MNSP Declares 2.3 cents Cash Patronage Dividend Per Class A Share

Minnesota Soybean Processors (“MnSP”) announced that it will pay a 2.3₵ per class A share cash dividend in March of 2012, to members of record as of August 31, 2011.  The 2.3₵ per share cash dividend is the cash portion of MnSP’s taxable patronage dividend that will be paid to members of record as of August 31, 2011, for MnSP patronage earnings for fiscal year ended August 31, 2011. 

MnSP expects total patronage earnings (taxable income) for fiscal year 2011 to be approximately $3,685,000, or 17.4₵ per class A share, of which $2,482,000, or 11.7₵ per class A share, will be distributed to members in March of 2012 as a taxable patronage dividend (both the cash portion of 2.3₵ per share and the noncash qualified allocation of 9.4₵ per share are taxable to members), and $1,200,000, or 5.7₵  per class A share, will be distributed to members as a nontaxable patronage dividend (noncash nonqualified allocation of a 5.7₵ per share).  MnSP plans to distribute the taxable patronage dividend in March of 2012, in order that members of record as of August 31, 2011 will not be required to report the taxable patronage dividend until 2012 (both the cash dividend and the noncash qualified allocation are includable in taxable income of the member in the year in which received).  The noncash nonqualified allocation will also be made in March of 2012, but it is not taxable to members until the nonqualified allocation is redeemed in cash by the cooperative.  MnSP also intends to allocate this year approximately $1,193,000, or 5.6₵ per class A share, in biodiesel tax credits to members of record as of August 31, 2011, in order that members can utilize the tax credit in 2011 or carry the credit forward to 2012 when such members of record will report as income the amount of the taxable patronage dividend.  When made in March of 2012, both the noncash qualified allocation (9.4₵ per share) and the noncash nonqualified allocation (5.7₵ per share) will constitute allocated equity attached to MnSP’s class A shares and will be redeemable solely at the discretion of MnSP’s board of directors under MnSP’s Articles and Bylaws.    

MnSP is a 2,350+ member cooperative that owns and operates a soybean crush facility and bio-diesel operation in Brewster, Minnesota.  For information about MnSP, please visit our website at www.mnsoy.com or contact Taryl Enderson or Kim Collin at (507) 842-6677.  

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This document contains forward-looking statements involving future events, future business and other conditions, our future performance and our expected future operations and actions. In some cases you can identify forward-looking statements by the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “predict,” “hope,” “should,” “could,” “may,” “future,” “continue,” “potential” or the negatives of these terms or other similar expressions.  These statements are based on management’s beliefs and expectations and on information currently available to management. 

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