NEW Directions April 2011 : Page 1

APRIL 2011 www.newcoop.com TM LOCATIONS Badger Blairsburg Bode Clare Duncombe Fort Dodge Glidden Humboldt Knierim Knoke Lanesboro Lidderdale Lohrville LuVerne MAPS Otho Palmer Pomeroy Rands Roelyn Vincent Woolstock Continued on Page 2 YOUR PARTNER 515-545-3145 515-325-6252 515-379-1754 515-546-4265 515-543-4245 515-955-2040 712-659-2227 515-332-3374 515-463-2331 712-468-2893 712-656-2225 712-822-5211 712-465-3145 515-882-3221 515-955-9030 515-972-4471 712-359-2294 712-468-2222 712-297-7579 515-549-3316 515-356-4185 515-839-5531 MEETING WITH THE MANAGER UNDERSTANDING YOUR EQUITY What does it mean to be a member-owner of NEW Cooperative? You will fi nd excellent answers to this question throughout multiple articles of this newsletter, but I would like to start off by breaking down fi nancially, what it means to be a member-owner of NEW. Three things happen with the net earnings of By Brent Bunte your cooperative. A) The largest portion is paid back to members as a result of their ownership in the co-operative. B) Taxes are paid. C) Earnings are reinvested back into the cooperative to continue to operate ef fi ciently and progressively for you, the member-owner. It is important that as a Our February newsletter, as well member, or prospective as this one, highlights areas where earnings are reinvested into the coop-member...that you have erative. NEW is essentially an exten-a strong understanding sion of your farming operation, and a of how your equity in the well run farming operation cannot be achieved without maintaining facili-cooperative is managed and distributed. ties and equipment, and improving operations. This is why your Board of Directors continually reviews where improvements and additions are needed at NEW to ensure we are providing you with the a cooperative that adds value to your farming operation. As we continue to keep you informed on the reinvestments being made to your cooperative, it is important we also review with you how the earnings paid back to our member-owners is structured as well. The equity of a member fi rst begins by paying $150 for a subscription to membership. The remaining $1,350, required to reach the $1,500 com-mon stock, is acquired through dividends paid to the member. Dividends at NEW Cooperative are found in two forms; local and regional dividends. Local dividends are derived from the local earnings here at NEW, whereas regional dividends are acquired from our earn-ings through our regional cooperative memberships. The majority of our regional dividends come from the regional cooperatives CHS, AGP, Land O’Lakes and CoBank. Your Board of Directors reviews annually these earnings and has historically voted to pay 30% of both local and regional earnings in cash to members and allocate the remaining 70% IN THE FIELD

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