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Iowa Farmer and Co-op Wound Up in Controversy by Michael Benning
KIMT News 3

Elma, IA - A co-op controversy is on hold tonight.  Area farmer Melroy Buhr has filed for an injunction to stop the merger of two co-ops.  He says Howard County Equity didn't play by the rules before voting two weeks ago.

Buhr lives and farms in Elma, Iowa, that's about 15 minutes southwest of Cresco.  He's the man behind a lawsuit filed against "Howard County Equity."

Buhr used to do business with the co-op, but Monday he spent time playing lawyer, sitting across from the cooperatives board members in court.  Buhr says Howard County Equity's recent financial problems forced the company to look at merging with another co-op. In order to do that members who have the power to vote have to approve the decision.  That's where Buhr says things get messy.

"I was a class “A” member, however, they were not giving my class “A” rights," said Buhr.

Buhr believes the board systematically changed the status of certain members. He claims some that should have had the right to vote, no longer could, while others that shouldn't have voted, did.

"Other members contacted me and said there's 150 members that got switched."
 
Also, others, like Buhr, found their memberships had been terminated.

"I got my termination on the day I filed for this which is kind of ironic," said Buhr.

The vote to merge passed, and now, as court documents explain, Buhr is trying to convince a judge the co-op chose members that would benefit their cause.

"What we're asking for today is a proper injunction so we can determine who the proper voting members are."

Buhr says co-op members ignored their by-laws. On Monday, a judge granted Buhr a delay. He says he'll be back in court next month with more witnesses, and a lawyer.

The Howard County Equity board declined to go on camera while KIMT was at the courthouse.  Later however, they told us they are disappointed the judge allowed for the delay Monday.  They say they were and still are fully prepared to give their side of the story at the next court date.  At this point the merger in question is between Howard County Equity and Innovative Ag out of Monticello, Iowa. Buhr and the co-op will go to court again in three weeks.

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