the steps in option 2 do not accomodate form information from anything but a 1099-DIV

if i enter 1099-PATR Patronage Dividends from my coop into the Farm Income section, the questions re: farm business etc seem misleading and irrelevant.

In general, the dividend that was reported to you on Form 1099-PATR can be entered on Schedule B using the following steps:

1. Click on Federal > Wages & Income. 
2. Scroll down to the Interest and Dividends section and click on the Start/Revisit box next to Dividends on 1099-DIV.
3. Answer Yes to Did you receive any dividend income? (even though it was not reported on a 1099-DIV)
4. On the next screen, click on I'll type it in myself.
5. Enter the dividend information and continue through the rest of the interview.

There are situations were the 1099-PATR does not have to be entered.  For additional situations concerning a 1099-PATR, please see this TurboTax  Help article: Where do I enter Form 1099-PATR?

@dagmarina

None of the instructions I've read seem to properly and accurately account for 1099-PATR received by workers from a worker cooperative. As a former tax Intuit Tax Expert, Enrolled Agent and a Tax Pro beginning to help worker cooperatives, there should be more clear guidance.
The 1099-PATR for a worker cooperative should not be subject to SE tax and should also qualify for the QBI deduction. The easiest way to do this would be to report it as a Div  box 5 for section 199A dividends. 

However I imagine this would cause the IRS to possibly find an error.

The guidance is that it is reported as Other Income or possibly on a schedule C not subject to SE tax.

I can't figure out how to enter this properly, the other income won't give me an option for the 199a and the schedule C will be subject to SE tax.

Did you figure out an answer for this Jim? I'm in the same boat as a worker-owner in a co-op trying to do my taxes on turbotax and having trouble figuring out where to enter my 1099-PATR info without it being subject to SE tax. Thanks for any info you can provide! 

If this isn't farm income, you can post it to Other Miscellaneous income.  This is true if you work in a cooperative. 

1. Go to Wages & Income
2. Scroll all the way down to Less Common Income
3. Select Miscellaneous Income, 1099-A, 1099-C from the drop-down
4. Select Other reportable income
5. Any Other Taxable Income? = Yes
6. Description = 1099-PATR (description)
7. Amount = $

I received a patronage Dividend from a co-op that I am a member. I buy propane for our house. I don’t have a farm nor a business that uses the propane. Do I need to report the Dividend on my taxes as the Propane is used for personal use only?

If the dividends in box 1 of your 1099-PATR came from property purchased for personal use (or capital assets or depreciable property used in your business), you don't have to enter your 1099-PATR. Keep it with your tax records, though.

Click here for additional information regarding Form 1099-PATR.
 

No. If the original expense wasn't deducted anywhere previously, it doesn't have to be reported as income.