MnSP declares 2.3-cent per Class A share dividend
BREWSTER -- Minnesota Soybean Processors "MnSP" will pay a 2.3-cent per Class A share cash dividend in March 2012, to members of record as of Aug. 31.
The 2.3-cent per share cash dividend is the cash portion of MnSP's taxable patronage dividend that will be paid to members for MnSP patronage earnings for fiscal year ended Aug. 31.
MnSP expects total patronage earnings (taxable income) for fiscal year 2011 to be approximately $3,685,000, or 17.4 cents per class A share, of which $2,482,000, or 11.7 cents per class A share will be distributed to members in March 2012 as a taxable patronage dividend (both the cash portion of 2.3 cents per share and the noncash qualified allocation of 9.4 cents per share are taxable to members), and $1,200,000, or 5.7 cents per class A share, will be distributed to members as a nontaxable patronage dividend (noncash nonqualified allocation of 5.7 cents per share).
Members receiving the dividends will not be required to report the taxable patronage dividend until 2012.
The noncash nonqualified allocation will also be made in March 2012, but it is not taxable to members until the nonqualified allocation is redeemed in cash by the cooperative.
MnSP also intends to allocate approximately $1,193,000, or 5.6 cents per Class A share, in biodiesel tax credits to members of record as of Aug. 31, in order that members can utilize the tax credit in 2011 or carry the credit forward to 2012, when such members of record will report as income the amount of the taxable patronage dividend.
When made in March 2012, both the noncash qualified allocation (9.4 cents per share) and the noncash nonqualified allocation (5.7 cents per share) will constitute allocated equity attached to MnSP's Class A shares and will be redeemable solely at the discretion of MnSP's board of directors under MnSP's Articles and Bylaws.
MnSP is a 2,350-plus member cooperative that owns and operates a soybean crush facility and bio-diesel operation in Brewster, Minnesota.