Spring 2015 - Iowa Institute for Coops

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
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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
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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.
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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
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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