Members Earn Equity Dollars
As a GENEX member, you can earn equity. Equity (or patronage) is distributed in proportion to a member's semen, product and service purchases; the greater the amount of product purchased, the greater the equity earned.
How does a member earn equity?
Producers who meet the membership requirements (annual purchase of $500 of semen, products and service and completed membership application) automatically earn equity.
How often is equity returned?
Each year the co-op's tax position and cash standing is reviewed to determine if equity will be revolved. Equity may be paid in cash and/or retained by the co-op for a period of time. The retained equity is used to finance GENEX operations. The cooperative's goal is to remain 13 years current on retained equity revolvement.
In what form is equity returned?
Equity is returned in the form of cash or as credit to the member's account.
What happens to "my equity" if I am not a GENEX member?
The net earnings from non-members is owned by GENEX. These unallocated profits are retained earnings and reinvested in operations.
When can a member request all of their equity?
The equity plan allows for immediate retirement of equity investments held by members upon notification from those who qualify: retired members age 65 or older who no longer farm, disabled members or estates of deceased members. Partnerships and owners of a corporation with less than 10 beneficial owners may receive their individual equity based on their percentage of ownership when they meet the above requirements.
For equity questions, contact GENEX at 888.333.1783.