New types of cooperatives can form under new law Doyle signed in West Salem

408 acres at prison farm among sites for sale

La Crosse Tribune
May 31, 2006

WEST SALEM, Wis. - A new law will allow more than just farmers to take part in cooperatives in Wisconsin.

Gov. Jim Doyle signed legislation Tuesday that allows farm cooperatives to bring in outside investors for additional capital, which can be used to pursue new technology and build larger facilities.

Doyle, who signed the bill at Farmers Cooperative Supply and Shipping in West Salem, said the measure would spur rural economic development.

Until now, members of the existing 865 registered Wisconsin cooperatives also had to do business with that cooperative.

"We need to continue to build on the momentum we've established," Doyle said. "We need to make sure hard-working farmers and their families can afford to continue living and farming here in Wisconsin."

Large facilities, such as ethanol and biodiesel plants, are expensive to develop, and co-op members often don't have the money to complete the project or to borrow the funding, said Bill Oemichen, president and CEO of the Wisconsin Federation of Cooperatives.

The measure will keep Wisconsin competitive, he added, since Minnesota and Iowa have similar laws.

The first cooperative registering under the new law will be Edelweiss Graziers Cooperative near Monticello, Wis., which will produce artisan cheese.

State Sen. Dan Kapanke, R-La Crosse, said the legislation would help create new, well-paying jobs that will help the state's economy.

Kapanke, the Senate sponsor of the measure, said the new law won't require existing cooperatives to change their organizational structure. The new law also calls for farmer members to hold 51 percent of the voting authority, so outside investors can't control the company, he added.

State Rep. Michael Huebsch, R-West Salem, attended the bill signing but issued a news release shortly after, noting that on April 21, Doyle partially vetoed the Rural JobZ Act, legislation that would have created up to 10 economic development zones in rural areas not larger than 50,000 acres.

Doyle used his line-item veto powers to delete the word "rural," and also reduced the size of the economic development zones from 50,000 acres to 50 acres.

Huebsch's release said it was "troubling" and "surprising" the governor used "his veto pen to reshape a new economic development program for rural areas and steer the assistance to Madison and Milwaukee."

Doyle also signed five other measures into law Tuesday, including one that would help develop broadband technology in rural areas by creating tax incentives for companies that provide the service.

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