Cooperative Network News

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1 Co-op Kudos Congratulations to John Manske on his retirement from Cooperative Network after 25 years of exemplary service. John intends to continue his collaboration with our coop members by serving as a consultant. State Rep. Ed Brooks (R Reedsburg) has honored John for his dedication to the cooperative system with a citation on behalf of the Wisconsin State Assembly. Brooks is a former Chair of the Wisconsin Federation of Cooperatives, which was one of the predecessor organizations to Cooperative Network. Cooperative Network News Happy New Year! 2017 proves to be yet another successful year for Cooperative Network At Cooperative Network, we are committed to protecting and promoting Minnesota's and Wisconsin's cooperative businesses and their shared cooperative principles. We are the largest statewide co-op trade association in the United States, representing a diverse and active group of approximately 400 members. Our team comes to work each day ready to communicate, educate and advocate for our members. We believe in our mission and continually look for new ways to better serve you. Together we know the value of the seven cooperative principles and together we can continue to commit to cooperative excellence. We are proud of the work that we did for our members last year. Attached for your review is a link to the 2017 Cooperative Network Year in Review. We look forward to our continued success in 2018 and wish you all a happy new year! Cooperative Network Calendar Jan : Minnesota Director's Workshop, Morton, Minn. Learn More... Feb. 21: Wisconsin Co-op Day at the Capitol, Madison, Wis. Learn More... Feb : Co-op Communicators Regional & Federal President Trump signs sweeping tax reform legislation into law On Dec. 22, President Donald Trump signed the Tax Cuts and Jobs Act into law at a bill signing ceremony in the Oval Office. The legislation included a host of provisions aimed at providing tax relief to many across American including families and businesses. Included in the over 500 page bill was the elimination of the Section 199 deduction, also known as the Domestic Production Activities Deduction (DPAD), which had helped co-ops and their farmer-owners since its creation back in In its place is a newly created deduction for farmer cooperatives and members. According to the National Council of Farmer Cooperatives (NCFC), the new Section 199A provides for the following: Farmers will receive a 20 percent deduction on all payments from a farmer cooperative. The deduction cannot exceed the taxpayer's taxable income for the year.

2 Workshop, Eau Claire, Wis. The cooperative will receive a 20 percent deduction on gross income less payments to patrons. March 4-6: Co-ops Yes! Youth Leadership Conference, Eau Claire, Wis. March 12: Cooperative Business Issues Conference, Bloomington, Minn. March 20: Minnesota Co-op Day at the Capitol, St. Paul, Minn. April 30 - May 1, 2018: Senior Cooperative Housing Conference, Bloomington, Minn. Link of the Week GUEST COLUMN: How the Tax Bill affects co-ops By the time you read this post, it is likely that President Trump has already signed the new Tax Act. Read More... Do you have Co-op Kudos you'd like to see included in Cooperative Network News? Or does someone you know want to subscribe? Click here to let us know! In collaboration with NCFC and several co-op members, Cooperative Network had advocated for the preservation of Section 199 with members from both the Minnesota and Wisconsin congressional delegations. With the bill now officially signed into law, Section 199 has been repealed as of Dec. 31, 2017, while the new provisions of Section 199A went into effect on Jan. 1, FMCSA provides guidance on electronic logging device rule for hours-of-service and ag exemptions The U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) electronic logging device (ELD) rule has now been in effect since Dec. 18. In order to assist co-ops and their vehicle fleets in reaching compliance, several documents that may be helpful are available from the FMCSA. Among them is a FAQ document, as well as one dealing with hours-of-service and agriculture exemptions. Included in the rule is a 90-day temporary waiver from the ELD requirements for transporters of agriculture commodities and formal guidance specifically pertaining to the existing hours-of-service exemption for the agriculture industry. As a reminder, the ELD final rule does not change any of the basic hours-of-service rules or exceptions. Website tracks 2018 Farm Bill progress As Congress prepares to write the 2018 Farm Bill, House Agriculture Committee Chairman K. Michael Conaway (R Texas) recently announced a new online resource so people can follow the bill's progress. When announcing the Farm Bill link, Conaway said: "I'm committed to completing a farm bill on time. We've spent the past three years preparing holding 113 hearings and six listening sessions around the country. We recognize what's at stake. We're working on getting the policy right and will use this site as a resource as we advance the next farm bill." FMCSA Regional Declaration of Emergency declared due to anticipated home heating fuel shortages In accordance with the provisions of 49 CFR , the Regional Field Administrators for the Federal Motor Carrier Safety Administration (FMCSA) Eastern Service Center, Southern Service Center, Midwestern Service Center, and Western Service Center declared on Saturday, Dec. 30 that an emergency exists that warranted the issuance of a Regional Emergency Declaration and an exemption from Parts 390 through 399 of the Federal Motor Carrier Safety Regulations (FMCSRs), except as otherwise restricted by this Emergency Declaration. The emergency is in response to the anticipated home heating fuel shortage due to Winter Storm Frankie severe weather and the demand for increased usage. Affected States and jurisdictions included in the Emergency Declaration included Minnesota and Wisconsin, as well as Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Maine, Michigan, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, DC, and West Virginia. In accordance with 49 CFR , this Declaration is effective immediately and shall remain in effect for the duration of the emergency (as defined in 49 CFR 390.5) or until 11 :59 P.M. (ET), Jan. 14, 2018, whichever occurs first.

3 Wisconsin Ripp appointed as DATCP Assistant Deputy Secretary Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) Secretary Sheila Harsdorf has announced Keith Ripp as DATCP's Assistant Deputy Secretary. In this role, Ripp will oversee policy development, administration and lead relations with external stakeholders. Cooperative Network looks forward to working with Ripp in his new position. Ripp has served the 42nd Assembly District as a State Representative since He is also an active farmer and business owner as he raises livestock and grain on the family's farm near Lodi and owns a trucking company. For the full DATCP press release on Ripp's appointment follow this link. Gov. Walker signs order extending propane hours of service Governor Scott Walker has signed an executive order exempting drivers transporting propane from federal and state hours of service requirements. This executive order was declared in response to lower inventories and increased wait times at terminals. The order will extend through Jan. 28, Friday's executive order comes on the heels of weeks of lower temperatures and increased heating usage. Governor Walker signed a similar order during the fall harvest season running from Nov. 3 through Dec. 3. Cooperative Network and member-cooperatives have been engaged with the State of Wisconsin on this issue and will continue to monitor the propane supply situation throughout the winter. To read Governor Walker's executive order, click here. Wisconsin Credit Union League hosts Government Affairs Committee meeting Wisconsin Credit Union advocates gathered at the State Capitol on Dec. 20 for the Wisconsin Credit Union League's Government Affairs Committee meeting. State Representative Terry Katsma (R Oostburg), who chairs the Assembly Committee on Financial Institutions, welcomed the group to the Capitol and shared his appreciation to Wisconsin credit unions for their advocacy efforts and engagement. League Vice President of Government Affairs, Sarah Wainscott, shared successes of the current legislative session including the passage of prize linked savings and financial literacy legislation. She also discussed opportunities for future advocacy efforts in the legislative session. Of specific interest to the committee on federal legislation at this time is a Senate Regulatory Relief Bill, Senate Bill Strong grassroots support can help advance this bipartisan bill containing many pro-credit union provisions. The League encourages interested parties to take action and contact our Senators. Cooperative Network addresses DATCP Board Cooperative Network staff participated in the DATCP board meeting at their Madison headquarters on Dec. 21, addressing issues that Cooperative Network is advocating for its members. We requested that the board approve an emergency rule adjusting fees paid into the Agricultural Producer Security (APS) program. Timeliness of the rule is important as the increased fees for vegetable processors would only occur if the rule is in effect by Feb. 1, 2018, which is the start of the annual licensing period for that industry. In the case of grain dealers and milk contractors, the emergency rule will reduce the assessments paid

4 into the APS fund. The assessment reduction will begin to bring the grain dealer portion of the fund balance back below the $6 million statutory maximum. The reductions will provide equity to milk contractors whose assessments are currently disproportionately higher than those paid by the grain and vegetable industries. The board did approve the emergency rule by unanimous voice vote at the meeting. Through Cooperative Network's committee process, members explained that dairy cooperative staff have to obtain a signed and notarized affidavit every 12 months or less from every producer shipping rbst-free milk. The requirement to obtain a signature every year adds cost and recordkeeping challenges for the industry. Cooperative Network requested that DATCP considers changing ATCP by eliminating the requirement that rbst free affidavits be signed and notarized every year. Primary elections advance candidates to January special elections Special primary elections Dec. 19 advanced candidates to Jan. 16 special elections to fill three vacant legislative seats. In the 10th Senate district, 28th Assembly district State Representative Adam Jarchow (R Balsam Lake) beat 30th Assembly district State Representative Shannon Zimmerman (R River Falls) and will advance to the January special election against Democrat Patty Schachtner of Somerset, who beat two other Democrats in the primary, and Libertarian candidate Brian Corriea of Wilson. In the 58th Assembly district, Slinger's Rick Gundrum bested three other Republicans to advance to the January election against Democrat Dennis Degenhardt of West Bend. In the 60th Assembly district, Racine's Greta Neubauer beat another Democrat and is expected to take the seat after the January election as no other party candidates filed in that district. Dairy Situation and Outlook Each month, Bob Cropp, Professor Emeritus at the University of Wisconsin gives his Dairy Situation and Outlook. Cropp explained that production changes in the major milk producing states overall slowed from changes in recent months. Minnesota increased its production by 1.5 percent and Wisconsin by.09 percent while California decreased it production by 1.1 percent. We should end the year 1.4 percent more than Cropp feels the strong milk production is putting downward pressure milk prices. A podcast of Cropp along with Mark Stephenson, Director of Dairy Policy Analysis at UW-Madison can be found here. Cooperative law scholarship available The Federated Youth Foundation is accepting applications for the 2018 Charles Van Sickle Scholarship. The $2,000 award is open to a pre-law or law student who resides in Wisconsin and plans to specialize in cooperative law. Applications are due April 1, 2018 for the spring semester. Apply here!

5 Minnesota Gov. Dayton issues hours-of-service waiver for propane, gasoline, diesel and heating fuel delivery Gov. Mark Dayton recently issued Executive Order 17-16, which will provide relief from regulations for motor carriers and drivers operating in Minnesota for the delivery of propane, gasoline, diesel and heating fuel. The order became effective last Thursday, Dec. 29 and will remain in effect for 14 days, or until the commercial motor carrier or driver ceases direct assistance in providing emergency relief whichever occurs first. Conditions of the order include: Motor carriers and drivers transporting propane or diesel fuel to the affected areas of the state and providing assistance for emergency relief efforts are exempted from the regulations incorporated in Minnesota Statutes, section , subdivision 9 Nothing in the order relieves motor carriers and drivers from regulations pertaining to driver qualifications No motor carrier operating under the terms of the order shall require or allow an ill or fatigued driver to operate a commercial vehicle Upon the expiration of the effective date of this executive order, or when a driver has been relieved of all duty and responsibility to provide direct assistance to the emergency effort, a driver that has had at least 34 consecutive hours off-duty shall be permitted to start his or her on-duty status hours and 60/70 hour clock at zero To those co-ops whose drivers are affected by the waiver, please make sure they have a copy of the emergency declaration in their possession if they are operating under it. Reminder Minnesota Co-op Day at the Capitol planned for March 20 The 10th Annual Minnesota Co-op Day at the Capitol has been scheduled for Tuesday, March 20, This annual event continues to prove instrumental in helping advocate and advance cooperative related initiatives. Cooperative leaders from across Minnesota will come together for this grassroots lobbying event to meet with legislators and administration officials in St. Paul. We will discuss the important role our cooperative members play in Minnesota's economy and how current issues affect their businesses. This event is a very effective way of gathering together to ensure that the voices of cooperatives are heard throughout all parts of the state. Cooperative Network will continue to keep you updated on details of the event as they become available. MnCUN urges support for common-sense regulatory reform for credit unions in the U.S. Senate Recently, a bipartisan group of Senators released legislation that has a strong focus on Main Street financial institutions. The Minnesota Credit Union Network (MnCUN) has initiated a grassroots campaign to help advance the Economic Growth, Regulatory Relief and Consumer Protection Act. This regulatory relief bill supports credit unions by ensuring credit union loans are treated the same as their bank counterparts, as well as provides protections against elder abuse. Of specific interest to the committee on federal legislation at this time is a Senate Regulatory Relief Bill, Senate Bill If you wish to show your support for the legislation, please visit the following link on MnCUN's website to have your voice heard. In addition, a letter to the editor in support of the legislation recently appeared in the St. Paul Pioneer Press

6 that was authored by MnCUN President/CEO Mark Cummins. Franken to resign today, Smith to be sworn in tomorrow After serving as the junior Senator from Minnesota for more than eight years, Al Franken will officially submit his resignation from the United State Senate today. He announced his decision to depart the Senate back in early December of last year due to sexual harassment allegations. Taking his place starting tomorrow will be Lt. Gov. Tina Smith, who has been serving in her current capacity in Gov. Mark Dayton's administration since the beginning of Smith will face a special election this coming fall to complete the term for the seat which is set to expire in State Senator Karin Housley (R St. Marys Point) recently announced her intention to run against Smith. It is expected several others will throw their names in the hat in the coming months. Differing opinions rendered on if Senate President can serve as lieutenant governor simultaneously Gov. Dayton recently sought an opinion from the Minnesota Attorney General on the matter of if Senate President Michelle Fischbach (R Paynesville) could serve in her current role, as well as the state's lieutenant governor. According to the Minnesota Constitution, the President of the Minnesota Senate assumes the duties of the lieutenant governor if that office is vacated. With Tina Smith set to assume a new role as the replacement to outgoing Senator Al Franken in Washington, D.C., debate has ensued to as if Fischbach would have to resign her seat. The chief counsel for the state Senate recently indicated that based on ruling by the Minnesota Supreme Court in 1898, the Senate President could serve simultaneously at the lieutenant governor. However, DFL leaders have questioned Fischbach's ability to serve both roles as another section of the Minnesota Constitution states no legislator shall hold any other office under the authority of the state of Minnesota. State Solicitor General Alan Gilbert, on behalf of the Attorney General's office, also rendered an opinion just before the holidays stating that allowing someone to hold positions in both the executive branch and legislative branch violates the principle of the separation of powers clause. He went on to further state that the dispute may have to be resolved by an official judicial decision. These developments could lead to another clash between the executive and legislative branches that may need to be sorted out by the judicial branch. New laws take effect on Jan. 1 Starting on Jan. 1, several new laws passed by lawmakers during the 2017 legislative session went into effect. Among them were the establishment of uniform election dates throughout the year for local elections, a new special license plate for retired law enforcement, and a "Start Seeing Motorcycles" plate. A summary of laws passed this past session is available from the House Public Information Services Office at the following link. MDA announces new restrictions on use of dicamba herbicide The Minnesota Department of Agriculture (MDA) recently announced new restrictions on the use of the herbicide dicamba in Minnesota for the 2018 growing season. The new restrictions are in addition to those announced by the U.S. Environmental Protection Agency (EPA) in October of The decision follows an ongoing investigation by MDA in an effort to prevent dicamba-related complaints in MDA Commissioner Dave Frederickson set forth several protocols for dicamba use for the 2018 growing season, including a cutoff application date of June 20 and a cutoff temperature of over 85 degrees Fahrenheit. For more information on these restrictions, please see the following link on MDA's website. Follow www cooperativenetwork coop

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