Members share UFA earnings. At the annual general meeting, the board of directors and member-elected delegates may declare a patronage dividend. Dividends are paid based on member purchases in the previous year.

40 per cent of patronage dividends will be paid to members in cash. The rest will be issued as member share equity. Member share equity represents your ownership in the co-operative. UFA uses your equity to finance the business. 

The federal government still requires that we withhold taxes equal to 15 per cent of the patronage dividends over $100 earned in a year.

UFA members who have purchased a $5 lifetime member share are eligible to earn a patronage dividend based on their purchases.

Investment share equity earned under the old program will continue to earn interest equal to the bank prime rate less 0.5 percentage points. Investment share equity can be redeemed at any time.

New investment equity (Class A Shares) will not be created after January 1, 2018.

Under the old program, half of patronage dividends were allocated as revolving equity. Each year, one-twelfth of revolving equity was paid into investment share equity.

Revolving equity will not be issued under the new program. Instead, patronage dividends will earn cash and member share equity.

On January 1, 2018, all previously allocated revolving equity will be converted to member share equity. If the conversion means a member owns more than $30,000 in member share equity, a cheque will be sent in January for the amount over $30,000.

Once a member has earned $30,000 worth of member share equity, 100 per cent of subsequent patronage is paid in cash. The change means members get more cash sooner. For UFA, the new program reduces financial risk. The change is a win-win for members and their co-operative.

The forms to withdraw equity are available online at myUFA.

Members can email customer.support@ufa.com or call UFA’s customer support team at 1-877-258-4500 and select option 1 to request a withdrawal and get questions answered.