Agri-Producers passes on stock loss to members
The board of directors of Agri-Producers, Inc., Tampa, have approved the pass-through of member loss created by the write-down of Farmland Industries, Inc. stock.
A similar pass-through was approved earlier by the board of directors of Cooperative Grain and Supply, headquartered at Hillsboro.
On May 31, 2002, Agri-Producers had $720,525 in Farmland Industries stock. The value was reduced to zero at the Dec. 31, 2002, audit.
In July 2003, Farmland Industries filed a Chapter 11 reorganization plan. Currently, the corporation is liquidating all assets. According to Stan Utting, Agri-Producers manager, this confirms the fact that the stock had zero dollar value.
Farmland Industries stock had been prorated to members in previous years and was included in each member's equity total in Agri-Producers, Inc. The pass-through to members allows them to immediately take advantage of the loss on their 2003 income tax returns.
The 19 percent total stock write-down totals $583,825 in equity cancellation. The balance of the loss has come out of retained savings.
Agri-Producers, Inc., is a farmer-owned cooperative headquartered in Tampa, with branch elevators in Durham, Lincolnville, Herington, Carlton, Gypsum, Ramona, and Burdick.
