Dispute unfolds between Purdue, ag association

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A crowd watches a beef show at the Hancock County 4-H Fair in 2021.

Daily Reporter file photo

HANCOCK COUNTY – A county youth agricultural organization is working with Purdue University after Purdue threatened legal action and accused the group of attempting to wrongfully sever ties.

The dispute comes amid tension between the two parties, who for decades have worked together to facilitate 4-H in the county and an annual fair. As they attempt to find a resolution, the future of the popular youth program and even ownership of the fairgrounds in Greenfield hang in the balance.

Barry Loftus, a lawyer representing Purdue, lays out the university’s stance in a letter to Gregg Graham, a lawyer representing the Hancock County 4-H Club Agricultural Association.

The letter refers to actions the Agricultural Association reportedly took at its Nov. 21 and Dec. 12 meetings. Those actions, according to the letter, regard amendments to the association’s articles of incorporation and bylaws, including removing “4-H Club” from its name and any references to the statewide 4-H Youth Development Program, eliminating the Agricultural Association’s stated purpose, and changing dissolution terms to deprive Purdue of assets obtained by the association.

The letter also accuses the Agricultural Association’s members of electing three directors at an improperly noticed meeting.

The letter notes 4-H is a federal program overseen by the U.S. Department of Agriculture and managed throughout the country by recognized land grant universities like Purdue. The Indiana General Assembly has given Purdue sole and exclusive authority to manage 4-H in Indiana, the letter continues.

“Purdue and its staff have a statutory duty to carry out the mission of the 4-H program and the Hancock County 4-H Club Agricultural Association, Inc. exists solely for the benefit of the 4-H program as managed and supervised by Purdue,” the letter states.

According to the letter, the Agricultural Association’s board of directors violated the organization’s bylaws by not providing written notice of the amendments before its Nov. 21 and Dec. 12 meetings, and not obtaining a two-thirds vote by the board to amend the bylaws at either meeting. Because of those failures, the letter continues, the Agricultural Association took no official action and the result amounted “to nothing more than an advisory resolution.”

The letter also states that the Agricultural Association’s articles of incorporation specify that if there’s any termination, revocation or dissolution of the corporate charter, all of the corporation’s assets legally revert to Purdue to be transferred to a new entity supporting the purpose of the corporation.

“This shows clear intent on the part of the Hancock County 4-H Club Agricultural Association, Inc. to encumber its assets for use solely for the 4-H program as managed and supervised by Purdue,” the letter states. “The purported amendments work to terminate, revoke and dissolve the corporation.”

Among the Agricultural Association’s assets are the Hancock County Fairgrounds, according to the county’s geographic information system.

The letter advises the Agricultural Association that its “current path will result in Purdue seeking dissolution of the corporation and a transfer of all assets to Purdue.” Even if the association “were to follow its stated bylaws and articles to completely revoke the corporation’s stated 4-H purposes and to make the other proposed amendments, such action would violate Indiana law,” the letter continues. Furthermore, according to the letter, “the legal consequence of that action would result in a transfer of all Hancock County 4-H Club Agricultural Association, Inc. assets to Purdue.”

Purdue demands the Agricultural Association board convene a meeting to pass a resolution confirming that its Dec. 12 vote of the membership was advisory only and reject that advisory resolution of the membership to amend the bylaws and articles. The university also demands that the board take no action to change the bylaws and articles of incorporation, and not transfer or dissipate any assets.

The letter states Purdue is open to resolving the dispute short of taking legal action.

Mike Elsbury, president of the county Agricultural Association, told the Daily Reporter in an email that he’s unable to answer the newspaper’s questions on the matter due to the threat of litigation.

“In general, we do not agree with the facts and allegations stated in their letter but I cannot specifically comment,” Elsbury said. “We are currently attempting to resolve many issues with Purdue Extension and are working towards a resolution as they requested.”

Graham, the Agricultural Association’s attorney, told the Daily Reporter in an email that he advised the association’s board that the actions taken at the November meeting were in violation of bylaws because it takes two meetings to amend them. He added that the association’s membership nominated board candidates who were not vetted as Purdue requires. He also said the December meeting violated bylaws and the election of board members, in his opinion, is void.

The issue was discussed earlier this month at a Hancock County Commissioners meeting, where Commissioner Marc Huber said he attended the Agricultural Association’s November and December meetings.

“My understanding is they’re not wanting to necessarily exit the contract with Purdue, they’re just wanting to rework the bylaws and have a little more ability to operate the actual 4-H program locally,” Huber said. “There’s been some issues with maybe how much control the … lead [Purdue Extension Hancock County] educator and Purdue has over the local organization.”

Huber said he understands why Purdue must approve all Agricultural Association board candidates, but that when he asked what the university’s criteria were for vetting candidates, it could not be provided.

“So in essence, that educator that goes through those applications can pretty much set the board, because if they don’t like anybody or have a personal agenda or any conflicts, it can be just said that they don’t qualify with really no checklist criteria,” he said.

He added that the overall sentiment of the county Agricultural Association’s membership, not necessarily its board, is negative toward Purdue.

“It’s affecting the ability to operate a successful 4-H program that is there for the children,” Huber said. “…The membership has had enough of Purdue, and I think this would be a good time for the almighty Purdue to sit down and have a real discussion with the ag association and the board and the 4-H, because it is together, but it is separate. And once again I think they need to realize that they’re here to serve the children of our community and the 4-H’ers of our community and they’re not here to play almighty God, because they do get funded quite a bit through the county.”

Huber also criticized Purdue’s threat to pursue the Agricultural Association’s assets.

“I think that’s a poor stance for them to take,” he said. “I think the stance should be – let’s sit down and have a conversation on how we can all make this better, possibly where the ag association and the 4-H has fell short, but definitely where Purdue’s fell short.”