GRAIN STORAGE & DRYING: - Qualified: 10% of $ paid -Non-Qualified: 0% -Total: 10% of $ paid
INPUTS & SERVICES: - Qualified: 9% of cost -Non-Qualified: 0% -Total: 9% of cost
Checks mailed in December represent 50% of the QUALIFIED patronage dividend. You will pay taxes on the entire Qualified dividend this year. The remaining part of the Qualified dividend will be retained and paid out with all taxes paid in the future. The Non-Qualified portion will all be retained and paid out in the future. You will pay taxes on this portion in the year they are revolved. Currently Ray-Carroll has revolved equity to 2012 and plan to stay within a ten year window.
Patronage Checks Example
If you sold 100,000 bushels of grain to R-C during the 2021 crop
You will receive a check in December for $10,750(50% of Qualified), and you will pay taxes on $21,500 this year.
The remaining $10,750 of Qualified Patronage will be retained and should be paid out within 10 years. Taxes are already paid on this amount.
Non-Qualified Patronage is all retained. Your check for $5,290 should be paid out in 10 years. At that time you will pay the taxes on this amount.
Our plan is to pay the full $26,790 out within a ten year window barring several years of floods/droughts.
Corn up 2, Beans down 2, Wheat down 5 Crude Oil-73.27 down 2.61 US Dollar-102.97 up 1.23 Dow Jones-33,926.01 down 127.93
China apparently didn’t have as much bean pricing to do this week as traders hoped. Beans spent most of the day in the red, but had foundation from a bone-dry forecast for Argie the next 10 days. Corn continues to have slim trading ranges, seemingly unable to find direction… The bullish funds are thinking Chinese imports will ramp up with last year’s short Argentine crop, but the bears know these historically high prices have to see demand to stay at this level. Wheat struggled today with a firmer dollar and no new news from the Black Sea to rally on.