Methods and Policies Used in Making Patronage Refunds by Selected Farmer Cooperatives

Excerpts from the report: Patronage refunds, also referred to as patronage dividends, are the amounts allocated to patrons based on their volume of business with the cooperative. Such allocations are made at the end of a fiscal year or other fixed period. They are net amounts left after all operating, overhead, and maintenance costs have been paid. As the initial phase of this study, the author personally interviewed management officials of 18 regional cooperatives in 1965. Several of these cooperatives were major farm supply and marketing associations. This report is based on information obtained from these interviews. It provides some insight into the handling of patronage refunds by a small but important segment of the cooperative population. It does not attempt to answer all the questions on the subject. It does seek to bring into clearer focus the nature of the patronage refund; how the refund is computed; how it is distributed; and what problems are involved.