Author: Hannah Scott

Leveling Up as a Cooperative Leader

An illustration of many interconnected gears in shades of blue with business related icons in the center, such as a light bulb, people, and clipboard.

The job description and responsibilities of a cooperative director are varied – from establishing policies, representing members, and assessing the cooperative’s performance, to hiring, supervising, and succession planning for the cooperative’s key manager, among many others. Whether a start-up cooperative is building their board, or a longtime director is taking on a new leadership role on their board, directors may be asking themselves, “What skills do I need to lead my co-op effectively?”

Vital Skills for Cooperative Directors

In research using prior literature, interviews, and focus groups with cooperative CEOs/general managers, directors, and service providers of farmer cooperatives in Kansas, researchers identified 11 key skills as necessary to be an “engaged and knowledgeable director,” including:

  1. Cooperative finance
  2. Cooperative governance and policy
  3. Communication
  4. Time management
  5. Understanding current economic and industry conditions
  6. Asking critical and constructive questions
  7. Strategic planning
  8. Networking
  9. Listening
  10. Teamwork; and
  11. Leadership[1]

When asked about the “duties, expectations, and strengths of successful directors,” cooperative board chairs and managers in Texas shared some of the following expectations of directors:

  • “Come prepared to give your full attention during board meetings.”
  • “Train and educate yourself to have an understanding of the audit and financial statements.”
  • “Stay current and aware of the status of co-op operations…”
  • “Work at being open to change and new ways of doing business.”
  • “Have an understanding of director versus general manager roles – both limitations and responsibilities.”[2]

Understanding your Skills

One way directors can build their leadership capacity is to identify skills where they excel and other skills where they would benefit from continued training and growth. However, some cooperative experts have cautioned that board assessments should be used with caution and in conjunction with additional training and development to avoid overwhelming, discouraging, or disengaging directors.[3]

The U.S. Department of Agriculture’s “Assessing Performance Needs of Cooperative Boards of Directors,” published a self-assessment tool for cooperative directors that includes seven areas related to cooperative directors’ responsibilities and duties.

Scholars from Texas A&M University developed a framework for cooperative governance based on concepts of personal, board, and organizational development where governance includes influence over self, influence over other individuals and the board, and influence over the cooperative organization.[4] The researchers developed a tool for directors to assess their own competencies in related to leadership in their cooperative called the Multidimensional Governance Assessment.

Resources for Growing Directors’ Skills

Many cooperative boards already provide training for their directors.[5] Regular board training programs may be built directly into regular meetings or as special programs focused on specific areas or skills. The source of expertise can be as varied as the training topics, from internal cooperative employees to partners from federated cooperatives to nonprofit and university educators.

Individually, directors may prefer to learn on their own through reading, live trainings, or connecting with peers. Directors can ask their co-op’s leadership whether they are aware of or partner with cooperative educators, or if they regularly use recommended training materials. Below are a few places where cooperative stakeholders can explore governance training.

Literature Cited

[1] Herchenbach, J., Briggeman, B., Bergtold, J., Shanoyan, A., Low, S. & Miller, B. (2023). “A qualitative assessment of farmer director skills in agricultural cooperatives.” International Food and Agribusiness Management Review. Advance online publication. DOI: 10.22434/IFAMR2022.0099

[2] Engelke, T. & Park, J. (Sept. 2008). How to Rise Above the Crowd. Cooperative Management Letter, Texas A&M University. https://agecoext.tamu.edu/wp-content/uploads/2013/08/cml0803RiseAboveCrowd.pdf

[3] Jacobs, K. & Fagerlin, R. (2024). Board Assessments: The Importance and Value of Board Assessments [presentation]. National Council of Farmer Cooperatives Director Education Conference.

[4] Park, J. Friend, D., McKee, G., & Manley, M. (2019). “A Framework for Training and Assessment of the 21st Century Cooperative.” Western Economics Forum, 17(2), 5-15.

[5] Berner, C. & Schlachter, L.H. (2022). “Findings from the Cooperative Governance Research Initiative: 2021.” University of Wisconsin-Madison Center for Cooperatives. https://resources.uwcc.wisc.edu/Research/CGRI_2021Report_web.pdf

Free Upcoming Webinar: 10 Questions to Ask your Attorney when Building Your Cooperative

A photograph with a person's hands, a wooden gavel, and bronze scales of justice with a wooden question mark in the foreground.People starting a cooperative have diverse and varied goals, from wanting to build democratic workplaces, to helping farmers or artists reach new markets, or finding ways for small businesses to save costs. Creating a business with the unique values, principles, and characteristics of a cooperative that serves members’ goals is not a one-size-fits-all structure. The frameworks that build a cooperative can include its legal structure, tax treatment, key partnerships, capitalization strategy, and more, which can take on a variety of distinct approaches.

This complexity can be overwhelming for groups new to the cooperative model and working to build their own cooperative enterprise. That is why building a team of competent advisors is an important part of the business start-up process. Those advisors can include attorneys, accountants, tax advisors, risk management and insurance advisors, industry experts, and others who can help the group build the frameworks that will help accomplish their goals.

How can different legal structures accomplish cooperative ownership?

 

That question, along with helping cooperative entrepreneurs prepare for meeting with an attorney during their pre-venture phase, is the subject of an upcoming learning program with the CFAES Center for Cooperatives’ Appalachia Cooperates Initiative.

On Wednesday, December 11, attorneys Jacqueline Radebaugh, Managing Partner and Shareholder with Jason Wiener p.c., and Mike Russell, Attorney with The Legal Aid Society of Cleveland will talk with entrepreneurs and business developers about legal frameworks that can accomplish cooperative business approaches and working effectively with an attorney, including how to prepare for working with an attorney who can best advise on the right structure for a business.

Staff from the CFAES Center for Cooperatives will share resources for locating professional advisors for a cooperative or other emerging business, with a particular focus on Appalachia.

Date: Wednesday, December 11, 2024

Time: 1 – 2 p.m. Eastern

Location: Online via Zoom

Cost: Free

Questions: Ann Luther (luther.111@osu.edu or 740-289-1952)

REGISTER HERE

 

This online learning program is presented as part of the CFAES Center for Cooperatives Appalachia Cooperates Initiative, a learning and peer-exchange network connecting cooperative, community, business, and economic developers and advocates in Central Appalachia to resources about the cooperative business model.

Event Details

Online events are hosted by the CFAES Center for Cooperatives at Ohio State via Zoom. Participants can join via the Zoom application on a computer or mobile device or by telephone. Unless otherwise noted, events will not be recorded. Registrants will receive Zoom connection details via email prior to the event. Events will be presented with automated closed captions. If you wish to request traditional CART services or other accommodations such as interpretation, please contact Ann Luther at luther.111@osu.edu or 740-289-1952. Requests made two weeks in advance will generally allow us to provide seamless access, but the university will make every effort to meet requests made after this date.

CFAES provides research and related educational programs to clientele on a nondiscriminatory basis. For more information, visit cfaesdiversity.osu.edu.

Conference on Co-op Law and Development Offers Unique Learning Experience

On September 17 and 18, 2024, attorneys, accountants, business developers, entrepreneurs, and students from eight states and the District of Columbia, gathered in Columbus, Ohio, to explore the intersection of law and cooperative business development. The 2024 Cooperative Law Conference, organized around the theme “Building a Cooperative Economy Together,” explored legal considerations when raising capital, key responsibilities for co-op directors, selling a business to workers using a cooperative structure, and more.

Attendees of the 2024 Cooperative Law Conference pose for a group photo.

From keynote presentations by Cooperative Hall of Fame members Terry Lewis, Esq., and Dr. Jessica Gordon Nembhard, to skill-building sessions on drafting co-op bylaws and understanding cooperative taxation, to a panel conversation about ‘growing and supporting new cooperators,’ the agenda included 13 learning sessions for both beginners and experts.

Two women standing talking to each other in front of a table in the foreground with conference attendees talking in the background.

Creating a Space for Co-op Legal Education

“Our goal was to create a space for entrepreneurs, developers, professionals, and future cooperators, to learn about the unique legal, tax, and financial characteristics of cooperatives, especially since learning opportunities about these concepts can be limited in our experience. I was energized by the engaging sessions, the opportunities to connect with knowledgeable experts, and the stories of people working to grow cooperatives,” shared Hannah Scott, program director of the CFAES Center for Cooperatives. “We want to thank Jason Wiener p.c., Dorsey, Ralph K. Morris Foundation, USDA Rural Development, Legal Aid Society of Cleveland, Legal Aid of Southeast and Central Ohio, and National Council of Farmer Cooperatives, for their support of the conference,” Scott noted.

Attendees of the 2024 Cooperative Law Conference listen to a presentation on the conversion of existing businesses to worker cooperatives in an auditorium-style classroom.

Organized by Collaborative Partners

The conference, first held in 2018, was hosted this year by The Ohio State University’s College of Food, Agricultural, and Environmental Sciences Center for Cooperatives, and organized by a collaborative group of developers and practitioners, including Jacqueline Radebaugh, Partner and Shareholder with Jason Weiner p.c.; Michael Russell and Catherine Donnelly, attorneys with Legal Aid Society of Cleveland; Meegan Moriarty, Legal and Policy Analyst with the U.S. Department of Agriculture’s Rural Business-Cooperative Service; Bill Scott, accountant and Principal with CliftonLarsonAllen LLP; Dave Swanson, Partner with Dorsey & Whitney LLP; and Melissa Will, Training Coordinator with Legal Aid of Southeast and Central Ohio.

A photograph of a woman sitting at a table speaking into a microphone in the foreground with three people sitting at tables in the background.

Connect with the CFAES Center for Cooperatives

The CFAES Center for Cooperatives at Ohio State assists entrepreneurs, educates the community, and generates knowledge about the cooperative business model with a special focus on food, agriculture, and rural communities. Learn more at go.osu.edu/cooperatives.

AI Applications and Risks for Co-ops

Artificial intelligence (AI) is creating a buzz across sectors. Generative AI tools have the potential to enhance personal productivity, create new operational efficiencies, and more. However, the space can be complex and intimidating for non-experts.

On May 29, 2024, the College of Food, Agricultural, and Environmental Sciences (CFAES) Center for Cooperatives and Mid America Cooperative Council hosted special guest experts for an online roundtable about artificial intelligence for the cooperative community. Guests shared practical ways their businesses are implementing AI, how cooperatives can develop their capacity to engage with AI tools, and strategies to manage risks associated with AI adoption.

Watch the Recording and Access Experts’ Slides

"AI Applications and Risks for Co-ops featuring experts from Nationwide and GROWMARK" in white text on a blue background with a man and woman in business attire.

A recording of the program along with audio transcript are available via Zoom! Users will be asked to register to view the recording to help us track the reach and impact of the session. Feel free to share the recording link with your colleagues!

An image of a farmer standing next to a combine head with the GROWMARK and FS logos and white text "AI Applications and Risks for Co-ops, Leland Roling"

Slides from Leland Roling, Director, Information Systems Development with GROWMARK Inc.

Meet the Guest Experts

Leland Roling is Director, Information Systems Development with GROWMARK, Inc. Over the past 15 years, Leland has been instrumental in the development, implementation, and maintenance of numerous business-critical digital solutions at GROWMARK. Whether assuming the role as a developer, technical lead, product owner, or overseeing all of the above, he has consistently driven initiatives serving internal operations, wholesale product divisions, and member companies within the cooperative.

In his role as the Director of GROWMARK’s information systems development teams, Leland steers the strategic direction and vision of their development and data platforms. He ensures the delivery of state-of-the-art digital solutions and pioneering technologies, such as generative AI and machine learning, within the ever-changing agricultural landscape.

GROWMARK is an agricultural cooperative serving cooperatives, retailers, businesses, and customers in the U.S. and Canada.

Radha Narla is AVP & Chief Architect, Strategy, Data and Innovation with Nationwide. Radha Narla is currently the Chief Architect for Strategy, Data, and Innovation organization at Nationwide in Columbus, Ohio. She leads the architecture function supporting Technology Strategy, Customer Data, Enterprise Analytics, Enterprise Strategic Partnerships, Enterprise Innovation, and Emerging Technology R&D. Radha has been at the forefront of Generative AI enablement in Nationwide, establishing foundational architecture for this cutting-edge technology.

Radha holds a Masters degree in Computer Science from Franklin University, and Bachelors Degree in Electronics Engineering from India. She lives in New Albany, Ohio with her husband. She enjoys being outdoors, hiking, biking, and camping with family and friends.

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products, including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow Nationwide on Facebook and Twitter.

Cooperative Farmers Markets

An abundance of fresh vegetables stacked on a table at an outdoor market.

Here in Ohio, the growing season is ramping up quickly! In some communities, farmers markets have already kicked off their season and in others, local food enthusiasts won’t have to wait long to enjoy the market. The estimated 8,000+ farmers markets across the United States[1] are an important way farmers sell to customers directly.

Based on the most recent U.S. Department of Agriculture (USDA) Census of Agriculture, in Ohio an estimated 8% of farms sell approximately $90 million worth of products directly to consumers.[2]

Advocates of farmers markets, like the Farmers Market Coalition, cite benefits like:

  • Helping farm businesses succeed – Farmers with direct-to-consumer sales are more likely to remain in business than other farms, according to USDA data.[3] Producers with farms that sell food through direct channels, like farmers markets, were more likely than all U.S. farms to be female and aged 34 or younger.[4]
  • Creating community food access points – 99% of farmers markets responding to a 2019 USDA survey sell fruits and vegetables and about half of responding markets accepted Federal Nutrition Programs like Supplemental Nutrition Assistance (SNAP)[5]
  • Positive community impact – About half of farmers markets responding to a 2019 USDA survey had a paid market manager and just over 5,000 markets across the U.S. engaged over 31,000 volunteers.[6]

A stall of vibrant, fresh vegetables like tomatoes and cucumbers, at an outdoor farmers market.

Farmers Markets and Business Structures

Starting and growing a successful farmers market involves many moving parts – building a community of farmers, engaging with local community leaders and patrons, effective marketing, and strong operational plans. Among the important aspects for new and established markets to consider is their business structure – like whether the market is an independent legal entity like a corporation or part of a larger umbrella organization. A market’s business structure can impact how decisions are made for a market, the extent of personal liability for market leaders, eligibility for certain types of funding like grants or charitable donations, how the market is taxed, and more.[7]

The Farmers Market Legal Toolkit from the Center for Agriculture and Food Systems at Vermont Law School provides helpful information about business structures for farmers markets, along with information about accepting public benefits and managing risks at markets.

Cooperatives as a Business Structure for Farmers Markets

An illustration of raised hands in rainbow colors.Cooperatives are one of various business structure choices for farmers markets. Cooperatives are member owned and controlled businesses that distribute benefits based on use and grounded in principles like democratic member control and concern for community.[8] Cooperatives operate across sectors from insurance and financial services to housing, purchasing, and utilities. In agriculture, cooperatives market various food and agriculture products, procure supplies and inputs, and provide services, like financial services.[9]

Farmers markets structured as cooperatives might be owned and governed by farmers who sell at the market, by community members who shop at the market, or by both groups in a “multistakeholder” cooperative.

Cooperative markets owned and governed by farmers are one form of marketing collaborations for farmers. Learn more about “Marketing Collaborations for Farmers” in our blog post here.

Some of the potential benefits of structuring a farmers market as a cooperative might include:

  • Member engagement and decision-making – Many decisions for a cooperative are made by a board of directors elected from and by the members. Members elect the board and can cast their vote on certain major issues for the cooperative. Democratic control is a defining principle of cooperatives and members generally vote using a “one member, one vote” set up. Cooperatives generally distribute their profit to members based on their use of the business.[10]
  • Community focus – As a business, the focus of a cooperative is on providing benefits to its members.[11] The internationally recognized cooperative principles highlight that “[c]ooperatives work for the sustainable development of their communities.”[12] This member and community orientation might create opportunities for cooperative farmers markets to develop a community-orientation and focus.
  • Existence of the market beyond current leaders – Operating a farmers market can be a lot of work. To ensure the successful operation of a market well into the future, it may be important to consider how to effectively share or transfer responsibilities for leadership and how to create a stable structure. As independent legal entities that are governed by a board, cooperatives may have opportunities to share leadership responsibilities and generally can exist perpetually as long as appropriate formalities are met.[13]
  • Limitation of liability and easily updated membership – Generally, cooperatives are legal entities created by filing appropriate forms with a state agency. As independent legal entities, generally the personal liability of each member in a cooperative is limited to the equity the member holds in the cooperative. Cooperatives set up as separate legal entities can add and remove members.[14]

However, cooperatives may have disadvantages compared to other potential business structures for farmers markets. For example, cooperative markets may be limited in their ability to legally use volunteers and unpaid staff compared to nonprofits, they may be limited in raising certain kinds of capital compared to corporations, and they rely on strong engagement and participation from members compared to structures that rely on just one or a few members like limited liability companies.[15]

People in business professional dress standing in a circle holding wooden gears together.

 

Like any decisions for a business with varied and far-reaching consequences, those interested in exploring the right business structure in their specific situation should consult knowledgeable competent professionals, like attorneys, accountants, and others. This information is provided for educational purposes only. It is not legal advice. It is not a substitute for the potential need to consult with a competent attorney in the appropriate jurisdiction.

Take a deeper dive into the cooperative business model, including cooperative legal frameworks, governance, financial concepts, and more with Co-op Mastery: Beyond Cooperatives 101 at go.osu.edu/coopmastery.

 

References

[1] 2019 National Farmers Market Managers 2019 Summary. (Aug. 2020). U.S. Department of Agriculture National Agricultural Statistics Service. https://downloads.usda.library.cornell.edu/usda-esmis/files/pz50hd694/gx41n598k/jd473j98z/nfar0820.pdf

[2] Data from the 2022 Census of Agriculture “Ohio: Market Value of Agricultural Products Sold Including Landlord’s Share, Food Marketing Practices, and Value Added Products: 2022 and 2017” and “Ohio Historical highlights: 2022 and Earlier Census Years,” U.S. Department of Agriculture National Agricultural Statistics Service.

[3] Key, N. (2016). “Local Foods and Farm Business Survival and Growth.” U.S. Department of Agriculture Economic Research Service. https://www.ers.usda.gov/amber-waves/2016/march/local-foods-and-farm-business-survival-and-growth/

[4] Direct Farm Sales of Food: Results from the 2020 Local Food Marketing Practices Survey. U.S. Department of Agriculture National Agricultural Statistics Service. https://www.nass.usda.gov/Publications/Highlights/2022/local-foods.pdf

[5] National Farmers Market Managers. (Aug. 2020). U.S. Department of Agriculture National Agricultural Statistics Service. https://downloads.usda.library.cornell.edu/usda-esmis/files/pz50hd694/gx41n598k/jd473j98z/nfar0820.pdf

[6] National Farmers Market Managers. (Aug. 2020). U.S. Department of Agriculture National Agricultural Statistics Service. https://downloads.usda.library.cornell.edu/usda-esmis/files/pz50hd694/gx41n598k/jd473j98z/nfar0820.pdf

[7] “Why does the market’s business structure matter?” Farmers Market Legal Toolkit. Center for Agriculture and Food Systems, Vermont Law School. https://farmersmarketlegaltoolkit.org/business-structures/why-your-choice-matters/

[8] (2014). Co-op Essentials: What They Are and the Role of Members, Directors, Managers, and Employees. USDA Rural Development Cooperative Programs.

[9] Wadsworth, J., Lapp, K., & Rivera, J. (2021). Agricultural Cooperative Statistics 2019. Washington, D.C.: U.S. Department of Agriculture Rural Development Service Report 83.

[10] “Co-ops 101: An Introduction to Cooperatives.” (2012). U.S. Department of Agriculture Rural Development, Cooperative Information Report 55. Retrieved from http://www.rd.usda.gov/files/cir55.pdf

[11] Zueli, K. & Cropp, R. (2014). “Cooperatives: Principles and practices in the 21st century.” UW Extension.

[12] “Cooperative identity, values & principles.” (n.d.). International Cooperative Alliance. Retrieved from https://www.ica.coop/en/cooperatives/cooperative-identity

[13] “Legal Foundations of a Cooperative.” (1995). U.S. Department of Agriculture Rural Business – Cooperative Service, Cooperative Information Report 45, Section 9. Retrieved from https://www.rd.usda.gov/sites/default/files/CIR45-9.pdf

[14] “Legal Foundations of a Cooperative.” (1995). U.S. Department of Agriculture Rural Business – Cooperative Service, Cooperative Information Report 45, Section 9. Retrieved from https://www.rd.usda.gov/sites/default/files/CIR45-9.pdf

[15] “Cooperatives.” Farmers Market Legal Toolkit. Center for Agriculture and Food Systems, Vermont Law School. https://farmersmarketlegaltoolkit.org/business-structures/cooperatives/#topic-overview

Spring Youth Cooperative Leadership Experience Day Held at South Centers

The spring session of the Youth Cooperative Leadership Experience Day was held at The Ohio State University South Centers on Friday, April 26th.  Junior and senior students studying agriculture from Eastern Local School District in Pike County and Eastern Local Schools in Brown County participated in the day-long program with hands-on learning sessions, a tour of South Centers research field plots, aquaponics system, and fish hatchery along with a Cooperative Career Fair where students were introduced to area cooperative business leaders.   

A group of students and adults in front of an Ohio State logo.

During the Cooperative Career Fair at YCLE 2024, students talked with cooperative business leaders from Dairy Farmers of America, Atomic Credit Union, Heritage Cooperative, Farm Credit Mid-America, and United Producers, Inc.

 To show students the kinds of science-based careers available in agriculture, Ohio State University faculty and staff led hands-on activities. Students learned about cross-pollination with OSU Assistant Professor and Director of Ornamental Plant Germplasm Center, Dr. Yu Ma, getting to try their hand at cross pollinating pea plants for desired outcomes and taking those plants back to school to observe their outcomes.

With Dr. Dan Remley, OSU Extension Specialist in Family Nutrition and Wellness, students learned about plant DNA and careers in biotechnology before working together to extract DNA from strawberries.

To illustrate the importance of soil health in agriculture, and career opportunities in agronomy and related fields, students learned about soil testing with South Centers’ Soil, Water and Bioenergy team members, Dr. Arif Rahman, and research assistant, Leo Guan. Students worked in pairs to conduct a soil test to understand the quality of soil and participating schools received soil test kits to take back to their classrooms to build on the day’s learning.

During the Cooperative Career Fair, students talked with cooperative business leaders from Dairy Farmers of America, Atomic Credit Union, Heritage Cooperative, Farm Credit Mid-America, and United Producers, Inc. Business leaders from these cooperatives provided students with details about what their cooperative does, careers available in their cooperatives and fields, education needed to pursue those careers, and other details about the current job market within their cooperative.

The Youth Cooperative Leadership Experience program is supported by a grant from the Southern Ohio Agricultural and Community Development Foundation. We would like to thank the cooperatives and team members whose generous contributions and participation in the day’s events helped make it a success!

Business Basics to Help “Do Business Better”

Whether you’re a sole entrepreneur running a retail business, a group of workers who own a café cooperatively, or a non-profit organization working to improve your community, basic business skills in marketing, finance, and human resources can be important for success and cooperative approaches might help you overcome challenges. That was the simple idea behind a learning series in Gallipolis, Ohio, this spring presented by the Small Business Development Center at OSU South Centers and College of Food, Agricultural, and Environmental Sciences Center for Cooperatives and sponsored by United Way of the River Cities and Gallia County Chamber of Commerce.

A woman teaching attendees in front of a slide presentation People sitting at a conference room table watching a presentation A woman teaching attendees in front of a slide presentation

Caption: Training participants heard from Melanie Sherman, Hannah Scott, and other partners during the series, held at Ohio Valley Bank On the Square in Gallipolis, Ohio.

Explore Resources from the Training Series

The three-part learning series kicked off on March 28, 2024, with a dive into best practices in branding, identifying target markets, finding low and no-cost media tools, and exploring cooperative approaches to small business marketing. As part of the training, CFAES Center for Cooperatives staff shared approaches like group purchasing of supplies, pooled advertising and customer outreach, and shared space, that may help small businesses lower costs and reduce transaction costs.

A slide titled "Business Basics Marketing" with logos for The Ohio State University College of Food, Agricultural, Environmental Sciences, Ohio Small Business Development Centers, and U.S. Small Business Administration

Explore select slides from the finance training here.

Accessing capital and managing finances can feel like a hurdle for small businesses and community organizations. Whether it is funds to purchase a building, hire staff, or invest in new equipment, or understanding basic financial statements to make better business decisions, these areas can seem overwhelming. On April 25, 2024, Hannah Scott, CFAES Center for Cooperatives Program Director, and Melanie Sherman, a small business counselor with OSU South Centers, helped attendees learn about basic business financial terms and statements, reviewed best practices for pricing products, and outlined processes for finding loans and grants. The team introduced participants to the worker cooperative model, using a mock worker co-op as a model throughout the presentation to help attendees learn about the unique business model. Worker cooperatives, among other opportunities, may help individual entrepreneurs pool equity investments and share risk.

A slide titled "Business Basics Financial Literacy" with logos for The Ohio State University College of Food, Agricultural, Environmental Sciences, Ohio Small Business Development Centers, and U.S. Small Business Administration

Explore select slides from the finance training here.

Hiring and retaining the right team is integral to business success. Small businesses and non-profits need to consider many factors to manage talent, from meeting various regulatory requirements to keeping workers engaged and effectively reaching new candidates to join their team. On May 23, 2024, Melanie Sherman and Hannah Scott, both with business programs at the OSU South Centers, shared basic considerations for recruitment marketing to help hire the “right” employee and cooperative shared service approaches for human resource functions. Ms. Scott also introduced participants to employee owned business models, like worker cooperatives, which can create benefits for workers like increased wages, greater retirement earnings, and opportunities to meaningfully shape their workplace.

An image of the title slides of the presentation "Business Basics: Human Resources for Profits and Non-Profits"

Explore select slides from the finance training here.

Connect with the Speakers!

A black and white photograph of a sign for the OSU South Centers and Endeavor Center with a field and buildings in the background.

Do you want to learn more? Offer similar trainings in your community? Interested in one-on-one counseling to grow your business? Reach out to Melanie or Hannah!

Melanie Sherman, CBA
Venture Development Analyst

614-247-9729 Office / sherman.1675@osu.edu

Hannah Scott, JD
Program Director

(614)247-9705 Office / scott.1220@osu.edu

Cooperating for Childcare

Rural Ohioans are more than two times as likely to live in an area without enough licensed childcare providers than their fellow citizens in urban areas of the state.[1] In West Virginia, 78% of rural families live in areas considered a “childcare desert.” A “childcare desert” is any census tract with more than 50 children younger than age 5 where there are either no childcare providers or where there are more than three times as many children as licensed childcare slots.[2]

Childcare providers in Appalachia may face challenges with profitability, even when they receive available public support, along with challenges around regulatory compliance and insurance.[3] The childcare sector across the county is projected to experience a decline in employment over the next eight years, despite estimates that there are projected to be approximately 153,000 openings for childcare workers each year, on average.[4]

Colorful children's toys like letter blocks, legos, and shapes on a multi-colored background.

Some communities, providers, and employers have turned to the cooperative model to help meet their childcare needs.[5] Cooperatives are businesses owned, controlled, and used by people with mutual needs using a democratic approach. Childcare cooperatives can take various forms, including:

  • Childcare worker cooperatives where providers jointly own and operate a childcare center, like Shine Nurture Center in or Beyond Care Childcare Cooperative.
  • Parent-led childcare cooperatives where parents cooperate to meet their childcare needs while jointly setting policies and democratically governing the group.
  • Early childcare providers working together to jointly purchase goods, provide resources like curriculum, and create leave programs, like CoRise Cooperative.
  • Employer-assisted cooperatives where employers help develop a cooperatively owned and operated childcare program to enhance the benefits available to their employees, like Energy Capital Cooperative Child Care.

For more information about and resource for cooperatives in the childcare sector, visit: https://uwcc.wisc.edu/resources/childcare/.

On Tuesday, April 30, 2024, from 10am-11am Eastern, the CFAES Center for Cooperatives at Ohio State will host a virtual roundtable focused on childcare in West Virginia. Kristy Ritz, Executive Director of the West Virginia Association for Young Children, will speak about the association’s work and challenges faced by childcare providers in the region. Staff from the CFAES Center for Cooperatives will share resources to explore cooperative models in the industry.

Register for the free, online event on March 25, 2024, at: go.osu.edu/wvchildcare

 

This virtual learning program is part of the Center’s Appalachia Cooperates Initiative, a learning and peer-exchange network connecting cooperative, community, business, and economic developers and advocates in Central Appalachia to resources about the cooperative business model. Find more information about the Initiative and recordings of past learning programs at: go.osu.edu/appalachiacooperates.

 

Data Sources:

[1] “Expanding Child Care in Rural Ohio,” Groundwork Ohio. Accessed March 19, 2024. https://www.groundworkohio.org/_files/ugd/d114b9_0a1c37a29b9d46149e444fb3f46bd3a7.pdf

[2] “Childcare Access in the United States,” Center for American Progress. Accessed March 19, 2024. https://childcaredeserts.org/2018/#:~:text=In%20the%20United%20States%2C%2051,enough%20licensed%20child%20care%20providers.

[3] “Appalachian Early Childhood Network,” (July 21, 2021). Mountain Association. https://mtassociation.org/business-support/appalachian-early-childhood-network-2/

[4] “Childcare Workers,” Occupational Outlook Handbook, U.S. Bureau of Labor Statistics. Accessed March 19, 2024. https://www.bls.gov/ooh/personal-care-and-service/childcare-workers.htm#:~:text=early%20childhood%20education.-,Pay,was%20%2413.22%20in%20May%202021.

[5] “Childcare,” University of Wisconsin Center for Cooperatives. Accessed March 19, 2024. https://mtassociation.org/business-support/appalachian-early-childhood-network-2/; “Early childcare and education cooperatives can help build economic power.” (December 13, 2022). U.S. Department of Agriculture and NCBA CLUSA. https://ncbaclusa.coop/blog/early-childcare-and-education-cooperatives-can-help-build-economic-power/

Cooperative Frameworks in Ohio

An enterprise’s legal structure informs who is in control and how they exercise their control, who is liable for losses by or actions of the organization, how the enterprise raises capital, and who receives income and suffers losses, among other characteristics of the enterprise.

Business entities are organized according to state law and there is great diversity in the cooperative laws across the United States.

For a deeper dive into the framework for cooperatives under the Ohio Cooperative Law, including the key roles of members, explore these educational resources.

Image of cover for "Key Roles of Members in Ohio Cooperatives" resource.  Image of cover for "12 Key Roles of Members in Ohio Cooperatives Infographic" resource.Image of cover for "Quick Summary: Ohio's Cooperative Law" resource.

 

 

 

This information is provided for educational purposes only. It is not legal advice. It is not a substitute for the potential need to consult with a competent attorney licensed to practice law in the appropriate jurisdiction.

 

References

O’Brien, D., Hamilton, N., & Luedeman, R. (2005). “The Farmer’s Legal Guide to Producer Marketing Associations.” Drake University Agricultural Law Center. Retrieved from https://nationalaglawcenter.org/wp-content/uploads/assets/articles/obrien_producermarketing_intro.pdf

Student Cooperative Start-up Toolkit

A Guide to Creating Your Own Student-Led Agricultural Co-op

Student Cooperative Start-up Toolkit cover photo

A student-led cooperative, where young people in an agricultural class, 4-H club, FFA chapter, or other group, operate an enterprise using cooperative principles, may be an opportunity to teach young people entrepreneurial skills and the unique aspects of the cooperative business model, which is an important part of American agriculture.

Cooperatives are an important part of American agriculture. As of 2019, over 1.8 million farmers, ranchers, and fishermen were members of agricultural cooperatives. Cooperatives market a wide range of commodities like fruits and vegetables, cotton, grains and oilseeds, dairy, nuts, livestock, wool, and more. They provide financing for agribusinesses and farmers and they help producers access inputs and new technologies. The user-owned and controlled business model is not new – the first documented farmer cooperatives in the United States were initiated around 1810. In the Buckeye state, farmers started a cooperative effort to market hogs in 1820. If you’re involved in agriculture in the United States, chances are you interact with the cooperative business model.

At the student-led cooperative farm at the Ohio Valley Career & Technical Center’s Agribusiness Management program in West Union, Ohio, students gain real-world experience as they manage their school’s 300-acre farm where they raise row crops, livestock, and more. Since 2016, students have used a student-led cooperative model in their program, an approach initiated by their instructor, Mr. Luke Rhonemus.

Students can become a ‘member’ of the co-op and are eligible to serve on the student-elected board of directors, which helps make decisions about the farm alongside Mr. Rhonemus. Eventually, the students and Mr. Rhonemus hope alumni of the program can join the cooperative to market their locally produced farm products.

As part of a project funded by the Sustainable Agriculture Research & Education (SARE) program of USDA focused on enhancing the student-led cooperative model, the CFAES Center for Cooperatives at Ohio State has collaborated with Mr. Rhonemus and others to provide education and training for students on the cooperative model, agribusiness marketing, and production-related areas like meat butchery. Specialists with the CFAES Center for Cooperatives and the OSU Extension Direct Food and Agricultural Marketing program helped the students and instructor develop a marketing plan and conservation plan for their farm and to implement parts of the plan to enhance their student-led school farm co-op.

Educators, advisors, and community leaders interested in developing a similar student-led cooperative learning experience in agriculture can explore a recently developed toolkit to explore, understand, and develop the model. The toolkit includes ideas for activities, links to resources and videos, and templates that educators can make their own. Users will need to consider their specific circumstances, consult with advisors, and tailor their approach.

Student Cooperative Start-up Toolkit: A Guide to Creating Your Own Student-Led Agricultural Co-op

 

This material is based upon work that is supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, under agreement number 2019-38640-29879 through the North Central Region SARE program under project number LNC19-428. USDA is an equal opportunity employer and service provider. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture. Learn more about SARE at: https://northcentral.sare.org/.