MFA Oil Company, a farmer-owned cooperative, announces it will pay a patronage dividend of $8.4 million to its membership.
The payout was recently approved at the 89th Annual MFA Oil Delegate Meeting, which was held in Branson, Mo., on Nov. 4 and 5. Nearly 500 delegates, guests and employees of the company were in attendance at the meeting, where MFA Oil reported pre-tax net income of $12.6 million for the 2018 fiscal year.
The patronage distribution represents 60 percent of the company’s earnings for the 2018 fiscal year and includes the retirement of $1.9 million in member equity from 2005. The annual disbursement of patronage and equity redemptions are approved by the MFA Oil Board of Directors, which is composed of eight farmer-leaders who are elected by the members of the cooperative.
MFA Oil members are eligible to receive patronage refunds based on a percentage of the total money they spend on products such as gasoline, diesel, propane and lubricants purchased through the company’s refined fuel and propane plants, as well as at Petro-Card 24 stations. Customers who are agricultural producers or owners of land used for agricultural production and who purchase at least $1,000 of product from MFA Oil during its fiscal year (Sept. 1 through Aug. 31) are eligible for membership in the cooperative.
“Patronage and equity are two of the primary advantages of being a cooperative member-owner and we are proud to return so much value to our membership as we continue to meet their energy needs,” says Mark Fenner, MFA Oil president and CEO.
In addition to the financial announcements, MFA Oil delegates held caucuses to vote on representation for three seats on the company’s board of directors. The following farmers were elected to the board:
• District 2 – Northwest - Chuck Weldon of Gallatin, Mo.
• District 3 – Southwest - Glen Cope of Aurora, Mo.
• District 6 – Central - Jake Taylor of Ashland, Mo.
The company also paid tribute to two retiring, longtime members of its board of directors. Benny Farrell served as the Northwest District’s representative on the MFA Oil board for 27 years, including 21 years as chairman of the board. Ralph Schallert spent the past 15 years representing the Southwest District and most recently served as the board’s vice-chairman. MFA Oil thanks Farrell and Schallert for their many years of service and their commitment to the cooperative.