CHS Inc and CoBank have alternative philosophies concerning how to allocate patronage earnings. CHS Inc. allocates every last dollar (or nearly every last dollar) of its patronage earnings to patrons and pays a 35% cash refund. CoBank allocates some over 70% of its patronage earnings to patrons and pays a 65% cash refund.
Is one right and the other wrong? Why would a Co-op allocate something less than all of its patronage earnings? These and other questions will be addressed over the next few blogs. Check back in the coming days.
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