Cooperative Network News
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1 Co op Kudos Congratulations to Foremost Farms USA on their announcement of plans to build a dairy campus in Michigan! Cooperative Network Calendar Nov : Cooperative Network Annual Meeting, St. Paul, Minn. Learn More... Dec. 5: Co op Directors Forum, Baraboo, Wis. Learn More... Jan : Minnesota Director's Workshop, Morton, Minn. Learn More... April 30 May 1, 2018: SCH Conference, Minneapolis, Minn. Do you have Co-op Kudos you'd like to see Cooperative Network News Our offices will be closed Monday through Wednesday for our Annual Meeting. Thank you! Regional & Federal Cooperative Network weighs in with Congressional delegations to oppose elimination of Section 199 proposed in tax code overhaul Over the course of the past week, Cooperative Network has voiced its opposition to the proposed elimination of the Section 199 deduction contained within the Tax Cuts and Jobs Act to members of the Minnesota and Wisconsin congressional delegations. Also known as the Domestic Production Activities Deduction (DPAD), Section 199 is a current deduction that is passed down by farmer owned cooperatives to its member-owners. This tax reform proposal is included in plans offered by both the GOP-led House of Representatives and Senate. The large tax reform bills include many other provisions aimed at providing tax relief to families and businesses throughout the country. However, eliminating the Section 199 deduction for agriculture would result in individual farmers paying more in taxes. The Cooperative Network Resolutions Committee passed a resolution earlier this year supportive of Section 199, which reads: "The Domestic Production Activity Deduction (DPAD) was created by the American Jobs Creation Act, and is codified in section 199 of the Internal Revenue Code. DPAD is beneficial to rural economies as it applies to proceeds from agricultural or horticultural products that are manufactured, produced, grown, or extracted by farmers and marketed by their farm cooperatives. Section 199 benefits are returned to the economy through job creation, increased spending in rural communities, and increased spending on agricultural production and infrastructure. As tax reform is pursued and advanced, Cooperative Network supports the retention of the DPAD." Cooperative Network supports the preservation of the Section 199 deduction and will continue to inform members of both state delegations during the tax reform debate in Washington, D.C.
2 included in Cooperative Network News? Or does someone you know want to subscribe? Click here to let us know! Cooperative Network participates in NSAC North Central Chapter fall meeting in Minneapolis Last week, Cooperative Network spoke to the North Central Chapter of the National Society of Accountants for Cooperatives during the fall meeting in the Twin Cities. Updates were provided to those gathered on the 2017 Minnesota and Wisconsin legislative sessions, as well as federal work that has been conducted on behalf of cooperative members with both the Minnesota and Wisconsin congressional delegations. Topics covered included an overview of Cooperative Network, as well as issues that were dealt with by both legislatures this year including taxes, healthcare, broadband, transportation funding. In addition, focused updates were provided on the Cooperative Network-led legislation allowing for a health care cooperative option for farmers and their families in Minnesota, the Cooperative Network-led Co-op Modernization Act recently passed by both the Wisconsin Assembly and Senate, and the advocacy work Cooperative Network has undertaken with both the Minnesota and Wisconsin Congressional delegations to preserve the Domestic Production Activities Deduction (DPAD). Minnesota 40 Square Cooperative Solutions community outreach meetings continue during open enrollment period Community outreach meetings for 40 Square Cooperative Solutions will continue throughout the state during the upcoming weeks. Open enrollment began on Nov. 1 and will run through Dec. 15. If you live in one of the following areas or know anyone who does and might be interested in learning more about health plan options for 2018, please feel free to attend one of these gatherings or spread the word: Nov. 13, 4 p.m. and 7 p.m. hosted by Meadowland Farmers Coop, American Legion, 110 S. Main Street, Lamberton Nov. 16, 4 p.m. hosted by CHS, Holiday Inn, 5637 State Highway 29 South, Alexandria Nov. 16, 7:30 p.m. hosted by AgCountry Farm Credit Services, 311 N. Tower Road, Fergus Falls Nov. 17, 8 a.m. hosted by CHS, Herman Community Center, 307 Pacific Avenue South, Herman Nov. 20, 8:30 a.m. sponsored by Agrasure & RRVSGA (Red River Valley Sugarbeet Growers Assoc.) Hastings Landing, 104 ND-66, Drayton, North Dakota Nov. 20, 12:30 p.m. sponsored by Agrasure & RRVSGA (Red River Valley Sugarbeet Growers Assoc.) Crookston Inn, 2200 University Avenue, Crookston Nov. 20, 4:30 p.m. sponsored by Agrasure & RRVSGA (Red River Valley Sugarbeet Growers Assoc.) Courtyard Marriot, Salon F, th Avenue South, Moorhead Nov. 21, Noon meal provided and hosted by United Farmers Cooperative, UFC Berdan Center, 705 4th Street East, Winthrop Nov. 21, 6 p.m. meal provided and hosted by United Farmers Cooperative, American Legion, 233 S. Olive Street, Waconia Nov. 22, 10 a.m. hosted by Ag Partners, 101 Broadway Avenue, Goodhue In order to participate, you must become a member of 40 Square Cooperative Solutions to gain access to the 40 Square health plan. If the Dec. 15 enrollment deadline is missed, individuals will not be able to join
3 to cooperative's health plan until the next open enrollment period or if you experience a qualifying life event. If you have any questions about open enrollment, healthcare options, or the upcoming community meetings, please contact 40 Square Project Manager Char Vrieze at (507) or cvrieze@40square.coop. MnCUN joins CUNA in Equifax date breach lawsuit The Minnesota Credit Union Network (MnCUN) recently announced it will be joining the Credit Union National Association (CUNA) and other state credit union associations, including the Wisconsin Credit Union League, in suing Equifax in the wake of its recent data breach. "Credit unions put their members' interests first. We want to ensure that Minnesota's credit unions, and their members, have a strong voice in these proceedings," said Minnesota Credit Union Network President & CEO Mark Cummins, "Equifax needs to be held accountable for exposing social security numbers, birthdates and other personal information." The lawsuit is being conducted to protect member credit unions' interests and rights. The breach has impacted at least 143 million consumers, compromising not only payment cards, but how credit is extended. The breach could completely change the credit union industry's ability to rely on consumer data for authentication. Cooperative Network participates in joint manufactured housing co op summit and food co op conference Northcountry Cooperative Foundation (NCF) recently invited Cooperative Network to speak at the ROC (resident-owned community) Summit to discuss the importance of public policy and advocacy to manufactured housing cooperative leaders. Topics covered included an overview of who Cooperative Network is, what we do for our members, and how we effectively advocate for our various cooperative sectors. Updates were also provided to those gathered on the 2017 Minnesota and Wisconsin legislative sessions, as well as federal work that has been conducted on behalf of cooperative members with both the Minnesota and Wisconsin congressional delegations. NCF assists in preserving existing manufactured home parks and assisting to create new manufactured housing developments. This was the first year NCF hosted the ROC Summit, which coincided with a separate conference that NCF coordinates called Small & Strong, which was attended by small food cooperatives from across the Midwest. In addition, several Cooperative Network colleague organizations participated, including Cooperative Development Services. Senate Majority Leader announces Senate funding to run out by Dec. 1 A legal dispute still lingers over Governor Mark Dayton's line-item veto of funding for the legislative branch at the end of the 2017 session Last week, Senate Majority Leader Paul Gazelka (R Nisswa) announced the Minnesota Senate will run out of money on Dec. 1 unless new funding becomes available or their funding is restored by the courts. He indicated that Dayton's line-item veto of the legislative branches funding has put the Senate in a position where they will have to request additional funding from the Legislative Coordinating Commission (LCC) to operative for the month of December. If approval is granted by the LCC, which is comprised of legislative leaders, the Senate would only be able to operate for several months, when it would then have to furlough employees and suspend operations. Dayton contended the Legislature could take funds from other accounts to prevent furloughs and operations being shuttered at the Senate. The House is in a different financial situation and has
4 reserve funds to continue operations until February of next year. Legislators asked to resign by legislative leaders in midst of harassment allegations Senator Dan Schoen (DFL St. Paul Park) and Rep. Tony Cornish (R Good Thunder) have been asked by a host of legislative leaders and other politicos to resign their seats in the midst of sexual harassment allegations from several female legislators, a former legislative candidate and others. The accusations were made last week, which in turn brought many lawmakers to ask for their resignations. Among them were Gov. Mark Dayton, Lt. Gov. Tina Smith, Senate Majority Leader Paul Gazelka (R Nisswa), and Senate Minority Leader Tom Bakk (DFL Cook). It is uncertain as to if Schoen or Cornish will resign. House Speaker Kurt Daudt (R Crown) removed Cornish from his role as the Chair of the House Public Safety and Security Committee, and a possible ethics complaint could be filed by their legislative colleagues for his ouster. Several victims of the harassment have called on legislative leaders to create of the Task Force on Sexual Harassment, included Rep. Erin Maye- Quade (DFL Apple Valley) and Rep. Jamie Becker-Finn (DFL Roseville). Minnesota Farmers Union backs 40 Square In a release dated Nov. 9, 2017 the Minnesota Farmers Union (MFU) and Farmers Union Insurance Agency announced that they were investing in 40 Square Cooperative Health Solutions calling it a viable healthcare option. "Ever since farmers in Jackson County started organizing for fairer commodity prices in the early 1910s, MFU has been a strong backer of new cooperatives," said Gary Wertish, President of MFU. "We supported legislation passed this year that allowed Minnesota farmers and agribusinesses to form cooperatives for health care, which makes groups like 40 Square possible. We are happy to make this investment in 40 Square." How far along is harvest in your area? Wisconsin Senator Sheila Harsdorf appointed DATCP Secretary State Senator Sheila Harsdorf (R River Falls) has been appointed Secretary of the Department of Agriculture, Trade and Consumer Protection (DATCP) by Governor Scott Walker. Harsdorf replaces Ben Brancel who retired in August. She becomes the first women to head DATCP in its 88-year history.
5 As a legislator, Harsdorf has worked with Cooperative Network on legislation to allow for the creation of health care cooperatives, which led to the formation of Farmers Healthcare Cooperative of Wisconsin. Cooperative Network looks forward to working with Secretary Harsdorf. Cooperative modernization legislation passed by Assembly and Senate The cooperative modernization legislation backed by Cooperative Network was approved by the State Assembly and State Senate on Tuesday, Nov. 7. The Assembly approved AB 353 by a vote and it concurred in the Senate by a voice vote. All Republicans present in the Assembly voted for the legislation, as did 12 Democrats. The 18 votes in opposition were cast by Democrats. The legislation, authored by State Rep. Gary Tauchen (R Bonduel) and co-sponsored by Sen. Patrick Testin (R Stevens Point) will advance to Governor Walker for an expected signature. Three amendments were adopted that were supported by Cooperative Network. They deal with limits on access to financial records, addition of outside appointed directors, and agreements between electric cooperatives and their tenant or the member's landlord concerning extension of credit for certain projects. Legislation circulating to amend agricultural producer security law Legislation (LRB 1572/2) is being circulated in the Capitol by State Rep. Keith Ripp (R Lodi) and State Sen. Howard Marklein (R Spring Green) that would make changes to the state's Agricultural Producer Security (APS) Act to reflect current and preferred business practices in the agriculture industry. The legislation is supported by Cooperative Network and enjoyed a 10-0 vote of approval by the APS Council, which is advisory to DATCP on the APS program. The deadline for legislative cosponsors to sign onto the legislation is Thursday, Nov. 16. Among the changes in the legislation is the allowance of milk deferred payment contracts between milk purchasers and milk producers. In addition, the proposal would combine the APS fund balance attributable to grain dealers with the fund balance of the grain warehouse keepers. The legislation also exempts the purchases that a grain dealer makes under a deferred payment contract from being counted in the requirements that are used to determine whether a grain dealer must file annual statements or file and maintain security with DATCP, if the producer who sells grain under the deferred payment contract permanently waives its ability to receive a payment form the APS fund after a default by that grain dealer. Governor Walker issues executive order easing propane transport hours of service Last weekend, Governor Walker announced executive order 263, which exempts drivers of commercial motor vehicles while in the process of obtaining and transporting propane from federal and Wisconsin hours-ofservice requirements, effective until Sunday, Dec. 3, at 11:59 p.m. He cited long wait times and drivers travelling longer distances to obtain product, and the closure of the Rockford terminal for maintenance, along with wetter than normal crops in the northern portion of the state, anticipating a strong demand for drying. The executive order contains the following: The exemption applies to all highways in Wisconsin, including the national system of interstate highways No motor carrier operating under the term of the order shall
6 Census of agriculture to be mailed to farmers soon New executive director announced at UW Center for Cooperatives Governor calls for special elections in two Assembly districts Wisconsin Legislature passes Veterans Farm Bill of 2017 and Farm Freedom Act Wisconsin Office of Credit Unions Proposed Business Lending Rule
7 Thursday, Nov. 16 Register today! Co op Directors Forum Dec. 5 Follow us: Click here to unsubscribe. 1 South Pinckney Street, Suite 810 Madison, WI University Avenue West, Suite 450 St. Paul, MN 55103
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