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NW Illinois | Just going to examine the grain part since this thread is mostly grain driven.
Landus paying .02 vs NEW paying .11 doesn’t necessarily mean NEW is better. To know that we would need to know what the difference paid per bushel on the grain check is.
Example: Landus pays .09 cents better and only pays .02 patronage they are the same.
Next thing I’ll bring up matches my either comment on I prefer lower paying patronage. In this document it says they are paying 50% cash. As the patronage receiver you are paying 100% the tax on it up front. If you are in roughly a 20% tax range (state and federal) that makes a tax liability of 2.2c. You get 5.5c now, pay 2.2c in tax. Effectively get 3.3c. 5.5c is retained by NEW. Here’s the complicated part. When do you get the other part back. Do they revolve members equity every few years, 10 years, or 20 years plus (effectively making it a payout at death to the estate. When that money is returned,it’s tax free since you paid it up front, but they use that money interest free from you till equity is revolved back. | |
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Margins
