CHS to make record $600M payout to farmer owners

Article by: David Shaffer , Star Tribune
Updated: February 4, 2013 - 11:42 PM

BIG payday: Farmers and cooperatives that are members of the giant co-op will get the biggest payout ever.

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richardheimFeb. 4, 13 4:27 PM

farm co-op's pay vary little in tax's, but as you can see receive large sub's !!

stanbobFeb. 4, 13 5:00 PM

Be interesting to see how much federal money these farmers also received.

lars1074Feb. 4, 13 6:16 PM

The patrons of the coop pay the taxes on the cash and equity they receive from the coop. It gets passed thru to the members.

comment229Feb. 5, 13 4:12 AM

Watch some ignorant people now go vilify all farmers. In truth, the super bowl commercial with Paul Harvey is closer to the truth for everyday farmers.

jaytee1Feb. 5, 1312:40 PM

What are you talking about...this is taxable income to the farmers. It is not some "subsidy". They pay state and federal income taxes. I am consistently amazed how people think that their friends and neighbors somehow get something for free from the federal government.

sawatdeeFeb. 5, 13 7:11 PM

The dividend received from coops is divided into two parts. One part is the cash amount received, which is usually in the amount of 20 to 30 percent of the total dividend. The second part is the retained earnings which stays within the co-op. The patron pays tax on the total amount but only receives approximately 20-30%. In many cases the amount of cash received does not cover the taxes owed. The remaining amount is paid out to the patron upon either reaching a certain age, generally in the upper 70's or 80's, or upon the patrons death. Then it goes to his estate.