Nebraska Cooperative Council 2014-15 Annual Report Inside this Report: Chairman & President’s Message 3 Leadership 4 State Legislation 5 State & Federal Regulations 8 NCC Political Action Committee 10 Director Education 11 Youth Education 12 New Cooperatives Faculty Position at UNL 13 Cooperative Economic Impact Study 13 Annual Meeting 14 Cooperative Hall of Fame 15 Upcoming Leadership Change 15 Financials 16 NCC Member Cooperatives Membership 17 by the Numbers (estimated as of 8-31-15) 32 Nebraska supply/marketing co-ops operating: 347 additional branch locations in Nebraska 55 additional branch locations out of state NCC Mission Statement: 3 Rural electric co-ops To defend, protect, and enhance 1 Transport co-op the agricultural cooperative movement through pro-active programs in educa- 1 Telephone co-op tion, legislation, government affairs, 1 Out-of-state co-op with a branch in Nebraska communication, and regulatory issues. 1 Out-of-state rural electric co-op 1 Livestock Marketing Agency 7 Participating Members 37 Supporting Members Cooperative Principles: NCC Member Supply/Marketing Co-op Stats: • Voluntary and Open Membership 54,300+ total voting members • Democratic Member Control 5,600+ employees (full and part-time) • Member Economic Participation $7.2 billion total sales • Autonomy and Independence $2.9 billion total assets • Education, Training & Information $154 million net savings • Cooperation among Cooperatives $212.7 million investment in new equipment and facilities in past year • Concern for Community $67.2 million total patronage refunds in past year $26.4 million equity/estate redemption in past year $13 million property taxes paid in past year $7.7 million federal/state income taxes paid in past year Nebraska Cooperative Council 134 South 13th Street, Suite 503 Lincoln NE 68508 Ph: 402/475-6555 Fax: 402/475-4538 Email: [email protected] Website: www.nebr.coop August 31, 2015 2014/15 Annual Report - Nebraska Cooperative Council Chairman & President’s Message Seventy years ago, a group of 20 Ne- educational outreach to community col- braska cooperative leaders met in Lincoln lege students. For the 2014/15 academic to discuss establishing/organizing a trade year, we conducted 18 classroom sessions association for local cooperatives. As a re- encompassing 359 students. Since the pro- sult, the Nebraska Cooperative Council was gram was established, we have provided 58 formally organized in 1945. Incorporated presentations attended by 1,045 students. into the Council’s Articles of Incorporation In addition, in August 2014, the Uni- as one of the organizational purposes is versity of Nebraska implemented a “Role the charge that the Council is “to do any of Cooperatives in Agriculture” class which NCC President Robert Andersen and and all things necessary to defend, protect was taught by Attorney Rocky Weber. This Board Chairman David Briggs and enhance the agricultural cooperative was the culmination of several years of movement for the mutual benefit of the working with the University to create coop- members of the Council.” erative offerings within the Department of of Revenue. This includes the decision this Those early cooperative leaders were vi- Agricultural Economics. It should be noted year to challenge the Department concern- sionary as they understood the importance that this class will be offered again in the ing its position on the Sales & Use Tax of continuing education for cooperative di- fall 2015 semester. The importance of this on Parts & Machinery and NH3 Trailers/ rectors and managers alike and, secondly, cannot be overstated as it has been many, Tanks Classification. In addition, we also they understood the importance of having many years since the University offered continue our energy source exemption a voice in the formulation of public policy students a class on cooperatives. challenge which was initiated several years concerning cooperatives. In July 2015, we executed an Agree- ago. Both of these challenges are being The Council remains committed to ment with the University of Nebraska funded by voluntary contributions from developing and providing quality coop- Extension Division and the Ag Economics several of the membership (see page 9). erative training programs for cooperative Department to partially fund a new faculty The Council’s legislative program directors. Indicative of this, three years position in Agriculture and Rural Coopera- continues to be a priority area. The ago the Council’s Board of Directors and tives. The candidate interview process will Council’s management team recognizes Education Committee made the strategic be commencing shortly, and the Search the importance of providing leadership in programming decision to elevate the qual- Committee includes three Council repre- the development and support of legislative ity of the Council’s director education pro- sentatives. It has been since 1999 that we initiatives favorable to cooperatives. grams. Accordingly, we have incorporated had a recognized faculty position within This past legislative session, your asso- nationally recognized experts from various the Institute of Agriculture and Natural ciation was involved in or closely moni- land grant universities and industry and Resources with a cooperative discipline. tored 71 legislative bills and resolutions. financial leaders into our programs. We We believe our financial commitment to This consumes an inordinate amount believe our educational opportunities create the faculty position will enhance of time and a day-to-day presence at the compliment cooperative management cooperative extension, research, and Capitol. See the legislative section on page teams’ abilities to meet the challenges of a undergraduate teaching. 5 which provides a summary of those is- competitive agribusiness environment and This past July, the Board of Directors sues we were following. potential alternatives in an ever-changing approved engaging the UNL Business Your Council is recognized as an and complex business climate. College to undertake an economic impact important and respected legislative leader This past year, 398 board members study on supply/marketing cooperatives in for agricultural cooperatives by our elected and employees attended our director/ Nebraska. This information should prove state/federal legislators as well as the state/ manager training programs. The positive helpful in our education and legislative federal governmental departments and responses from the members, both in programs as well as to our educational other stakeholders. This is the result of meeting evaluations and verbal discus- outreach with other stakeholders. the efforts and dedication of many within sions, reaffirms the strategic decision to As we look at the regulatory challenges the cooperative system. elevate and enhance our programming. before our membership, the Council has As you review this year’s Annual Our youth education programming has provided leadership to challenge recent in- Report, we believe it illustrates the Council been expanded. In 2011, we initiated an terpretations by the Nebraska Department (Continued on page 7) August 31, 2015 2014/15 Annual Report - Nebraska Cooperative Council Pg 3 2014/15 Council Leadership Board of Directors David Briggs, Chair Dean Thernes, Vice Chair Bruce Favinger, Secretary Dave Beckman Mike Hechtner WESTCO Farmers Pride Cooperative Producers Inc Central Valley Ag Co-op CoBank Alliance Battle Creek Hastings York Omaha John Oehlerking Doug Ohlson Randy Robeson Tim Rowe Midwest Farmers Co-op Frenchman Valley Farmers Co-op Frontier Co-op Co. All Points Co-op Elmwood Imperial Brainard Gothenburg Committees Legislative Advisory Committee Excellence in Cooperative Robert Andersen .... Nebraska Cooperative Council (Co-chair) Education Committee Dean Thernes ......... Farmers Pride, Battle Creek (Co-chair) Bruce Favinger ...........Cooperative Producers Inc, Hastings (Chair) Dave Beckman ....... Central Valley Ag Co-op, York Don Anthony ..............CHS Inc, Lexington Evan Brandes ......... Aurora Co-op Elevator Co. Deb Brauer.................Crossroads Co-op Assn, Sidney Matt Caswell ........... AGP, Omaha Carl Dickinson ...........Central Valley Ag Co-op, York Jamey Nygren ......... Farm Credit Services of America, Omaha Jay Geu .......................Frenchman Valley Farmers Co-op, Imperial John Oehlerking ..... Midwest Farmers Co-op, Elmwood Tom Houser ...............CoBank, Omaha Randy Robeson ...... Frontier Co-op Co., Brainard Mike Nohavec .............Farmers Cooperative, Dorchester Ron Rutten ............. Country Partners Co-op, Spalding Dale Piper ..................Midwest Farmers Co-op, Elmwood David Briggs ........... WESTCO, Alliance (ex-officio) Tim Rowe ...................All Points Co-op, Gothenburg David Briggs ...............WESTCO, Alliance (ex-officio) NCC-Political Action Committee Dr. Larry Van Tassell ...University of Nebraska-Lincoln (ex-officio) Dean Thernes ......... Farmers Pride, Battle Creek (Chair) Ed Woeppel ................Nebraska Cooperative Council Britt Anderson ........ All Points Co-op, Gothenburg Ron Hunter ............ Ag Valley Co-op, Edison Hall of Fame Committee Mary Kay Lyon ........ CHS Agri Service Center, Holdrege Daryl Erickson ...........Greenwood (Chair) John Moore ............ Central Valley Ag Co-op, York Don Wiseman .............Fairbury (Vice Chair) Doug Ohlson .......... Frenchman Valley Farmers Co-op, Imperial Jerrell Dolesh .............Tilden Bill Schuster ........... Aurora Co-op Elevator Co.