Patronage is defined as the support, encouragement, privilege, or financial aid that an organization or individual bestows to another. The word "patron" derives from the Latin: ‘potronus’ (“patron”), one who gives benefits to his clients. Over the years we have fielded many questions on what is patronage and how it works. Below are a few common questions with a short answer. If you have other questions, please feel free to call your local branch and we will answer them the best of our ability.
Patronage Q & A
Q. Why should I become a Patron of Gerald Grain Center Inc.?
A. The patron stockholder becomes the owners of the co-op company that serves them. As an owner, it allows you to share in the profit that Gerald Grain Center Inc. generates. It is an opportunity that independent organizations don’t provide.
Q. If I bring in grain, am I an automatic member of Gerald Grain Center Inc.?
A. No, a $50 share of common stock must be purchased to be a voting member of the cooperative. The value of this common stock will remain constant at $50.00
Q. How do I accumulate patronage money?
A. Patronage is paid based on the profit of the organization. You can receive patronage from selling grain, percentage of drying and grain storage. You can also get patronage for the purchasing of fertilizer, seed and farm supply items.
Below is our current history:
|TOTAL PATRONAGE (IN MILLIONS)||CENTS PER BUSHEL GRAIN MARKETED||STORAGE CHARGES||DRYING CHARGES||SUPPLIES (FERT/SEED/CHEM) PURCHASES|
*NOTE* The company has no deferred patronage older than 2014
Q. I am in a LLC or Corporation, how does that affect my stock?
A. Each member of LLC or Corp must own a $50 share of common stock.
Q. Who makes up the board of directors?
A. The board is made up of farmers that represent your voice to the management of the organization and make business decisions. The board consists of nine members
Q. Why do I get two checks?
A. A Patronage check is issued in the fall after the fiscal year end which is June 30th. The first year you will receive a portion (45%) of the total amount due to you. Gerald Grain Center Inc. uses the balance of your money as working capital to help fund the business. The balance of your money which is referred to as revolving stock, is payed when the board of directors feel the amount of working capital is adequate to pay it back or upon death.
Q. Do I get patronage in purchases of feed purchases?
A. No, GGC FEEDS is a LLC and establishes pricing that doesn’t allow patronage.