Brief Summary of Minutes of Annual Meeting

Minutes of the Business Meeting of NCR-194, Research on Cooperatives Tuesday, November 8, 2005 Hyatt Regency Hotel Minneapolis Minnesota Administrative Advisor: Sarahelen (Sally) Thompson Department of Agricultural Economics Purdue University West Lafayette, IN 47907 Chair Michael Boland Department of Agricultural Economics Kansas State University Manhattan KA 66506 Vice-Chair Phil Kenkel Department of Agricultural Economics Oklahoma State University Stillwater OK 74075 Secretary Sue Hine Department of Agricultural and Resource Economics Colorado State University Fort Collins, CO 80523-1172 Treasurers Michael Boland and David Barton Department of Agricultural Economics Kansas State University Manhattan KA 66506 Attendance:. There were 35 individuals in attendance, 19 NCERA-194 members and 16 other individuals (graduate students, industry representatives, guests) NCERA-194 Members in Attendance: David Barton, Kansas State University Michael Boland, Kansas State University Jennifer K. Bond, Colorado State University Paul G. Christ, Land O Lakes Anthony Crooks, USDA Robert Cropp, University of Wisconsin-Madison Joan Fulton, Purdue University Shermain D. Hardesty, University of California-Davis Brian M. Henehan, Cornel University Phil Kenkel, Oklahoma State University William Nelson, CHS Foundation Brian Oleson, University of Manitoba Chris Peterson, Michigan State University Anne Reynolds, University of Wisconsin-Madison Center for Cooperatives Bruce Reynolds, USDA Cooperative Services-Cooperative Programs Sarahelen (Sally) Thompson, Purdue University (Administrative Advisor) Evert Van der Sluis, South Dakota State University Kim Zeuli, University of Wisconsin-Madison Other Individual Attending Andrea Bentancor, University of Wisconsin-Madison Vernon Eidman, University of Minnesotat Brenda Forman, SD Assn. Of Cooperatives Rodney Holcomb, Oklahoma State University Nikolaos Kalogeras, University of Illinois Colotte Lebel. La Coop Fédérée Larry Leistritz, North Dakota State Robert Ludwig, The Hale Group Gregory Mckee, University of California, Davis Lovisa Nilsson, Swedish Agricultural University Gerald Ortmann, Universtity of Kwazulu-Natal Pablo Pincheira, University of Wisconsin-Madison Amanda L. Scheurer, University of St. Thomas Adam Schwatz, NCBA Cathy Statz, Wisconsin Farmers Union Doug Weinbrenner, Golden Heritage Foods, LLC Call to Order Chairman Mike Boland called the meeting to order at 4:30 p.m. Approval of minutes from the 2003 Annual Meeting Vice-Chair Phil Kenkel distributed the 2004 meeting minutes. A motion to approve the minutes was made by Brian Henehan and seconded by Joan Fulton. Motion carried. Nominating Committee Report Dave Barton gave the nominating committee report. The committee recommended an officer slate consisting of: Phil Kenkel-Chair, Sue Hine-Vice Chair and Shermian Hardesty-Secretary. There were no further nominations from the floor. A motion to elect the recommended slate of officers by acclamation was made by Chris Peterson and seconded by Evert Van de Sluis. Motion carried. Treasurers Report Mike Boland presented the financial report. Prior to the meeting expenses, the organization had a balance of $4,027. Mike reported that 34 paid registrants for the 2005 meeting. The projected balance after meeting expenses was expected to be very close to the balance at the beginning of the year of $1,500. A motion to approve the financial report was made by Chris Peterson and seconded by Phil Kenkel. Motion carried. Administrative Advisors Report Sally Thompson reported that the committee had been doing a good job of entering information into the NMIS system. She complimented the committee on it productivity in coordinating timely research and encouraging cross-state interaction. Mike Boland thanked Dr. Thompson for her efforts in advising NCERA-194. Cooperative Text Book Project Dave Barton led a discussion on the cooperative text book project. The NCRERA-194 members in attendance were polled concerning there use of the working copy version. Strategies for completing a final version of the text book were discussed along with needed revisions. Various members also discussed needs for additional chapters or modules. Dave Barton observed that while the current version contained a chapter on international role of cooperatives the text chiefly reflects a U.S. perspective. Chris Peterson discussed whether the text needed more of an industrial organization perspective. A suggestion was made that a working session with all of the authors in attendance was needed to try and move the book to completion. There was a consensus to pursue that strategy. David Barton agreed to investigate possible dates and venues. Cooperative Economic Impact Study Mike Boland reported on the plans of the National Council of Farmers Cooperatives and the Cooperative Business Association to provide a $500,000 grant for a national study of the economic impact of cooperatives. A discussion of the role of NCRERA-194 members in the project incurred. The need for the project to be offered on a competitive basis was emphasized. The importance of involving researchers with both modeling expertise and an understanding of cooperative business structures was also pointed out. The group agreed that NCERA-194 members would collaborate on a proposal for the economic impact study once the request for proposals was officially announced. 2006 Meeting Format The format for the 2006 NCERA-194 Annual Meeting was discussed. The group was in agreement with continuing to link the conference with the Farmers Cooperative Conference. The general consensus was that holding NCRERA-194 immediately after the Farmers Cooperative Conference was preferable to before the conference. Chris Peterson suggested having a keynote speaker. Joan Fulton and Mike Boland discussed the concept of organized symposiums. The concept of identifying the best selected paper was also discussed. A committee chaired by Chris Peterson and with members Joan Fulton and Evert Van de Sluis was formed to identify a keynote speaker and to manage the Best Selected Paper competition. Student Registration Fees and Financial Support Mike Boland reported that $3,000 of scholarship funding was received from the CHS foundation. Mike reported that 8 individuals received scholarships: Nikolaos Kalogeras, University of Illinois, Pablo Pincheira, University of Wisconsin-Madision, Andrea Bentancor, University of Wisconsin-Madision, Lovisa Neilsson, Swedish Agricultural University & University of Missouri, Gerald Ortmann, University of Kwazula-Natal/University of Minnesota, Cathy Statz, University of Wisconsin, Gregory McKee, University of California, Davis, and Amanda Scheurer, University of St, Thomas, St. Paul Mn. Resolution of Appreciation A motion thanking the CHS Foundation and the Ralph K. Morris Foundation for their support of the meeting and thanking CALS Outreach for facilitating the registration process was made by Joan Fulton and seconded by Chris Peterson. Motion carried. A motion thanking Mike Boland for his dedicated service as chair was made by Phil Kenkel and seconded by Brian Henehan. The motion was approved. The meeting adjourned at 5:45 p.m.

NCERA-194 Annual Report 2005 Objective 1. To promote and coordinate timely research on cooperatively owned business organizations for agricultural marketing, agricultural input supply, vertical coordination through value added processing, and rural services. Accomplishments during 2005 The establishment of NCERA-194 has greatly facilitated collaboration and interaction among individuals conducting research on cooperatives. NCERA-194 members continue to be actively involved in joint research projects and cooperative agreements between USDA, Cooperative Services and the Land Grant institutions. NCERA-194 members are making full use of the committees infrastructure to communicate the results of their research to each other. During 2005 NCERA-194 members disseminated research results during the annual meeting. NCERA-194 members also used the NCERA-194 web page and the list-server (described in more detail below) to communicate with each other. NCERA-194 members, as well as others interested in cooperatives, accessed the selected papers presented at the each all meetings from the web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm. Members also made use of the List Server (ncr-194-net@macc.wisc.edu) to facilitate communications among members. Messages sent to the list server are forwarded to all NCERA-194 participants. Specific examples of collaboration include: Director Education programs organized by NCERA members Dave Barton and Mike Boland (KSU). Workshops were conducted in Montana, Wyoming, Missouri, Indiana, Illinois, Ohio and Michigan. in collaboration with NCERAS members Sue Hine and James Pritchett (Colorado State University), and Joan Fulton (Purdue University) The programs focused on strategic thinking, finance, governance, and mergers. Original research through case studies was done on various co-ops to help provide content for the program. David Barton (Kansas State University) is leading an effort to develop a co-op textbook for use in college and university courses on cooperatives. Mike Boland submitted grant applications to various foundations to help provide support for a retreat to help complete the textbook. Seven NCERA-194 members have completed preliminary drafts of 21 chapters of the textbook. NCERA member Mike Boland and The Arthur Capper Cooperative Center (Kansas State University) have organized a co-op study tour in four South American countries. Case studies were written on co-ops in each country to provide support for the curriculum used in the three credit class. 32 Students from Colorado, Kansas, Missouri, and North Dakota are participating in the class and tour. NCERA members Mike Boland (Kansas State University) and Gary Brester (Montana State University) completed a case study on a Native American Indian Cooperative in Montana. They also completed a case study on Mountain States Lamb Cooperative. Resource Material on value added cooperatives were developed by Oklahoma State University, Kansas State University and Iowa State University in conjunction with the Agricultural Marketing Resource Center Equity Management Survey organized by Dave Barton and Mike Boland (KSU) in collaboration with Darrell Mark in Colorado and Nebraska. Objective 2. To serve as a forum for industry and government decision makers in management and staff research positions to interact with land grant researchers and extension specialists to share research results and discuss implications for cooperative business organizations, their producer members, farm structure, efficiencies in food production and distribution, the environment and economic well being of rural communities. Accomplishments during 2005 The 2005 annual meeting of the NCERA-194 was held in the Hyatt Regency Hotel in Minneapolis Minnesota on November 8-9, 2005, immediately following the Farmer Cooperatives Conference. Attendance included nineteen NCERA-194 members and 16 non-members. The 2005 annual meeting consisted of a one-day forum, attended by industry and government representatives as well as representatives from universities. Industry representatives from Cenex Harvest States, Land OLakes, South Dakota Association of Cooperatives, La Coop Fédérée (Canadian Federation of Cooperatives), The Hale Group, National Cooperative Business Association, Wisconsin Farmers Union, Golden Heritage Foods, LLC, attended the conference. Graduate students and visiting scholars from Swedish Agricultural University, University of Kwazulu-Natal, University of St. Thomas were also in attendance. Additionally, one of our members, Chris Petersen, serves on the board of directors for CoBank. The representation from academics, industry and government, enabled strong and positive interaction between academics and others. Several NCERA-194 members in attendance were members of other national research projects such as WCC-72, NE-165, National Society of Accountants for Cooperatives and other complimentary groups. Through their participation these members worked to coordinate NCERA-194 member research with that of other complimentary projects. Twelve research papers were presented at the meeting. Full text versions of all of the research papers and posters were posted on the NCERA-194 web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/Default.htm. Topics of the papers presented included cooperative education, cooperative finance, risk management, and new cooperative formation. NCERA members also collaborated on research with other organizations and regional committees. Sanjib Bhyuan (Rutgers) participated in an organized symposium on the Role of Cooperatives in Rural Economic Development at the 2005 Annual NAREA meetings, Providence, RI. NCERA member Phil Kenkel collaborated with the NC 1016 and WCERA-72 on a study of Co-mingling of Wheat in the Hard Red Winter Wheat Marketing System which was presented at the WCERA-72 Annual Meeting in Las Vegas NV. Another important objective of NCR-194 is to attract young individuals to cooperative development. Progress toward this objective was achieved during 2005 through the successful pursuit of $3,000 in scholarships to eight students and/or early career faculty members to participate in both the NCERA-194 meeting and the Farmers Cooperative Conference. NCERA-194 member Mr. William Nelson, representing the Cooperative Foundation, was instrumental in making scholarship funds available. The availability of the these scholarship funds further serve as an indication of the successful working relationships between NCERA-194 members working in industry and in academic settings. Summary During 2005, NCERA-194 demonstrated numerous measurable outcomes consistent with the organizations stated purpose and objectives. Notable accomplishment included the annual meeting attended by 36 researchers and industry professionals, presentations on 12 research projects which were also disseminated in full text form on the NCERA-194 web site, the active use of the NCERA-194 list server to coordinate and facilitate on-going member research and five specific multi-state research/educational efforts. NCERA-194 continues to be an important vehicle for individuals of diverse backgrounds from across North America and elsewhere to meet and explore ways in which research, education and outreach activities can enhance the development and survival of rural cooperatives. As discussed above, the group continues to make excellent progress in this regard.

Amanor-Boadu, V., M.A. Boland, and D. Barton. Welch Foods In Cases in Strategic Management, Seventh edition, Houghton Mifflin Company, February 2006. Bhuyan, S. 2004. The People Factor In Cooperatives: Does Members' (Negative) Attitude Affect Their Participation? Paper presented at the Principal Paper session (Session organizer: Professor Ellen Goddard, University of Alberta) entitled What's Happening in the Cooperative Sector? at the 2004 Canadian Agricultural Economics Society (CAES) annual meetings, Halifax, Nova Scotia, Canada, June 20-23, 2004. Bhuyan, S., 2005. Role of Cooperatives in Economic Development: What Have We Learned So Far? presented at the organized symposium Role of Cooperatives in Rural Economic Development: Myth or Reality? presented at 2005 Annual NAREA meetings, Providence, Rhode Island, July 24-27, 2005. Boland, Michael. Status of Cooperative Classes in the U.S. presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November, 9 2005. Boland, M.A., and T. Marsh. Input Quality in the Sugar Beet Industry Journal of Agricultural and Resource Economics 31, 1 (2006): Bond, Jennifer Keeling. Linkages Between Cooperative Performance and Board of Director Characteristics: A Quantitative Equity Drives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. Boyd, Scott, M.A. Boland, and David Barton. Analyzing Determinants of Profitability and Persistence of Profitability in Local Grain Marketing and Farm Supply Cooperatives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. Crooks, T. The Role of Information Technology in the Fuel Ethanol Industry presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/TonyCrooks.pdf Crooks, Anthony and John Dunn, Ethanol marketing/contracting, Rural Cooperatives, Vol. 72, No. 5. Crooks, Anthony and John Dunn,Farmer-owned ethanol and the role of information technology, Rural Cooperatives, Vol. 72, No. 5. Crooks, Anthony and John Dunn, IT having major impact on farmer-owned ethanol plants, Rural Cooperatives, Vol. 72, No. 6. Crooks, Anthony and John Dunn, Fuel ethanol industry, past & present, Rural Cooperatives, Vol. 72, No. 6. Fox, J.A., M.A. Boland, and L. Perez. Grassfed Certification: The Case of Uruguyan Beef. Agricultural Issues Center, University of California, May 2005, 21 pages. Hardesty, Shermain. Impacts of the Conversion of Diamond Walnut Growers presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November, 9 2005. Hine, Susan, and James Pritchett. Opportunities and Insights for Cooperative Board Education presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. Holland, Steven J., Robert P. King. Co-op Stock Exchange: Why choice of training rules matters for new-generation co-op stockholders, Rural Cooperatives Vol. 72, No. 1, January/February 2005, pp. 12-14, 2005. Holland, Steven J., Robert P. King. Trading Mechanisms for New-Generation Cooperative Stock: The Architecture of Organizational Formation and Demise, American Journal of Agricultural Economics, Vol. 86, No. 5, December 2004, pp. 1262-1268. Kenkel P. and R. Holcomb. Energizing a Cooperative Class with Cooperative Feasibility Software presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis MN, November 9, 2005. www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/KenkelandHolcombpaper.pdf Holcomb, R. and P. Kenkel. The Thrill of Victory and the Agony of Defeat: A Comparison of Two Cooperative Equity Drives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/HolcombandKenkel.pdf Kalogeras, N., Pennings, J.M.E Dijk van G., and I.A. van der Lan. Modeling the Effects of Heterogeneity on Producers Preferences presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. Kenkel P. and S. Henneberry, An Economic Analysis of Unit Train Facility Investment Mexican Journal of Agribusiness (Revusta Mexicana de Agronegocios), Spring 2006. Kenkel, P., and R.B. Holcomb. Feasibility Templates for Value-Added Manufacturing Businesses. Journal of Food Distribution Research 36, 1(March 2005):232-235. Kenkel P. and R. Holcomb. Energizing a Cooperative Class with Cooperative Feasibility Software presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/KenkelandHolcombpaper.pdf Kenkel, P. Evolving Credit Needs of Cooperatives and Producer-Owned Businesses invited paper for Farm Credit System Publication: Serving the Changing Financial Needs of American Farmers and Ranchers, 2005  2016 February 2005. Ortmann, Gerald F., and Robert P. King, Small-scale farmers in South Africa: can agricultural cooperatives facilitate access to input and product markets? University of Minnesota, Department of Applied Economics, St. Paul, Minnesota, 2005 Pritchett, James, and Susan Hine. Financial Characteristics of Top Performing Cooperatives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minneapolis, November 9, 2005. Pincheira P. and K. Zeuli. Cooperatives and Area Wide Yield Insurance: A Theoretical Analysis presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/PabloandZeuli.pdf Reynolds, B. A Property Rights Approach to Preserving Subsidized Multifamily Rural Housing with Cooperatives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. http://www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/Reynoldspaper3.pdf Zeuli K. and A. Bentancor The Effects of Cooperative Competition on Member Loyalty presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9 2005. http://www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/ZeuliandAndrea.pdf