South Dakota Hutterite Co-op Seeks Exception to Grain-Dealing Reporting Rules

The South Dakota Hutterian Co-operative, a farming cooperative with members from the state’s Hutterite colonies, has requested an exemption from certain grain-dealing reporting requirements. The request comes as the co-op seeks to comply with state regulations after being cited for selling soybeans without a license.

In July, the South Dakota Public Utilities Commission (PUC) outlined concerns about the co-op’s operations, noting that it had been selling grain without the necessary license. The co-op has since applied for a license but has asked for an exemption from financial reporting rules that require reports from a certified public accountant.

Julie Dvorak, an attorney representing the co-op based in Aberdeen, South Dakota, argued that the reporting requirements would impose a significant financial burden on the co-op’s members. She noted that other co-ops typically have separate entities, such as lenders or boards of directors, that handle such reporting. However, the Hutterite colonies, which are part of a Christian faith that does not believe in individual property ownership, do not have such structures.

Dvorak explained that the co-op has a bookkeeper, though not a certified public accountant, and uses the Eide Bailly accounting firm for tax reporting. She also mentioned that the co-op has a bond in place and that PUC staff would be welcome to review the books.

The PUC has asked for a 90-day temporary exemption to allow the co-op to navigate the busy harvest season before full compliance is required. Commission Chairman Chris Nelson expressed concern that granting a permanent exemption could lead to other similar requests.

The Hutterite colonies operate under a communal lifestyle, where property is shared and decisions are made collectively. This structure influences how the co-op manages its finances and interacts with regulatory bodies. The PUC’s decision to grant a temporary exemption reflects a balance between regulatory oversight and the unique needs of the co-op.

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