MAC Business Meeting: Year In Review

1. MAC Business Meeting: Year In Review Curt Eischens, Council Chair Amy Fredregill, Managing Director November 10, 2008

2. Theme: Pride in Our Past, Promise for our Future We are proud of our co-op heritage and know we have a bright future if we work together to spread the cooperative message • Minnesota is the leading cooperative state in the nation • MAC is strong and growing and reflects the important of cooperatives in our state • Unification with WFC has been very positive • Little has been asked and much support has been given

3. Council Meetings • The MAC Council met in the spring and summer, besides the annual meeting • Spring meeting focused on strategic planning • Governance changes recommended (to be discussed later) • MAC Council is analyzing how to meet needs of a growing membership • Spring meeting was held in conjunction with legislative session • Summer meeting at Great River Energy • Co-ops 101 and Director Liability Workshop scheduled day before

4. MAC Membership is Growing • Membership continues to grow gradually despite mergers and acquisitions • Largest growth in financial services and senior housing • However, mergers primarily in grain and ag supply sector continue to offset part of our membership gains. • Membership continues to diversify • Committees become even more important with this diversification.

5. Total Number of Members Per Year

6. Membership by Industry

7. 2007-08 Dues Revenue by Industry Sector

8. MAC Budget • MAC’s financial position continues to improve • MAC’s 2008 positive net of $54,000 on total budget of just under $600,000 • Review of dues formulas this summer resulted in minor changes: • 4% inflationary dues increase due to increases in fuel costs, postage, and health insurance • 5% for senior housing cooperatives due to a potential significant legislative initiative • Farm Supply, Grain and Fuel dues form revamped to adjust to rapid price changes in fuel, fertilizer and other crop inputs

9. MAC Representation on WFC Board of Directors • The WFC Board is pleased with the continued strong progress being made in Minnesota • Your three representatives on the WFC Board actively participated in the Board’s activities and discussions • Neil Christy • Dennis Hunwardsen • Curt Eischens • Dave Hoelmer served as the alternate

10. WFC Board • There is a very positive working relationship between MAC Council and WFC Board • At WFC Board meetings, little or no attention is paid to what state the director lives in • WFC Board relies on MAC Council to set Minnesota policy agenda, but actually invites MAC Council members to help advise on Wisconsin policies issues

11. Governance Committee Recommendations • Result of the MAC Council and WFC Board strategic planning processes • Both want to finalize the unification that occurred in 2004 • MAC reps on Governance Committee included Eischens, Hoelmer and Christy (3 of 8 members) • Strong desire by both MAC Council and WFC Boards to operate under a new name that is not tied to a state or region • The new organization would register under Minnesota cooperative law

12. Governance Committee Recommendations • Proposed board organization would substantially increase the representation of Minnesotans on the corporate board • This reflects the confidence the WFC Board has in the growth of Minnesota membership • Never felt issues were decided in the WFC Board meetings by what state the board member came from • Minnesota policy issues would be determined by a new state committee • Committee would handle the responsibilities of the MAC Council • Wisconsin policy issues would be handled by a new Wisconsin state committee since the WFC Board would no longer exist

13. Proposed Article and Bylaw Changes • Your representatives strongly encourage you to vote for the proposed changes • Please stay for final vote on Wednesday – only votes cast then will count • Please make sure you have read everything in your packets regarding the proposed Governance Committee changes • If you have any questions, please ask a MAC rep on the WFC Board (Eischens, Hunwardsen, Christy or Hoelmer) or staff

14. MAC Council Elections This Year • District Representative • 2– Current Representative is Paul Kent • 5– Current Representative is Curt Eischens • 6– Current Representative is Jim Tibodeau • Sector Representatives • Purchasing Local – Current Rep is Dennis Hunwardsen • Marketing Dairy – Current Rep is Steve Schlangen • Marketing Livestock & Production-- Current Rep is Jeff Reed • Utility Distribution – Current Rep is Tom Hayes • Consumer Housing - 2 years left remaining on term, Janet Boland resigned. • Financial Services – Current Rep is Dave Hoelmer

15. MAC Committees • Farm Supply, Grain and Fuel • Twice yearly • Chair – Kelly Christianson, Roseau Farmers Union Oil • Utility Advisory Committee • June review of resolutions • Members: Hayes, Martens, Hjelle, Parsley, Tomes, Redalen, Hauer, Heinz, Nieuwsma • Senior Housing Network • Quarterly • Credit Union • Annually • Dairy • Three times per year • MACPAC • Assets rose to $10,500 • 1st in person meeting today • Resolutions • Elected Chair – Steve Krikava • Elected Vice Chair – Jim Bareksten

16. 2008 State Policy Initiatives • Livestock investment grant program • Milk truck weight exemption • Ag hours of service • Tax data match provision • Renewable energy mandates and greenhouse gas limits – co-op friendly • Transportation funding • Grassroots Action Alerts– thanks for responding

17. Adopt-an-Urban Legislator andCo-op Day at Capitol • Important to gain an understanding of cooperatives with new urban and new legislators • MAC has initiated an “Adopt an Urban Legislator” Program • We will schedule meetings for you with “Adoptees” in St. Paul or in your district • Bruce will explain more • Co-op Day at the Capitol is scheduled for March 11 • Please let us know if you interested in attending • Need to have strong turnout to make an impact

18. Climate Change • Climate change working group • MAC will continue to play an active role on this issue • Important to ensure legislators understand: • The need for balance • The need to rely on science in making public policy • The need make certain new regulations are cost effective • Legislative meetings being scheduled • Bill Oemichen has been invited to meetings with state senate environmental leaders • MAC is building alliances with other utility and agricultural organizations • MAC has convened ag, trans, petroleum group • WFC/MAC has strong knowledge base and will use this during debate on global climate change

19. Major Federal Policy Priorities • Farm Bill • MAC advocated for farm credit, grain, dairy, energy, rural development, co-op capital and development, electric service territory, etc. • Mississippi River Locks and Dams • MAC (and WFC) part of national coalition to ensure approval of funding for lock and dam modernization

20. CURE campaign • Chair of Gopher CURE chapter of national coalition • Met with Attorney General Lori Swanson • Meetings with MN Congressional Delegation • Support obtained from most members • Strong partnership with WFC and Wisconsin Congressional Delegation

21. Co-op Care Health Care: State and Federal • Farmers Health Cooperative of Wisconsin is a success and we are working for the state success in Minnesota • Continue to work on Minnesota Department of Commerce approval process • Slow and complicated since there is no defined application process • Also investigating new opportunities with other partners that may not require formal state approvals • Continue to administer USDA grants • MAC is playing an active role in state and federal legislative health care policy development • Bill Oemichen testified before the U.S. Senate Small Business and Entrepreneurship Committee (invited by Senator Norm Coleman) • Amy Fredregill has been meeting with state legislators

22. Bioenergy • Bioenergy projects for co-ops in the Upper Midwest • Opportunities for both agricultural and forestry biomass • Priority for MAC to ensure cooperative ownership of biomass aggregation, processing and transportation • Appropriations being sought from Congress to support WFC and MAC’s efforts • MAC has also applied for a Minnesota Department of Agriculture grant • Matt Krumenauer has been hired as new staffer to work with Bill, Amy and Tim on this project

23. Regulatory Issues • Red flag (identity theft) rule model policy for members • Info on security of co-op deposits • SPCC regs – trying to make rule less onerous. Supporting proposed rule that no longer requires professional engineer. • Liaison with ag community for transmission siting. • Bickford project complete. • letter from EPA

24. MAC Education Foundation • Directors: • Eischens • Hayes • Hoelmer • Hunwardsen • Christy • Al Krysan • Mary Buschette • Bill Oemichen • Amy Fredregill • Fundraising drive • Slettom Scholarship program

25. Fourth year of radio outreach campaign Governor’s proclamation Cross industry marketing assistance Foundation: Co-op Month

26. Foundation: Expanding and Integrating Co-op Curriculum • Speakers, case studies, field trips • University of MN • CFANS Advisory Board • Partnering with Koller Chair • CHS Graduate Fellowship • Ag Working Group

27. Slettom Inducted Into Hall of Fame • Tributes to Slettom this year • Biographical Booklet • U of M Advisory Committees • Scholarship clearinghouse • Please complete and return survey

28. Educational Opportunities • Recent: • Director Liability Workshops • Co-ops 101 Workshops • Credit Issues Conference • CoBank Customers Meeting Training Session • New: • Capital, Contracts and Risk Management Conference • Thanks to CoBank, Cofina and ProPartners

29. Senior Housing Programs • 300 attendees at 8th Annual Senior Housing Cooperative Conference, May 2008 • Workshops • Managers-only Network • Golf tournament

30. Youth Conference • “Big MAC” MN Youth Cooperative Leadership Conference • 70 students, 15 chaperones at March 2008 conference • Thanks to local co-op sponsors, MN Credit Union Foundation, CHS Foundation, CoBank and other sponsors • March 16-17, 2009 • Please consider sponsoring local youth

31. Discussion and Questions • Overall, a very successful year for MAC • Thanks for your membership and ongoing support during this important transition year • We look forward to the continued growth and your active involvement • Together, we can accomplish great things in the future

32. Thanks Questions? 651-228-0213 www.wfcmac.coop

33. Presentation of MAC Council • District Directors • 1 – Kelly Christianson – Roseau • 2 – Paul Kent – Mora • 3 – John Funk – Melrose • 4 – Bob Doane - Minneapolis • 5 – Curt Eischens – Minneota • 6 – Jim Tibodeau - Delavan

34. Council Industry Representatives • Financial Services – Neil Christy and Dave Hoelmer • Marketing Dairy – Steve Schlangen and Dave Scheevel • Marketing – Livestock & Animal Breeding – Jeff Reed • Purchasing Regional Supply – Lee Uldbjerg • Purchasing Local Supply – Jerry Hasnedl, Jeff Nielsen and Dennis Hunwardsen • Utility Distribution – Tom Hayes and Audrey Hjelle • Utility – Generation & Transmission – Don Martens