Actions Takenon the 2011-2012 Resolutions

Adopted by Members

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On the Cover: Center is Chairman Neal Rea of Cambridge, N.Y. Clockwise isTreasurer James Jacquier of Canaan, Conn.; Voting Rep Doug LaGrange of FueraBush, N.Y.; Voting Rep David Lloyd of Middleburg, N.Y.; and Mr. and Mrs. CliftonCressy of Florence, Vt. Mr. Cressy is also an Agri-Mark Voting Representative.

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TABLE OF CONTENTSGENERAL COOPERATIVE POLICY1. Profitable Operations & Cash Distributions - Patronage Earnings 42. Cost Reduction 43. Member Equity 44. Transportation Policy 55. Member Participation 56. Information Meetings & Member Communications 67. YC Program 68. Member List 69. Over-Order Pricing 610. PPD Pricing 711. Unallocated Funds 712. Full Service Co-op 7

INDUSTRY IMPROVEMENT ISSUES13. Recognition and Consolidation of Agricultural Institutions 714. Farm Beautification 8

LEGISLATIVE AND REGULATORY POLICIES15. Co-op Service Payments 816. ALEC 917. Animal Rights Organizations 918. Block Voting 919. Producer Security Laws 1020. Federal Milk Market Order Program 1021. National Beef Promotion and Research Board 1022. Nutritional Programs 1123. Increasing Milk Consumption and Value 1124. Agricultural Land Preservation 1125. National Livestock Identification System 1226. Northeast Dairy Compact 1227. Risk Management 1328. Wildlife Threats to Agriculture 1329. Agricultural Food Product Disparagement 1330. Member and Cooperative Privacy Issues 1331. Products in the Dairy Case 1432. Standardized Antibiotic Testing 1433. National and Regional Milk Promotion 1434. Technology 1435. U.S. Somatic Cell Count 1536. Price Stability 1537. Balancing Milk Supplies 1638. Animal Care & Welfare 1639. Dairy Price Support Program 1640. International Trade 1741. Cattle Diseases 17

ORGANIZATIONAL MEMBERSHIP42. NMPF, NDFC and NCFC 1843. Recovery of Increased Fuel Costs 1844. Individual Freedoms 18

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Editor’s Note: Below are the resolutionsthat were passed at the 2012 annualmeeting an the actions that were takenin regard to those resolutions duringthe past year. Please see the related ar-ticle in the Viewpoint which providesmembers with the new resolutions thatwere adopted at the 2013 annual meet-ing. D.D.

GENERAL COOPERATIVEPOLICY

1. PROFITABLE OPERATIONS &CASH DISTRIBUTIONS - PA-TRONAGE EARNINGS

WHEREAS:The ability of Agri-Mark,Inc. to carry out the policies and actionsset forth in these resolutions is contin-gent upon having a large and enthusias-tically loyal membership; and

WHEREAS: Agri-Mark's effectiveness isbased, not only on member income, butalso on profitable operations; and

WHEREAS: It is the responsibility of themembers to provide an appropriate levelof equity to permit adequate financingcontrol and operation of the cooperative;and

WHEREAS: In establishing policy, theBoard of Directors take into accountresolutions which have been dulyadopted by the voting representatives;

BE IT RESOLVED:That Agri-Mark,Inc. establish as its goal the profitableoperation of its facilities and services,while maintaining responsible action asa leading element in the milk markets inwhich it operates to the point that Agri-Mark, Inc. can offer its members a betternet return for their milk than they arelikely to obtain elsewhere; and

BE IT FURTHER RESOLVED:Thatthe representatives encourage the Boardfor developing programs that returnmoney in a timely and consistent fashionto members and express to the Board

the desire of membership that, if finan-cially appropriate after operations areprofitable, the Board of Directors makeevery effort (1) to have the cash portionof distributed patronage earnings for anyfiscal year be in excess of the required20% minimum, and (2) to continuemonthly premiums.

Action Taken: Agri-Mark has continued tomake decisions in both marketing and op-erations during the past year with the goalof profitability foremost in mind. Every yearthe co-op's Board of Directors also carefullyreviews what the cash and equity distribu-tions can be. Given the equity needs of thecooperative, the Board paid out almost32% in cash for fiscal 2011 net income of$13.8 million. Agri-Mark also paid monthlypremiums in 2011, which totaled about $19million. For fiscal 2012, Agri-Mark expectsto pay out a record $21 million in monthlypremiums to members and the earningsdistribution is expected to be at least 50%in cash.

2. Cost Reduction

WHEREAS: The dairy farmer member-owners of Agri-Mark are operating in

very difficult financial circumstances;

BE IT RESOLVED: We, the voting rep-resentatives, request the Board of Di-rectors and management staff to makeevery feasible effort to continue to re-duce costs and bring the cooperative'sstructure in line with the current eco-nomic situation.

Action Taken: Cost cutting is an on-goingprocess at Agri-Mark. The Board and man-agement continue to review the co-op'spolicies and practices to achieve savings.

3. Member Equity

WHEREAS: Member equity is an impor-tant source of capital to Agri-Mark,Inc.; and

WHEREAS: Many long-term membershave substantial amounts of equity in-vested in the cooperative;

BE IT RESOLVED: That the Agri-MarkBoard and the standing Equity Com-mittee continue to study the currentequity program, including considera-tion of alternative forms and sources ofequity as a means to finance co-opgrowth.

Actions Taken on 2012-2013 ResolutionsResolutions are policy guidelines used the Board of Directors and management as they conduct business on behalf of the cooperative during the year

Attendance by the voting representatives was excellent again in 2013. Only two of the 81 repswere not able to make it to the meeting to vote on cooperative policy on behalf of members intheir membership area.

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Action Taken: After much discussion andreview, Agri-Mark's Member Equity Planwas updated again in 2009 to reflect theequity needs of the growing cooperativebusiness and those of retired members.Each year the Board of Directors sets cashpatronage payout levels after consideringthe financial position and needs of the co-operative and members.

All members receive the same profit alloca-tion on a per hundredweight basis fromAgri-Mark. In recent years members withthe higher levels of equity invested in Agri-Mark received a larger portion of their profitpayment in cash, with the rest being allo-cated to their equity account.

The Board of Directors and Equity Commit-tee will continue to review the programand take any action necessary to improveon it and develop new sources of equity.The Agri-Mark Board recently implementedequity changes to deal with the continuedstrong growth in the business and the needfor strong equity.

4. Transportation Policy

WHEREAS: The Northeast dairy indus-try by necessity uses the transportationnetwork of town, state and federalroads to produce and transport its con-tribution to the nation's food supply;and

WHEREAS: Many jurisdictions haveconflicting regulations which currentlymake it difficult for the agriculturalcommunity to efficiently transport sup-plies to the farm and produce from thefarm;

BE IT RESOLVED: That Agri-Marksupport uniform reciprocal transporta-tion regulations between and amongtowns, states and the federal govern-ment; and;

BE IT FURTHER RESOLVED: ThatAgri-Mark encourage all elected offi-cials when establishing transportationregulations to consider the unique chal-lenges facing the agricultural commu-nity in their attempt to transport freshand reasonably priced food products toconsumers.

Action Taken: Agri-Mark has worked withthe Congressional delegates from Con-

necticut as well as the Connecticut FarmBureau and others for the past several yearsto raise state truck weight limits in Con-necticut where they are less than that ofsurrounding states. This effort was passedin Connecticut pending federal approval.We are also involved in this same effort inVermont and New Hampshire. We con-tinue to work on this at the Federal level.

5. Member Participation

WHEREAS: It is the intent of the mem-bers that as many qualified individualsas possible should be given meaningfulopportunities to represent the coopera-tive, and;

WHEREAS: It is necessary to continueand maintain leadership training andskills developed by programs withinAgri-Mark such as the Young Cooper-ators, Resolutions, ALEC and CentralHauling Committee’s;

BE IT RESOLVED: That the Board ofDirectors of Agri-Mark consider futureappointments to state and nationalboards be made from the current poolof active and former members of theleadership committees.

Action Taken: Agri-Mark's Board of Direc-tors has been aware of the above guide-lines daily while making appointmentsduring the past year. Agri-Mark’s Legisla-tion and Education Committee (ALEC) hasincluded several interested members in itsconference calls and information updates.These members, in turn, have workedclosely with their legislators. We are alsoconstantly looking at ways to further im-prove participation in the Young Coopera-tor (YC) Program and keep former YCsinvolved in their cooperative.

6. Information Meetings &Member Communications

WHEREAS: Regular and accurate com-munication with membership and thepublic is at all times essential to the op-eration, development and progress of astrong and responsible cooperative;

BE IT RESOLVED: That each directorof Agri-Mark, Inc. shall be chargedwith responsibility for holding infor-mational meetings with all regionalelected officials and/or members in theregion at frequent intervals between an-nual meetings of the cooperative; and

BE IT FURTHER RESOLVED: Thatcommunication by regional officers andrepresentatives with regional membersbe encouraged and that reasonable ex-penses so incurred by regions be ap-proved; and

BE IT FURTHER RESOLVED: Thatthe regular program for disseminationof responsible information about Agri-Mark, Inc. to other agricultural organi-zations, state and federal agencies andthe public be continued and expanded;and

BE IT FURTHER RESOLVED: Thatthe Board of Directors be charged withthe responsibility to periodically com-municate to members a summary of thebenefits of their Agri-Mark member-ship.

BE IT FURTHER RESOLVED: Thatan explanation of new or materiallyamended resolutions which will beacted upon at the cooperative's annualmeeting be sent to all members at leastten days prior to the annual meetingthrough the medium of the check let-ter; and

BE IT FURTHER RESOLVED: Thatthe members be encouraged to contacttheir voting representatives (listed inthe Elected Officials Directory) to ex-press their opinion on such resolutions.

Action Taken: Through various forms ofcommunications, including the Viewpoint,check letters, the member web site, re-gional meeting hand-outs, Agri-Mark's pro-cessing plant and membership brochures,print and radio advertising and the organi-zation’s media relations program, the coop-erative continues to expand its contact withmembers and the general public.

“Cost cutting is an on-going process at Agri-Mark. The Board andmanagement continueto review the co-op'spolicies and practicesto achieve savings.”

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In 2010 a very successful open house washeld at the McCadam plant in Chateaugay,N.Y., where more than 1,500 local residentstoured the facility. This generated a lot oflocal media publicity.

Open Farm Sunday has become an Annualevent at more than 50 member farmsthroughout the Northeast, allowing con-sumers and others to tour these farms.There will be another Open Farm Sundayheld in 2013.

Dozens of other member farm profiles or“virtual tours” are also listed on the Cabotand McCadam web sites, helping to edu-cate the public about dairy farming in theNortheast. Through the co-op's on-goingwork in these areas, Agri-Mark will continueto be recognized as the voice of the region’sdairy farmers.

We are also working on extensive internetand website based dairy industry informa-tion updates available to all members. Thisis expected to be available in early 2013.

In addition, through regular check letters,publications and regular and special mem-bership and director meetings, and our ac-tive field representatives, the co-op activelypublicizes the many benefits of Agri-Markmembership.

7. YC Program

WHEREAS: Agri-Mark supports astrong Young Cooperator (YC) Pro-gram with the belief that it is essentialfor young dairy farmers to be knowl-edgeable about cooperative milk mar-keting and their industry as they will bethe future leaders of the cooperative;and

WHEREAS: Both Agri-Mark and mem-bers of the YC Program can benefitfrom the development of management,leadership and organizational skillsamong our YC’s, many whom are al-ready contributing those skills to theirown farm operations; therefore

BE IT RESOLVED: That Agri-Markcontinue a strong Young CooperatorProgram that allows the members ofthe YC Program to adapt to changingfarm and industry conditions and es-tablish and modify their own organiza-tional structure, subject to approval of

the YC Advisors and/or Agri-MarkBoard of Directors.

Action Taken: Agri-Mark continues to havea strong YC Program by providing an an-nual training session for those youngermembers who participate. The YC Leader-ship Conference not only provides educa-tional and informational sessions aboutAgri-Mark’s structure, organization, and op-erations, but also provides YCs the oppor-tunity to meet the cooperative’s Board ofDirectors and senior management on an in-formal basis.

In 2011, a media training session was heldat the Summer Conference that helped totrain both YCs and members of the Agri-Mark Board of Directors on how to answertough questions about the dairy industrywhile also discussing the contributions thedairy industry makes to their state and localcommunities.

In 2012, a session was held on social media- how to use Facebook, Twitter and othersimilar forms of communication to educateconsumers and others about today’s U.S.dairy industry.

Agri-Mark continues to send YCs to theNMPF annual meeting and all YC represen-tatives are invited to attend the NortheastCouncil of Farmer Cooperatives LeadershipConference, furthering the education andgrowth of our young farmer members.

Interest in the YC Program among mem-bers has grown in the past several yearsand we have encouraged all to be involved,no matter the number in individual regions.

8. Member List

WHEREAS: Communication betweencandidates for the position of Agri-Mark director and members in a regionis crucial for members to make an in-formed decision when voting for a di-rector; therefore

BE IT RESOLVED: That any candidatefor director whose name is put intonomination by a region's nominatingcommittee, be provided with a list ofthe names and phone numbers of allmembers in their region, if requested bythat candidate.

Action Taken: During 2012, one memberwho ran for the position of regional directorrequested to have a list and phone num-bers of members in his region and it wasdone.

9. Over-Order Pricing

WHEREAS: The Federal Support Priceresults in regulated minimum pricespayable to dairy farmers which are in-sufficient to provide members with rea-sonable levels of income;

BE IT RESOLVED: That Agri-Mark,Inc. be prepared to take, or to join withothers in taking, such additional milkpricing action as may be legally permis-sible and economically justifiable underthe circumstances to assure such rea-sonable income levels; and

BE IT FURTHER RESOLVED: ThatAgri-Mark, Inc. by its own action orthrough the National Milk ProducersFederation and the National Council ofFarmer Cooperatives, oppose any effortto amend the Capper-Volstead Act orother federal law in such manner as torestrict the right of farmers to act to-gether in marketing associations and toform marketing agencies in common ofsuch associations.

Action Taken: Agri-Mark is a member ofboth ADCNE (Association of Dairy Cooper-atives of the Northeast) and GNEMMA(Greater Northeast Milk Marketing Agency).The goal of both of these groups is to en-hance dairy farmer milk prices throughOrder and Over-Order Pricing. GNEMMA isa over-order bargaining agency similar tothe former RCMA. All major NortheastDairy Cooperatives are members and worktogether to establish and enforce rBST pre-miums.

In 2010 the National Council of Farmer Co-operatives was very successful in educatingCongress and the Administration of theneed and value, as well as the relevance ofthe Capper Volstead law in agriculture.Agri-Mark strongly supported this effort.

During the 2011 fiscal year, Agri-Mark dis-tributed more than $19 million in over-order premiums to members. Agri-Mark isestimated to pay about $21 million in fiscal2012.

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10. PPD Pricing

WHEREAS: Agri-Mark may have oper-ating expenses which are not covered bymarket income or profits;

BE IT RESOLVED: Agri-Mark’s Boardof Director may determine that un-re-covered operating expenses may need tobe allocated to members;

BE IT FURTHER RESOLVED: Thatthose operating expenses be clearlyidentified as an expense on membermilk checks and not as a PPD reduc-tion.

Action Taken: No action was taken on thisresolution in 2007 - 2012 as Agri-Mark hasbeen very profitable during these yearsthere has been no need for any such allo-cations. PPD reductions would not be con-sidered by the Board as an option even iflosses were to occur.

11. Unallocated Funds

WHEREAS: It is important for Agri-Mark to be financially strong so that itcan effectively represent members inthe marketing of their milk and be astrong voice in the dairy industry;therefore

BE IT RESOLVED: That in profitableyears the Board should be encouraged,when appropriate, to assign a portion ofearnings to unallocated surplus. Thegoal should be to build a reasonablelevel of tax paid reserves to protectagainst downturns that affect the abilityof Agri-Mark to operate to the best ofits ability without negatively affectingmembers pay prices.

BE IT FURTHER RESOLVED: Thatevery effort be made to communicate tomembers the importance of unallocatedfunds to the membership and their co-operative.

Action Taken: Agri-Mark was profitable from2007 through 2012. The Board voted to putaside a portion of patronage profits for taxpaid reserves in fiscal 2007 through 2011.

12. Full Service Co-op

WHEREAS: Agri-Mark's mission is toserve the member-owners by providinga secure market for members' milk at a

competitive price and by providinghigh quality products and services tocustomers while maintaining profitableoperations and maximizing member in-come;

BE IT RESOLVED: That the basic prin-ciples of market responsibility uponwhich Agri-Mark, Inc. was founded behereby reaffirmed, namely:

1. To make adequate provision for mar-keting all member milk;

2. To balance member milk supply withmarket demand on both a seasonal anddaily basis;

3. To direct the movement of membermilk with efficiency and at least cost;

4. To assume direct responsibility forquality control, including laboratoryanalysis, of all member milk;

5. To pay all members directly for theirmilk;

6. To offer handlers a full supply of milkto meet their needs;

7. To exert every practicable effort tomaximize member income;

8. To support legislation which will en-hance and protect the well-being ofagriculture; and

9. To cooperate with other cooperativesand farm organizations in the develop-ment and implementation of programsdesigned to benefit the dairy industryas a whole.

Action Taken: Agri-Mark's Board of Direc-tors and management utilize the aboveguidelines daily while conducting the co-operative's business upon behalf of mem-bers. The co-op's Marketing andCommercial Operations Department alsouses these guidelines as they perform all ofAgri-Mark's milk marketing functionsthroughout the year.

INDUSTRY IMPROVEMENTISSUES

13. Recognition and Consolida-tion of Agricultural Institutions WHEREAS: The officers, directors,

members, and staff of Agri-Mark rec-ognize the importance of land grantcolleges, the cooperative extension serv-ice and agricultural schools in NewEngland and New York State and ac-knowledge with grateful appreciationthe support of these institutions forfarmers and farmer cooperatives; and

WHEREAS: Agri-Mark strongly encour-

Voting representatives from every membership region, including Region 9 Representative EdWaldroff of LaFargeville, N.Y., shown above, always have the opportunity to discuss any reso-lution, old or new, or bring up any new business.

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ages the continuation of state and fed-eral funding for such institutions andfor additional training in vocationalagriculture, milk marketing and theprinciples and purposes of farmer coop-eratives, and similar programs that sup-port dairy farming and agriculture ingeneral; and

WHEREAS: Dairy farming is becomingmore and more complex, involvinglarge investments in land, equipmentand facilities, evaluation of new tech-nology, application of scientific infor-mation, more restrictive regulations,more sophisticated equipment, igno-rance and/or apathy towards agricultureamong the general public, and outrightopposition from some special interestgroups;

BE IT RESOLVED: That Agri-Marksupport the concept of one unifiedNortheast cooperative extension serviceprogram involving all land grant exten-sion educators, specialists and agentsworking in unison to consolidate theirlimited resources and strengthen theextension service system so it continuesto serve as the best source of up-to-date, unbiased educational informationavailable to dairy producers, vocationalschools and other agricultural groupsthroughout the Northeast.

Action Taken: Agri-Mark has worked veryclosely with state Cooperative ExtensionService Agents and for years has encour-aged a study of New England-wide consol-idation to better serve farmers.

Agri-Mark continues to receive and shareinformation with Extension Service Agentsthrough cooperative publications and theco-op again helped to sponsor several Ex-tension Service dairy meetings and otherExtension programs throughout 2011 and2012.

Agri-Mark economist Robert Wellingtonhas worked with Extension Agents in all ofthe states and communicated informationvia faxes, meetings and otherwise. In 2011and 2012 he held conference calls with ex-tension agents from Vermont and farmersfrom that state to answer questions aboutmilk pricing and national dairy policy op-tions. Also in 2012, he has made economicand policy presentations before ExtensionAgents and producer groups in New York,

Connecticut and other states.

Wellington and economist Ben Laine arecurrently working with Extension agents onhedging education in Maine.

14. Farm Beautification

WHEREAS: Consumers are cognizant ofand are influenced by the appearance ofthe source of food products;

BE IT RESOLVED: That Agri-Mark,especially through recognition pro-grams, make every effort to encourageits members to keep and maintain neatand attractive farm buildings and sur-roundings; and

BE IT FURTHER RESOLVED: ThatAgri-Mark endorse the Dairy of Dis-tinction program and encourage allstates in our area to offer this recogni-tion to qualifying farms.

Action Taken: Agri-Mark has actively sup-ported and helped to fund farm beautifica-tion programs in various Northeast statesand openly encourages members to main-tain neat and attractive farmsteads. Staffmembers have often served on Dairy ofDistinction state committees. When possi-

ble, the co-op recognizes members in Agri-Mark publications and through the fieldrepresentatives for their effort to maintainattractive farmsteads.

LEGISLATIVE AND REGULATORY POLICIES

15. Co-op Service Payments

WHEREAS: Through daily and seasonalbalancing of fluid milk supplies, opera-tion of manufacturing plants to handlemilk in excess of market demands, andconstant analysis and improvements offederal and state regulatory procedures,a full-service cooperative performs all-inclusive market services, some or all ofthe costs of which are now borne solelyby its members;

BE IT RESOLVED: That Agri-Mark,Inc. strongly support efforts to recovercosts of specified services performed forhandlers or for the market as a wholethrough Federal Milk Market Orders,by its own action or by joint action withother cooperatives.

Action Taken: The recovery of Agri-Mark'sservice costs are accomplished to the great-

The annual meeting is always a good time to catch up with old friends. left to right are mem-bers Neal Monson of Oakham, Mass.; David Hanson of No. Brookfield, Mass.; Barney Wrightof Clinton, Maine; and Burton Hinton of Island Pond, Vt.

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est extent possible through Agri-Mark'sprogram of service charges to customers.When Agri-Mark facilities are used to bal-ance excess milk supplies by others, weprice the milk to make a profit on that milk.Agri-Mark pursued cooperative servicepayments through the new consolidatedFederal Order System, but was unsuccess-ful. We continue to have discussions withother cooperatives and USDA as we seek topursue those payments. These paymentswere initially a part of the 2012 Dairy Secu-rity Act.

16. ALEC

WHEREAS: The purposes of the Agri-Mark Legislative Education Commit-tee, (ALEC) are to promote and strivefor the improvement of government byencouraging and stimulating farmersand others to take a more active and ef-fective part in governmental affairs; toassist farmers and others in organizingthemselves for more effective politicalaction, and to support or oppose candi-dates in federal elections with a viewtoward assuring good government andfurtherance of the interests of the agri-cultural sector of the economy and par-ticularly the dairy farming populationof the Northeastern United States;

BE IT RESOLVED: That we, the repre-sentatives, commend ALEC to the at-tention of all members as a way ofproviding for their personal and finan-cial participation in the federal electionprocess.

Action Taken: Members have contributedto ALEC in the form of individual contribu-tions or milk check deductions. This has en-abled ALEC to make contributions tocandidates for federal offices who supportthe interests of Agri-Mark members and theNortheast dairy farm community on farmissues.

ALEC has regularly conducted a fundraisingcampaign (except in 2009 due to low milkprices). Some members also contribute aone-time amount. Members who do havesuch milk check deductions contribute atotal of $1,395.66 per month, down fromprevious years due to farm attrition. Themaximum contribution recommended byAgri-Mark was $200.00 per year, per farm

for all members. Members can contributemore than $200.00 but the Federal ElectionCommission (FEC) requires reporting of theindividual names when that occurs. ALECinformation was also included as part of the2011 regional meetings.

Farmer-members of ALEC, as well as co-opmanagement (either individually or as agroup) have visited Washington D.C. eachyear from 1993 to 2012 to discuss key issueswith legislators such as the Dairy SecurityAct and the MILC and CWT programs. Thishas helped to form good relationships withNortheast legislators who are more awareof issues facing their farmer-constituentsback home on the farm. This is an on-goingchallenge with the recent influx of new leg-islators.

ALEC has also included several interestedmembers in its conference calls and infor-mation updates. These members, in turn,have worked closely with their legislators.

17. Animal Rights Organizations

WHEREAS: Agri-Mark reaffirms itssupport for the humane treatment ofanimals, but stresses that such concernmust be carefully balanced with theneeds and interests of the agriculturalsector and the consumers who dependupon our agricultural bounty; and

WHEREAS: Certain groups and affiliates

of those groups are threatening the eco-nomic viability and well-being of fam-ily farms and other agriculturalenterprises;

BE IT RESOLVED: That Agri-Markcontinues to promote good animal carepractices within the farm community,while educating the non-farm commu-nity of such practices;

BE IT FURTHER RESOLVED: ThatAgri-Mark will carefully scrutinize or-ganizations and their activities on anindividual basis and will vigorouslychallenge organizations labeled as ani-mal rights groups to prevent them fromdestroying our family farms in theNortheast; and

BE IT FURTHER RESOLVED: ThatAgri-Mark, working with other agri-cultural organizations and agencies, willmake every effort to educate members,legislators, and consumers about suchorganizations so they may take action,if necessary, to protect the livelihood ofdairy farmers.

Action Taken: On behalf of members, Agri-Mark and NMPF have investigated variousorganizations which may pose a threat todairy farmers. We have exchanged infor-mation on these groups, and Agri-Markstaff have undergone some spokespersontraining with Dairy Management, Inc. (DMI)and exchanges information with othergroups like the NMPF to help be preparedto address these issues. Agri-Mark’s com-munications staff receives weekly updatesfrom these organizations regarding poten-tially negative national or regional dairy is-sues.

In 2012 Agri-Mark helped to coordinateseveral meetings throughout the Northeastwith dairy promotion groups designed toeducate farmers about animal rightsgroups and how to respond to them. Agri-Mark has also responded to all calls andweb site contact on these issues, providingfacts and explanations as needed.

18. Block Voting

WHEREAS: The opinion of Agri-Markmembers varies widely; and

WHEREAS: Agri-Mark has had a policyof block voting for members;

“In 2012 Agri-Markhelped to coordinateseveral meetings

throughout the North-east with dairy promo-tion groups designed toeducate farmers aboutanimal rights groupsand how to respond tothem. Agri-Mark hasalso responded to allcalls and web site con-tact on these issues, pro-

viding facts andexplanations as needed.”

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BE IT RESOLVED: That Agri-Markblock vote on behalf of members butpoll members on controversial issuesbeforehand if feasible.

Action Taken: Agri-Mark block voted infavor of a change in the definition of Class Ifluid milk products in 2010. This changeeliminated a loop hole that allowed Class Ibottlers to pay less than the Class I price forsome new fluid milk products which wouldhave lowered the blend price to all North-east dairy farmers. No block voting wasdone by the co-op during 2011 or 2012.

19. Producer Security Laws

WHEREAS: Handler bankruptcies creategreat financial hardships for unpro-tected producers; and

WHEREAS: State/federal producer secu-rity laws may not provide the antici-pated level of security unless they arestructured, financed, and administeredadequately; and

WHEREAS: State producer security lawshave been used to create barriers to thefree flow of milk between states;

BE IT RESOLVED: That Agri-Mark iscommitted to paying members for milkso that any loss that may occur due tohandler default is shared by all mem-bers and that the cooperative is com-mitted to strict financial oversight of allhandlers who purchase member milk inorder to minimize any loss should abankruptcy occur.

BE IT FURTHER RESOLVED: ThatAgri-Mark will support state/federalproducer security legislation only if thesecurity system under consideration isproperly structured, sufficiently fi-nanced, and adequately administered.

BE IT FURTHER RESOLVED: ThatAgri-Mark oppose the use of state pro-ducer security laws to create barriers tothe flow of milk or milk products be-tween states.

Action Taken: Agri-Mark has an excellentrecord of customer payment. Customerswith any payment issues are closely scruti-nized and often must pay for milk on a cashbasis. Vermont did pass a law requiringhandler payment bonds several years ago.Agri-Mark did not support the legislation,

but all the other Vermont cooperatives did.

20. Federal Milk Market OrderProgram

WHEREAS: The Federal Milk MarketOrder Program establishes orderly milkmarketing to assure production of anadequate supply of milk for the nation'sconsumers; and

WHEREAS: The volatility of milk pricescontinually has a significant economic

impact on dairy farms through thecountry;

BE IT RESOLVED: That Agri-Mark,Inc. by its own action or by joint actionthrough the National Milk ProducersFederation (NMPF), Northeast DairyFarmers Cooperatives (NDFC), orother organizations, continue its effortsto maintain the Federal Milk Market-ing Order Program as the basic marketregulatory device; and

BE IT FURTHER RESOLVED: Thatsince Federal Milk Marketing Ordersare specific to a particular market, thatAgri-Mark, Inc. urge the Secretary ofAgriculture to allow markets to use theflexibility inherent in the program.

BE IT FURTHER RESOLVED: ThatAgri-Mark, Inc. work with other re-gional and national organizations tosupport an immediate and thorough re-view of the Federal Marketing Systemnow and prior to future farm bills.

Action Taken: Agri-Mark has worked to de-fend the Federal Milk Marketing Order Pro-gram in the past and will continue to do soin the future. Economist Robert Wellington

is a leading contributor of both informationand ideas regarding improving Federal Or-ders. He has testified at hearings and pro-vided written comments, and works withUSDA and Market Administrator staff on anon-going basis.

In December of 2009, Wellington met withUSDA Deputy Secretary Merrigan in Wash-ington D.C., and expressed Agri-Mark’s sup-port for the Federal Order and ways toimprove it. Agri-Mark also supported ef-forts in the 2007 Farm Bill to speed up theFederal Order hearing decision process atUSDA, which became law.

In 2011, Wellington met with several mem-bers of USDA’s staff to discuss both stateand federal dairy issues and has suggestedways to improve collection and sharing ofimportant dairy information. He specifi-cally discussed opportunities to increaseClass I differentials with the Director of theAMS Dairy Division of USDA

In 2012, Wellington urged USDA to releasefinal decisions for issues that have beenopen for the past six years and believes thata decision will be released early in 2013.This would facilitate possible new hearingsin 2013.

21. National Beef Promotionand Research Board

WHEREAS: Agri-Mark members arecontributing to the National Beef Pro-motion and Research Board; and

WHEREAS: Members are cognizant ofthe need for effective promotion anddevelopment of new products and theirimportance in maintaining and improv-ing incomes from dairy beef, veal andbob calves;

BE IT RESOLVED: That Agri-Markcontinues to support the beef check-offas an important and cost effective wayto raise the funds necessary to sustainan effective beef promotion and prod-uct research campaign; and

BE IT FURTHER RESOLVED: ThatAgri-Mark supports the establishmentof individual State Beef Councils sothat a substantial portion of promotionfunds paid by Agri-Mark members willbe allocated and spent in the Northeast;

“In 2012, Wellingtonurged USDA to releasefinal decisions for issuesthat have been open forthe past six years and be-lieves that a decision willbe released early in 2013.This would facilitate pos-sible new hearings in

2013.”

11

and

BE IT FURTHER RESOLVED: ThatAgri-Mark encourages the NationalBeef Promotion and Research Boardmembers to promote the use of dairybeef and veal in research and advertis-ing campaigns.

Action Taken: Agri-Mark member LucindaWilliams of Hatfield, Mass., was a memberof the National Beef Board and advocatedthese positions on behalf of members. Shewas Chairman of the Board in 2009, the firstChairperson who was a dairy farmer to beelected to that position

Agri-Mark advocated the position of indi-vidual state beef councils through formermembers who served on the National BeefPromotion and Research Board, but hasfound little support for this concept nation-ally.

22. Nutritional Programs

WHEREAS: The U.S. Congress has es-tablished federal programs designed toprovide children, economically disad-vantaged persons and underprivilegedgroups with basic nutritional needs;

BE IT RESOLVED: Agri-Mark, Inc.urges that in setting standards for feed-ing programs the government take intoaccount the nutrition and health policyimplemented by national promotion or-ganizations which promote the full va-riety of dairy products regardless oftheir fat content, so that dairy productswill be positioned as nutritious foodsthat can satisfy the demands of everyhealth conscious consumer; and

BE IT FURTHER RESOLVED: ThatAgri-Mark urges that adequate federalfunds be appropriated and expended forsuch purposes as the School Breakfastand Lunch Programs, the Special Milkfor Children Program, the Supplemen-tal Nutrition Program, the WIC Pro-gram for women, infants and children,and continuation of temporary food as-sistance programs (TEFAP), and thatthe level of appropriations for such pro-grams be reviewed as required to meetsuch needs; and

BE IT FURTHER RESOLVED: ThatAgri-Mark appreciates the restorationof the requirement that whole milk be

offered in the SchoolBreakfast and Lunch Pro-grams and requests thegovernment to make wholemilk as well as low fatmilks available throughother federal nutrition pro-grams.

Action Taken: Through Agri-Mark’s membership in NMPFand Northeast Dairy Farmers’Cooperatives, adequate fund-ing for these programs hasbeen advocated. Through theNMPF, Agri-Mark is also sup-porting the National SchoolBreakfast Program and addi-tional funding for this and re-lated program areas.

We support increasing theschool serving size of milkfrom 8 oz. to 10 oz. in plasticcontainers for older schoolchildren. We also supportedadditional funding for schoollunch programs in the 2009economic stimulus package.We are now working with theNMPF and Dairy Management Inc. to keeplow-fat chocolate milk in schools.

23. Increasing Milk Consump-tion and Value

WHEREAS: Agri-Mark supports indus-try actions to actively increase con-sumer acceptance and consumption offluid milk, including, but not limited to,support of efforts to further improvemilk quality and to increase the na-tional non-fat solids standards of fluidmilk to improve the taste, texture, ap-pearance and nutrition of milk, particu-larly low-fat milk products; and

WHEREAS: The Northeast FederalOrder has implemented multiple com-ponent pricing which charges all usersof milk except Class I processors basedupon the components of milk received,but pays all farmers based upon thecomponents in the milk; and

WHEREAS: Agri-Mark is now a majormanufacturer of cheese and other dairyproducts;

BE IT RESOLVED: That Agri-Markcontinue to work on its own andthrough Northeast Dairy Farmers’ Co-operatives, NMPF and other groups toincrease milk quality and the nationalnon-fat solids standards of fluid milk;and

BE IT FURTHER RESOLVED: ThatAgri-Mark work within the FederalOrder to see that high solids milk hasan economic incentive to move to thehigher valued uses, so dairy farmer in-come is maximized.

Action Taken: Agri-Mark, since its inception,has been a strong advocate of milk quality,beginning its Quality Recognition Programin 1982. The co-op continues to financiallyreward members for producing excellentquality milk for Agri-Mark and its cus-tomers. The milk quality recognition wasstrengthened in 2012 with higher paymentlevels for higher quality milk.

24. Agricultural Land Preserva-tion

WHEREAS: Agricultural property, indi-

Member Barney Wright of Clinton, Maine, asked a ques-tion at the annual meeting.

12

vidually and as a critical mass, providesa wide variety of public benefits, in-cluding: a safe, wholesome and ade-quate food supply; a resource base ofthe farm economy and rural culture;scenic landscape for the tourism andtravel industry; the creation and main-tenance of wildlife habitat; and the pro-vision of recreation opportunities; and

WHEREAS: Agricultural property repre-sents the principal or exclusive form ofholding life savings for rural landown-ers who earn their living by growingfarm products; and

WHEREAS: Agricultural property mustremain economically viable and earn acompetitive return if it is to attract andhold the life savings of farm families,and if the public benefits from thisproperty are to be sustained; and

WHEREAS: The economic viability ofagricultural property is increasinglythreatened by the burden of ever in-creasing taxation, regulation and otherpressures;

BE IT RESOLVED: That Agri-Marksupport government policies at all levelsthat preserve agricultural lands andprotect the rights of private propertyowners. In this regard, Agri-Markspecifically supports:

• Use-Value assessment

• Property tax abatement

• Voluntary Purchase or transfer of de-velopment rights

• Reduction in capital gains and inheri-tance taxes

• Increases in investment tax credits

• Cost/benefit evaluation of all regula-tions involving environmental/land userestrictions

• Compensation to land owners for anyreduction in land value caused by gov-ernment action

• "Right to Farm" protection for gener-ally accepted agricultural practices and

• Efforts to educate and inform the non-farm population of agriculture's role asthe first and primary steward of landresources;

• That all mandated regulations shouldhave funding to reimburse a farmer'sexpenses for implementation of suchpolicies; and

BE IT FURTHER RESOLVED: ThatAgri-Mark oppose the devaluation ofprivate property and/or loss of privateproperty rights by:

• The expansion of scenic corridors, sce-nic trails, scenic rivers, scenic roads, andhistoric corridors; and,

• The use of riparian buffer strips for

wildlife habitat, recreation areas, and/orgreen belts; and,

• The expansion of wilderness areas,without approval of all affectedlandowners.

Action Taken: Agri-Mark has supported allof the above concepts through its own ac-tion and through the NMPF, NortheastDairy Farmers’ Cooperatives, NCFC, GreenMountain Federation, state farm bureausand other groups.

25. National LivestockIdentification System

WHEREAS: The members of Agri-Mark share a concern for food safety,animal health and bio-security issueswith livestock producers nationwide;

BE IT RESOLVED: That Agri-Marksupport collaborative efforts of industry,state and federal animal health officialsto develop and implement a voluntarynational identification system for live-stock. We strongly encourage states tojoin forces with evolving programs thatare national in scope as opposed to de-velopment of individual state identifi-cation programs.

Action Taken: During the past, Agri-Markhas worked with USDA and other federaland state agencies to develop a voluntarynational plan. This is particularly importantgiven the outbreaks of BSE in Canada.However, this plan seems to be at a stand-still as a unified national plan has yet to bedeveloped.

26. Northeast Dairy Compact

WHEREAS: The Northeast Dairy Com-pact acted as a safety net for the priceof milk received by all dairy farm fami-lies shipping milk into the Compact re-gion when regulated Class I prices fellbelow established levels; and

WHEREAS: The Northeast Dairy Com-pact stabilized farm milk prices and thedairy industry when it was in effectfrom July 1997 through September2001, returning more than $145 millionto Northeast dairy farm families; there-fore:

The three YC off icers were recognized for their service at the annual meeting. From left toright are Steve Barstow of Hadley, Mass., Brian Lynch of Antwerp, N.Y., and Jay Rizza ofGouverneur, N.Y.

13

BE IT RESOLVED: That Agri-Markwork with other regional and nationalorganizations to have the NortheastDairy Compact or a similar programre-instated by the U.S. Congress assoon as possible; and

BE IT FURTHER RESOLVED: ThatAgri-Mark also work to have programsthat provide Class I price floors enactedat the national, regional or state levels.

Action Taken: The federal MILC programcame about as a result of Agri-Mark seekingto re-enact the Dairy Compact. Many pro-visions of the original MILC were designedto match those of the Compact. Agri-Markstill supports the concept of regional milkmarketing boards in the Northeast. We areconstantly looking for new opportunities toenact such pricing and we continue to keepthe Compact concept alive in Washington.

Agri-Mark participated in a national emer-gency Federal Order hearing in December2006 in support of increasing Class I milkprices as fuel and other costs increased.After two years of waiting, USDA rejectedany increases. We continue to have discus-sions with USDA on these issues.

27. Risk Management

WHEREAS: Agri-Mark management isinvolved in using the futures markets toprotect the values of our inventories;and

WHEREAS: Forward contracting canadd great stability to Agri-Mark’s bot-tom line as well as producer members;and

WHEREAS: Many producer membersare limited from protecting their risk bythe volumes of milk required for a typi-cal futures contract; therefore

BE IT RESOLVED: That Agri-Markmanagement seriously consider oppor-tunities for members to participate infutures markets in alternative ways.

Action Taken: Agri-Mark hired a commod-ity hedging manager in 2010 to manageour butter, cheese, energy and other fu-tures contracts. Work has begun to evalu-ate expanding similar services to membersfor milk and possibly feed prices. Agri-Markimplemented a service to members work-

ing with a firm to assist members in hedg-ing and covering margin calls.

28. Wildlife Threats to Agriculture

WHEREAS: There are increasing wildlifepopulations creating a much desired di-versity within the agricultural produc-tion area for farm owners and visitorsalike; and

WHEREAS: These increased wildlifepopulations may create threats to do-mestic animal agriculture and agricul-tural crops as well as threats to humans;

BE IT RESOLVED: That Agri-Mark ac-tively support state, regional, and na-tional policies that recognize that farmanimals and agricultural crops are atleast as important as wildlife; and

BE IT FURTHER RESOLVED: ThatAgri-Mark actively support economi-cally viable policies at all levels of gov-ernment that encourage the protectionof humans and farm animals from thethreat of rabies, giardia, distemper, andother disease vectors carried by wildlifepopulations.

Action Taken: No action was taken on thisresolution in the past year, but Agri-Markwill continue to monitor policies and legis-lation to ensure that the co-op complieswith this resolution.

29. Agricultural Food ProductDisparagement

WHEREAS: The production of agricul-tural food products constitutes an im-portant and significant portion of theeconomy of the New England states

and New York; and

WHEREAS: It is imperative to protectthe vitality of the agricultural economy;

BE IT RESOLVED: That Agri-Marksupport the adoption of legislationwhich protects agricultural productsfrom the willful or malicious dissemi-nation to the public of false informa-tion indicating or implying that anagricultural food product is not safe forhuman consumption.

Action Taken: Agri-Mark has worked hardin the past to foster the spread of factual in-formation on rBST and other issues. rBSTwas an issue in 2006 and 2007 as manyClass I handlers sought to have their plantsbe designated as rBST-free. Agri-Mark alsoformed a cooperative with the other majorNortheast dairy cooperatives to help dealwith the rBST issue in a cohesive manner.rBST continues to be of interest to con-sumers and Agri-Mark continues to workwith them when contacted to ensure theyare receiving factual information.

30. Member and CooperativePrivacy Issues

WHEREAS: Agri-Mark encourages allmembers to attend local and regionalmeetings held throughout the year; and

WHEREAS: Agri-Mark publishes anelected official directory with thenames, addresses and phone numbers ofmembers elected to serve, as well as allofficers; and

WHEREAS: Agri-Mark also publishes adetailed annual report to members aswell as a regular newsletter to help fos-ter good, open communication with theentire membership;

BE IT RESOLVED: That Agri-Markoppose government efforts to mandatethe release of confidential information,including, but not limited to, individualmember information, membership lists,and sensitive business information.

Action Taken: Agri-Mark continues to mon-itor this issue. During 2012 a letter was sentto New York State Department of Agricul-ture on behalf of Agri-Mark requesting thatthey not release confidential informationabout one of our members who had been

“BE IT RESOLVED: ThatAgri-Mark manage-

ment seriously consideropportunities for mem-bers to participate in fu-

tures markets inalternative ways.”

14

targeted by an animal activist group. Someinformation was subsequently released,and other information was able to be keptconfidential.

31. Products in the Dairy Case

WHEREAS: Milk is a wholesome andnatural product, and the term “milk” isused for other products;

WHEREAS: Dairy farmers, includingAgri-Mark members, have spent mil-lions of dollars to help achieve highconsumer confidence in our products,including the fact that they are veryhealthy and wholesome, therefore;

BE IT RESOLVED: That we send astrong message to the U.S. Food andDrug Administration discouragingthem from allowing the use of the term“milk” except for any product that is thenutrient liquid secreted by the mam-mary glands of female mammals.

Action Taken: In 2004 the Child NutritionAct was passed and Agri-Mark worked suc-cessfully with National Milk Producers Fed-eration (NMPF) to keep soy beverages outof the schools. Agri-Mark continues tomonitor this issue with the help of DairyManagement, Inc. and the NMPF.

32. Standardized AntibioticTesting

WHEREAS: Current technology does acommendable job of determining an-tibiotic residues in milk down to partsper billion, thus insuring a safe andwholesome milk supply; and

WHEREAS: Sensitivities are not consis-tent among the various approved an-tibiotic tests used by certified labs; and

WHEREAS: Under Interstate Milk Ship-pers (IMS) and Food and Drug Ad-ministration (FDA) rulings, the firsttest from a certified lab is the only basisfor rejection of milk;

BE IT RESOLVED: That Agri-Markcontinue to participate on the NationalMilk Producers Federation (NMPF)IMS Committee to maintain consistentand reliable technology to detect ensureour milk meets or exceeds antibiotics inmilk at uniform FDA-approved safelevels guidelines.

Action Taken: Agri-Mark now uses theCharm SL antibiotic test to clear all milk atAgri-Mark’s plants. The Charm SL tests forBeta Lactam antibiotics at levels closest tothe safe tolerance levels set by the milksafety branch of the FDA.

33. National and Regional MilkPromotion

WHEREAS: The major national milkpromotion organizations have madegreat strides in coordinating their pro-grams; and

WHEREAS: Imported dairy productsenjoy increased sales as a result ofgeneric product promotion; and

WHEREAS: Domestic organic dairyproducts also enjoy increased sales dueto generic product promotion;

WHEREAS: Numerous Agri-Markmembers serve this capacity at locallevels and have the experience to repre-sent our membership and organizationat these upper levels;

BE IT RESOLVED: That Agri-Mark,Inc. commend the formation of DairyManagement Inc. and support the con-tinuing efforts to develop and adopt afocused industry- wide plan; and

BE IT FURTHER RESOLVED: ThatAgri-Mark, Inc. support a mandatorynational promotion contribution withthe maximum allowable portion to bedirected toward regional promotion ef-forts; and

BE IT FURTHER RESOLVED: That

Agri-Mark support all efforts to im-pose the same assessments and adver-tising deductions on all domestic andimported dairy products.

BE IT FURTHER RESOLVED: Thatwe direct the Board of Directors ofAgri-Mark to look for individuals withexperience in such promotional effortsfor these appointments.

Action Taken: Agri-Mark has strongly sup-ported this concept on the national level.Agri-Mark also continues to actively sup-port this position on the regional levelthrough the cooperative's Board of Direc-tors and management who hold positionson the New England Dairy PromotionBoard.

In addition, during 2000 and 2001 Agri-Mark worked through the NMPF andNortheast Dairy Farmers’ Cooperatives topass legislation which would impose thesame promotion assessments on importeddairy products that are required on domes-tic production. This effort finally came to asuccessful conclusion as USDA imple-mented an assessment on imported prod-ucts in 2009!

34. Technology

WHEREAS: Agri-Mark members havethe goal of efficiently producing a safe,wholesome and high-quality product,and enjoy the confidence of consumersin that regard; and

WHEREAS: Consumers and the dairyindustry have benefited from those ad-vances in technology which have beenproven to be safe and effective;

BE IT RESOLVED: That Agri-Markand the dairy industry as a wholeshould promote the adoption of newtechnology only after appropriate Gov-ernment approval and issues of animalhealth, consumer acceptance and eco-nomics have been thoroughly re-searched; and

BE IT FURTHER RESOLVED: That inkeeping with Board policy, Agri-Markwill continue to discourage individualstate efforts to restrict the use of newtechnologies.

BE IT FURTHER RESOLVED: ThatAgri-Mark supports the rights of

“Action Taken: Agri-Markhas worked with other co-operatives in the North-east to generate millionsof dollars in income formembers through rBST-free premiums. Agri-Markwill continue to work tomaintain such premiums

as long as possible.”

15

members to use existing technologyand accepted agricultural practices.

BE IT FURTHER RESOLVED:That if members are asked to not usetechnology after it has been approvedthat if financially feasible they shouldbe compensated for the loss of incomefrom not using it.

Action Taken: Agri-Mark has worked withother cooperatives in the Northeast to gen-erate millions of dollars in income for mem-bers through rBST-free premiums.Agri-Mark will continue to work to maintainsuch premiums as long as possible.

35. U.S. Somatic Cell Count

WHEREAS: The legal maximum somaticcell count of 750,000 cells/ml forGrade A farm bulk milk in the U.S. isdetermined by the National Conferenceof Interstate Milk Shippers; and

WHEREAS: Most of the EuropeanUnion, New Zealand and Australiahave a legal limit of 400,000 cells/mland Canada has a legal limit of 500,000cells/ml; and

WHEREAS: Many of these countries arecompeting with the U.S. to sell dairyproducts to the global community;therefore

BE IT RESOLVED: That Agri-Markstrongly encourages and supports theNational Conference of Interstate MilkShippers to change the legal maximumsomatic cell count for Grade A bulkmilk in the U.S. to 400,000 cell/ml.This will allow U.S. dairy products tobetter compete with other exportingcountries.

Action Taken: Agri-Mark has notified mem-bers of this resolution which was passed atthe 2010 annual meeting. The co-op’s fieldrepresentatives are also working closelywith members to help those who needhelp achieving this 400,000 level on a con-sistent basis.

The USDA has announced that all dairyproducts being exported in the EuropeanUnion (EU) must meet the EU somatic cellstandard of 400,000. Agri-Mark’s Board ofDirectors passed a motion effective January1, 2012 stating:

Any member or non-member patronwhose three month geometric mean so-matic cell count exceeds 400,000 per ml. forthe period set by USDA shall pay all costs ofAgri-Mark in applying for a derogation (par-tial exemption of the legal requirement) in-cluding the labor costs of the U.S.D.A. inconnection with such application.

36. Price Stability

WHEREAS: Any period of low milkprices has can severely jeopardized theviability of dairy farms, and

WHEREAS: The cycle is likely to reoc-cur.

BE IT RESOLVED: Agri-Mark supportsa supply management program whichenhances and stabilizes farm milkprices so that farmers cover their costsand receive a fair return for the laborand investments.

BE IT FURTHER RESOLVED: Anysuch program should include the fol-lowing principles:

• Reasonably balances supply with de-mand.

• Reduces volatility and creates stabilityacross the dairy industry.

• Provides opportunity for farmer in-volvement.

• Minimizes government involvement.

• Provides a mechanism for farmers to beable to enter and exit the industry.

• Eliminates the free rider.

• Recognizes regional differences.

• Addresses impacts and opportunities ofimports and exports.

• Should be WTO legal.

Action Taken: Agri-Mark economist BobWellington developed a national marginalmilk pricing plan in 2010 which has nowbeen partially incorporated into the NMPF’sDairy Security Act. The Board of Directorsfeels that this plan will be the best optionfor stabilizing prices for members and otherNortheast dairy farm families in the future.The marginal milk pricing plan enhancesdairy farm income the greatest amount ofall the plans considered in a 2010 university

At every annual meeting the Young Cooperators raffle off baskets that they put together for thisoccasion. Some were also donated by other members and some by employees. All donations go to-wards defraying the costs of YC Program activities. This year a record amount - $4,348 - wasraised. Shown are members Paul and Judy Willis of Shelburne Falls, Mass., who are trying todecide which baskets they are interested in. Each basket has a small bucket in front of it. Pur-chased tickets can be placed in a bucket, from which the winner of that basket is drawn.

16

study. Throughout 2012 Agri-Mark hasbeen working to help pass the Dairy Secu-rity Act into law.

37. Balancing Milk Supplies

WHEREAS: The severe crisis of eco-nomic injustice in the dairy productionside of Agriculture is a symptom of toomuch milk and too little demand;

BE IT RESOLVED: Agri-Mark explore,develop or support mechanisms to bet-ter balance milk output to meet de-mand while removing surpluses whichrepeatedly destroy dairy farmer's prof-itability.

BE IT FURTHER RESOLVED: ThatAgri-Mark continues to support theCWT organization and also supportsfunding for the program.

BE IT FURTHER RESOLVED: ThatAgri-Mark on its own or with others,demonstrate that we support using theCWT funds only for purposes of en-hancing dairy farmer income.

Action Taken: Agri-Mark is an active mem-ber of the Cooperatives Working Together(CWT) program that works to remove na-tional dairy surpluses that drive down farmmilk prices.

The Agri-Mark Board of Directors has votedto extend Agri-Mark’s membership in CWTin 2012 for $.02 per hundredweight. Stud-ies have shown that the CWT program en-hanced farm milk prices by $.43 per cwt.

38. Animal Care & Welfare

WHEREAS: Agri-Mark reaffirms itssupport for the humane treatment ofanimals, but stresses that such concernmust be carefully balanced with theneeds and interests of the agriculturalsector and the consumers who dependupon our agricultural bounty.

BE IT RESOLVED: That Agri-Markcontinues to promote dairy industryapproved animal care practices withinthe farm community, while educatingthe non-farm community of such prac-tices; and

BE IT FURTHER RESOLVED: ThatAgri-Mark, working with other agri-

cultural organizations and agencies, willmake every effort to educate members,legislators, and consumers about dairyindustry approved animal care practicesto protect the livelihood of dairy farm-ers; and

BE IT FURTHER RESOLVED: ThatAgri-Mark support the goals and ob-jectives of the National Dairy FARMProgram and to explore appropriatemeasures for implementing such goalsand objectives.

Action Taken: Agri-Mark field representa-tives underwent FARM training in August of2010 and are all currently certified as Ani-mal Well-Being evaluators. The cooperativealso published several articles in the fall2010 issue of the Viewpoint newsletter toinform members about the importance ofthe program to the cooperative and the en-tire dairy industry. During 2011 and 2012,Agri-Mark field representatives actively en-rolled members into the FARM programwith one-on-one visits.

During 2012, a third party audit was per-formed as part of the FARM program.

39. Dairy Price Support Pro-gram

WHEREAS: The dairy industry needs amarket-clearing outlet for any surplusthat develops so that those excess sup-plies do not collapse milk and dairyproduct prices;

BE IT RESOLVED: That Agri-Mark, onits own or by joint action with othergroups, support the continuation of thedairy price support program, or an ac-ceptable alternative to protect a farmer’sincome at a realistic price base and seekto find additional mechanisms to bal-ance the supply and demand for milknationally.

Action Taken: During the past several yearsAgri-Mark has suggested several alternativeprograms to USDA designed to work inconjunction with the federal government'sprice support program. These alternativesincluded a Self-Help export plan, and fulland continued funding of DEIP.

Agri-Mark has continued to work withother cooperatives to expand exports ofU.S. dairy products through the U.S. DairyExport Council (DEC) and remains an activemember.

During 2008 we again supported legisla-tion to extend the Dairy Price Support Pro-gram another year. In 2009 we supportedthe government buying and distributing$60 million worth of cheese to food banks.

In addition, Agri-Mark continues to supportthe national CWT program as a mechanismto balance national milk supply and de-mand and raise farm prices. Agri-Mark alsosubmitted a marginal milk pricing plan forconsideration as a national program to helpbetter align supply with demand. Hope-fully this will become part of the Dairy Se-curity Act or other related dairy legislationenacted in early 2013.

The current Price Support Program sup-ports a farm milk value of less than $10 percwt. It is ineffective and has been harmfulat times. We have supported eliminating itprovided we can get a strong program toreplace it.

New York member Mike Dwyer of HollandPatent participated in the discussion.

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40. International Trade

WHEREAS: Agri-Mark recognizes that asound dairy farm economy is depend-ent upon the maintenance and furtherdevelopment of both domestic and in-ternational dairy product sales; and

WHEREAS: U.S. producers can competewith milk producers in the world mar-ket, given a "level-world-trade-playingfield";

BE IT RESOLVED: That Agri-Mark,Inc. by its own action or by joint actionthrough the National Milk ProducersFederation or any other organizationinsist that the U.S. government be vigi-lant in assuring that foreign countriesdo not violate the terms of the GeneralAgreement on Tariffs and Trade(GATT) and the North American FreeTrade Agreement (NAFTA)of any In-ternational Trade Agreements;

BE IT FURTHER RESOLVED: ThatAgri-Mark insist that all dairy productsimported into the U.S. at least undergoport-of-entry inspection under sanitaryand phytosanitary standards (that is,food safety, animal and plant healthregulations) equivalent to those set bythe federal government for domesticmilk and dairy products;

BE IT FURTHER RESOLVED: ThatAgri-Mark support U.S. funding of theDairy Export Incentive program(DEIP) or an equivalent program tothe maximum extent allowable underGATT.any International Trade Agree-ment;

BE IT FURTHER RESOLVED: ThatAgri-Mark maintain its membership inthe U.S. Dairy Export Council and Co-operatives Working Together (CWT)and seek to export products when suchexports benefit cooperative membersand the industry as a whole.

Action Taken: Agri-Mark on its own andthrough NMPF, NCFC, Northeast DairyFarmers’ Cooperatives and the DEIP Coali-tion, have advocated the full funding ofDEIP again this past year although we willtrade it for better programs if available.

Agri-Mark is a member of the U.S. Dairy Ex-port Council, a coalition of all segments ofthe industry working to export and de-velop markets for U.S. dairy products.

In addition, as a member of Dairy America,the co-op has participated in numerousnonfat dry milk sales in the world marketduring the past year, working to developnew markets for member milk. Agri-Markalso has experienced employees who workon international sales of Agri-Mark wheyproteins, whey products and nonfat milkpowder.

Agri-Mark is also a member of CooperativesWorking Together (CWT) which subsidizedmany overseas sales of dairy products in re-cent years to help bolster the domesticmarket.

41. Cattle Diseases

WHEREAS: Animal diseases, such asBrucellosis, Johnes, BSE, and othercontagious diseases are of considerableconcern among dairy farmers and needto be monitored closely, so as to mini-mize financial hardship to dairy farmersand keep public confidence in the foodsupply;

Whereas: Exotic and emerging diseasesare a threat to livestock and can travelquickly around the world; and

Whereas: Accidental or intentional intro-duction of a highly contagious livestockdisease such as foot-and-mouth diseasewould be financially and emotionallydevastating to the dairy industry; and

Whereas: Agri-Mark member farms arenot uniformly prepared to prevent orrespond to these threats;

Be It Resolved: That Agri-Mark, Inc. par-ticipate in all relevant regional and na-tional initiatives, exercises, planningand outreach efforts to enhance re-silience to an animal disease emer-gency;

BE IT RESOLVED: That Agri-Mark,Inc. support efforts to:

1. Increase federal funding for diagnostictests and distributed testing capabilityfor foot-and-mouth or other diseases ofconcern;

2. Maintain federal funding for eradica-tion and increase disease surveillance inall areas of the U.S.;

3. Increase research on animal diseases tofind methods of immunization;

4. Encourage cooperation between the in-dustry, federal government and thestates, and among the states, to eradi-cate Johnes, Brucellosis, BSE, includingnot allowing the importation of cattlefrom countries with cattle testing posi-tive for these or any other contagiousdiseases as well as to develop appropri-ate protocols to ensure a safe food sup-ply.

5. Cooperate with state and federal ani-mal health authorities in disease pre-vention and response planning;

6. Encourage implementation of visitorpolicies and access control on memberfarms; and

7. Integrate biosecurity into assessmentsof animal care and well-being such asthe NMPF FARM program.

8. Implement bio-security training pro-grams for all staff and auxiliary staff(i.e. milk haulers) involved in on-farmservices. Programs may focus on cur-rent issues, such as foot and mouth dis-ease, Johnes, Brucellosis, BSE or anyother outbreak that ultimately affectsanimal health. Agri-Mark shall providecontinued outreach to Agri-Markmembers that may include preventativeequipment purchase information, hot-line updates and cooperation with ac-tivities sponsored by state departmentsof agriculture dealing with such out-breaks.

Action Taken: Agri-Mark has strongly sup-ported all of these efforts through its sup-port and work with NMPF's AnimalAdvisory Committee, of which Board ViceChairman Mike Barnes is a member.Through cooperation of the Federal MilkMarket Administrator's office, Agri-Markhas designed and maintained a programthat provides easy access to milk samples

“BE IT FURTHER RE-SOLVED: That Agri-

Mark on its own or withothers, demonstratethat we support usingthe CWT funds only forpurposes of enhancingdairy farmer income.”

18

to assure members of proper surveillance.

In addition, Agri-Mark implemented bio-se-curity rules for field representatives andmilk haulers in 2001 to address this issue.No major disease outbreaks were reportedin the Northeast in 2008 – 2012.

ORGANIZATIONAL MEMBERSHIPS

42. NMPF, NDFC and NCFC

WHEREAS: The needs of dairy farmersand their cooperatives for specializedrepresentation and action on dairy in-dustry issues remain pressing, both onthe state and federal levels; and

WHEREAS: Agri-Mark works withother dairy cooperatives for effectivenational and regional dairy policythrough the National Milk ProducersFederation (NMPF) and the NortheastDairy Farmers’ Cooperatives (formerlyCNFC); and

WHEREAS: Agri-Mark is also a memberof the National Council of Farmer Co-operatives (NCFC) which works forunified and effective education, repre-sentation, and action at the federal level

on highly significantnational issues such asantitrust laws andlegal, tax and account-ing matters which af-fect all types ofcooperatives, includ-ing Agri-Mark;

BE IT RESOLVED:That Agri-Mark, Inc.maintain its member-ship in the NMPF,Northeast DairyFarmers’ Cooperativesand NCFC subjectannually to favorableevaluation by theBoard of Directors.

Action Taken: Agri-Mark's membership inthe NMPF, NCFC andNEDFC have beenmaintained basedupon review and eval-uation of the organiza-tion's performance by

the Agri-Mark Board of Directors.

Chairman Neal Rea represents the co-op onthe NMPF's Board of Directors. Other mem-bers of the management staff and Board ofDirectors also serve on other NMPF com-mittees on behalf of members. Agri-Markhas been working with NMPF on the CWTProgram, national production controlplans, and continued extension of the dairyprice support program and other impor-tant issues affecting members.

NCFC has been working on members' be-half on water quality and other environ-mental issues, as well as supporting the fairtax treatment of farmers and cooperatives.

Bob Gray, NEDFC Executive Director, hasbeen active on the Dairy Security Act andthe MILC Program, the Dairy Export Incen-tive Program (DEIP), the EnvironmentalQuality Incentive Program (EQUIP) andother important issues on behalf of mem-bers during the past year.

43. Recovery of Increased FuelCosts

WHEREAS: Fuel costs for hauling farmmilk have gone up dramatically in the

past year; and

WHEREAS: Most businesses work dili-gently to pass along such higher coststo those who purchase their products;

BE IT RESOLVED: That Agri-Markdoes everything in its power to reducethis cost burden on members and passalong higher milk hauling fuel costs tothe buyers of member milk.

Action Taken: Agri-Mark economist BobWellington testified at a national emer-gency hearing in December 2006 to estab-lish a Class I price adjustment formula andraise those prices when fuel costs rise.USDA rejected our requests in December2008. Wellington re-instituted discussionsin 2012 with the USDA about increasingClass I differentials to at least partially offsethigher fuel costs.

44. Individual Freedom

WHEREAS: Agri-Mark is a familyfarmer owned Northeast Dairy Coop-erative whose members strongly sup-port individual freedom and the rightsof self-determination for individuals;and

WHEREAS: Agri-Mark and its’ familyfarm members understand that in someparts of the world and in some busi-nesses these rights are violated due toslavery or human trafficking; therefore

BE IT RESOLVED: That Agri-Markand its family farmer members reaffirmtheir commitment to make a best faitheffort to ensure that slavery and humantrafficking does not occur in any part ofour supply chain for milk and milkproducts.

Action Taken: This resolution did not re-quire any action during the past year.

Every member has their question answered at every annual meeting,including member Scott Richardson of Woodstock, Vt., shown above.

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2013 Annual Meeting Snapshots

Greg Watson, Massachusetts Commissioner of AgriculturalResources, welcomed everyone to the annual meeting.

Maine members, left to right, Tom Cote, Larry Russell and Peter Watermanhad a chance to catch up with each other during a break between sessions.

The new YC off icers for 2013 are, left to right, SteveBarstow, Vice President; Jay Rizza, President; and MelissaJordan, Secretary.

Members David and Peggy Ainsworth of South Royalton,Vt., right, were looking over their packet of informationbefore the meeting started.

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