Newspaper Archive of
The Perkins Journal
Perkins, Oklahoma
January 16, 1975     The Perkins Journal
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January 16, 1975

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-~O---OP NEWS w Your Co-op Going Loren Kruse If you've been farming for a nber of years you may have up $5,000 to $10,000 or tore in stock at your grain or apply co-operative. But as you think about tiring from farming, how is co-op going to pay back ,ur investment equity? That question is now bigger and bigger for p-op leaders. For co-ops do not have a workable for equnty retirement -- n don't -- will face some difficult The reason is the top-heavv .~rcentage of older stockhok[- according to a survey inducted by the Oklahoma Experiment Stat- of 20 of Oklahoma's more 80 co-ops. survey found that from per cent or'over 83 per cent the stock was heldby over age SO. "The higher the percentage stock held by older patrons, bigger the problem co-op face in retir ng the Eity," says Dr. Paul l.mmer,Oklahoma State ;nty agricultural econo- is leading a study to elop SOme alternate eqifity plans. are pressed to equities, it will take capital they need buy new trucks and other ipment " he says )t only that, but a co-op's !' to acquire equity capital growthmay be tared. ae SOUrce of this new arty is the younger farmer, is short of capital for Pay Back Your Investment hin own needs. The burden of paying back older stockholders would fall to the younger members, "But if co-ops keep refunds. retains, etc.. in t he form of certificates which may never be redeemed, then the farmer will bc less willing to invest in the co-op," Hummer savs. Also. in the vears ahead more and more of the co-op will be owned by those who no hmger actively patronizc the co-op. Such a situation would run somewhat against the co-op principle that the co-op is owned and controlled by the member patrons. In the study Hummer found that some co-ops are in excellent shape in retiring old stock. These co-ops also have a history of good net earnings or margins. But most co-ops do not have an established policy for retiring equities. As a result. they' arc getting further behind in their repayments and the percentage of stock held by older patrons is increasing. There are several possible reasons for this situation. One reason is tied to fluctuating margins over the past 25 years. In the Iqsos, 1or instance, many co-ops made excellent margins, aided by big storage returns from the Commodity Credit Corporation. These co-ops maybe returned 20 percent to the patrons at the end of the year and used the other 80 percent to acquire betterfacilities and equip- ment. But then some lean )'ears came along in the 1960s. It was difficult enough to keep operating capital going, let alone to pay back those margins that were socked away in the 1950s. "Many co-ops really didn't know what to do to get out of the situation," Hummer says. "Therefore, they tended to ignore it. or they have waited to pay back the equities when estates needed to be settled." But co-op leaders know it would be better to return the money to the patron before he dies. That way he can use the money in his retirement. To help co-ops develop equity retirement plans. Hummer will use a computer to simulate what would probably happen if a co-op uses a certain plan. He will takc the data he has acquired from the Oklahoma co-ops, plug in different plans and variables (such as expected margins, members dying, new members coming in. etc. I. and simulate over a l()-3ear period. This will tell him which plan may be best suited t\~r the situation and needs of a particular co-op. One plan Hummer will consider woukt have the co-op retire a member's equity. except for one voting share. when he reaches age 65. In another plan a percentage of a member's equity would be retired every year after "he becomes 6S. The last payment would be made when he reaches a certain age. like 75. or at the time he no longer patronized the co-op or after his death. A third plan would retire every year a certain percent- age of the equity of all members regardless of the age of the member or the age of the equity. A fourth plan would have the co-op retire the oldest equity first, using a certain percentage of each year's operating margin. A co-op would follow this plan until the oldest stock is. say 20-years- old. Thereafter the co-op would retire all stock when it becomes 20-years-old. Co-op leaders will need to consider a number of factors as " they evaluate these different plans or combinat- ions and variations of them.. For one thing, the,,' will need to know what size of margin will have to be generated to fullill a particular plan. For another, they must consider what percentage of the margin can be used for equity retirement. This will depend ~'the co-op's capital needs for operation and expansion down the line Co-op leaders must stud:,, if it is belier to retire a certain percentage of all members' equity or to retire the equity only of those members over 65. Or it may be better to retire a declining percentage of stocks according to age. "When we get all the information from the computer we will help the leaders from co-ops in the study evaluate the findings." Hummer says. "Eventually we will help any co-op that needs assistance in developing equity retirement plans." WISH I'D SAID "One of the first things one notices in a 'backward coun- try' is that children are still obeying their parents."-- Harry Powell, Laurens County (Ga.) News. "Reading between the lines is often easier, and more in- teresting."--Herman Gross, Tri-County (Mo.) News. "Middle age is when your memory is shorter, your ex- perience longer, your stam- ina lower, and your forehead higher."--Elizabeth W. Spalding, The Bardstown, Kentucky Standard. .... , The Journal, Thursday, January 16, 197~. 9 Book R iew of "The Greatest Gift of the World" Presented % The United Methodist Wo- men met Jan. 13 at 2:00 p.m. with 13 members present in the Educational Building. President Dora Mercer opened the meeting with Erma Brixey leading in prayer. President Mercer conducted a short business meeting. Minutes of the last meeting were read and approved. Old and new business was discussed. Mrs. Florence Holbrook gave a book review of "The Greatest Gift of the World" by Henry Drummond. The greaI. est gift being love. Mrs. Opal Olson and Mrs. Sylvia Moser were co-hostess- es and served coffee and cake to the following Mesdames: Florence Holbrook, !o~ne lngram, Grace Hudgens, Virginia Hawxby, Ruth Stan- ley, Ella Baker, Dora Mercer Esteile Jacobs, Gay Clark, Eleanor Null, Erma Brixey. The next meeting will be a luncheon Feb. 10 at the Eductional Building with Virginia Hawxby as lesson lead~. Even Split Divorce court decided ~hat a 5050 split of the house would be fair -- she took inside, he took the outside. il Volunteers to Erect Shelves for City Library BLADE CUT Workers at the City Library are to erect bicentennial in the near future, the an, Mrs. V. G. Wells. Shelves will hold about the history of Although the amount of money set aside fl)r the library is not great, it has helped accumulate about S.000 books since it opened. The library has a variety of reading matter including book,, will be old Which Were donated ago by Perkins citizens. 'lnY of the other books n the Perkins Library so donated Iocall,,,. ~se books at the library arenet donated, are vVnth federal money the try receives because it is and mygteries, westerns, various surroundin ZensTcdLwill give Perking fiction, histories, biographies. and books for children of all uance to read about ear.ok;l~ days of their town ages. Ktalloma. In addition to buying books the library has bought a new typewriter and carpet in the last yeai" and a half. In the summer the library has a reading program %r _., children and Mrs. Wells said the library usually does more business in the summer becausepeople, especially children, have more time to read then. Anyone can check out live books at a time fron the Perkins Library for four weeks. After the four week period is over, the library charges two cents a day, not including holidays and Sundays, on overdue books. Mrs. Wells. who has been working at the library' since the beginning of 1969. says. however, that if people cannot get their books back on time, for some reason, they can call her and she will rene~ them. Two volunteers help Mrs. Wells with the library work duringthe winter months. SandraDodson and Margie Walkerwork in the library when Mrs, Wells, who works four days a week. is not there. The library is open Monday through Friday from 2 p.m. til 5p.m. New Food Stamp Rule for Students StUdent who receives than half of his support which is the food stamp also be ineligible amps, under ions anounc. by the U.S. nent of Agricuhure ehange~8apPlies to any it, age or over. who s an educational iustitu- 'end high school and is as a ~ dependent bv Ives musehold {i.e. overhalf of his from he does a household) not reside. It applies only to the student who is claimed as a tax dependent; other members of the stu- dent's household can receive food stamps if they are eligible. The student will also have an opportunity to prove that he does not receive over half his supporI from an ineligible household. The regtdation ?- in line x~ ith a provision of the ~griculture Appropriations Act of 1975. approved December 31. 1074. A tax dependency criterion was published by USDA in ,lulv 1971 to implenmnt a 1971 amendment to the Food Stamt Act. However, in USDA vs. Supreme Court ruled against USDA, citing a number of objects to the regulation as it stood. The regulation an- nounced is designed to eliminate those objections. USDA's Food and Nutcition Service received SO comments on the change after it was published for a 30-day public comment period on September 6, 1974. Twenty-five of those comments were in favor of the limitation, and 22 were not in favor. The final repnlation will be published in the Federal Register of Friday. ,lanuarv 10~ 1975 and ~as effective immediatel.v upon publication. SPRING SEMESTER STARTS JANUARY 13, 1,975 EXTRA FANCY NAVEL II I GRADE 'A' MEDIUM FOR II II IIII COZ. FAMILY PAK GROUND 3-LBS. OR MORE INASHINGTON FANCY DEL ICIOUS n IIIIIIII III I IcuT II Ull II GOOD VALUE CRINKLE Ill 240Z. BAGS III ' ENROLLMENT NOW OPEN ,ontact Central Tech, 3 CT Circle, Drumright, 918-352-2551 for further information SITE ning DAYS DATES HOURS COST Tuesday Jan 14 :slantshorthand T.-Th. Jan. 14-Apr. 10 IGHT M.-W Jan. 13-Apr 7 ducation DAYS DATES M.-W. Jan. 13-Apr 7 anics T.-Th. Jan. 14-Mar. 31 rang & T.-Th. Jan. 14-Mar 31 8-12 a.m Free 6:30-9:30 $5850 6:30-9:30 $54.00 HOURS COST 6:30-9:30 $54 00 6:30-9:30 S5400 6:30-9:30 $54.00 tonics ',y and & W (basic) ndusttial M-W. Jan. 13Mar. 31 6:30-9:30 $54.00 T.-Th. Jan 14-Mar. 31 6:30-9:30 $54.00 M.-W. Jan 13-Apt 7 6:30-9:30 $54.00 Tuesday January 14 Monday Jan. 13-Apr 14 M-W Jan. t3-Apr 7 M.-W. Jan. 13-Apr. 7 T.-Th Jan. 14-Mar. 31 T.-Th. Jan. 14-Mar. 31 T.-Th. Jan. 14-Mar. 31 620@00 Free 6:30-9:30 $3150 6:30-9:30 $54 O0 6:30-9:30 $54.0 . 6:30-9:30 $54.00 6:30-9:30 $54.00 6:30-9:30 $54.00 PUNCH II AJAX FLEMING 840Z. III III II 15OZ. GOOD II IIII VALUE II 1 LB.CAN IIII II III I LB. (