Agricultural News
DFA Issues $29.6 Million in Patronage Earnings to Members
Tue, 08 Oct 2013 16:28:17 CDT
Reflecting a commitment to deliver value to its farmer owners, Dairy Farmers of America's Board of Directors has issued $29.6 million in patronage earnings to members of the Cooperative. This allocation, which equals 7.5 cents per hundredweight, was made to members who marketed their milk through DFA in 2012.
Patronage is the Cooperative's way of sharing DFA's earnings with its members. While at its core, DFA is a milk marketing cooperative, the earnings from its investments in plants and brands generate returns that allow members to share in the success of these value-added businesses.
"As a farmer-owned Cooperative, we continually seek opportunities to deliver value to our members," said Randy Mooney, DFA Board chairman. "Annual patronage allocations are one way we demonstrate the value of members' investment in the Cooperative that goes beyond milk marketing and other programs and services designed to help them operate efficiently and profitably."
The amount of patronage a member receives each year is based on the amount of milk they marketed through the Cooperative.
In keeping with DFA's base capital plan, all members will receive at least 20 percent of their earnings in cash, with the balance added to their capital accounts. Those who have achieved the established base capital level will receive 100 percent of their earnings in cash. Of the $29.6 million, $8.4 million was distributed in cash and the balance was allocated to members' equity accounts.
Since the formation of DFA in 1998, more than $490 million in patronage earnings has been allocated to the Cooperative's farmer owners.
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