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Member Equity

Earn Equity Dollars! Become A Genex Member.

Dairy and beef producers who purchase Genex products and services can reap the benefits of cooperative membership and earn equity! The Genex board of directors, elected by producer members, set co-op profit goals to allow for equity retirement to the membership and investment in product development and equipment. The equity retirement or patronage is distributed in proportion to each member's semen, product and service purchases. The greater the amount of Genex product a member purchases, the greater the amount of equity earned.

How does a member earn equity?
Genex is a cooperative, a business owned and controlled by the dairy and beef producers who use its services. Those producers who complete a membership form, submit their social security number or tax identification number, and make an annual purchase of $500 in semen, products and/or service, automatically earn equity. Equity is allocated back to each member based on the amount of business done with the co-op.

How often is equity returned?
Each year the board reviews the co-op's tax position and cash standing to determine if equity will be revolved. The board determines the portion of the net profit to be allocated equity and the portion to be paid in cash. The board also determines the portion of annual allocated earnings to be retained by the cooperative for a period of time. This retained equity is used to finance Genex operations, including product development. It is the board's goal to remain 13 years current on retained equity revolvement. This means the board strives to return the portion of equity the co-op has retained from any given year back to members within 13 years.

In what form is equity returned?
At times, equity is returned in the form of cash. At other times, equity is returned in the form of credit to the member's account.

What happens to "my equity" if I am not a Genex member?
The net earnings from non-members is owned by Genex. These unallocated profits are a source of retained earnings and are reinvested in operations.

When can a member request all of their equity?
The Genex equity plan allows for immediate retirement of equity investments held by members upon notification from those who qualify: retired members age 65 or older who no longer farm, disabled members or estates of deceased members. Partnerships and owners of a corporation with less than 10 beneficial owners may receive their individual equity based on their percentage of ownership when they meet the above requirements. For equity questions, contact Genex at 888-333-1783.

 
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