Association Repays a Portion of 2017 Capital Retain
On March 7, 2018 the Association distributed a payment on the overage of 1.75503 cent per meat pound on the hulling fees paid during the 2017 season. The repayment of the overage, also called the supplemental retain, totaled $2,114,535.33 that was distributed to the membership. There was not an advance payment made to the members as a dividend on the sales of the Association’s by-products due to persistently low values received on our hulls and shells earlier in the sales period. This situation persists somewhat today.
In 2017, in anticipation of historically low by-product prices, a total of 5.0 cents was assessed as hulling fees, or retains. The Board of Directors and Management felt it was prudent to assess 3.0 cents as a Capital Retain and 2.0 cents as an Operating Retain as a backstop amidst these uncertain times. This payment of 1.75503 cent per meat pound represents the difference between the 3.0 cents paid as hulling fees as a Capital Retain by our members on the 2017 crop, and what is being allocated to the Revolving Fund Retains. The Bylaws (and prior Board action) allows the Association to hold no more than $1,500,000 on any given crop year for a period of five years as our Revolving Fund Retains. The balance, or overage, must be paid back to the membership in the subsequent year after the shelling season has concluded. The Operating Retain that was also collected on the 2017 crop will be addressed in June. Any Progress Payment to be paid out as a dividend on sales will be considered later in the year.