To earn patronage, you must first buy a $100 share of stock.
Annually, the co-op board determines how much of the profits must be retained for the future growth and success of the cooperative.
The remaining profits are distributed to the members as patronage.
Each member’s share of the patronage is based upon his/her purchases from the co-op.
The co-op board determines what percentage of the patronage is paid in cash and what percentage is paid in additional ownership in the co-operative (called “equity”).
Annually, the board establishes a minimum threshold for paying out any patronage to individual members. (ie. We won’t cut a check for $.01 or other small amounts).
The co-op board annually determines what amount of the “equity” from previous years will be redeemed in cash.