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/.

Online Resource “Co-op Mastery” Refreshed and Open for Learning!

An illustration of multicolored connected gears, puzzle pieces, light bulb, and arrow on a light yellow background.

A lot has changed since 2018.

When the CFAES Center for Cooperatives launched the online learning platform Co-op Mastery: Beyond Cooperatives 101 in 2018, our goal was the create a resource for cooperative stakeholders where they could learn about the unique business model through accessible learning materials. We used infographics, videos with co-op experts, recorded presentations, and brief articles. We shared the platform and associated workbook with stakeholders, including people exploring new cooperative ideas.

But in the early part of 2023, we recognized that our team and others in the cooperative community had generated a lot of knowledge and learning resources since 2018. Often, we were referring people to these updated resources, so we launched a refresh of Co-op Mastery to reflect new knowledge and incorporate new learning materials.

Visit Co-op Mastery: Beyond Cooperatives 101 at go.osu.edu/coopmastery.

 

Refreshed Co-op Mastery Highlights

In the refreshed Co-op Mastery, you will find some of the original materials developed for Co-op Mastery, but you will also find references to new knowledge and materials.

You will find links to recent webinars about housing cooperatives, video tours of Ohio cooperatives, and new data about worker cooperatives in the refreshed Cooperatives in the Community page.

Some of these materials come from the 13 recordings of online learning sessions about the cooperative business model that were part of the Center-led Appalachia Cooperates Initiative from 2020-2023. From a webinar about “Selling to Your Workers” in September 2023 to a dive into “Legal Frameworks for Cooperatives in West Virginia” in 2022, and more, the recordings are available to the public at: go.osu.edu/appalachiacooperates.

In Co-op Mastery’s Cooperative Benefits and Principles you can explore a real-world example of the international cooperative principles by watching a webinar featuring leaders of an emerging Ohio cooperative working to grow new farmers.

Learn about the key roles of directors and members through new research from the University Wisconsin’s Cooperative Governance Research Initiative and links to recent resources like the guide Navigating Your Legal Duties: A Guide for Agricultural Cooperative Directors, published by the National Agricultural Law Center in 2021 and co-authored by CFAES Center for Cooperatives Program Director, Hannah Scott.

Explore the legal foundations of cooperatives in the refreshed Cooperative Frameworks section of Co-op Mastery that includes a video interview with a cooperative attorney and links to new resources like a National Agricultural Law Center compilation of state statutes that govern the formation of agricultural cooperatives as of 2022 and a “State-by-State Co-op Law” resource focused on worker cooperatives from the Sustainable Economies Law Center’s Co-opLaw.org.

Our team continues to refresh content related to building a new cooperative, so we encourage you to check back on the growing learning resource!

Student Led Cooperatives: Sharing the Co-op Model with Future Ag Leaders

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. Learn about the student-led cooperative model and ideas for activities to help young people learn about the co-op model in this video with Hannah Scott, CFAES Center for Cooperatives Program Director.

Here are a few quick ideas for helping young people learn about cooperatives in agriculture:

 

Explore the variety of agricultural careers at cooperatives: Find a cooperative in your community. If you’re not sure whether there is a co-op in your area, check out the interactive map of Ohio cooperative locations from the CFAES Center for Cooperatives at Ohio State at go.osu.edu/ohiocooperatives. Visit the co-op’s website to explore job postings and career information. What kinds of jobs do they have? What skills or education might those jobs require?

Connect with a local cooperative leader – Reach out to a local cooperative leader or member to invite them to talk about their co-op or their own job and career path or visit a local cooperative for a tour. Don’t have an opportunity for in-person activities? Find video tours of Ohio cooperatives like Heritage Cooperative and talks with farmer cooperative leaders online at go.osu.edu/ycle.

If students currently or want to operate an enterprise like a greenhouse, flower operation, or small livestock operation, help them learn about cooperative marketing or group decision-making. Invite a local producer to talk with students about their experience selling at a farmer’s market or through a cooperative. Help students brainstorm a brand identity for their enterprise. Talk with students about how to run a board meeting.

Learning from the Student-Led Cooperative at Ohio Valley Career & Technical Center

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 in the program 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 to help them market the pork, beef, hay, and other products “Raised by students, enjoyed by you” (a tagline students developed for their marketing efforts as part of the project). To implement the plan, the project provided services from a branding consultant, who helped create new brand assets, from logos to color schemes, fonts, and more that students can use as they grow their marketing efforts. The program’s student board then selected promotional items that use the new brand assets to help them spread the word about their farm and reach customers.

One goal of the project is the development of a toolkit for other programs to develop similar student-led cooperative learning experiences in agriculture. If you are interested in learning more about student-led cooperative models, contact the CFAES Center for Cooperatives!

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/.

Marketing Collaborations for Farmers

Marketing is “creating, communicating, delivering, and exchanging offerings that have value,” according to the definition adopted by the American Marketing Association. As is clear from the definition, marketing is broad! It encompasses concepts around product, price, place, and promotion.

At the 2023 Farm Science Review (FSR), CFAES Center for Cooperatives program director, Hannah Scott, shared collaborative approaches to marketing that may help fruit and vegetable farmers grow their businesses. From cooperative efforts to reach customers to group buys for marketing supplies, the key question for collaborative approaches is whether a group can do something better together than they can individually.

Colorful pattern of lettuce, tomatoes, eggplants, and carrots on tan background.

Collaborative Promotion

To help reach customers and promote their farms and products, farmers might consider taking advantage of collaborative programs like Ohio Proud, a program of the Ohio Department of Agriculture to promote Ohio grown, raised, or processed food and agriculture products. Other community-led efforts to promote local food, like the Pike County Local Foods Directory, led by Pike County OSU Extension, may be opportunities for farmers to reach new customers and raise awareness.

Interested in Collaborative Promotion Strategies? Here are some things to consider:

  • Are there existing programs your farm could engage simply and efficiently?
  • How can your farm share promotional items from these collaborative programs? Using social media or placing materials around your community?
  • If you help create new materials, who will “own” keeping them updated?

Controlling Costs through Joint Purchasing

Does your farm use marketing supplies that others also often use? Think of items like bags, boxes, cartons, crates, stickers, signage, and more. Sometimes purchasing supplies as a group may help farmers access bulk discounts while reducing the inventory they need to hold themselves. Group buys might also help control shipping costs and reduce administrative burdens.

Interested in Collaborative Purchasing? Here are some things to consider:

  • Will group purchasing save costs on goods and/or shipping?
  • Do the logistics work for the group?
  • Be aware of potential risks and plan for them, including potential risks around payments for goods, the quantity purchased, storage and timing considerations, and more.
  • Ensure that communications around the what, when, where, and how, for group purchases are clear and consistent.

Collaborative Marketing Approaches to Enhance Product Diversity

Sometimes offering a diverse array of products might help a business attract more customers. For example, farmer’s markets often work to recruit a diverse group of vendors so they can offer customers everything from fruits and veggies to meat and proteins, dairy, baked goods, and more. In some instances, business-to-business (B2B) sales, including approaches like multi-farm CSA’s, may help farmers or markets increase their product offerings or extend their marketing season.

Interested in Collaborative Approaches to Enhance Product Diversity? Here are some things to consider:

  • How can you manage for the quality and safety of products you do not produce?
  • Does product diversity actually help sales in the market channel you are in?
  • What strategies might you need to help manage risk and set clear expectations around terms of B2B sales?
  • Does the market channel where you sell products allow for B2B sales? For example, some farmer’s market rules may not allow for sales of items a vendor did not produce themselves.

An illustration of a laptop with retail store awning and paper airplane next to brick buildings to represent online business marketing.

Cooperation to Reach New Market Channels

Some market channels require higher volumes of product more consistently than others – think k-12 institutions or wholesale buyers – and these markets might be challenging for some farmers to enter. Producer-owned cooperatives that market products on behalf of their members may offer opportunities for farmers to pool products to reach higher volumes more consistently. Some farmer’s markets may be producer-led cooperatives (like the Chillicothe Farmers Market in Ross County, Ohio). Cooperatives may be a useful approach where pooling product or resources helps solve a challenge, but they can also be complex.

Interested in the Producer-Owned Cooperative Model? Here are some things to consider:

  • Who will be involved as members and what will be their role?
  • How will the group make decisions?
  • How can the group manage risk?
  • Will working together create the intended benefit? Can that benefit be clearly identified and communicated to members?

Access the slides for the presentation, “Marketing Collaborations to Improve your Farm’s Bottom Line” here!

 

To learn more about cooperative and collaborative approaches in agriculture, reach out to the CFAES Center for Cooperatives at Ohio State at go.osu.edu/cooperatives or 740-289-2071. The publication, “Cooperative Farming: Frameworks for Farming Together” published by Northeast SARE is also a great place to start learning about cooperative and collaborative approaches in agriculture.

Farm Science Review is a three-day, annual outdoor event hosted by Ohio State University featuring commercial exhibits, educational programs, and field demonstrations showcasing the future of agriculture. The presentation was part of 15 different learning sessions at the OSU Extension Fruits & Vegetables exhibit at FSR. The OSU Extension Fruit & Vegetable team posts educational resources and updates at https://u.osu.edu/vegnetnews/

Could Cooperation Help Your Small Business Market Better?

Product, price, place, and promotion. One of the keys to success for a small business is mastering marketing. Whether entrepreneurs are advertising their business, using promotional strategies to reach their target customers, or working to place their products into a new market channel, marketing encompasses many aspects of business. Are cooperative approaches to marketing opportunities a fit for your small business to save time and resources?

Does your business use supplies that many other businesses also use?

Purchasing supplies as a group, via a purchasing cooperative, for example, may help businesses lower per unit costs for supplies, improve market information across the supply chain, consolidate transactions to reduce administrative burdens, reduce inventories, coordinate shipping, or even control quality attributes.[1] For example, restaurants may use a purchasing cooperative to purchase food, packaging, equipment, and other commonly needed supplies together in bulk. The Wendy’s Quality Supply Chain Co-op works with suppliers to provide member restaurants with products and services, pooling billions of dollars in buying power.

For a more detailed look at the purchasing cooperative model, see the publication “A Guide for the Development of Purchasing Cooperatives,” by the U.S. Department of Agriculture.

Golden french fries in white paper container. White toilet tissue rolls in a wire shopping cart. Yellow paper shopping bags with polka dots and stars.

Could your business advertise with businesses in the same industry or geography?

Marketing cooperatives and similar approaches may offer opportunities for small businesses to reach new market channels or audiences while reducing costs and administrative burden for individual businesses.

In Ohio, businesses in the tourism industry like convention and visitors bureaus, lodging, restaurants, attractions, festivals, and others, may be able to utilize TourismOhio’s “Ohio, The Heart of It All Co-op Advertising Program,” which provides members opportunities to purchase advertising like paid social, digital, and paid search, as well as opportunities for marketing contact creation offerings like photography, videography, storytelling, and influencer engagements, among other potential benefits.

Illustrated image of computer screen with various graphics, including play symbol, money symbol, text bubble, light bulb, and megaphone.

Does your business have the ability or opportunity to share physical space with other businesses?

In some instances, cooperative approaches to helping businesses access the physical space they need to operate or market their business might offer benefits. For example, shared-use space like business incubators or artist cooperatives might help create affordable opportunities for start-up businesses, help businesses attract new customers in spaces where customers who enter the space to shop at one business may also be encouraged to shop at others, and reduce administrative burdens by sharing maintenance and upkeep for the space and outdoor areas.

Learn more about artist cooperatives in this “Toolkits for the Arts: Toolkit 2: Form an Artist Cooperative” from the Tamarack Foundation for the Arts in West Virginia.

Open sign on inside of glass window.

Some Considerations for Working Cooperatively

Small businesses exploring how a collaborative approach might help them better market their products and businesses will need to consider various key questions. The questions below are a starting point but are by no means exhaustive. Entrepreneurs who are interested in exploring a cooperative approach further can reach out to the College of Food, Agricultural, and Environmental Sciences Center for Cooperatives at Ohio State.

  • Who will be engaged? What is their role?
  • How will the group make decisions?
  • How will the group be formally organized?
  • How can the group manage risk?
  • Will working together provide the intended benefit

Graphic of light colored light bulb and hands connecting colored puzzle pieces

Contact Us!

For more information about the CFAES Center for Cooperatives at The Ohio State University visit go.osu.edu/cooperatives. Contact the CFAES Center for Cooperatives at osucooperatives@osu.edu or 614-247-9705.

For assistance with registration or additional questions about events, please contact Samantha Black at black.1156@osu.edu or 614-247-9774.

CFAES provides research and related educational programs to clientele on a nondiscriminatory basis. For more information, visit cfaesdiversity.osu.edu. For an accessible format of this publication, visit cfaes.osu.edu/accessibility.

[1] Reynolds, B. & Wadsworth, J. (2009). “A Guide for the Development of Purchasing Cooperatives,” U.S. Department of Agriculture Rural Development, Cooperative Information Report 64.

Exploring the Ways Cooperatives Support Sustainable Development at the 2023 Appalachia Studies Conference

The 46th Annual Appalachian Studies Conference, hosted on the Athens, Ohio, campus of Ohio University in the heart of the Buckeye state’s Appalachian region, celebrated the region’s resilience. From scholarly presentations to practitioner panels, arts performances, poster presentations, and more, the conference explored issues like diversity, equity, and inclusion, environmental challenges and reclamation, combating food deserts, honoring and sharing the region’s history, traditions, and culture, and much more via the theme “AppalachiaFest: From Surviving the Thriving.”

Picture of "AppalachiaFest: From Surviving to Thriving" button on green background with black font "Visit Athens County, Ohio."

The theme of the 2023 Appalachian Studies Conference was “AppalachiaFest: From Surviving the Thriving.”

Hannah Scott, CFAES Center for Cooperatives Program Director, joined a panel with colleagues from Pennsylvania and Kentucky around the theme, “Cooperatives and Sustainable Development in Appalachia.”

Dr. J. Todd Nesbitt, Professor of Geography at Lock Haven University of Pennsylvania studies economic geography, including the history of economic development in Appalachia. Defining sustainable development simply as “growth that must be accomplished with respect for nature and humankind,” Dr. Nesbitt posited that “most cooperative enterprises achieve sustainable development by default,” through their commitment to globally recognized principles including democratic member control and concern for community, as well as values of self-help, democracy, and equity.

In 2020, Hannah Scott explored how sustainability is a part of being a cooperative in this article.

From farmers marketing their products to consumers accessing new or affordable goods and services to workers democratically owning their workplace, Hannah Scott shared how the cooperative model is being applied across Appalachia and how the CFAES Center for Cooperatives’ Appalachia Cooperates Initiative (ACI) is working to support a cooperative ecosystem in the region. ACI is a peer learning network. The main idea is to connect cooperative, community, business, and economic developers and advocates in Central Appalachia. By helping build these connections and providing learning opportunities, the CFAES Center for Cooperatives’ goals are to build awareness and understanding of the co-op model, equip practitioners with knowledge and skills, and facilitate a connected network of co-op and community developers. ACI was born out of a collaborative dialogue between partners in Ohio, West Virginia, and Pennsylvania.

The Center regularly hosts peer networking calls and learning sessions as part of the ACI. Find learning session recordings and sign-up to receive emails about the Appalachia Cooperates Initiative at: go.osu.edu/appalachiacooperates.

A slide sharing the goals of the Appalachia Cooperates Initiative: Develop practitioners’ awareness and understanding of the cooperative model and of cooperative development resources to better recognize and act on cooperative opportunities in their communities 
Foster relationships among practitioners that will facilitate joint cooperative development activities in Central Appalachia and allow practitioners to better utilize existing resources 
Raise awareness of the cooperative business model as an opportunity for economic development and justice in the region.

The goals of the Center’s Appalachia Cooperates Initiative include developing practitioners’ awareness, fostering relationships, and raising awareness about cooperatives as an economic development opportunity.

Myrisa Christy, Project & Development Specialist with the Kentucky Center for Agriculture and Rural Development (KCARD) shared how KCARD’s team, along with partners like Kentucky Farm Bureau and others, were part of an effort to activate networks of cooperative farm supply stores to support post-tornado recovery in 2022. With financial support from community partners, cooperatively owned farm supply stores were able to pivot to help community members procure needed supplies like fencing and small equipment to recover from devastating tornadoes in the state. Christy also shared multiple examples of cooperative or cooperative-like efforts to respond to community needs in Appalachia, highlighting that cooperatives are focused on serving members’ needs in a way that builds equity and provides members with control over the enterprise, but recognizing that there are various barriers to cooperative development in the Appalachian region.

For more information about the Appalachia Studies Association (ASA), visit: https://www.appalachianstudies.org/.

Wait, Who Owns that Photo? A Basic Intro to Copyright for Small Business Marketing

As the calendar turns to a new year, it is a natural time for entrepreneurs to consider how they want to improve and to plan for the coming month, quarter, and even year. It is also a great time to review past marketing strategies and plan for the coming year. Have you thought about how you can improve your business’s marketing in the new year? Here are some thoughts to consider.

Marketing and Legal Considerations: Intellectual Property

Whether a business is thinking about entering a new market channel, wants to reach a different target customer group, is planning to refresh its website, or thinks a new social media platform would be useful, business marketing and branding can include legal considerations, including factors like content ownership and the use, protection, and monitoring of intellectual property like trademarks and copyright, among various other areas.[1]

As they market themselves and their products, businesses may create intellectual property and that may be useful to monitor or protect, depending on its value and many other factors. Also, businesses may need to use others’ intellectual property in their marketing efforts and will likely want to avoid infringing others’ property rights as they do.  The following is a brief introduction to one basic area of intellectual property, copyright, and may be helpful. As small businesses develop or update their marketing plans, it may be useful to consult with an attorney about potential intellectual property needs.

Multi-colored graphic of thought bubbles and text boxes connected by arrows

Introducing Copyright Basic Concepts

What is copyright?

Copyright law protects “original works of authorship fixed in any tangible medium of expression. . . “[2] In general, a copyright gives the owner legal rights to reproduce copies, distribute copies, display or perform a work, and develop derivative works.[3]

Some examples of copyrightable works include: websites, pictures, advertisements, musical recordings, business plans, software, sales presentations, and more! Facts and ideas are not copyrightable.[4]

Who owns a copyright?

In general, initially the author of a copyrightable work owns the copyright.[5] However, an employer generally owns the work created by its employees in the scope of their employment.[6] Further, when a certain type of copyrightable work is specially ordered or commissioned from an independent contractor, the party who commissioned the work owns the copyright if there is a written agreement to that effect.[7] Copyright owners can transfer parts or all of their ownership.[8]

How is a copyright created?

When a work that qualifies for copyright protection (e.g., the work is original and expresses a minimal level of creativity) is “fixed in a tangible medium” (for example, when it is written, recorded, or saved in a digital format), it is protected by copyright. As one guide for entrepreneurs put it, “No action is required to obtain copyright protection,” and while a copyright notice may be advisable, it is not a legal requirement.[9] However, registration of a copyright can confer additional rights and benefits, including the right to sue for infringement.[10]

Social Media Platforms and Intellectual Property

Social media platforms offer various opportunities for small businesses to market their products and services, like the ability to connect with large audiences for little or no cost.[11] As entrepreneurs use social media platforms to market their products, services, or businesses, they should be aware that these platforms may have specific policies related to intellectual property. For example, TikTok’s Intellectual Property Policy states that it is a violation of the platform’s Terms of Service and Community Guidelines to post, share, or send content that violates or infringes another’s copyrights, trademarks, or intellectual property.[12] For a deeper dive into music use on TikTok, check out the article, “Music Licensing in the Age of TikTok.”

Developing a Marketing Plan

Outline of head with multi-colored graphics of business icons like pie chart, bar chart, and gearsAs businesses consider their marketing opportunities for the coming year, a written marketing plan may help keep ideas organized, track progress, and communicate plans with key team members. Some questions to consider in developing a marketing plan include:

  • What is the profile of your target customer(s)?
  • What product or service are you marketing?
  • What is your advantage compared to competitors?
  • What promotion strategies will you use?
  • What are your sales goals or forecast?
  • How will you measure outcomes and success?

Tools and Resources for Entrepreneurs

As entrepreneurs build digital marketing strategies, they will likely need images, videos, graphics, and other content. Various online outlets offer imagery like photos, illustrations, graphics, and video, as well as sound like music and sound effects, that are licensed for users to use for little or no cost.

Want to learn how to build a website for your business or enhance your social media marketing strategies?  Connect with the Small Business Development Center at The Ohio State University South Centers, which covers a 10-county region in southern Ohio.

Looking for help developing or updating a marketing plan for your small business? Connect with your local Small Business Development Center (SBDC). SBDC’s offer free business consulting and at-cost training to small businesses across the country. Find your local SBDC online here.

Food and farm entrepreneurs who want to learn more about direct marketing their products can explore the Ohio State University Extension Direct Food & Agricultural Marketing program, including online resources like webinar recordings and short videos.

Important note: This information is provided for educational purposes only. It is not legal advice and is not a substitute for the need to consult with an appropriately licensed attorney.

 

Sources:

[1] “The Legal Implications of Social Media Marketing & Advertising.” (n.d.). Pillsbury Winthrop Shaw Pittman LLP. https://www.pillsburylaw.com/images/content/1/0/v2/102362/FACTSHEET-SocialMediaMarketingAdvert.pdf

[2] 17 U.S.C. §102

[3] 17 U.S.C. §106

[4] Bagley, C. & Dauchy, C. (2012). “The Entrepreneur’s Guide to Business Law: 4th Edition.” South-Western, Cengage Learning: Mason, Ohio.

[5] 17 U.S.C. §201(a)

[6] 17 U.S.C. §201(b)

[7] Circular 30: Works Made for Hire. (2021). United States Copyright Office. https://www.copyright.gov/circs/circ30.pdf

[8] 17 U.S.C. 201(d).

[9] Bagley, C. & Dauchy, C. (2012). “The Entrepreneur’s Guide to Business Law: 4th Edition.” 534. South-Western, Cengage Learning: Mason, Ohio.

[10] Id.

[11] Fountain, T. (Jan. 25, 2021). “Why Small Businesses and Startups Should Invest in Social Media Marketing.” Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2021/01/25/why-small-businesses-and-startups-should-invest-in-social-media-marketing/?sh=3e686afe563e

[12] Intellectual Property Policy. (June 7, 2021) TikTok. https://www.tiktok.com/legal/copyright-policy?lang=en

Leading the Co-op: Director Key Responsibilities and Board Training Programs

One of the unique aspects of the cooperative business model is that members democratically control the enterprise.[1] Commonly, cooperative members elect a representative board of directors to govern the business.

Cooperative directors are tasked with varied and sometimes complex tasks, from monitoring financial performance to assessing the co-op’s general manager and more. In serving in a vital role in their cooperative, directors also take on various responsibilities – some of them legal in nature. Key among these responsibilities are the fiduciary duties directors owe to members, other directors, and the cooperative.[2]

  • Duty of care – Generally, requires that cooperative directors use care in their actions as judged based on the care that an ordinarily prudent person in a similar position would exercise. Directors are generally expected to make informed decisions, exercise reasoned judgement, and adequately supervise those to whom they delegate responsibilities.[3]
  • Duty of loyalty – Generally, requires that cooperative directors act in good faith and for the benefit of the cooperative, including not receiving preferential treatment compared to other members and appropriately addressing or avoiding conflicts of interest.[4]
  • Duty of obedience – Generally, requires that cooperative directors comply with applicable laws and authorities. It is important for directors to be generally familiar with key authorities like the co-op’s bylaws, articles of incorporation, policies, and other key legal instruments.[5]

A deeper dive into the legal responsibilities of agricultural cooperative directors, “Navigating Your Legal Duties: A Guide for Agricultural Cooperative Directors,” is intended as a practical resource for directors that includes self-assessment tools to help directors identify areas where they can learn more. The resource is published by the National Agricultural Law Center.

For a wider-view of the types of responsibilities that directors take on in leading their cooperative, “The Circle of Responsibilities for Co-op Boards,” by James Baarda is a helpful publication.

Tan office chairs around circular meeting table

Most Cooperatives Provide Board Training in Key Responsibilities

Cooperative board training programs can help directors understand their roles and responsibilities, including ensuring that new directors, and even seasoned directors, have a firm grasp of their fiduciary duties, among other areas. In a survey of 500 cooperatives across industry sectors and the United States, co-op enterprises shared the topics in which they train directors:

  • 80% or more of responding cooperatives train board members in fiduciary duties, financial topics, and the cooperative model
  • Many cooperatives, between 53% and 78% of responding cooperatives train directors in ethics and compliance, industry-specific topics, legal and regulatory issues, and risk management
  • Almost half of responding cooperatives (49%) train directors in corporate social responsibility/sustainability/social impact
  • Some responding cooperatives train their directors in meeting facilitation and conflict resolution – 41% and 32%, respectively[6]

Training is a Key Part of Global Co-op Principles

According to the globally-recognized cooperative principles stewarded by the International Cooperative Alliance (ICA), Principle 5: Education, Training and Information recognizes that, “Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. . .”[7] The ICA’s Guidance Notes on the Cooperative Principles clarify what might seem like a redundant phrasing – education, training, and information have distinct, important meanings:

“ ‘Education’ is about understanding the Co-operative Principles and Values and knowing how to apply them in the day-to-day operations of a co-operative business…”

“ ‘Training’ is about developing the practical skills members and employees need to run a co-operative in according with efficient and ethical business practices and to democratically control their co-operative business responsibly and transparently.”

“ ‘Information’ is a duty to make sure that others who are members of the general public . . . know about co-operative enterprise.” [8]

Graphic of light colored light bulb and hands connecting colored puzzle pieces

A Commitment to Continued Learning: Developing a Board Training Program

As directors navigate complex business landscapes trying to ensure their cooperative enterprise is responsive to members’ needs and remain sustainable over the long-term, training programs can help directors develop their technical and soft skills. To develop a board training program, cooperatives may look both internally and externally. For example, training programs may be specifically constructed and hosted by a local cooperative’s key employees or by a federated cooperative partner. Various education and nonprofit institutions that work with or support cooperative enterprises like councils, cooperative associations, and universities that offer generalized training opportunities and educational resources. Further, industry-based associations, like agribusiness, housing, or financial industry associations, often host learning sessions, updates, and professional development opportunities.

As cooperative managers, directors, entrepreneurs, and developers look toward a new calendar year, prioritizing training that can help directors lead their co-op more effectively may be a worthy goal to add to the list of resolutions!

Important note: This information is provided for educational purposes only. It is not legal advice and is not a substitute for the need to consult with an appropriately licensed attorney.

 

Sources

[1] “Cooperative identity, values & principles.” (2018).  International Cooperative Alliance. https://www.ica.coop/en/cooperatives/cooperative-identity

[2] Scott, H. & Traxinger, M. E. (2021). “Navigating Your Legal Duties: A Guide for Agricultural Cooperative Directors.” National Agricultural Law Center. https://nalcpro.wpenginepowered.com/wp-content/uploads//assets/articles/Co-op-directors-guide.pdf

[3] Id.

[4] Id.

[5] Id.

[6] Berner, C. & Schlachter, L.H. (2022). “Findings from the Cooperative Governance Research Initiative: 2021.” University of Wisconsin-Madison Center for Cooperatives, 31. https://resources.uwcc.wisc.edu/Research/CGRI_2021Report_web.pdf

[7] “Cooperative identity, values & principles.” (2018).  International Cooperative Alliance. https://www.ica.coop/en/cooperatives/cooperative-identity

[8] “Guidance Notes on the Cooperative Principles.” (2017). International Cooperative Alliance, 59. https://ica.coop/en/media/library/the-guidance-notes-on-the-co-operative-principles

Why Small Businesses Should Consider Video in Social Media Marketing

Social media platforms offer numerous opportunities for small businesses as they market their products and services – from free access to broad and vast audiences of potential customers to opportunities to drive traffic to websites where businesses are selling goods or services to tools for selling products and services directly on social platforms.

The importance and reach of video marketing on social media platforms means that entrepreneurs developing their social media marketing strategies and building their digital skills would be well-advised to invest in creating video content. Consider that:

For more information about social media and video marketing, including a helpful overview of how different social media platforms utilize video and tips for effectively incorporating video into marketing for various platforms, check out this guide from Vimeo. Vimeo also has a blog dedicated to video marketing for business with articles and resources ranging from “Small Business Saturday ideas for both planners and procrastinators” to “How to set up Instagram Shopping for your small business.”

Illustrated image of computer screen with various graphics, including play symbol, money symbol, text bubble, light bulb, and megaphone.

Upcoming “Foodpreneur School” to Focus on Social Media Marketing for Food & Farm Entrepreneurs

Food and farm entrepreneurs ready to learn more about using social media marketing and creating impactful video for marketing, join us for “Foodpreneur School” in Hillsboro, Ohio on Tuesday, October 25, 2022! Foodpreneur School is an educational program for food and farm entrepreneurs ready to grow through enhanced sales and marketing. Experts from Ohio State University will teach entrepreneurs about creating impactful video content and effectively using social media for small business marketing. Entrepreneurs are encouraged to bring their preferred devices (mobile phone, tablet, laptop, etc.) for managing their social media presence, as the session will be interactive! Learn more and sign up for no-cost online.

If you require an accommodation, such as translation, to participate in this event, please contact Samantha Black at black.1156@osu.edu or 614-247-9705. 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, visitcfaesdiversity.osu.edu.

Developing your Business’s Social Media Marketing Strategy

In a 2017 survey of over 3,000 consumers in the U.S., Germany, Colombia, and Mexico, 35% of people reported they go to social media for information when they’re considering buying something and want to research options. That figure was closer to 50% for consumers aged 18-34.

As small businesses and entrepreneurs consider how they will market their products, social media can offer numerous potential benefits – from helping build brand awareness, to offering a way of reaching large audiences in a cost effective way, and driving traffic to a business’s website, among many other opportunities.

An individual working at a computer.

Developing a Social Media Strategy

Consider these four questions from a 2020 Harvard Business Review article as you develop your social media strategy:

  1. “What are your goals?”

Are you trying to expand to a new geography? Launch a new product? Increase sales? Whatever the answer, your strategy should be tailored to fit your goals, so start out by identifying those goals. Remember to ensure your goals are SMART – specific, measurable, action-oriented, realistic, and timed.

  1. “Which platforms should you use?”

Different social media platforms have different formats, business tools, and more. For example, Facebook has useful business tools like detailed analytics and allows businesses to incorporate lots of information like contact details and hours of operation. Meanwhile, Pinterest and Instagram are highly visual platforms with focus on photo and video content; categories like food and DIY projects are some of Pinterest’s most popular categories. Check out the “Social media platforms for businesses” section of this recent article from Business News Daily to learn about the different business tools and formats of major social media platforms.

  1. “What is your content strategy?”

Will you use pictures? Video? To develop effective digital marketing for a small business, entrepreneurs will need to consider the type of content that is right for them based on their target customers, their resources, and more. Authors writing for the Harvard Business Review counsel, “Your content should be unique, useful, and shareable.”

  1. “Are you ready to talk with your audience – in real time?”

Social media platforms offer opportunities for businesses to engage with their customers and it is important for businesses to relate to and interact with customers on social platforms. As one author shared tips for businesses using social media, “Create a consistent voice and tone . . . one that resonates with your audience and influences how they see your brand.” If you’re using social media for customer service functions, consider that 42% of consumers expect a business to respond to complaints raised via social media within 60 minutes.

Upcoming “Foodpreneur School” to Focus on Social Media Marketing for Food & Farm Entrepreneurs

If you’re a food and farm entrepreneur ready to learn more about using social media marketing, join us in Hillsboro, Ohio on Tuesday, October 25, 2022! Foodpreneur School is an educational program for food and farm entrepreneurs who are ready to grow through enhanced sales and marketing. Speakers at the October 25 session will include experts from Ohio State University sharing the ins-and-outs of social media marketing for small business and insights on creating impactful video content for marketing. The session will include hands-on learning opportunities and entrepreneurs are encouraged to bring along their preferred devices (mobile phone, tablet, laptop, etc.) for managing their social media presence. Learn more about the session and sign up for no-cost online!

If you require an accommodation, such as translation, to participate in this event, please contact Samantha Black at black.1156@osu.edu or 614-247-9705. 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, visitcfaesdiversity.osu.edu.