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Kansas Cooperative Council Newsletter Winter 2015
In This Issue:
Notes from the Chairman .................................... 2
2015 Hall of Fame Inductees Selected .................. 3
Legislative Action Day a Success ......................... 4
Legislative Action Day in Pictures ...................... 5
DDP Advanced Course Sets Record .................... 6
DDP in Pictures .................................................... 7
DDP Program Completions ................................. 8
Director of Member Services ............................... 9
From the President’s Chair ................................. 10
Board Members/Calendar of Events ................... 11
2
Calendar year 2014 has come and gone with many challenges for our cooperative industry. Following several years of record grain prices, values have declined significantly due to higher U.S. grain production and increased carryover supplies. Volatility in fertilizer values continue and prices are high in relationship to commodities. Fuel costs have dropped dramatically with crude oil below $50 a barrel while livestock values have reached record levels. Recent history proves that prices of agricultural supplies and commodities can and will change quickly. Your co‐op’s ability to be successful in generating profits, building additional assets and returning equities to your patrons will depend on your daily decision making process as a general manager, director or department supervisor. Having the Kansas Co‐op Council staff working political issues on your behalf allows you the time to make these important decisions, however there will be times when your active participation and communication with your state representatives will help them in their decision making process. While facing many of today’s changing regulations and new legislative requirements, your Kansas Cooperative Council staff remains on top of issues that affect our cooperative businesses. The new legislative session in Kansas just started along with the 114th Congress in Washington, D.C. A host of pressing issues important to our co‐op members will be presented this year. As representatives of our industry, it’s extremely important that cooperative leaders stay in touch with their state lawmakers. One key to successful engagement is building a relationship over time with elected officials. Developing friendships even prior to a legislative issue arising gives you a solid basis from which to advocate when a bill of interest is introduced. Communicating with your federal and state senators and representatives and participating in events like the Legislative Action Day play a critical role in connecting you with the political process. I’ve learned first‐hand how important that interaction is. In order to help reinforce friendships with elected officials, The Nemaha County Co‐op was honored to host Congresswoman Lynn Jenkins (R‐Topeka) on a tour of our facilities in August 2014. She and her staff spent a considerable amount of time with several of our department supervisors. The Congresswoman was raised on a farm in Northeast Kansas so she has the ability to recognize the many issues facing our cooperatives. The tour allowed us to showcase the important role the co‐op plays in the agricultural economy and provided a learning opportunity for the co‐op staff and the Congresswoman and her staff. It was a great way to build upon the trusted relationships our agribusiness trade associations, including the Kansas Cooperative Council, have been establishing for many years on our behalf. I encourage you to make the personal investment to open communication channels with our state and federal lawmakers when a meeting comes to your area. Or, consider attending a legislative coffee if offered the opportunity. I believe the time investment you make will be well worth the effort. and
Notes from the Chairman by Charles Gabehart
February 11‐13, 2015 San Diego, CA Paradise Point
For more information and to register, visit www.ncfc.org
3
2015 Hall of Fame Inductees Selected
Two Kansas co‐op heroes will be added to the Kansas Cooperative Hall of Fame. Larry Scott and Charles “Charlie” Ross will be inducted this spring, Ross posthumously. Ross served rural electric cooperatives for 20 years, first as Executive Vice President of Kansas Electric Cooperatives, Inc. (KEC) from 1969‐1981, then as the first Executive Vice President and CEO of Kansas Electric Power Cooperative (KEPCo) from 1981‐1988, from which he retired in 1988. He also was an incorporator of Wolf Creek Nuclear Generating Station’s operating organization and served on its original board. Charles recognized the critical role cooperatives played in the utility industry, the economy and the future of Kansas. Scott has served the cooperative system for over 35 years as a supporter and leader. He held executive board positions for most of those 35 years, the last 12 as Secretary‐Treasurer of Pride Ag Resources board of directors. He retired in 2013. Larry’s vision for innovation and leadership was rooted in his desire to see the overall co‐op systems continue as a strong and viable force in future years.
Both deserving inductees will be honored at a dinner and ceremony on March 11, the evening before the KCC and KFSA annual meetings which take place on March 12.
The Hall of Fame is important for recognizing those who have gone “above and beyond the call” in advancing the cooperative philosophy. The first class was inducted in 1999. The Kansas Cooperative Hall of Fame display is located in the Pride of Kansas building on the Kansas State Fairgrounds in Hutchinson.
Information on the Hall of Fame and past inductees is available on the KCC webpage at www.kansasco‐op.coop.
Charles “Charlie” Ross Larry Scott
4
Legislative Action Day a Success
Cooperative and agribusiness leaders from across Kansas gathered in Topeka for the annual joint Legislative Action Day (LAD) hosted by the Kansas Cooperative Council (KCC), Kansas Grain and Feed Association (KGFA) and Kansas Agribusiness Retailers Association (KARA). Luncheon and reception events were held at Topeka Country Club. Organization members were briefed following the noon meal on a variety of issues many expect to be front‐and‐center during this year’s legislative discussions. Representative Sharon Schwartz (R‐Washington), Chair of the House Committee on Agriculture and Natural Resources, drew comparisons between running a farm and the functions of the legislature. She noted the need for both to save and plan for “a rainy day” and, when budgets are tight, how spending priorities must be set. Schwartz also highlighted items related to the 50‐year vision for water in Kansas. Although we didn't know it at the time, later that afternoon Schwartz would be named to an additional legislative post, vice‐chair of the powerful House Appropriations Committee. This Committee, and its Senate counter‐part, Ways and Means, formulate the state’s spending plans and influence agency expenditures. Senate Agriculture Committee Chairman Garrett Love (R‐Montezuma) spoke of the importance of constituents being involved in the political process and gave his perspective on several legislative matters. The Senator spoke, too, on water and the budget. He also responded to questions from the audience pertaining to school finance and taxation of agriculture land. Love is beginning his third year as Senate Ag Committee chair and holds an historical place on the Senate roll as youngest person to serve in the state's upper chamber. Following the legislator briefings, association staff updated members on issues we will be working on this session. KDHE is proposing legislation which we hope will help increase the number of "no further action" determinations under the voluntary clean‐up program. We are supportive of efforts to deter metal theft, establish a scrap metal registry and strengthen penalties for metal theft and the property damage associated with it. Our organizations continue to advocate for adequate funding for Kansas Dept. of Agriculture program important to our members, including scales/weights and measures and grain warehousing. There are several other issues we will be monitoring, and if the need for more direct action arises, we will actively engage. We are always vigilant on tax issues and know that our members can be significantly impacted by changes to sales, income and property tax provisions. We follow closely proposals relative to immigration or bills that might easily become vehicles for state immigration changes. We will also help educate lawmakers on use‐value appraisal of agriculture land. The afternoon was spent at the statehouse. Members had the opportunity to observe the Senate in session, visit with legislators and attend late afternoon committee meetings. The House Ag Committee received a briefing that day from Kansas Secretary of Agriculture Jackie McClaskey. KCC members and our friends from KGFA and KARA hosted elected leaders for an evening reception that night. Legislators from all over the state attended, including many from areas where few, if any, cooperatives operate. It is great to have the opportunity to provide information to them about our member‐businesses and offer insights into the challenges you face. In addition to demonstrating our appreciation for their service, LAD is really about lawmakers, from every district, and better connecting them to the work you do every day. Legislative Action Day is a success each year, thanks in large part, to the participation of KCC members and the support of wonderful sponsors. We certainly appreciate all of those that attended LAD, visited with lawmakers, and served as gracious hosts at the evening reception. A special “thank you” goes to our KCC sponsors, as well: KFSA, CoBank, CHS, Inc., and Land O’Lakes.
5
Legislative Action Day in Pictures
6
DDP Advanced Course Sets Record Attendance
A great line‐up of speakers helped draw a record crowd to the 2‐day session of the KCC’s Director Development Program (DDP). More than 160 attendees took part in the leadership development courses on December 8‐9 in Wichita. Out of the 162 attendees, 35 took a course for the first time and 15 were able to complete the program this year. The most impressive number though, was the attendance for our advanced Course 5. The subject matter, co‐op consolidations and alliances, peaked the interest of 79 co‐op directors and general mangers. Brad Perry with Perry and Associates started the day with “Co‐op Consolidation...Is It For Us?” After lunch, a panel comprised of Rob Johnston (The Farmers Cooperative Grain Co., Caldwell), Machelle Shouse (Farmers Cooperative Association, Inc., Columbus) and Mark Paul (Cloud County Co‐op Elevator Association, Inc., Concordia) spoke of their experiences with alliances. Dave Reinders, (Ag Producers Co‐op, Sunray, TX), spoke of the merger path that his co‐op went through and the hurdles that they had to overcome. To wrap up the day, Bill Miller and Doug Hofbauer, Frontier Farm Credit, highlighted the process they went through in forming a strategic alliance and gaining member and employee buy‐in. As for our other 4 courses, attendance was once again near capacity thanks in large part, to the instructor team that facilitates each day‐long course. Course 1, which focuses on co‐op basics and legal foundations, is led by Dr. Brian Briggeman (KSU Assoc. Professor/Director‐Arthur Capper Cooperative Center), Terry Bertholf (KCC General Counsel), Eric Steinle (Martindell Swearer Shaffer Ridenour LLP) and Leslie Kaufman (KCC President/CEO). Dr. Briggeman and Dave Ehert (CoBank) lead Course 2 which emphasizes cooperative finance. Course 3, which covers the director's role in planning and control, is taught by Dennis Landis (Landis Ag Consulting) and Alan Woodard (CoBank). The director's role in hiring and evaluating the CEO is the central theme of Course 4, facilitated by Sara Kepley (ProValue, LLC). This year Sara brought in a 3‐member panel to share their unique views on the manager performance appraisal process: Kevin Kelly (Two Rivers Consumers Cooperative Assoc., Arkansas City), Terry Kohler (The Farmers Cooperative Elevator Co., Garden Plain) and Jon Kerschen (The Farmers Cooperative Elevator Co., Garden Plain). We appreciate the perspectives each instructor shared with attendees and their strong support of DDP training. We would like to give a special “thank you” to Dave Ehret. This was Dave’s last year of instructing. He passed along his wisdom to DDP attendees for 20‐plus years! American Ag Credit, headquartered in Wichita, graciously provided lunch on the first day of the seminar. We are grateful for their willingness to help underwrite such an important program. The basic DDP curriculum is structured so the entire program can be completed in 2 years with a director attending 2 courses each year. The 2‐day annual seminar means most board members stay over one night. Once again the very successful "Casino Night" provided an opportunity for attendees and their spouse to enjoy food, fun and prizes following the first day of class. We appreciate the great turn‐out at this year's training sessions. It is good to see so many co‐ops investing in director training and creating a culture within their local cooperative that supports director education and encourages directors to attend development courses.
Save the Date!
2015 Director Development Program December 7 ‐ 8 Wichita, KS
7
DDP in Pictures
8
2014 Director Development Program Completions
Congratulations to the following individuals who will receive a certificate for completing all four courses in the KCC’s Director Development Program after
attending the December 2014 seminar.
Jeff Breuer
Pride Ag Resources
Dodge City, KS
Geoff Burgess
Central Prairie Co‐op
Sterling, KS
Dave Eslinger
Anthony Farmers Co‐op Elevator Co.
Anthony, KS
Matt File
Farmway Co‐op
Beloit, KS
Bruce Giessel
Pride Ag Resources
Dodge City, KS
Calvin Kissick
Farmers Cooperative Elevator Co.
Halstead, KS
Terry Kohler
Farmers Co‐op Elevator Co.
Garden Plain, KS
Terry Lane
Rangeland Cooperatives, Inc.
Phillipsburg, KS
Charles Nicholson
Minneola Co‐op
Minneola, KS
Jeff Reinert
Pride Ag Resources
Dodge City, KS
Gerald Rutti
Great Bend Cooperative Association
Great Bend, KS
Matt Shupbach
O.K. Cooperative Grain and Merc. Co.
Kiowa, KS
Tim Summervill
Cooperative Grain and Supply
Hillsboro, KS
Lynn Teeter
The Garden City Co‐op, Inc.
Garden City, KS
Blake Wiswell
Sublette Co‐op, Inc.
Sublette, KS
9
KCC Welcomes New Director of Member Services by Steve Uram Steve Uram joined the Kansas Cooperative Council on December 1, 2014, as the new Director of Member Services. While Steve is new to Kansas, he brings with him over a dozen years of experience with the National Rural Electric Cooperative Association (NRECA) in Arlington, Virginia and a passion for co‐ops. Steve has a Bachelor’s degree in Political Science from Southern Illinois University at Edwardsville and Master’s degree in Communication from the University of Illinois at Springfield.
Q: Why does a guy from Illinois want to come to Kansas? A: I grew up in Granite City, Illinois, right across the river from St. Louis and am a Midwesterner with small town values. After spending 15 years in the Washington, D.C. area, I was looking for an opportunity to come back to the nation’s heartland. This position with the KCC fit the bill perfectly. Outside of rural America, cooperatives are one of the untold success stories in America. Co‐ops have a great message to share and I’m thrilled to work with all of you to help tell our story all across this great state. I am just trying to follow in the footsteps of those other two successful former Illinois residents who now call Kansas home ‐ Bruce Weber, the men’s basketball coach at K‐State and Bill Self, the men’s basketball coach at KU.
Q: Tell us about your background? A: I have had the opportunity during my years in the nation’s Capitol to work in both the private and public sectors with NRECA and, before that, with Illinois Congressman, John Shimkus.
While at NRECA, I led the Electric Cooperative Youth Tour program which brings almost 1,600 high school juniors and seniors on an all‐expense paid trip to D.C. every June. The students get to witness history up close and meet their senators and representative. Additionally, I worked on NRECA’s grassroots advocacy campaigns and supported our state associations by helping them (and their members) communicate with their state and federal elected officials.
I facilitated “Advocacy 101” programs for NRECA staff and key staff at local cooperatives. I also helped create content for and taught similar courses for our co‐op directors.
Q: What have you been focusing on since you started with the Council? A: The better part of my first two weeks at the KCC were spent on the road. I attended the KCC board meeting, the CHS annual meeting and the Director Development Program (DDP). I am beginning to schedule co‐op visits. So far, my stops have included MKC (Manhattan), The Beattie Farmers Union Co‐op Association (Beattie), The Nemaha County Co‐op Association (Seneca), Ag Partners Co‐op (Hiawatha) and Jackson Farmers, Inc. (Holton). I have also met with staff from the Kansas Credit Union Association (Topeka), marketing leads from Farm Credit Associations of Kansas, and the Kansas Electric Cooperatives, Inc. (Topeka).
Q: What can we expect in the future? A: Broadly, my role will include education, outreach, and promotion. Additionally, I am getting acquainted with policymakers and learning about the legislative issues that affect your businesses.
I’m developing a “Co‐op 101 Program” for cooperative employees to help ensure all co‐op staffers truly understand the cooperative business model and its importance. Future tools may include “best practices” tips to help our members tell the co‐op story in their own communities. I want to hear your input, as well. My door is always open and you can contact me at steve@kansasco‐op.coop or 785‐221‐1647.
10
Citizen Legislature…Heart For Service
The Kansas legislative session started on January 12, 2015, and with it, comes a change in my daily routine. Most all of my work day occurs “under the dome” now. My travel around the state basically goes on hold from January through mid‐May. More evening work events hit the calendar. But, session also brings friends back to Topeka and that is one of the best things about session resuming. The first week of session is generally the happiest time in the statehouse. It takes a few days for bills to get introduced and printed and, with few if any hearings, there’s nothing yet to fight about. People enjoy seeing friends again and catching up. It’s somewhat like a grown‐up version of going back to school after summer vacation. As interesting as the political and policy sides of the legislative process are, there is a social element, as well. Lawmakers and lobbyist spend hours working together each day during session. Legislators with homes significant driving distance from Topeka see more of their colleagues than their family during this time. There is legislative business during the day and constituent events during the evening. It’s not surprising that genuine friendships develop when you spend so much time together. This marks my 20th year lobbying the Kansas legislature. Maybe that is making me a bit nostalgic? During my tenure in the policy arena, I have become acquainted with dozens of policymakers and elected officials. I have been blessed to know many as “friends.” We know about each other’s families, hobbies, interest, as well as politics. One thing I’ve learned over the years, after becoming better acquainted with so many legislators is, most everyone has a heart for making things better for their district and the state. Party affiliation may differ, tactics may vary, viewpoints may not always align, but the desire to do what is best for others is a common thread. Another reality I’ve come to know is public service is difficult. The burden of responsibility is heavy. Legislators will spend most of their time trying to “fix” problems, and there is no end to the problems that need attention Legislators make great sacrifices to serve their district, as do their families. One of the great strengths of the Kansas political structure is the fact it is built around a “part‐time, citizen legislature.” That means we have lawmakers that have lives, jobs, families, and community connections outside of the capitol. They are not “professional politicians.” They know the struggles of balancing responsibilities. So, how can we better support those willing to sacrifice by taking time away from home and their job to make Kansas a better place for the rest of us? It may seem overly simple, but a kind word is a good place to start. Tell your legislator “thank you for serving” and say it just to say it, not only when you need something. Take an interest in what they are doing for your community, even if you don’t always agree politically. Actively look for areas where you share common viewpoints and commend their work on those issues. And, when you must disagree, don’t be disagreeable about it. Genuine efforts to reach out in support and appreciation are a great way to foster understanding, trust, and build friendships. That, in turn, may provide opportunities to share insights on issues of importance to cooperative members when they do arise.
From the President’s Chair by Leslie Kaufman
Chairman Charles Gabehart District 1 The Nemaha County Co‐op Assoc. Seneca, KS
Vice Chairman Dan Cashier District 4 Anthony Farmers Cooperative Anthony, KS
Secretary Kyle Eberle District 3 Right Co‐op Assoc. Wright, KS
Mitch Williams KFSA Hutchinson, KS
Alan Woodard CoBank Wichita, KS
Stan Remington District 1 Ag Partners Cooperative, Inc. Hiawatha, KS
Gary Friesen District 2 Scott Co‐op Assoc. Scott City, KS
James Jirak District 2 Pro‐Ag Marketing, Inc. Kensington, KS
Ed Taylor District 3 Golden Valley, Inc. Rozel, KS
Rob Johnston District 4 The Farmers Cooperative Grain Co. Caldwell, KS
Bruce Graham Kansas Electric Cooperatives, Inc. Topeka, KS
Dave Lemke CHS, Inc. Kansas City, MO
Marla Marsh Kansas Credit Union Assoc. Wichita, KS BOARD O
F D
IRECTORS
Upcoming Events
11
July
8‐9
“Co‐ops 101” for Co‐op Interns
Topeka, KS
March
August
18‐19
Leadership Roundtable ACCC Symposium Manhattan, KS
12
KCC Annual Meeting Wichita, KS
11 KCC Quarterly Board Meeting Wichita, KS
Hall of Fame Ceremony Wichita, KS
December
7‐8
Director Development Program
Wichita, KS
816 SW Tyler Street Suite 300
Topeka, KS 66612
Phone: 785‐233‐4085
Toll Free: 888‐603‐COOP (2667)
Email: council@kansasco‐op.coop
www.kansasco‐op.coop
How You Can Become Involved
More information on the KCC, our activities and how you can become a member is available on the Council’s
website at
www.kansasco‐op.coop
2015 Legislative Action Day Sponsors
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