on pros and cons of t thousands. My dollar investment is very important. The accountability ot a marketing program should be ifleasurable. If, within three years, the marketing program is not showing returns for its investment, a referendum should be called. I’m sure Pepsi doesn’t run promotion or advertising programs three years before pulling it if it isn’t productive. If things are going well with the program, it will be con tinued. I feel a three year recall will strengthen the marketing program by making it more ac countable to the producer. In closing, I strongly feel that all ot the changes offered to the Agriculture Act are extremely beneficial to the producers. It cooperatives are truly represen tative of their producers and if farm organizations are truly rep resentative of their membership passage of House Bill 767 will only stand to strengthen their position because it is truly the position ot the producer. However, if that position is not truly reflective ot the producers position and House Bill 767 is defeated, you have given away the producers right to vote and his right to fair representation. Either way you vote on House Bill 767, the cooperatives win. The co-op will block that way or the producer will vote the way the co op would have. However, it they do not represent their producers, and they very well may not, your op-, posing vote will cost producers their vote. Please support House Bill 767. | You have nothing to lose The producer does. SEE ft 15 BEFORE GRAIN j rOUR YOU BUY! DRYER | Strait PH 301 692-5350 :r o. a. newton nick* EMS & SON CO. Bli Bndceville, Delaware 19933 301 Hj PH: 302-337-8211 GroveC 165 PH.« BUTLER AGRI-BUILDER 16627 Coalport Pa PH: 814-672-5751 Inter-State My name is Darnel L. Martin. I am a dairy farmer from Manheim, Lancaster County and vice president of Inter-State Milk Producers’ Cooperative, 1225 Industrial Highway, Southampton. Inter-State represents over 2,800 Pennsylvania dairy farms and over 3,300 dairymen in the Middle Atlantic Region. As 1 understand the issue facing us, the proposal is to eliminate the procedure whereby cooperatives can collectively represent their members through the so-called "bloc vote” procedure. This proposal would only permit in dividual voting and would deny any cooperative the representation right which is given all corporate Boards and Legislatures. II Dairy cooperatives consider the privilege of * ‘ bloc voting’ ’ as a vital tool to support the federal and state marketing programs which assist the industry and cooperatives in producing and marketing an adequate supply ot pure and wholesome milk at all tunes. The application ot “bloc voting” ■ is an extension ot the democratic process of representative voting from the fanners to their elected Board members. As stated earlier, this is the essence of our cooperative institutions and government bodies. There is no sound or logical reasoning which would lead one to deny this procedure to-cooperative decision making. Over the years, dairy cooperatives have supported "Bloc Voting” tor the following reasons; Bloc voting enables cooperative members to take unified action on P.O. Box 505 Chestertown, Md. 21620 PH: 301-778-5800 j Address IN STEEL TRI-STATE MARINE WALTER J. KELLER BUILDING QUILL • LDERS DIST INC CONSTRUCTION SYSTEMS INC. CONSTRUCTION CO. j County Iroad Street Route 256' RDIBox4O3J - R.D.180x203 P.O. Box 6269 f Clty lv Pa 1R197 Duals Md 20751 Strasburg, Pa. 17579 Lewisburg, PA 17837 Harrisburg, Pa. 17112 | 2-458-7243 m 301-867-1447 PH: 717-687-8681 PH: 717-524-0568 PH: 717-545-7527 | Phone _ ‘Block Vote’ Bill IDEAL FOR GRAIN OR MACHINERY STORAGE T r r ils COUNTY (SYSTEMS ...u#1,80x55 Swedesboro, NJ 08085 PH: 609-467-3174 matters ut vital uiipoilauce u, them; Bloc voting gives the cooperative the total strength of its producers since all are counted in the vote; and. Outside interests cannot coerce individual cooperative members to counteract the aims ot the group. Opponents ot the "bloc vote” advance the following arguhients: Bloc voting prevents individual action by' a dessenter - (This argument is answered by the methods used in referenda on milk promotion plans in Pennsylvania); Some feel that cooperatives have too much power relative to non members; and, Cooperatives can control the provisions in marketing plans. It seems to me that the last two points are largely unfounded as they affect dairy farmers. The proportion of members to non members is a result of years of marketing practices and changes in the industry. If cooperatives have assumed greater respon sibilities, they will represent more of the industry than non-members. And, in the final analysis, the Secretary of Agriculture makes the final decisions and issues the rules and regulations - cooperatives do not. We, at Inter-State, do not believe the privilege of “bloc voting” should be changed for the following reasons: At this time, it would be con sidered an attack on -dairy cooperatives and would ignore other commodities; It would surely defeat any chance for a promotion program tor milk without any analysis of the issues; It would increase the tune and cost of referendum; and. It would conflict with federal YOU CAN OWN THESE BINS WITH LOW MONTHLY PAYMENTS* WEETER CONCRETE CONSTRUCTION P.O. Drawer V Knox, PA 16232 PH. 814-797-5122 N, Tier Dairy Co-op 1 am William Sturges, a dairy farmer and president of the Northern Tier Milk Producers statutes which do allow cooperatives to exercise the "bloc vote” privilege. In conclusion, let me say that if there is a question of whether or not cooperatives vote in the- in terest of their members, this is a f undemental issue which should be addressed in another forum. I believe in the democratic process provided by the. cooperative structure and law. in any case, where cooperatives do not “bloc vote” in Jthe interest of their members, the remedy is for the members to chance directors through the democratically provided electoral process. Cooperatives which do not follow such procedures automatically would not be qualified under State and Federal laws and would lose the cooperative privilege to "bloc vote.” If there is something wrong with “bloc voting,” then there is something wrong with the entire structure of business and gover nment. I do not hold Such a view. Cooperatives are an ideal democratic structure and best represent farmers in the business world. The “bloc vote” is one of our important tools. Inter-State Milk Producers’ Cooperative has also been in contact with President Alpebus Kuth ot Lehigh Valley Farmers on the subject of “bloc voting”. Mr. Ruth asked, on behalf ot Lehigh Valley Farmers, that his cooperative’s support for Inter- State’s statement be made a matter ot record. GRAINS BINS, GRAIN LEGS, KAN-SUN DRYERS * To Qualified Buyers RIGGS ENTERPRISES Box 98 Boswell, PA 15531 PH: 814-629-5621 Cooperative of Wellsboro. I’d like to testify on.Uouse Bill 767. Before 1 do, let me explain some of the problems facing dairymen in Tioga County. A group ot dairymen, including myself, had an honest concern with the way major cooperatives were handling producers. As the size of a cooperative structure grows, the less control producers seem to have. A number of us were tired of repeated assessments by the major co-ops, and the lack of control that the fanner really has. So, we formed our own cooperative and recently received our Articles of Association. Ours is a small but growing organization. We feel we have made a step in the right direction. We hope to offer the dairymen of Central Pennsylvania an alternative market. We as a group have dedicated ourselves to remain farmer con trolled. So that means we as a group will not block vote for referendums. I’m not here today to run down major cooperatives. The major cooperatives have done an effective job mhelpmg to provide a stable market for dairymen in Pennsylvania. I’m not here to testify against cooperatives. I’m here today to testify against block voting. It is one practice done by dairy' cooperatives that 1 have found very objectionable. First of all, the Board of Directors of a cooperative decides which way to cast its block vote. Since most of the co-op’s m Penn sylvania enroll members from out of state, some of the directors on coop boards are residents ot other states. These directors have the power M & G BUILDING & GRAIN SYSTEM INC. P.O. 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Another reason that block voting is harmful is apathy. If a producer disagrees with his cooperative’s decision, he may feel that his vote is not important. It’s true that his vote is deducted from the overall co-op block total, but so many fanners don’t even bother to cast ballots when a co-op block votes. They feel if the co-op throws their 2,000 votes for a referendum, his one vote “against” won’t change the out come - so why even bother. Many board members have said that block voting is vital, and good for the cooperative structure. In some cases, these same board members have not properly polled its membership to determine their position. After all, it’s the mem bers who will pay for the program in the end. I’m happy to see legislation introduced in the General Assembly that would eliminate cooperative block voting. I’d like to commend Representative David Wright and the 15 other co sponsors of the proposal. Some co ops may not agree with this legislation, but the farmers do. And it’s the farmers whose interest this committee ought to protect. For these reasons, I urge this committee to fully support House Bill 767. ' (Turn to Page A 22) State. (Include area code)
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