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DEALERNortheast

APRIL 2018 c Vol. 20, No. 228

IN THIS ISSUE:3 Observations from the Field4 Welcome New Members4, 6, 8 Association News7 April Specials10 Charter Software Inc.'s Contributions Top $11,00011 An Impossible Skill12 Right-to-Repair Solutions

12 Hiring Vets14 New Battlel for Intellectual Property15 Be The Voice For Your Business & Our Industry18 10 Most Commonly Cited SPCC Violations21-22 Equipment Industry News

NEDA Salutes our Supporting Advertisers. It is our pleasure to list the names of those advertisers who support NE Dealer each month. We trust their advertisement will be remembered when goods and services are required by you, our dealer members. It is good to do business with companies who are interested in doing business with you and your industry association.

www.ne-equip.com The Newsletter of NoRThEAsT EquipmENT DEALERs AssociATioN, iNc.

Recently, FMCSA has received requests to clarify when farm, ranch, and agriculture-related transportation would be subject to FMCSA rules and regulations. FMCSA has provided a comprehensive list of resources for reference in different situations.

Agricultural Exemptions The first resource is the Agricultural Exceptions and Exemptions to the Federal Motor Carrier Safety Administration Hours of Service (HOS) and Commercial Driver's License (CDL) Rules document that is available on the agency's website here. This document provides a broad overview of agricultural exceptions and exemptions. Keep in mind that the ELD rule does not change any of the current hours-of-service exemptions. Therefore, motor carriers that meet the exemptions defined in § 390.3(f)(3) are not subject to Part 395, including the ELD rule, while they are operating under the terms of the exemption. 90-Day ELD Waiver FMCSA has granted a limited 90-day waiver (see page 6) from the hours-of-service regulations related to ELDs, for the transportation of agricultural commodities. This waiver is effective through March 18, 2018 and is available here.

Transportation of Horses Published FMCSA guidance provides an exception for the transportation of horses when the transportation in question is not business related (neither for compensation, nor where the driver is engaged in an underlying business related to the move). In these cases, the Federal Motor Carrier Safety Regulations requirements do not apply, even if prize or scholarship money is offered. This includes the Hours-of-Service (HOS) regulations, requirements for Electronic Logging Devices (ELD) and Commercial Drivers Licenses (CDL) regulations, unless required by the driver's home state. The guidance is available here. Other Exceptions from the ELD Requirement The following are not required to use ELDs (although carriers may choose to use ELDs even if they are not required):

• Driverswhoarenotrequiredtocompleterecordsof duty status (logs) more than 8 days during any 30-day period.

• Driveaway-towaway drivers (where the vehicledriven is the commodity) or the vehicle being transported is a motor home or a recreation

continued on page 10

Farm, Ranch and Agriculture-Related Transportation Exemption Resources

ADVERTISER’S:2 Haylor, Freyer & Coon 5 AgDirect / Farm Credit System9 Preferred Payments10 Lee Newspapers Inc.12 IronSolutions13 HBK CPAs & Consultants14 PGP Energy17 Fastline17 Charter Software20 Lancaster Farming Locator23 OPE Flat Rate Guide24 Federated Insurance

NEDA Workers’ Compensation Safety Group

Exclusively for New York Members of the Northeast Equipment Dealers Association

DIVIDEND HISTORY

ELIGIBILITY

Over 22.3% Average DividendFor The Last 10 Years!

Policy Year2015-20162014-20152013-20142012-20132011-20122010-20112009-20102008-20092007-20082006-2007

Dividend30.0%20.0%15.0%15.0% 5.0%20.0%25.0%37.5%20.0%35.0%

Members of NEDA Inc. Construction/Industrial Equipment Dealers Material Handling & Lift Truck Dealers Farm Equipment Dealers Outdoor Power Equipment Dealers Rental Equipment Dealers with Repair Facilities

ADVANTAGES Aggressive Advance Discount (up to 20%) Excellent Dividend Potential Claims Management & Loss Control Services Monthly Installments for Qualifying Dealers

To see if you qualify, call Pat Burns at Haylor, Freyer & Coon 315-703-9148 / 800-289-1501 or fax a current declaration page to 315-703-8159 or Call Ralph Gaiss (Executive Director of

NEDA) at 315-457-0314 for more information.You may also visit us at www.haylor.com/NEDA

Eligible NEDA Dealers

Purchasing Workers’Comp

From Safety Group #548

Eligible NEDA Dealers

Purchasing Workers’ Comp

From ALL OTHER SOURCES90

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Northeast Dealer | APRIL 2018 … 3www.ne-equip.com

The general information provided in this publication is not intended to be nor should it be treated as tax, legal, investment, accounting, or other professional advice. Before making any decision or taking any action, you should consult a qualified professional advisor who has been provided with all pertinent facts relevant to your situation. This publication is designed to provide accurate and authorita-tive information in regard to the subject matter co v ered. It is furnished with the understanding that the Northeast Equipment Dealers Association, Inc., the publisher, is not engaged in rendering legal, accounting or other professional service. Changes in the law duly ren-der the information in this publication invalid. Legal or other expert advice should be obtained from a competent professional. Some of the editorial material is copyrighted and may be reproduced only when permission is obtained from the publisher and the association.

Board of DirectorsOfficers

JOhn e. KOMArisKY, PresidentMain & Pinckney Equipment Inc. / Auburn, NY315-253-6269 - FAX 315-253-5110New Holland, Simplicity, Brillion, Bush Hog [email protected]

nATe shATTUcK, 1st Vice President / TreasurerDevon Lane Farm Supply, Inc. / Belchertown, MA413-323-6336 • Fax: 413-323-5080Yanmar, Landini, Monosem, Ferris, Simplicity, Stihl, [email protected]

crAig hOUseKnechT, 2nd Vice President EDA & UEDA/NEDA OPE Council MemberMoffett Turf Equipment (MTE) / West Henrietta, NY585-334-0100 • Fax: [email protected], Mahindra, Ventrac, Smithco, Turfco, Redexim, Golf Lift, Lely, Ryan, RedMax

rOBerT sPOhn, Immediate Past PresidentSharon Springs Garage / Sharon Springs, NY518-284-2346 • Fax: 518-284-2774AGCO, White, Hesston, Gehl, Kubota, Allis, [email protected]

rALPh gAiss, CEO and Executive Vice Pres.800-932-0607, Ext. 222 • Fax: [email protected]

DirecTOrsJOsh AheArn, Past President 2016Ahearn Equipment, Inc. / Spencer, MA508-885-7085 • Fax: 508-885-7261Kubota, Cub Cadet, Stihl, NAPA [email protected]

scOTT BAirMountain View Equipment, Inc. / Plattsburgh, NY518-561-3682 • Fax: 518-561-3724John Deere AG/CCE, Claas, Kuhn Knight, Kverneland, Stihl, Husqvarna, Frontier, Servis, [email protected]

BriAn cArPenTer, Past President 2009Champlain Valley Equipment / Middlebury, VT802-388-4967 • Fax: 802-388-9656New Holland, Case IH, Kubota, [email protected]

BrAD hersheYHoober, Inc. / Mifflintown, PA717-436-6100 • Fax: 717-463-2312Case IH, JCB, [email protected]

eD hines, Past President 2014, 2001Hines Equipment / Cresson, PA814-886-4183 • Fax: 814-886-8872Case IH, Gehl, New Idea, Cub [email protected] BrYAn MessicKMessick’s Farm Equip./ Elizabethtown, Pa. 717-361-4836 • Fax: 717-367-1319New Holland, Kubota, Krone [email protected]

scOT L. sTAnTOn, Past President - 2003Stanton Equipment Inc. / East Windsor, CT860-623-8296 • Fax: 860-627-9832John Deere Ag., Knight, Athens, [email protected]

WenDeLL WALLDrOff, Past President - 2002Walldroff Farm Equip., Inc. / Watertown, NY315-788-1115 • Fax: 315-782-4852New Holland, Hesston, Woods, White-New Idea, AGCO, [email protected]

I attended the EDA Fly-in March 20-22 in D.C. and would have liked to see many of you there as well. It is important that the “inside the belt-way” crowd, understand your concerns and chal-lenges and that you (their constituents) gain an understanding and insight into how the legisla-tive process works in our capital. Understanding who is advocating/lobbying legislators and the potential impacts suggested changes will have on your dealerships, customers and employees enables you to both plan and have an impact on what polices/laws/regulations are adopted. Trade policy, EPA, Transportation and Banking regulations, the Farm Bill, are just a few of the policies/regulations/laws that can have a direct impact on your dealerships profitability! When we actively engage with legislators and their

staff they are more likely to enact legislation and develop policies in support of our dealerships, customers and employees – everyone wins! Think advocating does not pay. I would argue otherwise. Nick Bernabe reported on MPN that Corporations Lobbying Government Reap 76,000% Return on Investment noting that between 2007 and 2012, 200 of America’s most politically active corporations spent a combined $5.8 billion on federal lobbying and campaign contributions. Does that mean your dealerships need to spend hundreds of thousands of dollars? No! That said I could assure you that your contributions to our legal/legislative fund and time spent contacting legislators (both state and federal) pay equal dividends! Speaking of which, I would like to offer a huge thank you to those dealers who contributed to our legislative fund so far, legislative work is expensive, annual dues simply do not cover lobbying “investment(s)”! We have made great progress but have a long way to go towards our goal of $20,000 for 2018! We continue working to amend the dealer laws in our region and are mak-ing good progress in Connecticut were HB 5191 continues to move forward thanks to the testimony and support of our member dealers. In addition to state dealer laws, we have joined with EDA (Equipment Dealers Association) and AEM (Association of Equipment Manufacturers) and are working to defeat Right-to-Repair legislation in Massachusetts, New Hampshire, Vermont, New Jersey and New York. Please let me know if you have any questions. Please contact your legislators and ask that they act on your behalf! You should have already received information/talking points from NEDA regarding these legislative bills in your inbox. It goes without saying the more dealer voices we have, the more successful we will be! “When we work together as an Equipment Dealer Association, we speak in a unified voice. Together we can achieve what individuals could not; the ability to attain our mutual goals."

Observationsfrom the FIELD

Tim WentzField Director /

Legislative Committee Chairman

717.576.6794

4 … Alone we can do so little ... together we can accomplish great things!

ASSOCIATIONCT ME MA NH NJ NY PA RI VTCT ME MA NH NJ NY PA RI VT

NEW MEMBERNEW DEALER MEMBER

CT PoWER & SPoRTPrincipal: Peter Joyce 935 North Main St. Ext. • Wallingford, CT. 06492203-265-1206 F: 203-265-7822E-mail: [email protected] carried: John Deere, Honda, Yamaha, Suzuki, BRP/Seadoo, Polaris, Stihl, Exmark

Please Join Us In Welcoming Our New Members To Neda.

New York Farm Show Future Dates Following are dates for upcoming New York Farm Shows. Make sure to reserve the dates so we can see you there. 2019 - February 21 - 23 2020 - February 27 - 29 2021 - February 25 - 27 2022 - February 24 - 26 2023 - February 23 - 25

Regional Meeting Videos AreNow Available If you weren’t able to attend the 2018 Regional Meeting, never fear! NEDA has digitally recorded each session and are bringing it to you at a low cost for members at $29.95 and $49.95 for non-members. This years agenda covered the following: • PreferredPaymentsCreditCardProgram • FederatedInsuranceRiskManagement • NEDANewlyEndorsedHealthcareProgram • DealershipSuccessionPlanning • DealershipTheftSchemes • Doublingyourbusinessinthenext12months Call the Association 1-800-932-0607 for the regional meeting seminar and information on how to purchase the video of the meeting.

Northeast Dealer | APRIL 2018 … 5www.ne-equip.com AgDirect is an equipment financing program offered by participating Farm Credit System Institutions.

This is a time when equipment buyers need the best deal, and AgDirect® can help you give it to them. With our purchase and lease options, competitive rates and ag-friendly terms, AgDirect helps you deliver the financing flexibility producers want, to preserve the working capital they need.

Offer AgDirect. There’s never been a better time for simple, fast and flexible financing.

Learn why more dealers are choosing AgDirect. Call us or visit agdirect.com today.

Today, offering the right equipment financing has never been more important.

Dan AbrahamsonCT, ME, MA, NH, NJ, NY, RI, VT(607) 765-6271



Pennsylvania Cows Counted Dairy cow numbers in Pennsylvania as of January 1st, are at 525,000, unchanged from the previous year, according to King Whetstone, director of USDA’s National Ag. Service, Northeastern Regional Field Office. The cattle Report and all other NASS reports are available online at www.nass.usda.gov.

Farm Numbers Down The number of farms in Pennsylvania for 2017 is estimated at 58,000, down 200 farms from 2016, according to USDA’s National Ag. Statistics Service, Northeastern Regional Office. Total land in farms, at 7.63 million acres, was unchanged from 2016. The average farm size for 2017 is 132 acres, up 1 acre from the previous year. The complete Farms and Land in Farms report is available online at https://usda.mannlib.cornell.edu/mannUsda/viewdocumentInfo.do?documentID=1259.

FMCSA Announces New ELD Waiver for Transporters of Agricultural Commodities and Additional Transition Guidance(Effective 3-20-18, another 90 day exemption authorized) The U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) today announced additional steps to address the unique needs of the country's agriculture industries and provided further guidance to assist in the effective implementation of the Congressionally-mandated electronic logging device (ELD) rule without impeding commerce or safety. The Agency is announcing an additional 90-day temporary waiver from the ELD rule for agriculture related transportation. Additionally, during this time period, FMCSA will publish final guidance on both the agricultural 150 air-mile hours-of-service exemption and personal conveyance. FMCSA will continue its outreach to provide assistance to the agricultural industry and community regarding the ELD rule. Beginning April 1, 2018 full enforcement of the ELD rule begins. Carriers subject to Federal Motor Carrier Safety Regulations (FMCSRs) that do not have an ELD when required will be placed out-of-service. The driver will remain out-of-service for 10 hours in accordance with the Commercial Vehicle Safety Alliance (CVSA) criteria. At that point, to facilitate compliance, the driver will be allowed to travel to the next scheduled stop and should not be dispatched again without an ELD. If the driver is dispatched again without an ELD, the motor carrier will be subject to further enforcement action. For more information on ELDs please visit at: https://www.fmcsa.dot.gov/hours-service/elds/electronic-logging-devices -- BACKGROUND: Agriculture haulers operating within 150 air miles of the source of their agriculture products or livestock do not have to comply with DOT’s hours-of-service regulation, which limits driving hours to only 11 hours after being off duty for more than 10 consecutive hours. For more information on the hours-of-service exemption for agriculture shipments, visit this U.S. DOT webpage: www.fmcsa.dot.gov/hours-service/elds/eld-hours-service-hos-and-agriculture-exemptions. For more information on agriculture commodities that are transported to domestic and foreign markets, visit this USDA webpage: www.ams.usda.gov/services/transportation-analysis. (See page 1)


AG-KIT-LED-HD

Stop * Tail * Turn __________________________________________________________________________________________________

Order Form Item # Qty. Cost Each Total Dealership Name: __________________________ AG-KIT-LED-HD _______ $163.05 _____ Shipping Address: __________________________ AGKITLEDHDMAG ________ $173.62 _____ City, State, and Zip: ____________________________ ____________________________ SUB TOTAL ________

Terms: NET 30 DAYS TO APPROVED MEMBERS (If not for resale) TAX ________

Freight: PREPAID FREIGHT ON CASE QUANTITIES SHIPPING _________ TOTAL _________

Payment Method (Prepayment is required) Check Enclosed (Payable to NEDA) __________ Credit Card (VISA or MC) Acct # ____________________________________ Exp. Date: ___________ (Circle One) Cardholder Name: _____________________________ Signature: _________________________________________

128 Metropolitan Park Drive, Liverpool, New York 13088 • PO Box 3470, Syracuse, New York 13220

800-932-0607 / 315-457-0314 Fax: 315-451-3548 Website: www.ne-equip.com

OFFER EXPIRES April 30, 2018

Serving Farm, Industrial & Outdoor Power Equipment Dealers Since 1901

***APRIL 2018***

AG-KIT-LED-HD Regular Price $181.15 Special Price $163.05 Retail Price $301.97 AGKITLEDHDMAG Regular Price $192.91 Special Price $173.62 Retail Price $321.58

4 Amber LED lights (forward & rear facing) & 2 red LED lights (rear facing) per kit

35′ bonded cable (wishbone) with 7 pin plug Also available with Magnet kit AGKITLEDHDMAG with magnets



Is Your Information Up-to-Date? We thrive on doing everything possible to ensure that your dealership database is as accurate as possible and all information goes to proper management in your establishment. To do this, we need to make sure our records match yours. This is very important data for the Association:

• Legislativeissuesarealwaysarising• Manufactureragreementsarealwayschanging,andmaybeinneedoflegal

review by us to help protect you before you sign. • Newprogramsarebeingintroduced• Dealermeetingsarebeingintroduced• and much more important information that you need to know that could

affect your business As rapid changes continue in our Industry we cannot advise you of these changes unless our data is up to date. Email addresses, lines carried, departmental manager’s names, total number of employees and all branch locations. Changes happen all the time and we need and should know this!! So, please notify us whenever you add or stop representing an equipment manufacturer, when your email address changes, if a department manager has changed, (all managers or anyone in your dealership can receive our e-mails , just add them to your file) if you added a new location or moved to a new location, etc. We send you information on a timely basis, but you will ONLY receive it if you keep us up to date on changes taking place in your dealership. As a valued member, we do not want you to miss any important information or opportunities that might affect your business either positively or negatively. To get the Membership Data Verification file go to https://www.ne-equip.org/wp-content/uploads/2018/03/Membership-Database-Corrections.pdf. Please take a minute fill out ALL information (please fill one out for each branch location) and either mail, e-mail or fax back to:

NORTHEAST EQUIPMENT DEALERS ASSOCIATION128 METROPOLITAN PK DR, LIVERPOOL, NY 13088

FAX TO: 315-451-3548Email: [email protected]

Thank you!!!

Komatsu Acquires Pine Bush Equipment The PBE Group, consisting of Pine Bush Equipment Co. Inc. and East PBE Inc., entered into a purchase agreement Feb. 5, 2018, with Komatsu, through its subsidiary F and M Equipment Ltd., to purchase the assets of PBE group subject to a period of due diligence and final approval of Komatsu Ltd. (with the exception of the Kubota line of equipment and parts). “The Boniface family felt strongly that this [purchase agreement] will strengthen the legacy our parents began as we celebrate 61 years in business, and although we will not be the owners, the Boniface Family remains deeply committed to you, your business, and our mutual well-being and success,” said Pine Bush Equipment in a prepared statement. “Over the years the business landscape will change. We must adapt and be flexible and responsive to these changes. We must do what's best for you, our esteemed customers and our group of dedicated employees.” The Boniface family will remain with the operating companies. ~ Courtesy of Construction Equipment Guide


Charter Software Inc. recently announced total donations through their philanthropy, Charter4Charity exceeded $11,000. in 2017. Since the program’s inception in 2015, Charter4Charity has donated to mul-tiple organizations sponsored by part-ners in the agricultural, construction, industrial, powersports, material han-dling and golf car industries. Organizations that have benefitted include:

• Equipment Dealers Foundation’s Disaster ReliefFund

• WoundedWarriorProject• BlessingsinaBackpack• BigBrothersandBigSistersofAmerica• CallofDutyEndowment• FarmerVeteranCoalition

Charter4Charity supports the Charter Software’s cause to help people flourish at every opportunity. Funds were raised at various dealer and industry meetings throughout the country.

“I am proud of the money we have been able to con-tribute so far with Charter4Charity, especially in recent

years where there have been several nat-ural disasters that impacted the industries we serve” Anne Salemo, Charter Software President/CEO said. “I hope to see more people join the movement and consid-er incorporating philanthropy into their organization’s overall effort.”

About Charter Software Inc. Charter Software provides scalable, integrated Microsoft-based business management software designed to increase communication and profitability across all departments for equipment dealerships, golf car, and turf distributorships. ASPEN, Charter Software's business man-agement software, provides mobile and rental tools that help companies manage multiple aspects of their business both in and out of the office. They can be reached at Chartersoftware.com, [email protected] or (303) 932-6875. NEDA endorsers Charter Software.

Charter Software Inc.’sCharter4Charity Philanthropy

Contributions Top $11,000

Transportation Exemption Resourcescontinued from page 1

vehicle trailer (at least one set of wheels of the vehicle being transported must be on the surface while being transported)

• Drivers of vehicles manufactured before modelyear 2000.

A list of all active ELD waivers and exemptions is located below. If ELDs are Required If an entity is subject to the Federal Motor Carrier Safety Administration's hours-of-service rules and is required to use ELDs, additional information is available at:

• ELDWebsite:www.fmcsa.dot.gov/elds• ELD FAQs: https://www.fmcsa.dot.gov/hours-

service/elds/faqs • A listing of registered and revoked ELD

devices:https://3pdp.fmcsa.dot.gov/ELD/ELDList.aspx

More Information ELD questions should be sent to: [email protected]


E-BytesE-BytesAdvertise in NEDA’s Weekly

don’t miss your opportunity!YOU COULD BE CONNECTING WITHPEOPLE ABOUT YOUR BUSINESS. * Building Relationships * Raising Awareness

* Showcasing Products * Making Sales

Looking to get business information out and in front of thousands? Look no further than the NEDA Weekly E-Bytes and monthly newsletter! We will offer ad banner space above the fold in the Weekly Update, providing optimal value to you and your business.

Our dealer members and their key employees sell agriculture, construction, forestry, large property/rural lifestyle and outdoor power equipment and look to NEDA Weekly E-Bytes for the latest equipment industry news, advocacy items, government policy updates and other information they need to drive their business successfully.

NEDA Weekly E-Bytes is electronically sent 52 times a year to dealerships throughout CT, MA, ME, NH, NJ, NY, PA, RI & VT reaching equipment dealer principals and their key employees.

Advertising in NEDA Weekly E-Bytes is simple and effective. Contract schedules can range from one month to annually. A hyperlink will be positioned on your ad enabling dealers to click straight through to your Website.

Questions - call 800-932-0607.

Ad Sizes | Ratesad rates are 4 issues per monthPrices subject to change

150 x 150 pixels1 month ... $175

3 months ... $365 per month 6 months ... $350 per month

12 months ... $325 per month

150 x 300 pixels1 month ... $200 3 months ... $550 per month



MaterialsAd sizes are in pixels

Ads can be static (JPG, PNG)or animated GIFs up to 50kb

Special edition E-Bytesare not included.

NEDA E-Bytes is distributed weekly.

Ad submissions are due by noon Friday prior to publishing date.

An impossible skill As you’re reading this article, are you doing something else at the same time? Maybe you’re eating, listening to the radio, or even planning your day. You might think you’re multitasking, but—and this may come as a surprise—you’re not. Scientists have learned that our brains don’t process more than one stream of information at a time.1

When you read, your brain absorbs the infor-mation it receives through the act of reading. You may be conscious of the radio in the background, but, to be fully aware of the song that’s playing, your brain drifts to the music for a few seconds. When that happens, you no longer comprehend the words on the page. The time “away” is so fleet-ing that you may not realize you’re not fully fo-cused on the original task of reading, leading you to believe you’re multitasking. Knowing what you know now about your brain’s inability to process simultaneous activi-ties, do you still think you can multitask behind the wheel? Keep in mind that, during the time your mind wanders from focusing on driving to focusing on a distraction, your vehicle may have traveled hundreds of feet. And, depending on the duration of the distraction, the trip could involve events much more disastrous than just “unconscious” driving. Employers whose employees drive on behalf of the company have a responsibility of ensuring their employees are safe drivers. They need to under-stand the gravity of a distracted driving incident, and the potential risk to others, themselves, and their employer—and possibly their job. Explain the three kinds of distractions to your employee drivers, then work together to de-vise ways to avoid them.

• Visual – anything that takes your eyes off the road, both inside and outside the car.

• Manual – anything that takes your hands off the wheel. Two hands are much better than one for making corrective maneuvers.

• Cognitive – anything that takes your mind off driving. This is known as inattentive blind-ness. It’s often what happens when you drive somewhere and don’t remember the drive it-self.

As much as we’d all like to believe we can multitask, our brains simply are not wired to do so. Being distracted while reading is relatively harm-less; being distracted while driving is not. When you’re focused on driving, it could help you avoid the guy in the next lane who isn’t.

~ Federated Insurance Co.1 http://www.forbes.com/sites/carolkinseygoman/2011/04/26/the-myth-of-multitasking/; contributed by Carol Kinsey Goman2 “The Myth of Multitasking” by Christine Rosen, The New Atlantis, 2008 http://www.thenewatlantis.com/docLib/20080605_TNA20Rosen.pdf


Manufacturers and dealers support end-us-ers’ ability to perform service and repair on their machinery to minimize downtime and maxi-mize productivity. But in recent years, some state legislatures have begun considering “Right to Repair” laws that would jeopardize the safety and sustainability regulations governing modern farm equipment. Special interest groups have pushed for overly-broad proposals that would raise the possibility of giving unauthorized access to the software code that manufacturers develop as part of their machinery. "Right to Repair" bills have appeared in 5 of our 9 Northeast states we cover in our Association. We encourage you to:

• Begin educating your workforce about theissue and its implications.

• Keep alert to activity at the Farm Bureauland Farmer's Union level, and if raised, seek out opportunities to discuss the issue.

• Be prepared to discuss this issue with yourcustomers in a way that will emphasize the detrimental impact this type of legislation could have on the dealer/customer relation-ship and on their own businesses.

Let NEDA or EDA know if you want resources

you can use to prepare for these types of discus-sions. In the meantime, we encourage you to visit http://www.r2rsolutions.org/ and to read the State-ment of Principles developed by AEM and EDA.

Hiring Vets Looking for dependable employees? Hire a Veteran. Post-9/11 veterans are seeking these top job consider-ations: salary or employee benefits (67%), advancement or promotion opportunities (58%) and on-the-job training opportunities (32%). 61% of Post 9/11 veterans seek jobs on general job boards like Indeed.com or Careerbuilder.com 89% of post-9/11 veteran employees have never been asked by an employer for their feedback regarding its vet-eran hiring program. Use the talent you have to recruit veterans. 53% of veterans wish their employers would offer more on-the-job training or certification opportunities. Contact Mimi Thomas-Brooker, Coordinator, PA Veteran Farming Project/Troops to Tractors at www.troopstotractors.org, 724-691-1087, email: [email protected]. Click: veteranjobs.stripes.com/resources/vet-reps.

Be proactive withRIght-to-RePAIR SoLutIonS

(877) 266-IRON | [email protected] | .com

Information is sourced from major online listing services, dealer submissions, and more.

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CERTIFIED BUSINESS VALUATIoNSHBK, CPA's & ConsultantsRex A. Collins, CPA (IN), CVA PrincipalDirect: (317) [email protected] • www.hbkcpa.com

CREDIT CARD PRoGRAMPREFERRED PAYMENTSJason Carroll Senior Account ManagerDirect: 805-557-8043800-935-9309, Ext. 126F. [email protected]

HEALTHCARE INSURANCE PRoVIDEROpoc.usCare Center – 886-676-2871Chris Havey or Luc Nutter – 614-318-2200

FEDERATED INSURANCE CoMPANYProperty & Casualty Insurance (8 states except VT), Health Insurance (PA only)Workers' Comp (All states except NY)Daniel Dowdy at C: 706-318-5051, 800-533-0472, Fax [email protected] • www.federatedinsurance.com

HAYLoR, FREYER & CooN, INC.Benefit Consulting Jim McGarvey Supervisor Benefit Consulting 315-703-3239 • [email protected] Damage Insurance (HF&C, Inc.),Rental / Leasing EquipmentPatrick Burns at 800-289-1501, Ext. [email protected] • www.haylor.com

HAYLoR, FREYER & CooN, INC. (continued)Workers' Comp (Return Dividend Program for NY Dealers only)Property & Casualty Insurance for VT Patrick Burns at 800-289-1501, Ext. [email protected] • www.haylor.com

LEGAL ASSISTANCE – FREE LIMITED Dave Shay at 816-421-4460Fax: 816-474-3447 • [email protected]

NEDA oN-LINE CAMPUSDave Close at 800-932-0607 x [email protected]

oSHA WoRKPLACE SAFETY CoMPLIANCE PRoG.Dave Close at 1-800-932-0607 Ext. [email protected]

DEKRA INSIGHTCERTIFIED SPCC PLANDave Close at 800-932-0607 x 235Robb Roesch at 800-888-9596 x [email protected]

ASSoCIATIoN STAFFRalph Gaiss, Executive VP/CEO800-932-0607 x [email protected]

Dave Close, Operations Manager800-932-0607 x [email protected]

Kelli Neider, Administrative Assistant800-932-0607 x [email protected] (Business Forms)

Tim Wentz, Field Director / Legislative Committee ChairmanC: 717-576-6794, H: [email protected]

Scott Grigor, NY Farm Show Manager800-932-0607, Ext. [email protected]

Art Smith, Consultant/Editor, NE Dealer717-258-8476, F: [email protected]

ACCoUNTING SERVICESHBK, CPA's & ConsultantsRex A. Collins, CPA (IN), CVA PrincipalDirect: (317) [email protected] • www.hbkcpa.com

CHARTER SoFTWARE BUSINESS SYSTEMSMelissa Amen303-932-6875 - Ext. [email protected]

For Service / SPoNSoreD ProGrAMS,cAll Your ASSociAtioN

800-932-0607 • 315-457-0314 • Fax: 315-451-3548 • www.ne-equip.com

[email protected] | 317-886-1624 | hbkcpa.com

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BY BART BASI

The New BaTTle for INTellecTual ProPerTy IN The Day of The INTerNeT

aND KNowleDge ecoNomy There is a popular misperception among a lot of small and closely-held business owners regarding their business name. State law demands that any corporation formed within that state must have a name unique from others within the state. Therefore, many business owners mistakenly assume that their name registration confers unlimited rights to that name. This is simply not true and can unfortunately lead to expensive legal issues. In order to correct this misconception, it is important for business owners to have a basic understanding of certain intel-lectual property terms. A trade name is essentially the name used by an entity to conduct business and is defined as a name which by user and reputation has acquired the property of indicating that a certain trade or occupation is carried on by a particular

person. Using a trade name does not necessarily grant you any trademark or service mark rights, unless the name is being used in a manner that fits within the definition of those terms. A trade-mark is defined as a distinctive mark, motto, device, or emblem, which a manufacturer stamps, prints, or otherwise affixes to the goods he produces, so that they may be identified in the market, and their origin be vouched. Additionally, a service mark is a mark of identification or a brand that is associated with a service the way a trademark is associated with goods. The ease of finding this information online, coupled with electronic filing procedures, has greatly added to the volume of trademarks and intellectual property filings. There are more trademarks being filed today and more litigation over the use of those trademarks than ever before. The area of intellectual property has exploded in the past ten years. Adding to the scope of the litigation is that not long ago, in the late eighties and early nineties, the world largely existed with very limited means of communication. Communications were mainly done by landline telephone, bills were paid through the mail, and when a relative or friend moved away you rarely heard from or saw them again. The Yellow Pages (in physical book form) was the Google of its day. If you wanted a phone number, that was your source and it only covered your local area. Since then, the Internet has come of age and has brought the world into an era of knowledge and countless forms of convenience. Bills are paid online and two way video commu-nications is free. If you need a number, Google will find almost anyone or any business you want to call. This is another reason why there is more litigation regarding intellectual property and trademarks. For example: if a small to midsized business had a company in Illinois, such as Ben’s Pizza perhaps, in the eighties, another company known as Ben’s Pizza (in California) would never have the knowledge the two coex-isted. Now, with the use of Google and other search engines, the two can learn of potential conflict in no time. This search revealed 584,000 hits and according to a USPTO search, only one “Famous Ben’s Pizza of Soho” related trademark exists on record. Does the owner of this trade mark, NAP, Inc. have some work to do? There are potentially thousands of conflicts in intellectual prop-erty that exist right now. If you are in business and incorporated or organized in any particular state, I challenge you to run a name search on any search engine. How many other companies are using your identical or name eerily similar to the one that you choose? If you have concerns regarding your intellectual property rights, or need to have your business appraised for other busi-ness related matters, the experts at The Center are always avail-able to help at (618) 997-3436 or www.taxplanning.com.


By KIM SCHMIDT POSTED ON MARCH 26, 2018 | POSTED IN MfR. & DEALER ISSuES

Be The VoIce foryOuR BuSINESS & OuR INDuSTRy Last week I had the pleasure and honor of join-ing the Equipment Dealers Assn. and many of you out in Washington, D.C. for the AED/EDA Fly-In. And despite the federal government being shut-down due to a light snow storm, it was a busy and productive 3 days in the capital. After spending Wednesday being briefed on some of topics we’d be lobbying in support of, we took to the Hill on Thursday, meeting with congressmen. The primary points of emphasis were infrastructure — primarily the need for rural broadband, avoiding a trade war and what tariffs could mean for the ag economy, and workforce development. While there was a good number of dealers at the event, there were certainly more who stayed home than made the trip out to D.C. What kept you home? During his opening comments, Tom Rosztoczy, president of Stotz Equipment and EDA Board Chair, shared a story about how he was unsure of what sort of difference he was making after his first Fly-In.

Right to Repair legislation had come up in Wyoming, where Stotz has two locations, but the dealership didn’t learn about the legislation until a week before it was going to be voted on. With the help of the Far West Equipment Dealers Assn., they got to work and through grassroots efforts were able to make a big impact. While the bill passed com-mittee without any problems, overwhelmingly the legislature voted against it, largely due to dealers reaching out and stating their case. “The opportunity for impact comes more from building relationships and beating the drum. Then, perhaps at some point in the future when some-thing serious is there, that we have significant interest in, then the relationships we build this week can come into play and we can actually have an impact,” Rosztoczy says. “These events help us build infrastructure, so we know how to organize, we know how to get dealers in, and get dealers connected to their senators and representatives.”

continued on page 18

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BY JoHN CHAPIN

THE BIggEST MISTAKESSalespeople make

Mistake #1: Thinking that servicing accounts is more important than selling new ones I once had a coaching client show me a stack of folders and say, “This is why I can’t be out calling on new clients.” When I asked what had to be done, she picked up the first folder and said, “I’m waiting for a number from the State of Rhode Island on this one.” To which I responded, “Really? I’ve heard every excuse for servicing accounts from “they’ll only deal with me”, to “I want to make sure it’s done right.” These are simply excuses to avoid the hard work of going out and making calls. Salespeople are hunters, service people are gathers. Outside of renewals, scheduled service calls, and emergencies, clients should be dealing with CSRs and other support people. As a salesperson your job is to sell, not service. If you are hiding behind the excuse that your clients will only deal with you, that’s because you’ve trained them to do that. Time for retraining. If you think you are the only one who can do it, you’re wrong, get over yourself. Any time you are servicing, outside of renewals, sched-uled calls, and major issues, you are doing yourself, your company, your client, and your future clients a disservice. It’s what we call a lose/lose/lose/lose. Go sell and stop hiding behind service.

Mistake #2: Majoring in minor things and finding other time wasters I once had a sales manager remark to me, “During the major snow storm last week, when people were confined to their houses, my top salesperson was calling people at home because he had a captive audience. My other salespeople were baking cookies and posting pictures on Facebook.” This along with chatting with friends and colleagues, check-ing e-mail more than four times a day, taking ten coffee breaks, and, in general, finding things to do other than calling on pros-pects and customers, are examples of time wasters. Spending two hours looking up prospect information before you call, servicing clients on routine items as in Mistake #1 above, and spending time practicing your call 400 times before the call, are all exam-ples of majoring in minor things. Your highest priority is to spend time with prospects and “sometimes” your top 20% of customers (again, renewals, scheduled calls, and emergencies). You should be talking to, or on your way to talk to, prospects and customers 80% of the time during prime calling hours.

Mistake #3: focusing on reactive versus proactive marketing The fastest and best way to build business is by making phone calls and knocking on doors. It is the most effective and only one in which you have almost complete control over. Worse yet, hanging out on social media or sending blind, unsolicited e-mails in hopes of getting business.

Mistake #4: Not being prepared for and not practicing sales situations If you are in leadership, I dare you to walk up to one of your salespeople who has been with you a while and ask, “What do you say when someone says…” and then give them a common, every-day objection they get like, “they’re not interested?” I prom-ise you that 9 times out of 10 the first verbal sound out of their mouth will be “Ahhhh”. It happens to me all the time. You have to be prepared for every sales situation you’re going to encounter and you have to practice ahead of time. Ideally with another human, but if not, with yourself. Each and every answer has to be scripted and committed to memory so that you know it verbatim and can respond immediately in a real-life sales situ-ation.

Mistake #5: No goals, no plan, and no clue how much activity has been done, or needs to be done, in order to be successful Whenever I begin working with someone one of the first questions I ask them is, “How many calls did you make last week on brand-new prospects?” As with the objection above, I am usu-ally met with “Ahhhh.” Usually followed by a guess, like, “Um, I think about 4.” “You think four? Is that number too big to count?” The truth is: they didn’t keep track and it wasn’t four. It may have been two, or even zero. In order to be successful, you have to have annual, monthly, and weekly goals, along with knowing the daily activity necessary to make those goals a reality. Then you have to make the calls.

Mistake #6: giving up too soon 81% of sales are made after the four contact. Roughly 20% of salespeople make it past the fourth contact. Enough said.

Mistake #7: Not doing the work necessary 99% of the time a salesperson fails it’s due to a lack of activ-ity. Not making enough calls, to talk to enough people, in order to make enough sales. The other 1% of the time, the salesperson got hit by a bus. Since activity is the primary reason for success or failure, I could have led off with it, but it’s so obvious you probably would have stopped reading.

John Chapin is a motivational sales speaker and trainer. For his free newsletter go to: www.completeselling.com. John has over 29 years of sales experience as a number one sales rep and can be reached at [email protected].


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NortheastEquipmentDealersAssociationEstablished 1901

Committed to Building The Best BusinessEnvironment for Northeast Equipment Dealers

Be The VoIcecontinued from page 15

During the closing reception Tim Wentz, field director for the Northeast Equipment Dealers Assn., asked me what it’s going to take to get deal-ers more politically involved and active. I didn’t have an answer for him. I didn’t understand either. From dealer bill of rights laws and right to repair, and a host of other issues, there is a lot of legisla-tion— on the state and federal levels — that could directly impact your business. So here’s my chal-lenge to you: If you couldn’t make it out to D.C., visit your senators and representatives at their district offices (they’re home right now). Get to know your state and local officials. Speak up for yourself, for your business and for our industry. Build the relationship so when you need them, they know who you are and want to fight for you.

~ Courtesy of Farm Equipment MagazineUsed with permission of Lessiter Media (LM)

10 Most CommonlyCited SPCC Violations Regulated by the EPA (Environmental Protection Agency), the Spill Prevention, Control and Countermea-sure (SPCC) regulation was originally published as part of the Clean Water Act in 1973. With the goal of the regu-lation being to prevent oil from reaching navigable wa-ter; and to contain discharges of oil, it has been amended several times since 1973. These amend-ments ensure facilities with bulk oil sup-plies have proper plans and procedures in place to pro-tect our water sources from oil contamination. To get a better understanding of what a proper SPCC plan must entail, a team of environmental safety professionals put together a list of the 10 most commonly cited SPCC vio-lations. Click here - https://www.ne-equip.org/wp-con-tent/uploads/2018/02/SPCC.pdf - to see the 10 most com-monly cited SPCC Violations.

P Legislative RepresentationP Dealer-Supplier RelationsPLegal Counsel HotlinesP Business and Group InsuranceP Monthly Newsletters and Weekly EmailsP Credit Card ProgramP EndorsementsP Human Resource (HR) ManagementP Annual Regional MeetingsP Business Forms & SuppliesP Trade-in and Flat Rate GuidesP Cost of Doing Business SurveysP Wage SurveysP National AffiliationP www.ne-equip.comP Staff Resources / Information

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F arm equipment manufacturers and their dealers support their customers by working to maximize productivity and reduce downtime for machinery.

That is why farm equipment manufacturers and dealers are making a commitment to make available a comprehensive toolkit of maintenance, diagnostic and repair information for tractors and combines by 2021.

While much of this information is already available, manufacturers and dealers are going the extra step to provide end users with commonsense solutions to perform basic maintenance and repairs, or determine when to involve a dealer in more complex repairs.

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RIGHT TO REPAIR ≠ RIGHT TO MODIFYThis commitment ensures that farmers and ranchers have the tools they need — and have asked for — to perform basic service, maintenance and repairs. Overly-broad “Right to Repair” legislation is not only unnecessary — it would risk the safety, durability and environmental sustainability of equipment.

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EQuIPMENT INDuSTRy NEWS

Use of all articles in the Equipment Industry News pages are used with permission of Lessiter Media (LM), Ag Equipment Intelligence issue of March 15, 2018, Vol. 24, Issue 3. Use of any of the articles and information contained in Ag Equipment Intelligence, Rural Lifestyle Dealer or any other Lessiter Publication Media Brands requires permission of the publisher.

perkins Engines Realigns u.s. Distribution channels Diesel power manufacturer Perkins Engines is re-aligning its North American distribution network with the appointment of Clarke Powered Solutions to service the Midwest and Northeast U.S. Kirk Andreae, president of Clarke Powered Solutions emphasized that the company has the capabilities and demonstrated performance to service current Perkins powered fleets and provide local technical support with engineered solutions for OEM customers. “The appointment represents a great opportunity for Clarke to expand and support Perkins’ customer base, having served customers in this industry for more than 50 years,” he said.

combine, 4WD sales, offset Drop in high horse power North American sales of high horsepower (100-plus HP) tractors declined in February, but part of the drop off was absorbed by higher sales of combines and 4WD tractors, according to the Assn. of Equipment Manufacturers February report on farm machinery sales. In his analysis, Mircea (Mig) Dobre, analyst for RW Baird, noted that two underlying positives for ag machinery sales. “U.S. dealer inventory in absolute and days-sales terms continues to decline across large ag categories. Corn and soybean prices on the move — corn +11%, soybeans +8% year-to-date — as drought in Argentina has reduced yield and production expectations.

~ Courtesy ofAgriculture Equipment Intelligence

Ag Equipment Intelligence/March/2018 7

North American sales of high horsepower (100-plus HP) tractors declined in February, but part of the drop off was absorbed by higher sales of combines and 4WD tractors, according to the Assn. of Equipment Manufacturers February report on farm machinery sales.

In his analysis, Mircea (Mig) Dobre, analyst for RW Baird, noted that two underlying positives for ag machinery sales. “U.S. dealer inventory in abso-lute and days-sales terms continues to decline across large ag categories. Corn and soybean prices on the move — corn +11%, soybeans +8% year-to-date — as drought in Argentina has reduced yield and production expectations.”

U.S. sales decreased 5% year-over-year (4WD +9%, combines +34%, row crop –20%), while Canadian sales increased 8% (4WD +15%, row-crop +8%, combines –3%).

Combine sales grew 24.4% in February following a 4.8% decline in January. Last 3 month (L3M) sales increased 4.8% year-over-year after a 3% L3M increase last month. U.S. combine inventories decreased 3% year-over-year in January; days-sales of inventory (64) was down from last year (72).

Row-crop tractor sales decreased 15.8% year-over-year after increasing 2.2% in January; L3M sales were down 5.7% (January L3M -0.2%). U.S. row-crop tractor inventories decreased 15% year-over-year in January. On a days-sales basis, inventories were lower year-over-year at 170 days-sales vs. 189 days-sales in January 2017.

4WD tractor sales increased 11.6% year-over-year in February fol-lowing the 33.3% increase in January. L3M sales increased 23.9% year-over-year after 17.6% growth in the January L3M period. U.S. dealer inven-tories of 4WD tractors decreased 16% year-over-year in January and days sales of inventory was 90, down from 116 during January of last year.

Mid-range tractor sales were flat in February after increasing 3.3% last month. Compact tractor sales decreased 10.8% year-over-year after a 6.2% increase last month.

Combine, 4WD Sales Offset Drop in HHP

MARCH U.S. UNIT RETAIL SALES

Equipment March2018

March 2017

Percent Change

YTD 20 18

YTD 2017

Percent Change

Beginning InventoryMar. 2018

Farm Wheel Tractors-2WD

Under 40 HP 6,501 7,366 –11.7 12,987 13,468 -3.6 87,209

40-100 HP 2,957 3,018 –2.0 6,454 6,445 0.1 31,941

100 HP Plus 899 1,128 –20.3 2,078 2,325 -10.6 7,937

Total-2WD 10,357 11,512 –10.0 21,519 22,238 -3.2 127,087

Total-4WD 129 118 9.3 261 227 15.0 601

Total Tractors 10,486 11,630 –9.8 21,519 22,465 -3.0 127,688

SP Combines 252 188 34.0 481 393 22.4 720

MARCH CANADIAN UNIT RETAIL SALES

Equipment March 2018

March 2017

Percent Change

YTD 2018

YTD 2017

Percent Change

Beginning InventoryMar. 2018

Farm Wheel Tractors-2WD

Under 40 HP 600 593 1.2 1,397 1,328 5.2 7,989

40-100 HP 356 294 21.0 803 699 14.9 3,535

100 HP Plus 228 211 8.1 472 406 16.3 2,200

Total-2WD 1,184 1,098 7.8 2,433 2,433 9.8 13,724

Total-4WD 92 80 15.0 156 118 32.2 304

Total Tractors 1,276 1,178 8.3 2,828 2,551 10.9 14,028

SP Combines 64 66 -3.0 110 150 –26.7 408

— Assn. of Equipment Manufacturers

U.S. UNIT RETAIL SALES OF2-4 WHEEL DRIVE TRACTORS & COMBINES

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

30,000

28,000

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

2018 5 year average

Dealers push parts to pick up slack in Wholegood sales north American unit sales of new and used high horsepower farm machinery started their downhill slide in 2014 and it wasn’t until late 2017 that the industry began to see some pick up. During that period, farm equipment dealers renewed their efforts to increase the sale of parts and service. they were somewhat more successful with parts sales. While dealers’ average service sales dollars increased during this same period, from $633,000 in 2007 to $886,400 in 2017, its percent of total equipment sales declined. In 2008, sales of services amounted to 7.5% of dealers’ total equipment sales. this dropped to 6.8% in 2017. gross margins on service averaged 62.7% between 2011-17, but it slipped from 65.5% in 2011 to 60.2% in 2017. During this same period, the gross margin on parts was 29.7%, less than half of that of service, and ranged from 30.3% in 2011 to 30.2% in 2017. this compares to an average gross margin of 7.3% for new wholegoods and only 4.1% for used during this 7 year period.

~ Courtesy of Agriculture Equipment Intelligence

Ethanol Exports stay strong as Brazil Demand Grows

~ Courtesy of Agriculture Equipment Intelligence


Use of all articles in the Equipment Industry News pages are used with permission of Lessiter Media (LM), Ag Equipment Intelligence issue of March 15, 2018, Vol. 24, Issue 3. Use of any of the articles and information contained in Ag Equipment Intelligence, Rural Lifestyle Dealer or any other Lessiter Publication Media Brands requires permission of the publisher.

New Deutz-Fahr Distributor seeks to Relaunch Tractor Brand in North America Executives at SDF Group, the manufacturer of SAME Deutz-Fahr and other tractor and combine brands in Europe, have turned to their successful distributor in New Zealand and Australia for a North American relaunch. New Zealand’s Power Farming Group, a $240 million in sales machinery distributor and dealer operation, has set up shop in Dacula, Ga., as PFG America, with a parts and service hub in Kerman, Calif. It aims to recruit dealers with promises of a well funded and stable operation that places strong emphasis on parts and service support, as well as sales and technical training. Taylor Grout, former McCormick USA product and marketing manager, has been recruited to head up PFG’s North American sales and marketing effort. “Deutz-Fahr has been around a long time but with a history of change,” he says. “We’ll be trying to take the brand to the next level in terms of parts, service and general product availability.”

~ Courtesy ofAgriculture Equipment Intelligence

TH NK

Northeast EquipmentDealers Association

www.ne-equip.com

st1ASSOCIATION

Did You Know?

Did you know you can update your dealer profile on our website?

Go to www.ne-equip.com and login in with your user ID and password. Once your logged in place your cursor in the upper right hand corner and click on “Edit my Profile”.

Here you can put any events happening at your dealership, upload profile pictures, your company logo, etc…

Email [email protected] or call the Association, 800-932-0607 if you have any problems getting into the website.

12 Ag Equipment Intelligence/March/2018

cents in 2012 to more than $1 at times in 2013 and 2016. Prices for renewable fuel (D6) credits for 2018 were at 39 cents as of March 13, which is down about 40% since the beginning of the month.

Today’s Situation. The Iowa State CARD study examines a Renewable Fuel Standard reform proposal current-ly being considered by policymakers that would allow E15 (fuel containing 15% ethanol) sales throughout the year and implement a cap on D6 RIN prices between $0.10-$0.20/RIN. (D6 is one type of RIN.)

The study goes on to says that, while year-round sales of E15 would encour-age retailers to sell the fuel, capping D6 RIN prices would reduce consump-tion of E15 and E85. “A cap on D6 RIN prices between $0.10/gal to $0.20/gal would likely reduce the effective ethanol mandate from 15 billion gallons to about 14.3 billion gallons in 2018. Unless increased ethanol exports com-pensate for the reduced mandate, corn prices would decrease under the pro-posal’s D6 RIN price cap.” It estimates that such a cap could cost farmers as much as 25 cents per bushel.

That’s the rub for corn farmers. And, of course, as has been demonstrated for the past 3 years, low commodity prices result in lower farm equipment sales.

Pushing Back. The National Corn Growers Assn. has led the charge on behalf of farmers in insisting that the current administration in Washington D.C. not tinker with the RFS. In an open letter to President Trump on March 9, NCGA president and North Dakota farmer, Kevin Skunes, said that changes to RFS would trigger significant losses in farm income and rural jobs. He also made it clear that NCGA is opposed to the oil industry proposal that would cap the price of RINs.

Skunes said: “Corn farmers have fought hard the past 10 years, within Congress, with the last Administration, and in the courts to protect the oppor-tunity for renewable fuels to continue to grow as an option for consumers. The President is considering a proposal from the oil industry that could cut farm income almost $4 billion dollars per year for the next two years. It is a deal that American farmers cannot afford. My message to the Secretary [Perdue] was to ask the President not to cap

future growth and opportunity in rural America by implementing a bad policy that would only serve to bailout a small handful of oil refiners.”

According to NCGA, there is a win-win for farmers, ethanol producers and the oil industry. This would require adjusting current regulations to allow year-round use of fuel blends above 10% ethanol. “Unfortunately, the oil industry continues to insist those changes are not enough,” said Skunes, “but we will con-tinue to oppose any deal that includes a RIN cap or waiver credits.”

EPA Concessions: One of the fac-tors that provided the oil industry with ammunition to pressure EPA to change RFS regulations regard-ing RINs was the bankruptcy of the

Philadelphia Energy Solutions refinery. PES says the high cost of RINs contrib-uted to its financial problems.

In its settlement with PES, on March 14, EPA conceded that the bankrupt refiner would only need to satisfy about one-half of its $350 million in outstand-ing compliance obligations under the RFS. According to a Reuters report, EPA has signaled its willingness to exempt more small refineries, which would limit potential buys for the credits. The company entered bankruptcy owing 467 million credits from the past 2 years, with only 120 million RIN credits in its possession.

Ethanol groups reportedly “troubled at the precedent this sets.” The RFS battle rages on.

Ethanol Exports Stay Strong as Brazil Demand Grows

In its March Feed Outlook report, the Economic Research Service of USDA is reporting continued strong demand from Brazil for U.S.-produced ethanol despite trade barriers enacted last year.

In 2017, the Brazilian Government announced a tariff rate quota for ethanol imports, where imports in excess of 600 million liters are subject to a 20% tariff. “However, U.S. ethanol has been priced so low that it is still an economical alter-native in Brazil. Currently, ethanol is $1.50 per gallon at U.S. Gulf Coast Ports, while ethanol in Brazil is $2.32 per gallon. Demand for ethanol in Brazil is robust because of widespread use of flex-fuel vehicles and a mandate requiring a mini-mum of a 27% ethanol blend in gasoline.”

The report goes on to say, due to price competitiveness and strong demand, Brazil, the second largest global ethanol producer, is also the largest overseas buyer of U.S. ethanol. One contributing factor is the internal distribution of ethanol in Brazil. Ethanol mills are mostly located in the sugar producing areas of southern Brazil. Because of infrastructure constraints, it is cheaper to ship ethanol by boat from the U.S. to the northern regions of Brazil than by overland transport through Brazil. Some new etha-nol mills are located in Brazil’s northern corn-producing regions. An expansion of corn ethanol production in Brazil would likely make U.S. ethanol less competitive.

U.S. Fuel Ethanol Exports

Source: USDA Economic Research Service using U.S. Census Bureau, Foreign Trade data.

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The UNITED Equipment Dealers Association announces a new interactive UNITED OPE FLAT RATE GUIDE powered by Charter Software Inc.

The new online tool will provide dealers with a web portal to lookup and report OPE flat rate repair times.

Allows any business system to integrate with the OPE Flat Rate Guide. Integration with dealer’s business system will allow work orders to access and report flat rate information.

This is the only industry resource that factors actual dealer times into the flat rate calculation.

The OPE FRG benefits servicing dealers in three major ways:

1. More accurate estimating 2. Improved customer relations 3. Boost shop productivity

Allows on-going dealer input for improved times and reporting new models.

A user name and password will be assigned to you once payment is received

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Allows access for up to 4 users from anywhere On your PC, tablet or mobile device

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Bob Clements on flat rating: While I understand that not all jobs can be flat rated, I also know that 70% can and on those jobs techs that are

high “B” or “A” level techs will beat the time by almost 20%. So in an average shop with a recovery

rate of 80% and a labor rate of $80 per hour, two techs would bill out an additional $200 per day, a $1000 per week

or $52,000 for the year. You are missing the boat and leaving valuable dollars on the floor if you shop is not utilizing some type of flat rating system.

Available from your Northeast Equipment Dealers AssociationPhone: (800) 932-0607 • Email: [email protected] • www.ne-equip.com

NEDA Members: $599.00 per yearNon-members: $999.00 per year


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