WHAT IS A PATRONAGE DIVIDEND?
Members share UFA earnings. At the annual general meeting or a special meeting of the assembly, the board of directors and member-elected delegates may declare a patronage dividend. Dividends are paid based on member purchases in the previous year.
HOW IS PATRONAGE PAID?
40 per cent of patronage dividends is paid to members in cash. The rest is issued as member share equity. Member share equity represents member's ownership in the co-operative. UFA uses member equity to finance the business.
The federal government requires that UFA withhold taxes equal to 15 per cent of the patronage dividends over $100 earned in a year.
HOW AND WHEN IS A PATRONAGE DIVIDEND PAID?
After a patronage dividend is declared, cheques are issued in April. Members who receive a cheque also get a Statement of Equity detailing their total equity in the co-operative.
Statement of Equity and Patronage Dividend Statements are available online through myUFA. Members are also encouraged to sign up for direct deposit
WHO CAN EARN PATRONAGE FROM UFA?
UFA members who have purchased a $5 lifetime member share are eligible to earn a patronage dividend based on their purchases.
WHAT ARE INVESTMENT SHARES?
Members who earned investment shares prior to 2020 earn interest equal to the bank prime rate less 0.5 percentage points. Investment share equity can be redeemed at any time.
WHEN CAN MEMBER SHARES BE WITHDRAWN?
Members can withdraw member share equity when they meet one of the following criteria:
- Moving out of UFA’s trading area;
- Reaching age 70;
- Winding down your corporation or individual operation;
- The farm or ranch corporate principals all reach the age of 70;
- Bankruptcy; or
- Upon death, the equity is then paid to the member’s estate.
WHY IS THERE A CAP ON MEMBER SHARES?
Once a member has earned $30,000 worth of member share equity, 100 per cent of subsequent patronage is paid in cash.
HOW DO I REQUEST A WITHDRAWAL OF MEMBER SHARE EQUITY OR INVESTMENT SHARE EQUITY?
The forms to withdraw equity are available online at myUFA.
Members can email Customer.Support@UFA.com or call UFA’s customer support team at 1 (877) 258-4500 to request a withdrawal and get questions answered.
HOW CAN I VIEW MY MEMBER EQUITY AND PATRONAGE?
Members can access and manage all of their account information and access forms online.
Visit myUFA to sign-in or register for online benefits including:
- Email notification when your statement is ready;
- View account balances and payment history;
- View and print detailed purchase reports, invoices and statements;
- View your Statement of Equity, Patronage Dividend Statement and investments;
- Link multiple accounts and share account information; and
- Update your account details and contact information.
A copy of UFA By-laws are available online