Credit Union and Cooperative Patronage Refunds - Filene ...

principles. When we discuss other co-ops’ use of patronage refunds,
we will note the pressure that AgGeorgia puts on itself by allocating
much of its income as patronage refunds that members expect will
eventually be redeemed.
If the cooperative is not profitable or has no earnings, we never get
to the issues of subordination of capital, service at cost, or the co-op
agency theory. We need earnings before we can apply these principles.
So as important as these principles are, the more important
immediate point is to address why co-ops must be profitable.
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