Iowa Institute for Cooperatives CO-OPVIEWS News and information for the benefit of Iowa cooperatives. Spring 2015 Vol. 45 , No. 1 In This Issue • Increasing value of member investment •Results of compensation survey •Stateline Co-op’s new leadership •Legislators talk with IIC members Board Presidents Conference welcomes Iowa DOT Director Trombino The IIC Board Presidents Conference, held February 17 and 18, welcomed a number of industry experts to present on current issues and topics. One of the key speakers included Iowa DOT Director Paul Trombino who spoke at the Land O’Lakes Legislative Reception held in conjunction with the Conference. Director Trombino’s presentation focused on logistic studies the DOT has conducted on agricultural commodities for economic development purposes. Speakers and presenters like Trombino offer IIC member cooperatives a deeper perspective into topics they might not otherwise have the opportunity to learn about, but which have a direct effect on their cooperatives. A cooperative investment The investments that each cooperative in Iowa makes, whether through brick and mortar, personnel or equipment, are all done with the goal of increasing value to members. Two years ago, many of our members came together to make a similar investment, this time for the endowment of a cooperative professorship at Iowa State University. These participating local and regional cooperatives understood the potential value that this would bring to Iowa cooperatives and their members. Today, as Dr. Keri Jacobs continues in this endowed professorship role, she is fostering that intended value for Iowa cooperatives in many ways, with even greater potential for the future. One of the more recognizable benefits of this professorship is through the teaching Dr. Jacobs provides at Iowa State University for the Cooperatives course. This 300-level economics class, offered once a year, gives students insight, understanding and experience into cooperatives, both from an economic and opportunity view point. What is motivating about this course is the variety of majors and interests that it touches. In the College of Agriculture and Life Sciences at Iowa State University, students with majors in agronomy, economics, education, and business are all taking the Cooperatives class. There are also graduate students, many in the field of sustainable agriculture, that enroll in the class as well. These students take an interest in the unique business model of cooperatives and seek to use that structure as a way of approaching world issues. Outside of the College of Agriculture and Life Sciences, there are engineering students enrolling in the course because of their curiosity in what the cooperative sector has Cont’d on Page 2 iowainstitute.coop A cooperative investment cont’d. to offer or their background in farming. The diversity in academic ventures by students taking the course is not only a testament to the evolving career paths in cooperatives today, but also to the abundance of information they are able to learn about the cooperative sector. For cooperatives to gain additional value from this position, Dr. Jacobs would like to see cooperatives encouraging interns, future hires and scholarship winners attending Iowa State University to take this course. Cooperatives might even consider creating an incentive program or furthering their scholarship program to give greater consideration to those students who have taken the Cooperatives course. Turning to extension and research roles Dr. Jacobs fulfills, Iowa cooperatives may find the greatest value from cooperative-specific projects. These help bring studies, evaluations and economic insight to cooperative boards and management. Not only do these projects and research benefit the single cooperative who made the request, but the amount of knowledge and insight that is gathered can help additional entities involved in cooperative business decisions, policy making or new product development. Recently, Dr. Jacobs and her colleague began a project with a local cooperative to study how producers make nitrogen decisions and to understand their subjective beliefs about the relationship between nitrogen and yields. This project currently underway is working to identify the largest driving factors that affect the end decisions in nitrogen input purchases and field management practices. The conclusion of this project will bring value beyond that of only the local cooperative partner. For Iowa State University, the study may help to better frame important policies regarding nutrient input use and placement. For local Dr. Keri Jacobs ensures the endowed brings value to IIC agriculture supply retailers, professorship members through education, including cooperatives, this research and extension. project will provide insight into how to effectively market nitrogen products. Although past positions at Iowa State University have offered some of the same benefits as this professorship position, none however, have been able to bring as many benefits together full circle. Dr. Jacobs’ position creates a synergy for cooperatives through all three areas of education, research and extension. The cooperative sector commonly asks, “How will this provide value to our members?” as investments are made. This question is what steers this endowed professorship at Iowa State University that was made possible by many of our Iowa and regional cooperatives. That value is sure to only increase as more work is developed, more students are educated, and future outreach grows. Director compensation survey presents key findings Seventy-eight member cooperatives participated in our Board of Directors Compensation & Expense Survey this past fall. The member cooperative participants answered questions regarding directors’ direct compensation, additional officer compensation, and total board expenses. We were able compile seven different peer group comparisons by type of cooperative and total sales volume. The cooperative sectors included in the survey summary include Grain and Farm Supply, Rural Electric, Energy Supply, Communications, and Agricultural Processing. We have included one of the illustrations from the survey’s findings, presented at the recent Board Presidents Conference. The compiled survey results are available on the IIC website in the IIC Survey’s section, found under the Resources page.You may also contact us directly for these results or for more information about the survey. Total Director Expenses/Million $ Sales Volume 2 A CornerPost Marketing Communications publication Smooth transitions for new leadership The introduction of new leadership at a cooperative In continuing on the path of progress, Bill is using takes a lot of prior planning in order to make a smooth and his past experiences to help Stateline remain viable and educated transition. Instead of seeing the transition as only competitive. To do that, he keeps a continual focus on three a change, new leadership can be a great opportunity for areas; establishing a vision, retaining transparency and staying positive growth when the Board and management come open to modern thinking. together in a supportive culture. Establishing a unified vision creates a positive When Bill Beukema began his position as General relationship between the cooperative’s board and Manager of Stateline Cooperative in Burt, Iowa on management. To see this happen, Bill believes it is important September 1, 2014, he already had a sense of the for both parties to recognize their specific roles, fully cooperative’s strong unity and preparation. Bill was able to understand their business, and ask the question “Why do we spend a few weeks with Larry do what we do?” Sterk, Stateline’s previous In terms of transparency, Bill understands that you can general manager, prior to create a strong internal team atmosphere by sharing what the his departure. Not only was cooperative’s vision is. Currently, Stateline is holding their it apparent that Larry had employee meetings and bringing management in front of all done a great job of putting employees to share the company’s goals, plans and financials. Stateline on a good path, but In understanding how important this transparency is, Bill as the transition began, it was will also begin conducting conference calls every month that evident that Stateline’s Board all employees can call into in order to talk briefly about what of Directors had laid out a is going on in the company and industry. These also provide clear vision of where they a forum where those on the call can ask questions and hear Bill Beukema began serving as Stateline Cooperative’s General Manager in wanted the cooperative to from their leadership. As Bill describes, “Keeping the Board, September 2014. go, alongside a supportive members and employees informed of what is happening management team. These were all important factors in currently and in the future creates trust and a strong team seeing a shift in leadership occur efficiently and seamlessly. with a shared vision.” Prior to his new leadership role, Bill Beukema held To continue growing that strong team and the services numerous roles throughout his agricultural career. He Stateline is able to provide, Bill pushes the cooperative began in the cooperative sector at Cenex Land O’Lakes to take a modern approach in creating opportunities. after graduating from Iowa State University with a major in Cooperatives must embrace technology and innovation, but agriculture business and minor in agronomy. Thereafter, he with decreasing rural populations, attracting young people headed to Missouri where he served as a Regional Manager to help administer these innovations can be difficult. By for Ray-Carroll County Grain Growers. Back in Iowa, providing opportunities for these young people to grow in he held management positions at both Waukee Coop and the company and in the settings that work best for them is West Central. His career also moved in a more corporate important to seeing direction when he began working at REG, later managing them consider a future a Cargill owned LLC, and most recently as West Central’s with the cooperative. Executive Vice President. Now at Stateline, Bill Beukema’s With Stateline’s career experiences bring a lot of value, but why was a there positive and unified such an interest to take the helm of management at a local culture, Bill Beukema’s cooperative? valuable past “I have an interest in getting back to this side of experience and equal production ag,” Bill explained, “I want to be near the desire to progressively concept of growing food and becoming actively involved move forward, the in that area of the industry and that group of people again.” cooperative has Bill also noted that beyond the great management team positioned itself well and board, it is also the location of Stateline that speaks for not only a smooth well of the opportunities there are for the cooperative. leadership transition, Geographically, the trade territory of Stateline has but a strong future productive soils, historically consistent production and as well. valuable infrastructure. Most importantly, Bill is aware that the greatest asset the About the Cooperative: StateLine Cooperative is a 16 location, Stateline area has to offer is its people. iowainstitute.coop farmer-owned cooperative. The 18 year strong cooperative provides grain, agronomy and feed services and products. 3 Iowa Institute for Cooperatives 2515 University Blvd., Suite 104 Ames, IA 50010 IIC Staff Dave Holm, Executive Director Kim Heckert, Director of Co-op Development Kayla Lyon, Director of Government Affairs Mike St. Clair, Lobbyist Nancy Cyr, Office Manager Contact Info P: 515-292-2667 F: 515-292-1672 E: [email protected] W: www.iowainstitute.coop Iowa legislators meet cooperative members On February 18th, IIC and Land O’Lakes hosted Co-op Day on the Hill at the Iowa Capitol. A total of 34 member guests, representing 15 of our cooperatives, attended the legislative based event. A breakfast reception was held in the rotunda of the Capitol where members were able to meet with legislative representatives as they began their day. The event brought 44 legislatures by to talk with IIC members. Representative Josh Byrnes (R), Osage; Dave Huper, Board President, Northern Country Coop; Scot Janssen, General Manager, Northern Country Coop 4 Senator Michael Breitbach (R), Strawberry Point; David Hemesath, General Manager, Farmers Union Coop; Doug Reimer, Board Member, Land O’Lakes; Iowa Governor Terry Branstad © 2015 Iowa Institute for Cooperatives
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