Farm Bureau Programs and Services Mendocino County Farm Supply

FARM SUPPLY POLICY
Farm Supply/Farm Bureau
Member Patronage Dividend

All Farm Bureau members in good standing are eligible to receive a member/ patronage dividend from the Mendocino County Farm Supply.

Mendocino County Farm Supply operates on a calendar year: i.e. January 1 through December 31 each year. A patronage dividend is therefore calculated on a calendar year. Mendocino County Farm Supply cannot pay a dividend to anyone who is not a Farm Bureau member. If a person joins on February 1, for example, the eligible purchases for patronage would be for all purchases made on or after February 1, through December 31 and from January 1 through January 31 the next year. If a member does not renew their membership by February 1 the next year ( or by the 60 day grace period) that individual will not be eligible for patronage after the expiration date of the membership.

If it is renewed again in 3 or 4 months, a dividend will not be paid for the months the membership has lapsed. This policy is in accordance with the Mendocino County Farm Supply By-laws and cannot be violated.

PLEASE NOTE:

• Due to the costs and paperwork involved, payable of less than ten (10) dollars shall be forfeited by the member/shareholder and not paid by Mendocino Farm Supply.
• Patronage dividends are paid in accordance with Internal Revenue Code, Section 1382 and the regulations thereunder.
• The Mendocino County Farm Supply by law has until September 15th of the following year to distribute the dividend due. In past years, the Mendocino County Farm Supply has distributed the dividend before this deadline to the benefit of its member customers.
• All patronage dividends received by the member are taxable income and must be reported on tax returns. Each member will receive a Form 1099PATR from the Mendocino County Farm Supply showing the amount paid. The Mendocino County Farm Supply is required to send a copy of Form 1099PATR to both the State and Federal tax agencies.
• It is important that members keep the Mendocino County Farm Supply advised of any changes in their Social Security or Federal Tax ID number as well as any name or address changes. If, for example, a Mendocino County Farm Supply account name is "Hilltop Ranch", or some other fictitious name, and the tax is filed under "John Doe", a member should inform Mendocino County Farm Supply to change the account name. The change should read "John Doe" dba (doing business as) "Hilltop Ranch". This is a must as the State and Federal tax agencies need to match the name and number to the form submitted by Mendocino County Farm Supply to the member's tax return.