Over the past months, we have attempted to keep the membership informed regarding the Wisconsin Dept. of Agriculture, Trade and Consumer Protection’s (DATCP) investigation and enforcement of the unauthorized use of monensin in lactating dairy cattle feed. We want to remind you that just because you haven’t heard anything publicly lately, do not be lulled into thinking nothing is happening on the enforcement front. There is, unfortunately, a fair amount of activity. DATCP has either prosecuted or has reached settlements with several firms. And there are other firms currently under investigation.

As a simple reminder, DATCP and the Food & Drug Administration (FDA) consider any medicated feed manufactured, distributed, and/or fed in an unapproved manner to be adulterated, as are the resulting food products from the animals fed these adulterated feeds. Both the adulterated feed and food products are subject to seizure and disposal. The feeding of unapproved drugs, whether purchased commercially or mixed on the farm, is ILLEGAL, as is the making, distribution, and the recommendation of monensin for lactating dairy animals. Violators are subject to license suspension or revocation, product seizure and disposal, and fines under both state and federal laws. Criminal penalties could also apply.

The Association, representing the feed industry, has continued to state our position to all the parties involved, including regulatory, academic and commercial, that our sincere concern is this matter be quickly resolved. We are willing to cooperate with all the parties involved on this issue to assure that Wisconsin’s dairy products remain pure, healthy and wholesome. If you have any questions or concerns related to this issue, please contact the WASA office.

Last month we dealt with a situation in which a feed mill had a dispute with one of their customers. It basically boiled down to a disagreement on whether the producer had told the feed mill staff to sell his stored grain. Add in some market movement against the producer and you get the picture. The problem was compounded by the fact that no written contract/confirmation of the ‘transaction’ existed and everything, even applicable storage charges and discount schedules, came into dispute. It was a classic ‘he said, she said.’ And yes, the money was big enough for the lawyers to get involved with the producer’s attorney arguing that without a written contract, no agreement whatsoever existed.

The situation outlined above brings up a point regarding Wisconsin that was a surprise to the feed mill involved. That point is ‘merchant status.’ Merchant status is a business law concept that holds that a person is knowledgeable and skilled regarding the particular business they engage in for a livelihood and, as such, any verbal contracts they make in that business are both binding and enforceable. For example, a plumber orders, over the phone, a certain length of pipe from a plumbing supply company and tells them to have it ready when he arrives to pick it up. The supply company measures and cuts the pipe as requested. When the plumber arrives, he decides he doesn’t want the pipe for whatever reason. The concept of merchant status maintains the plumber’s verbal order was a contract and the plumber is bound by it. If you replace the plumber with Joe Homeowner, the verbal contract isn’t binding. So much for plumbing, what about a grain buyer in Wisconsin?

There are no absolute statutes on the Wisconsin books (as there are in Indiana, Missouri, Nebraska and Ohio) that declare whether Wisconsin producers are a ‘merchant.’ That may seem odd, that a producer who is in the business of growing grain and selling that grain, somehow isn’t considered astute or professional enough to be responsible for their actions, but that’s the law (or more rightly what the law isn’t). Even court rulings in Wisconsin haven’t clearly given producers ‘merchant status.’ Based on the particular facts of each case, courts have ruled on both sides of the issue. With no written confirmation of a trade, it means you certainly aren’t assured to prevail, if the situation were to happen to you. In many cases, the grain buyer is left with only one alternative, not to buy from that producer again. Yes, that may be the least cost solution in a bad circumstance, but there has to be a better way.

So what are you to do? At the very minimum, send out a confirmation for every trade you do. Even if the producer doesn’t sign it, you can have the defense that they were aware of the terms and didn’t argue. It certainly is a better position than what our example feed mill found themselves. One disputed trade at a relatively small feed mill could pay for years’ worth of confirmations.

If you don’t know where to turn, please contact the WASA office, as we can supply you with sample contracts/confirmations that you can adjust to your needs. The bottom line is; this is a simple and very cost-effective way to manage one of the risks you consciously or unconsciously deal with everyday.

"You knew or should have known" was a recurring theme presented by the regulatory agency officials at all four of the Safety Day sessions held throughout the state last month. While it may seem harsh, it is a reality that the Occupational Safety and Health Administration (OSHA) has been enforcing their workplace safety standards for 30 years and the State Patrol has been enforcing the motor carrier laws longer than that.

On a very positive note, WASA received an acknowledgment from OSHA specifically regarding the overall WASA loss control program (LCP). They stated if an employer follows the programs and procedures provided as part of the LCP, the employer would be well on the way to being in compliance with the many regulations that apply to their operations. We are very gratified that this "vote of confidence" by the regulators. This is exactly the type of comprehensive, quality program that we intended when we conceived and developed the LCP.

We have designed the program so that it provides the maximum level of help to you as a manager. One of the provisions of the LCP that we believe is especially helpful is the facility survey. This is an "OSHA-like" walk-thru of your operation that identifies those items that could result in a citation and penalty, if documented during a compliance inspection. Even if you currently rely on your insurance carrier or have another service doing your on-site inspections, consider having WASA do a facility survey as yet "another set of eyes." The cost of this facility survey is very inexpensive compared to the cost of a single accident.

WASA is pleased to announce that the Board of Directors has authorized expansion of the scope of the LCP to include any employer that may benefit from a formal loss control program, not just regular WASA members, whose operations are based in Wisconsin. This change will allow us to offer LCP services to our Consortium members, as well as others in related industries.

If you were unable to attend one of the Safety Day sessions and would like more information on what was presented, please contact the WASA office at your convenience.

Is the event a success when you almost run out of carts because more golfers than planned show up? We think so. (The course pro was able to scrounge and find a couple more carts, so no one was walking. But we were darn close.) The largest number yet of golfers for WASA’s "Northern" Golf Outing had a great time at the Stevens Point Country Club. And for those of you who say no one ever wins the ‘Hit the Circle’ contest, you’ll have to take that back. Tim Peterson of Bay Lakes Coop in Oconto Falls, did it and also was on the second place best team and won the longest drive contest. Tim was a very happy golfer in the pro shop after dinner.

The Board of Directors would also like to thank all of the sponsors of the outing. It is specifically because of these generous businesses and individuals the outings are the success they have become. Be sure and thank the sponsors, the next time you do business with them. And of course, if you may want to become a sponsor for the next outing, please contact the WASA office.

Based on what happened at Stevens Point, we’re naturally expecting very BIG things at the "Southern" event at Wilderness Woods in the Dells on September 6. We’re already ahead of last year’s sign-ups at this time prior to the event. With a brand new clubhouse that will wow you and one of the best courses in the state, you don’t want to miss this event. At least sign up early, so we can guarantee a cart for you. Otherwise, you may be walking.

Ever wondered how the corn and soybeans you ship to the river travels? Well, you’ll have a chance to find out next month. WASA, along with the Wisconsin Corn Promotion Board and the Wisconsin Soybean Marketing Board and others, is sponsoring the third year of barge tours on both the Mississippi and Illinois Rivers. Each tour gives you and producers a chance to see firsthand the need to maintain an efficient system of locks and dams to replace the current system built in the 1930’s. In addition, to highlight the need for improvements, legislators, their staff and members of the media will also be on the tour. This is a great chance to get commercial ag’s story told.

The Illinois tour is Wednesday, August 15. A bus has been chartered to travel from Madison at 8:00 AM to Ottawa, Illinois. About three and a half-hours will be spent on a barge traveling the river, having lunch on the barge and passing through a lock. A return to Madison is scheduled for around 7 PM that day.

Another tour is tentatively set for August 29 on the Mississippi at LaCrosse. A double-decked river tour boat will take the tour participants on a three-hour round trip through a lock. Lunch is scheduled to be at the newly opened City Brewery visitor center. A private tour of the brewery is also planned. The boat tour is scheduled to leave the dock at 9AM in LaCrosse.

This really is a unique opportunity that shouldn’t be missed. There is no charge, but space is very limited and registration is on a first come, first served basis. And yes, space does and will fill up fast. For further information and details, please call the Wisconsin Corn Promotion Board at (262) 495-2232.