Meeting Competitive Challenges:

Cooperative Structure and Finance for the Future

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Thursday, November 3, 2011
Focus on Structure

Noon - 1:00 Registration and Light Lunch
1:00 - 2:00 Trends in the Global Marketplace
Focus on agriculture in the global economy.
Terry Barr, Senior Director of Industry Research, Knowledge Exchange Division, CoBank ppt
2:00 - 3:00A Perspective on Global Challenge
Concerns about sovereign food security are leading to a focus on ownership and control of food-related infrastructure. Cooperatives are facing fast-paced changes in the control of global transportation, terminals and other assets.
Mark Palmquist, Executive Vice President, CHS, Inc. ppt
3:00 - 3:30Break
3:30 - 5:15Cooperatives in an Era of Consolidation
What is driving structural change? How are cooperatives reacting? (Joint ventures, mergers, acquisitions of private companies and cooperatives, regionalization, new businesses)
Moderator: Brent Hueth, Associate Professor & Director, University of Wisconsin Center for Cooperatives
Jeff Nielsen, General Manager, United Farmers Cooperative ppt
Sam Skemp, General Manager, Frontier FS Cooperative  ppt
Rich Vanderpool, General Manager, Sunrise Ag Service ppt
5:45 - 6:30 Reception
6:30 – 8:30Dinner and Program
Ethanol: A Cautionary Tale
   C. Ford Runge, Distinguished McKnight Professor of Applied Economics & Law, University of Minnesota ppt

Friday, November 4, 2011
Focus on Finance

7:00 – 8:00Continental Breakfast
8:00 – 8:40Innovative Approaches to Finance: Banker Perspective
Mike Hechtner will provide a banker perspective on what to expect in the credit markets and how borrowers can deal with a high risk environment such as commodity price volatility in a changing credit marketplace to keep businesses strong and bankers happy.
Moderator: Michael Boland, Professor and Koller Chair, University of Minnesota
Michael Hechtner, Central Region President, Regional Agribusiness Banking Group, CoBank ppt
8:40 – 9:20Innovative Approaches to Finance: Educator Perspective
An overview of a field-tested, widely used decision-making framework for choosing the best strategies for income distribution and equity management. Innovative approaches include non-qualified distributions, transitions from age of patron to revolving fund redemptions and utilization of the Section 199 Deduction (Domestic Production Activities Deduction).
David Barton, Professor and Director Emeritus, Arthur Capper Cooperative Center, Kansas State University ppt
9:20 – 10:00Innovative Approaches to Finance: Tax Accountant Perspective
Teree Castanias will build on Barton's framework, with a discussion of Section 199 utilization, book versus tax accounting, patronage and non-patronage treatment of earnings, income distribution and equity management alternatives and consequences, and fair value accounting impacts.
Teree Castanias, CPA, Consultant and Tax Accountant ppt
10:00 – 10:30Break
10:30 – NoonInnovative Approaches to Finance: Case Studies
CPI is a grain marketing and farm supply local co-op that engaged the Arthur Capper Cooperative Center in 2009 to help them evaluate their income distribution and equity management program. It had become unusually complex following several mergers. Bob Fifield and Teree Castanias will describe their decisions to phase out existing programs, and institute the nonqualified patronage distribution method.
Moderator: David Barton, Professor and Director Emeritus, Arthur Capper Cooperative Center, Kansas State University ppt
Bob Fifield, CEO, Cooperative Producers, Inc. ppt
Tom Houser, Vice President, Lead Relationship Manager, Regional Agribusiness Group, CoBank ppt
Teree Castanias, CPA, Consultant and Tax Accountant
Noon – 1:00Lunch
1:00 – 2:30Meeting the Challenges of Risk for Cooperatives and their Members
Cooperatives face a balancing act as risk is driven down the supply chain. What tools can they offer to support members’ risk management?
Tom Neher, Vice President, Agribusiness, AgStar ppt
Steve Watrin, Manager, Risk Management, Land O'Lakes ppt