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 3, Wheat down 12 Crude Oil-71.60 up .13 US Dollar-104.82 up .05 Dow Jones-33,487.17 down 294.31
USDA’s crop production report was a yawner, as expected. Soybeans tried to rally a bit more, but ran out of steam and closed down slightly. US domestic ending stocks for corn came out up bit more than the trade expected which pushed them off their highs. Wheat slowly went down today as funds decided to pull their money right before the weekend.