globally and to allow the co-op to maintain and improve its member equity revolvement
Of that total, $6 million was paid in 2009 in cash patronage and equity revolvements
. The remaining $25.8 million was issued in 2010, including $6.7 million of cash patronage; the balance represented revolvement
of equities held by dairy producers who marketed milk through Foremost Farms and its predecessor cooperatives.
Some have sped up payment and equity revolvement
schedules, or even dipped into reserves to make extra payments.
Topics included: the purpose of co-ops; aims and purposes of the Garner co-op; credit and credit terms; building programs; products and services available; revolvement
policy; marketing activities; sales and savings; changes in member equity and new programs.
Among the more important questions was one asking for the dollar amounts paid under its revolvement
plan to estates of retired members.
AMPI's annual revolvement
of capital retains and previously allocated earnings are budgeted for November and December.
Do long revolving periods show poor planning, do cooperatives use former members' money to generate benefits for the current users, and does slow revolvement
present fairness issues?
When farmers demand not only good prices, but high returns and a quick equity revolvement
, do they set the stage for cooperative failure?
It marked the 38th year of continuous patronage revolvement
payments to members.
The sample included roughly equal numbers of cooperatives that attained relatively high standards of financial performance (determined by local return on investment (ROE) greater than 10 per cent, debt-to-equity ratio of less than O.25, revolving equity in less than 15 years, and issuing more than 40 percent of patronage refunds as cash) and low levels of performance (negative ROE, debt-to-equity of greater than 1, equity revolvement
greater than 75 years, and less than 20 percent cash patronage refunds).
Eggland's Best) and LOL's by-laws that allow the company to retain up to 25% of earnings from its member business with no revolvement
The recent payout was a surplus revolvement
from the Association's 2003 and 2004 Patronage Refunds, and taxes were paid on this portion at that time.