UFA shares annual profits with members. Under the old structure, 20 per cent of patronage was paid in cash and the rest became member share equity and revolving equity which eventually became investment share equity.
As of January 1, 2018, in years when a patronage dividend is declared, 40 per cent will be paid in cash and 60 per cent will be issued as member share equity. Once you earn $30,000 in member share equity, 100 per cent of patronage dividends will be paid in cash. Your earned investment share equity will continue to earn you interest but no new investment share equity will be created.
Another benefit to the new program is that your revolving equity will convert to member share equity. If the conversion results in you having more than $30,000 in your member share account, UFA will issue you a cheque for the amount over $30,000 in January 2018.
For further information on the new program we have included additional details and answers to frequently asked questions about patronage dividends and member equity (see below).