What Is Patronage?

Patronage is a return of profits from the cooperative to Members who meet membership and eligibility requirements. Each year that Town & Country Supply Association is profitable, we return a portion of profits back to our Patrons. Patronage is paid as a combination of a percentage of cash and a percentage of stock which can be retired at a future date.

How is Patronage Determined?

•Patronage is based on a percentage of Town & Country Supply Association’s net income and the percentage of your purchases against total purchases of all customers for our fiscal year. The fiscal year begins January 1st and ends December 31st.

•The Board of Directors authorize the issuance of patronage.

•When approved, patronage is issued as a check with an accompanying 1099-PATR form, as long as your account is in good standing.

What is Stock and How is it Returned?

Stock issued by Town & Country Supply Association is held in your account and no certificate is issued.
The stock pays no interest and has no cash value until retired. Requests must be made in writing to the Board of Directors following the Patron’s 67th birthday. A stock requested list is accumulated from January 1st through December 31st. Typically in April following the close of the fiscal year all previous year stock requests are paid out. Retiring stock is at the discretion of the Board of Directors; however, Town & Country Supply Association is proud that we have been able to maintain our stock retirement age at 67. Each year after the fiscal yearend audit is complete the Board of Directors determines the cooperative’s ability to retire stock. Please check with your tax advisor regarding the taxability of your patronage allocation.