Membership

Stakes and Dividends

Lantmännen strives to provide a steady and stable dividend to its owners, based on the Group's profit after tax. The principles for dividends are decided by the Group Board of Directors.  

The dividend model

All profits from Lantmännen's operations throughout the value chain – from field to fork, are reinvested in agriculture, either directly as dividends to our members or indirectly through investments for the future, for example in infrastructure for grain handling, food production and research that develops more sustainable farming methods.

 

The dividend amounts to 100% of operating profit in the Agriculture Sector and up to 50% of profit after tax from trade and industrial operations. Approximately 2/3 of the total dividend comes from trade and industrial activities.

 

Key terms

Refunds are calculated on the member's purchases from Lantmännen Lantbruk, Lantmännen Maskin and Swecon's Swedish operations.

Post-payment is calculated on the member's sale of grain, oilseeds, legumes and seeds to Lantmännen Lantbruk.

A contribution dividend is distributed on the members' paid and issued contributions.

Parts of the profit from Lantmännen's industrial operations will be distributed by transferring collective capital to the members, with 50 per cent of the share issue being divided between trading with Lantmännen and 50 per cent of paid and issued contributions.

 

About Stakes and Dividends

When you become a member of Lantmännen, three accounts are created for you:

  • Contribution capital account (paid-in contributions)
  • Issue capital account (contributions issued)
  • Account for savings

As you trade with Lantmännen, capital is created in the form of paid-in contributions and issued contributions (issue contributions). It is an individual ownership capital that the member has in Lantmännen.

What you buy from Lantmännen Lantbruk, Lantmännen Maskin and Swecon as well as the grain you sell to Lantmännen Lantbruk during a year constitutes your input-based turnover with the association.

Refunds from Lantmännen are calculated on your purchases from Agriculture, Machinery and Swecon. There can be different percentages for Agriculture and Machinery. You receive post-payment for grain that you sell to Agriculture.

Obligation to contribute

For the first five years as a member, all your refunds, arrears and contribution distributions go to contribution amortization in order for you to reach the basic contribution of SEK 10,000, which is collected in your account for contribution capital. After you have reached your basic stake , half of your bonus and post-payment will go to your account for contribution capital as amortization of your contribution obligation, which is 15% of your average contribution-based turnover. What does not go to the deposit amortization goes to your savings account. You can leave the money in your savings account or withdraw, as you wish.

As a member, you can increase the proportion of your dividend that will be used to amortize your contribution obligation to more than 50 percent. This must be announced before March 31. You can also make a cash payment to fulfil your contribution obligation in whole or in part prematurely. The application and payment must be made before 30 June of the year in question. Contact the Membership Office for questions and to order a form. 

 

Dividend from Lantmännen's industry and trade

In addition to the refund and payment that you receive through your stake-based turnover with Lantmännen, the association also distributes part of the profits from Lantmännen's food and industrial operations, such as Lantmännen Unibake.

This dividend amounts to 50% of profit after tax and is distributed in the form of a contribution dividend and a contribution issue. The contribution dividend is a dividend (interest) on the paid and issued contributions that the members participate with in the association. The stake distribution is also used, like refunds and post-payments, for stake amortization, and what does not go to stake amortization goes to your savings account.

 

Contribution issue

A contribution issue is a special form of dividend that is based on the year's profit after tax or previously saved profits that have not been distributed. It is the Group Board of Directors that makes proposals for the size of the issue contribution. This proposal is then presented to the Annual General Meeting, where a decision on the contribution issue is made.

How much contribution issues you receive as a member depends partly on how much paid in and issued contributions you have in Lantmännen in relation to other members, and partly on how large your contribution-based turnover with Lantmännen is compared to other members. The issue stakes you receive are collected in your issue capital account and constitute your stake stakes.

Trading in issue stakes is a good way to benefit from membership. You can read more about how to proceed when you want to trade with issue stakes here or click through in the left-hand menu.

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More about Lantmännen

Lantmännen is owned by 17,000 Swedish farmers, has 12,000 employees, has operations in some 20 countries and has annual sales of approximately SEK 70 billion.

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