Dairy farmers who market their milk through Dairy Farmers of America, Inc.’s (DFA) should expect to receive their cooperative patronage checks this week.
DFA’s members who marketed their milk with the company in 2009 will receive a total of $26.4 million, with $7.6 million distributed in cash and the balance allocated to members’ equity accounts.
Patronage is the Cooperative’s way of sharing DFA’s earnings with its members. The amount of patronage a member receives each year is based on the amount of member milk marketed through the Cooperative. This allocation is equal to 7 cents per hundredweight of milk marketed in 2009.
In keeping with DFA’s base capital plan, members who have achieved the established base capital level will receive 100 percent of their share of earnings in cash. Those who have not will receive a portion of their earnings in cash, with the balance added to their capital accounts.
“Annual patronage payments are a special benefit of Cooperative membership,” said Randy Mooney, DFA Board chairman. “Beyond milk marketing activities and services that help our farmer owners improve their bottom line, patronage checks are one more important way that DFA delivers value to its members.”
Combined with special payments totaling $18.3 million in July and October 2009 to help offset economic hardships, DFA members’ total 2009 cash earnings were $25.9 million.
Source: Dairy Farmers of America, Inc.