£
-~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
are•net 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.
(
