There is no stated time period for total distribution of patronage dividend accounts.

How long will it take to get all of the money shown on my Allocation statement? When the Board of Directors decides that the company is in the financial position to pay out patronage dividends, the process of paying out the funds designated by the Board of Directors is called the distribution of patronage dividends. What is an Allocation?Īllocation is the process of adding the dividend amount earned for the year to your member account. Miscellaneous purchases such as telephones, caller ID boxes, cellular phones, business phone systems, telephone wire and jacks are also included. Your patronage is the value of local telephone service, long-distance service, 800 number service, custom calling features, internet, digital tv, and wireless services you use. If you have a question that is not included on this list, please contact FMCTC Customer Service at 71 or e-mail us at What is Patronage? The following frequently asked questions (FAQs) provide additional information. It shows FMCTC’s lenders that the cooperative is financially stable. Instead, the dividends are put to work to help provide adequate cash flow for reinvestment in the business. Without this source of funds, FMCTC would have to borrow more money, pay more interest and ultimately, it could lead to higher rates. FMCTC uses the dividends to help finance construction, rebuilds and maintenance. The business of building and maintaining telephone and internet lines is quite expensive. Telephone cooperatives return their profits to their members-the owners-as patronage dividends.īefore members receive their dividend check, the money is actually working to save money. Investor-owned companies return their profits to shareholders in distant cities. Municipals use their profits to support other municipal/city operations. No other form of telephone company rewards its customers for their patronage in this way. Patronage dividends are paid out to members when directed by FMCTC’s Board of Directors. Patronage dividends are placed in member's accounts based on criteria established in company bylaws. Each member's account is maintained by the company. These earnings are called patronage dividends. Each year our members earn a portion of FMCTC’s margins (revenues earned above operating expenses) based on the amount of services they purchase. Customers who buy services from the company become members. Farmers Mutual Cooperative Telephone Company operates as a non-profit corporation and is owned by its customers.

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