Skagit Farmers Supply is a cooperative and as such pays patronage refunds.  Patronage is a return of profits to our customers, who have both signed the W-9 Form and who have met the minimum purchase requirements.  These minimum purchases change from year to year, based on profitability, and do not include some items like sales tax, fuel taxes, and rentals.

Cooperatives are required to return a minimum of 20% of our patronage in cash and the remaining 80% is stock to be retired at a future date.

Skagit Farmers Supply is proud that we have been able to pay out 30% patronage in cash and has also kept our stock retirement on a 10 year cycle rotation.

Patronage is based on a percentage of our net income and the percentage of your purchases against the total purchases of all customers for our fiscal year that begins October 1^st and ends September 30^th.  After the end of each fiscal year, the board of directors may authorize the issuance of patronage.  When approved, the patronage is issued in June of the following year.  This patronage is issued as a check, as long as your account is in good standing.  The check is combined with form 1099-PATR for income tax purposes.

All that is required is for you to establish an account to track your purchases along with completing and signing an IRS W-9 form.  This form must be on file for patronage to be issued per IRS Guidelines. 

The minimum purchase amount is the amount of your purchases from Skagit Farmers Supply during its fiscal year.  These are for all purchases including everything from propane to gasoline to pet food.  The minimum purchase amount, which changes from year to year, is based on profitability, and does not include such things as sales tax or any fuel taxes.  The last few years the minimum purchase requirement has averaged approximately $450.  However, there is no guarantee that the minimum purchase requirement will remain that amount.  Severe economic conditions and greatly reduced profits could increase that amount dramatically.

You generally report patronage refunds as income on lines 5a and 5b of Schedule F for the tax year you receive them.  Do not report as income on line 5b any patronage refund that is for purchasing personal items. Only items used in farming or business are reported on Schedule F.  Patronage dividends on personal item purchases are considered savings and therefore not taxable.

Stock that is issued by Skagit Farmers Supply is held in your account, no certificate is issued.  The stock pays no interest and has no cash value until retired.  Retiring stock is at the discretion of the Board of Directors.   However, Skagit Farmers Supply is proud that we have been able to keep our stock retirement on a 10 year cycle.  Each March the stock from 10 years prior is retired. 

Example- Between October 1990 and September 1991 you purchased $5,000 in propane, gasoline, and pet supplies, net of any taxes.  That year, based on profitability, Skagit Farmers Supply was able to return 5% of the net purchases in patronage.  In this case that would be $250.  The Board of Directors in that year voted to issue patronage of 30%.  In June 1992 Skagit Farmers Supply would then issue you a check for 30% of $250, or $75.  The remaining stock of 70%, or $175 would be returned to you in March of 2002. 

In its natural state, propane is an odorless and colorless gas that is widely used to fuel appliances for heating, cooking, and other uses. While propane is used as a gas for fueling appliances, it is transported and stored as a liquid under high pressure in specially designed containers referred to either as tanks or cylinders. When liquid propane changes into a gas vapor, it expands in volume by about 270 times, meaning that propane is very economical to store and transport as a liquid rather than as a gas vapor. However, this characteristic also means that even a small leak of liquid propane can result in a much larger quantity of propane vapor, which can be especially dangerous in a confined space.

Similar to any other flammable gas or flammable liquid, propane is very safe when stored and handled properly. However, if propane is not properly and safely stored and handled, it can cause property damage, injuries, or even death. For this reason, it is important for the safety of the members of your household that they have a thorough understanding of the properties and characteristics of propane, and the hazards and risks associated with its use. Contact your local propane dealer with questions that you have about propane.

The budget payment plan option is for our propane and home heating oil users that gives them the ability to have a level even payment throughout the year instead of large heating invoices during the winter months. 

LP and heating oil deliveries are billed to your Budget sub-account as they happen building a balance in that sub-account.  During the year a fixed payment is taken from your Budget sub-account and billed to your Regular account along with any other purchases you may have at our stores or gas stations. 

Our credit department, once a year, reviews the budget account to see if the monthly amount we are taking is accurate.  If a shortage in the Budget sub-account happens, your monthly amount is adjusted higher for the next year.  If we see that a credit balance is occurring in your Budget sub-account then your monthly payment is reduced. 

Skagit Farmers Supply provides this option as a service to our customers.  Call our credit department today to ask about signing up for this plan.

If you are set up to look up your account on-line, some of you may notice that there is a new button in that section of our web site.  Due to many of our customers requesting the ability to be able to pay your account on-line with a credit card, we are currently able to provide that service to you.

You are able to select 3 different payment options.  One, pay the entire balance.  Two, pay individual invoices.  And, three, pay a specific dollar amount.  Click on which option you prefer and then provide your credit card information on our secured site.

We are currently not able to take debit cards on-line but hope to have that option available in the near future.

Skagit Farmers Supply has an automatic payment program known as the Automated Clearing House (ACH).  This ACH system will allow you to authorize your bank to deduct from either your checking or savings account the “billed” amount owed to Skagit Farmers Supply. 

This system will process your payment automatically on or around the 25th of each month.  For example April charges will be paid automatically on or after May 25th.  This assures your account will always be current by the due date, which in this case would be May 31st. 

 If you are interested in establishing this automated payment system, call the credit department at the main office so we can mail, fax, or email you an ACH authorization form  You can also download one from our contacts page.  Then simply return it to our office with a voided check and we can set up your account.