Farmers Mutual Telephone Company (FMTC) is a cooperative with owner-members made up of its customers with telephone and/or internet service in the Fruitland and NuAcres serving area. FMTC’s net profit is assigned as patronage capital credits to respective members’ accounts and used to further the purpose of the Company. In accordance with Federal and State law, and the Bylaws of the Company, the Board of Directors assesses the financial position of the Company and may authorize patronage payments to members from their capital credits accounts.
We do not have a defined date as to when the funds will be paid out, so please keep us informed of any address changes so that we may distribute those funds at a future time.
The allocation statement is only a report of the portion of this year’s net profit assigned to the recipient indicated on the statement.
For a variety of reasons, patronage checks are sometimes unclaimed. If you have been a member of FMTC in the past, you may have a capital credit patronage payment that needs claimed. FMTC provides this list on its web site of names associated with past unclaimed patronage payments.
Want to know more about Capital Credits?
Farmers Mutual Telephone Company (FMTC) is a 501 (c) cooperative owned and overseen by the member-owners that purchase phone and Internet services from it. When services are purchased, revenues are created and as the cooperative operates it creates expenses. The revenues that exceed expenses are Net Margins as determined by the cooperatives accounting team. Net Margins are allocated to members based on their purchases from the cooperative during the previous year, which are known as Capital Credits. Net Margins are also utilized by the cooperative for long term capital improvements and maintenance. Each year in September a statement is sent to members showing their account balance and previous year’s amount added. The board of directors determines when the cooperative will pay back a percentage of capital credits as retirement or refund, and what the percentage will be, based on the financial condition of the cooperative. Retirement of capital credits is a return of member-furnished capital. Capital credits cannot be refunded all at once because they help the cooperative remain financially sound, thereby ensuring a stable, reliable service for the benefit of the members they serve.