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Country Today Newspaper Archives Feb 9 1983, Page 5

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Eau Claire Country Today (Newspaper) - February 9, 1983, Eau Claire, Wisconsin Altoona hosts first of three hearing testimony favors 2 cents per Bushel soybean assessment eau Claire eight persons attended a state department of agriculture Public hearing Here monday a the first of three a on a proposed soybean Market order which if approved would generate about $250,000 a year from an assessment of 2 cents per Bushel produced. All eight persons favored the proposed marketing order according to cards they filled out at the hearing. Stan Thomas Hancock a Portage county grower who raised 1,450 acres of soybeans last year and is a member of the Board of directors of the Wisconsin soybean growers association was the Only one who testified at the hearing. Or. Thomas said he also raises soybeans in Michigan and Illinois where they already have soybean marketing orders in effect. He said he favors Wisconsin a proposed marketing order just As he favors the orders in Illinois and Michigan. Wisconsin has never had a soybean Market order. A the Small amount the checkoff would Cost the grower will be returned Many times Over in the form of research results and new markets a or. Thomas said. Based on a 40-Bushel-per-acre average or. Thomas estimates that the marketing order would Cost growers $8 per acre a sum that could be made up immediately by planting better soybean hybrids controlling erosion and using other improved management techniques he said later. The Wisconsin soybean association is sponsoring the proposed order which Calls for a producer assessment of 2 cents per Bushel of soybeans sold commercially during the first crop year in which the order takes effect. A Bushel of soybeans equals 60 pounds. In following years a seven member marketing Board would annually determine the assessment rate. The maximum assessment would be 2 cents per Bushel. Growers can request refunds of the assessments they pay according to the order. District i contains 32 mostly Northern Wisconsin counties including Barron Burnett Chippewa Dunn Marathon Polk Portage Price Rusk St. Croix Taylor and Washburn counties among others. District 2 is made up of Buffalo Clark eau Claire Jackson Lacrosse Pepin Pierce Trempealeau and Wood counties. Rock county alone is District 5, while Kenosha and Walworth counties comprise District 6 and Milwaukee and Racine counties make up District 7. Each District contains Between 13 and 17 percent of the states 1982 soybean production of 13.6 million bushels or. Lamb said. According to Datcy figures last years production surpassed 1981 s record production by to percent. State soybean growers harvested a record 440,000 acres of Beans in 1982, an increase of 65,000 acres from 1981. Each producer Selling soybeans commercially is liable for assessment payments. Handlers and dealers taking title to soybeans sold to them Are responsible for collecting the assessment from producers according to the proposal. Assessments would be due by the 15th of the month following the month of Sale and Are payable to the marketing Board. The assessments would finance efforts to expand soybean sales develop new products and markets provide educational programs for growers handlers and Consumers and also finance re search on soybean production and use. The Only two exclusions from the marketing order Are soybeans produced for seed purposes and used on the farms where produced and soybeans produced on the farm and fed to the producers own livestock. The marketing Board or the agriculture Secretary will be authorized to audit financial and other records of handlers producers and others to determine compliance with the order. To be adopted 50 percent of All producers voting in a referendum must vote yes according to or. Lamb. That voting option is the easiest of three possible methods and the one most Likely to produce adoption of the proposal or. Lamb said. However in order to use that method the marketing order had to contain a refund clause. The refund clause allows any producer who has paid an assessment to receive a refund after submitting proof of payment to the marketing Board. A producers refund claim must be submitted to the marketing Board on a designated form within 90 Days following the assessment a due Date. Validated claims for refunds will be paid by the Board within 60 Days of receipt of the claim according to the proposal. The next step following the Public hearings is to summarize comments collected at the hearings and decide whether to modify the proposal based on collected comments or. Lamb said. The other two hearings Are scheduled for this morning at to . At the Burlington town Hall in Walworth county and tomorrow at to . In the Datcy Board room 801 w. Badger Road in Madison. However written testimony and comments on the order will be accepted and added to hearing comments if received by feb. 21. Comments should be sent to Les Lamb marketing division of Datcy . Box 8911, Madison i 53708. A referendum vote on the proposal is Likely. The earliest Date for the vote would be Early april or. Lamb said. Nominations for District marketing Board members will be accepted before the referendum vote and the election will be held in conjunction with the referendum. Policyholders to get most of their Money Back continued from i the Finger of guilt at each other. Policyholders grouped in a class action Type suit and represented by Roy Wilcox and Arnold Anderson of eau Claire would have claimed Martell directors represented by Bob Gavic of Spring Valley and the International insurance co. Of Chicago were responsible for not having sufficient reinsurance and therefore were guilty of mismanagement directors would have asserted the company they purchased their reinsurance from . Blanch co. Of Minneapolis was responsible for Selling Martell a defective policy one without adequate reinsurance to cover All claims and Blanch possibly would have pointed the Finger at the office of the Wisconsin commissioner of insurance at Madison because it approved the reinsurance policy sold by Blanch to Martell. Moreover had the trial been held there always was the possibility of a lengthy Appeal from losers in the suit. So lawyers from All parties agreed that had the matter come to trial the most that former policyholders could have expected to win in judgments would have been from $2.4 to $2.6 million. And out of this would have come thousands of dollars in Legal fees and fees for witnesses some of whom were summoned from new York Texas and other states. The $2 million settlement approved by judge Bartholomew and to be divided among All former Martell policyholders who paid their second assessment will come from the . Blanch co. Which reportedly will pay the largest share$300,000 will come from the state and the rest from insurance companies representing former Martell directors. Checks should be mailed to former policyholders in two to three months according to new Richmond attorney Gary Bakke who was appointed by former insurance commissioner Susan Mitchell to liquidate the Martell town Mutual insurance co. Piuto Ftp pet mental i a a 3 i. West of Plum City i a a on Hwy. To amp jct. Of 183 phone 715-647-4544 for Massey Ferguson tractors amp farm equipment of All kinds. The agreement carried a stipulation that payment of the Money does not imply guilt by any of the parties paying the $2 million. About five percent of Martellus former policyholders refused to pay assessments and according to or. Bakke a i done to plan to pay them anything. Its up to the court to resolve that the assessment he ordered amounted to about $2.3 million and came from each policyholder on the basis of the amount of his or her previous Premium. That Money plus $2.9 million paid by reinsurance companies before enabled or. Bakke to pay off All $5.2 million in claims against Martell. The first assessment ordered by the Martell Board just a few Days prior to the Date the storm struck in order to improve the company a surplus account will not be returned to policyholders because it was made before the windstorm. Also penalties and interest on both the first and second assessments made against persons who were slow in paying the assessments will not be returned or. Bakke added. Or. Bakke said he is pleased by the relatively Short time it took to reach a settlement. A i know the policyholders May not think so but there Are other insurance liquidations that Are still going on after five years. Getting it accomplished this fast was no Small task a he said in praising the work of or. Wilcox and or. Anderson. Jack Hines of Ellsworth former Martell town Mutual president is satisfied with the settlement approved last week but he still is not commenting on the collapse of the company that he his father and Grandfather All had represented for nearly a Century. A a in a glad they made the decision on the settlement because the policyholder will be getting his unearned premiums Back and most of the second assessment. We saved the court expenses for Legal fees with the into the demise of Martell when he issues a report to stockholders soon he and other former directors a tried to act in the Best interests of policyholders. I always have been concerned for them. Many still Are my he said this settlement ends All possible lawsuits against the Board and directors of Martell. Likewise Charles Bleck an attorney with the Wisconsin attorney general a office and the lawyer who was to plead the states Case was somewhat pleased with the settlement although he evidently thinks a defense he prepared for the state insurance commissioners office would have stood the test in court. The state contributed $300,000 toward the settlement sum which will come from the risk management Bureau in the state department of administration. Because the state is its self insurer the $300,000 will come from Wisconsin taxpayers. According to or. Bleck the state was the last of the defendants to agree to the settlement because it thought it could win its Case in a trial. However because the other parties were willing to Settle for $2 million or. Bleck said the state decided to go along. A it is a very complicated Case and you never know which Way juries will go a he said. J. Cliff of Donnell president of the Wisconsin town Mutual reinsurance co. And general manager of the Eagle Point town Mutual insurance co. At the time the storm struck in 1980, also agreed that Martellus problems occurred a because the company was growing too or. Of Donnell also was appointed by former insurance commissioner Susan Mitchell to a task Force that subsequently helped shape new legislation designed to Correct some weaknesses in the states town Mutual Law. According to or. Hines who can something like this happen said he will provide some insight again a definitely not to this extent a or. Of Donnell said from his office at Madison with a company that provides reinsurance for 102 of Wisconsin a remaining 114 town Mutual. The settlement reached last week he said a is an indication that the town Mutual system works. It completely exonerates the town Mutual Industry because members will get their unearned Premium Money Back and most will have All their claims paid. Look and see what happens to policyholders when a private company goes the Wisconsin town Mutual insurance Industry today is stronger internally than Ever a because our members Are More conscious of their own responsibilities and More conscious of their reinsurance contracts a or. Of Donnell said. Martell carried its reinsurance with an out of state firm a Blanch a and not with the Wisconsin town Mutual reinsurance co. Just because Wisconsin a 114 cooperative insurance companies serving 90,000 policyholders 2,000 fewer than when Martell collapsed Are in better condition today than 30 months ago that does no to preclude future insurance company failures or. Of Donnell said. A look at what happened to reliable last year a he said in reference to a fond do Lac area health insurance provider that went under. Yet he predicts another growth period for Wisconsin a remaining town Mutual. He said during Tough economic times like today Many Large insurance companies Cut rates to attract new business but when recessions fade and the business climate improves a these same big companies have to Jack up their rates to improve their profit and loss statements. That a when the people return to town Mutual. It happened exactly like this the last time in the Early 1970s and it will happen poultry wanted for priest amp pick up a Vic Call or so Russell Lund Woodville. I 715-698-2491 according to or. Of Donnell a a there san awful lot of Hindsight going on with Martell. We Veall been Able to sit Back including the big private companies and see what happened and we have made adjustments to improve the Industry. The whole insurance business Learned a lesson there a he said. A Tom Lawin and Amie Hoffman if 50 percent of the producers a voting in the referendum support the order the order will next be reviewed by the Senate and Assembly agriculture committees. The committees have 30 Days to review the measure. If accepted by the legislature the marketing order will be published by july and be effective some time Between aug. I and sept. I according to or. Lamb. Gordon Deeren of Galesville who produces about 700 acres of soybeans each year said he thought the 2-cents per Bushel assessment a was about right a and that he favors the order because it would provide new product promotion and overseas markets. A we certainly need it a he said of the order. Maynard Saxe of Ettrick a Trempealeau county Farmer who raises 200 acres of soybeans in addition to his Dairy and hog operation also supports the Market order he said. He is also a partner in Hegg milling and said the additional bookkeeping involved with the marketing order is Worth the Effort. He is particularly pleased with the potential research which will be funded by the assessment he said. He also is a partner in Hegg milling and said the additional bookkeeping involved with the marketing order is Worth the Effort. He is particularly pleased with the potential research which will be funded by the assessment he said. A Lois Reis Ssell Llev ill Lix ill panel built storage systems. Bobcat a fuel Saver a work Saver a time Saver bark River 1799 Western a iou Clair. Wisconsin s47s1 phone 71 j ms-sh7 Jim turkmen iou Claire on rays Coli mom Juhn Imi John mho to Lake 0 k Moo Mondovi Homo Imily my mom 71s 32-234 Contact us now for Spring delivery midwestern Block co., inc. R5, Menomonie i phone 715 235-2510 Ettrick livestock auction Marku every every every Sale Days monday 12 30 . Slaughter livestock a replacement calves Friday 1 30 . Dairy feeder Slaughter Sale 2nd a 4th thursdays Spe Cial Dairy Sale 1 30 . For information phone 608-525-3011 525-3535 Ouan Johnson mgr trick trucking a Vic to Tho Ettrick Mark Contact your local trucker Quot attention Farmers Quot our business is Pickin up dead Down cows amp horses $10. And up for live cows. No Small animal pick up till fall. Barr Tinkery Greenwood i toll free 800-472-2331

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