Regulation Governing ‘White Collar’ Exemption Fixes Problem that Does Not Exist

In a recent editorial, media personality John Stossel defined government regulation as the “quiet cancer that kills opportunity with an accumulated burden,” which he blames for America’s slowest economic recovery since the Depression.

This past week, the public comment period ended for the Labor Department’s proposals to amend the Fair Labor Standards Act (“FLSA”) regulations implementing the exemption from minimum wage and overtime pay for executive, administrative, professional, outside sales, and computer employees (known as the “white collar” exemptions).

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Where Shall We Meet in 2017?

The calendar is set for 2016—Clearwater, Fla., in March, and San Diego in October—but the following year is an open question.

In the last few weeks, Executive Vice President Vernon Schmidt has visited Tulsa, Okla., Little Rock, Ark., and Omaha, Neb., to check out meeting venues and see what the cities offer our members.

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Marketing and Distribution: Our Focus in Kansas City

Much has changed over the decades, but the meeting’s focus has not. Its purpose remains to create a forum in which manufacturers of shortline farm equipment meet with wholesalers, independent sales representatives and others who focus on marketing farm equipment.

Our goal is to provide industry leaders opportunities to build on existing relationships and find new avenues for distributing equipment that brings the outstanding choice, value and innovation that farmers and ranchers expect from shortliners.

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Quarterly Report from Blount

Blount International, Inc., has released numbers for its quarter ending June 30.

Sales in the second quarter were $212.7 million, a decrease of $22.7 million, or 9.6%, compared to 2014. Operating loss for the quarter was $47.3 million, including a $62 million non-cash impairment charge, compared to operating income of $22.4 million in the same quarter last year.

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Earnings Report from Buhler

Buhler Industries reported its third-quarter earnings this month. Revenue for the quarter was $79.1 million, up from last year’s $77.1 million.

Sales of $203.9 million for the first nine months of the fiscal year dropped from the $250.7 million reported for the same period last year. The decline reflects lower demand for agricultural equipment resulting from lower commodity prices and the unstable political environment in Eastern Europe.

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FarmLink Launches Online Sharing for Farm Equipment

The Kansas City company that 15 years ago introduced MachineryLink—a farm equipment leasing and sharing program—recently expanded to also offer an online platform for equipment sharing.

The platform launched in July with limited participation. It is open to ag retailers, equipment dealers, and co-ops. In the fall, individuals will be able to also offer their equipment for sharing.

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In Memoriam: Duane Wilder, Dorsey Meyer, Sr.

Duane Wilder, 62, passed away at his home in Williamsburg, Va., on August 13th. Duane was a respected businessman who started his career as a young co-owner of Alpena Ford Tractor, before moving to Iowa to launch a career with J.I. Case Corporation.

Dorsey joined Towner Meyer Company, an independent wholesaler of farm equipment and related supplies in 1950, and in 1973, became President and General Manager.

EMDA recently reported the death of Dorsey Meyer, Sr. Dorsey served on the FEWA Board of Directors from 1980 through 1985. He was president of the board in 1984

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Quarterly Results from Alamo

Alamo Group Inc. released numbers from its quarter ending June 30.

Net sales for the quarter hit a record $215.7 million compared to net sales of $207.8 million in 2014, which reflects a 4% increase. Net income for the quarter was $9.7 million.

The company’s agriculture division reported net sales of $53 million, a 1% decrease compared to the $53.6 million in net sales for the same quarter last year.

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AGI Releases Financials

Ag Growth International Inc. last week announced its three- and six-month financials for the periods ended June 30.

In the first six months of 2015, the company reported profits of about $4.8 million, compared to about $14.9 million for the first six months of 2014. Adjusted profits are more comparable, showing $19.3 million for the first six months of 2015 and $16.8 million for 2014.

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Dealer, Distribution News

The boards of the Mid-America Equipment Retailers Association (MAERA) and the Ohio-Michigan Equipment Dealers Association (OMEDA) have approved a plan to merge.

The Minnesota-South Dakota Equipment Dealers Association in Owatonna, Minn., has named Nick Sinner as its new president and chief executive officer.

The North American Equipment Dealers Association (NAEDA) has named Joe Dykes as vice president of industry relations and Natalie Higgins as vice president of government relations and general counsel.

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Operating Loans for Farms Hint at Risk

Economists with the Federal Reserve have taken note of a worrisome trend in agriculture: Operating loan volumes have risen among farmers, the Fed reports, while farm income in 2015 has been projected to drop compared to last year. Loans made to finance short-term operating expenses drove the increases in farm sector lending at commercial banks, the data showed.

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Schmeiser Buys Smart-Till

T. G. Schmeiser Co., Inc. recently acquired the Smart-Till product line from HCC, Inc. of Mendota, Ill. The purchase includes all assets and trade names associated with the Smart-Till product line and its associated parts and components. Smart-Till’s manufacturing and administration operations will relocate from Illinois to the newly constructed Schmeiser manufacturing facility in Selma, Calif.

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Scam Artists Target Convention Groups

We heard this month from our colleagues at the Farm Show Council that their members had been targeted with phone calls suggesting a booking agency was calling members on the Council’s behalf.

Among company names the scammers used were Allied Acquisition Services, Convention Housing Authority, and Expo Lodging. The calls are not legitimate.

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Pressure Mounts Against EPA, Waters Rule

On July 30, the House Committee on Oversight and Government Reform released more than 50 pages of documents in which the Army Corps of Engineers—EPA’s partner in writing the rule—rebuked agency officials for their abuse of the rulemaking process. The economic analysis used to support the rule, Army Corps officials wrote, had no basis in either science or economics.

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Vilsack Calls for Poultry Insurance

Agriculture Secretary Tom Vilsack said the U.S. needs a disaster program for the poultry and turkey industries.

“Whether it’s a risk management insurance-type program, or a disaster program, or a combination, it really will reinforce the biosecurity aspects of this,” Vilsack said in July at the Avian Influenza Outbreak Conference in Des Moines.

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AGCO Releases Q2 Results

AGCO reported net sales of $2.1 billion for the second quarter of 2015, a decrease of about 24.8% compared to the $2.8 billion net sales for the same quarter last year. Excluding unfavorable currency translation impacts, the year-to-year comparison changes to a 10.9% decline.

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Notice: Meeting and Election

Annual business meeting with elections at the Fall Distribution and Marketing Convention. The meeting is 1:15 p.m. Wednesday, Oct. 28, in the Chicago Room. Members will gather to elect new directors and conduct other Association business. Each regular member company present will have one vote on each item on the agenda. There are no provisions for proxy voting.

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Chat with Experts: Discussion Leaders at Fall Convention

Doug Griffin will be part of a panel on contemporary concerns in distributing farm equipment. Griffin brings 27 years of experience in the farm equipment manufacturing industry, including serving as the North America sales manager for Caterpillar’s Agricultural products division until 2002, when Caterpillar sold its ag division to AGCO.

Chad Colby will talk with members on Thursday, Oct. 29, about 21st-century strategies for equipment sales.

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DOL Sues Deere

The Department of Labor (DOL) has filed suit against John Deere, claiming it violated the whistleblower provisions of OSHA.

At the center of the suit is a pipefitter who was terminated in 2012 from Deere’s Moline, Ill., facility. The suit alleges the termination was in response to the pipefitter reporting unsafe work conditions.

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Hint of Optimism on Mainstreet

Creighton University released its Rural Mainstreet Index for July last week, and the survey revealed a subtle uptick in growth for the fourth consecutive month. News specific to farm equipment sales was weaker. The July index rose to 17.9 from June’s record low of 12.5. The index for farm equipment sales has been below growth neutral for 24 straight months

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