Potential adjustments to how cooperatives are allowed to operate in the state keeps rolling at the state capitol, but the Wisconsin Farmers Union is encouraging farmers to mind the details it contains.
Nick Levendofsky, WFU Government Relations Associate, updated the WI Farm Report Radio Network. Levendofsky sites four specific areas that he’s watching –
If you are a member of any cooperative in Wisconsin:
– Up to 20 percent of your cooperative’s board seats could be turned over to non-members, including outside investors.
– You could lose the right to review cooperative records that are more than three years old – looks like an amendments coming.
– Your co-op would be allowed to give greater than 8 percent returns to capital investors.
In addition to these changes, if you are a member of the cooperative holding company Cooperative Resources International (CRI) or its member co-ops Genex or AgSource:
– Your co-op could choose to base voting power on patronage, rather than the principle of one member, one vote. If this change is adopted, average-sized farms would see their voting power in the co-op significantly diminished compared to the co-op’s very largest farm members.
Levendofsky says it’s important for all farmers to understand how these potential changes could impact their relationship and representation on their coop board.
