Should I report patronage dividends reported on form 1099-PATR as income?

I purchased a second home using a mortgage obtained through a land bank.  I am taking a tax deduction on the interest paid on this mortgage.  I also received a patronage dividend from the land bank that was reported on from 1099-PATR.  Should I report this patronage dividend as income?  Should I reduce the interest deduction by the amount of the patronage dividend?