MKC Distributes Patronage to Stockholders

MKC Distributes Patronage to StockholdersMKC continues to give back to patrons, demonstrating just one of the values of the cooperative system. Recently, the MKC Board of Directors approved the allocation of $3.1 million in patronage earnings for fiscal year-end 2017.

“Thank you to our member-owners for the support they have shown their cooperative over the past year,” said Dave Christiansen, MKC president and CEO. “This distribution of profits represents what we’ve been able to generate after we’ve supplied our producers with inputs and purchased our members’ grain at competitive prices. This is a true representation of the potential that exists when working collaboratively.”

Customers who marketed grain with MKC for the fiscal year 2017 earned 4 cents per bushel in patronage and 15 cents per bushel in the Section 199 deduction. Patronage was also paid on agronomy goods and services purchased including crop nutrients, protection products, seed and custom application services at 2.12% or $9 per ton fertilizer. Energy and lubricants patronage rate was .64% or 1.5 cents per gallon of fuel, and feed and merchandise was 2.29%. In total, checks that represent 40 percent of patronage paid in cash were distributed to 3,154 members.

MKC also added 276 new members throughout the fiscal year. That is following 252 new members last year. Total patronage distribution to members was $3,157,079.50 with 40% of this distributed immediately in cash.
Christiansen said while the cooperative did not end with the financial year we had planned on primarily due to margin compression and expenses putting huge crops away; we did achieve many of our objectives.  As a result, you will see us placing much more emphasis on controlling the things we can.

“I think our biggest test this coming year is to think big and challenge everything we do. Not by working harder, but thinking differently, looking at each of our tasks in a different manner,” Christiansen said.

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