A Closer Look at Worker Cooperatives

Worker cooperatives are becoming a popular form of the cooperative business model and generating more attention these days.  A worker cooperative is a business where workers own most of the equity and control the voting shares of the business, while participating in profit sharing, oversight, in some cases, management, while operating by democratic cooperative principles.  The OSU Center for Cooperatives team recently spoke with area worker cooperative leaders to hear about how they got their start and navigate current worker co-op operations and trends to continue propelling their businesses forward to be successful today.

Grace Corbin, Vice President of the Board of Directors and Marketing Coordinator with Casa Nueva, shared with us about the start of the Athens based restaurant.  “Back in 1985 it was known as Casa K Pasa at the time and the owner split town.  So the workers decided to band together and found a way to make it a co-op so they could maintain employment.  Today Casa has more than 15, and less than 20 member, worker owners right now.  We also have between 35 and 40 employees that is complicated, confusing and fun.”

We also spoke with Octavia Cordon, worker owner from Phat Daddy’s On Da Tracks, to get her perspectives on starting a worker cooperative.  “One of the biggest things that attracted me to the cooperative model is the equalness between members.  We started out, myself, my husband and my daughter, and we have differences of opinions and stuff like that, but the cooperative principles help guide us.  Because we’re just three years in, and still building up the business, we learn something new everyday.  When we started out it was just 5 of us, with 3 worker owners and 2 regular employees, who are on track to becoming full members.  Now today, we have 22 employees total.”

Mavery Davis, CPA, Director of Lending with New Economy Works West Virginia, explained to us about what motivates him through the cooperative lens.  “People want an opportunity to do something different and have meaningful work.  They say whether or not they get to work during Covid, or if that’s somebody else’s decision to make.  It takes trust, and co-ops move at the speed of trust!”

We also learned about Casa Nueva’s embeddedness in the community and how they make a difference in giving back.  Grace told us about the nontraditional means of how the tipping process works at Casa.  “Since don’t accept tips, and haven’t been since 2012, what we do with that money that is left is to donate it to a different nonprofit in our community every month.  A lot of the organizations that we chose like to promote that any money left is going to them.”

Josh Brown, Live Entertainment and Booking Coordinator for Casa, explained to us about the importance of working cohesively together as a group of shared owners.  “It’s (worker cooperatives) definitely got an upside with lots of brains working to solve a problem, which is very helpful.  The downside though is that everything takes time, for us it’s usually matter of months before something actually gets done of any significance.”

This discussion is part of the Appalachia Cooperates Initiative, (ACI), led by the CFAES Center for Cooperatives, 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. The goals of the ACI are to:

  • Develop practitioners’ understanding of the co-op business model and development resources to better recognize and act on co-op opportunities 
  • Foster relationships among practitioners that will facilitate joint co-op development activities and allow practitioners to better utilize existing resources 
  • Raise awareness of the co-op business model as an opportunity for economic development and justice in the region 

To view this program recording in full please click here.  

Exploring the 2024 ACE Institute Conference

 The 2024 ACE (Association of Cooperative Educators) Institute Conference was recently held at the North Dakota Association of Rural Electric Cooperatives in Mandan, North Dakota.  This year’s theme was ‘Cultivating Cooperation’ and featured cooperative educators and professionals from around the US and Canda.  The stunning location was chosen not only for its beautiful setting but also because of the rich history of cooperatives in North Dakota. It provided a unique opportunity to explore new dimensions of cooperative excellence, drawing inspiration from the values and successes that have shaped this region for generations.

The Dakota Indian tribal leaders kicked off a phenomenal opening presentation, “Economic Development, Community Building, and Nation-Building in Native Communities” with panelists Carly Bad Heart Bull, Joseph McNeil, and Lakota Vogel.  These three Lakota natives discussed the positive strides their respective organizations have been making within their tribes.

Carly is working on many philanthropic works to help bring funds, particularly grant funds, to the Lakota tribes.  She believes the disconnect lies with all humans and we can get back to the land and work together to make positive changes.  Through the Native Ways Federation, Carly works with other Indigenous peoples to activate and expand informed giving to Native-led nonprofits in Indian Country through donor education and advocacy.  Native Ways was founded in 2008, a group of seven national Native-led nonprofit organizations to activate and expand informed giving to nonprofits in Indian Country through donor education and advocacy.

Lakota is the Executive Director at Four Bands Community Fund. In this role, Lakota provides leadership for Four Bands, establishes new and fosters existing partnerships, and leads and manages efforts to reach organizational goals. Prior to becoming the Executive Director, Lakota served as the Assistant Director at Four Bands for five years. She works with CDFI’s to help native tribal people gain access to home loans and other lending needs.  She is passionate about helping more people to take charge of their financial independence and put them in charge of their finances, all while unifying the communities.

Joe McNeil is an enrolled member of the Standing Rock Sioux Tribe and the president of Standing Rock Development Corporation and manager for Rock Industries Corp. in Ft. Yates, North Dakota. He was recently awarded the Bush Foundation Fellowship for leadership, as well at the MIT Oceti Sakowin Fellows Tribal Community Innovation, and is an activist for Indigenous rights and community economic development.  Joe is working hard to bring wind turbines to the reservation to help provide electricity to all of Standing Rock.

The conference also featured tours to Standing Rock Reservation, Sitting Bull College and Prairie Knights Casino, where participants were given a first-hand look at the operations of the Indian Reservation as well as the future home of the wind turbines that will bring much needed power to a vast majority of the reservation.  During a portion of the drive to the reservation participants were shown the site of the Dakota Access Pipeline.  The DAPL site became well-known in April 2016 were a grassroots initiative of Native American protestors chained themselves to equipment in protest of the pipeline running through the Standing Rock Indian Reservation.  Native Standing Rock residents feared the pipeline would threaten their water supply as well as disturbing the ancient and scared burial grounds of their people. The movement became known as #NoDAPL to the Native American people.  The protests lasted ten months along the lands of Standing Rock, making travel very difficult along Highway 1806, the main route to Bismarck for Natives.  The people of Standing Rock continue to fight for their native land as the pipeline is still active and flowing today.

Tours were also provided to Capital Electric Cooperative, Strengthen ND, North Dakota Association of Rural Electric Cooperatives and National Information Solutions Cooperative.

Participants also enjoyed an evening at the North Dakota Heritage Center and State Museum, where they learned about the rich traditions and heritage, as well as view many artifacts and relics of the land.

Center for Cooperatives Presenting at 2024 OEFFA Conference

Welcome to a new year, as January is already proving to be a busy and exciting time for us.  The OSU Center for Cooperatives is excited to be invited to speak at the 2024 Ohio Ecological Food and Farm Association (OEFFA) 45th Annual Conference.  This year’s conference will be held at the Cherry Valley Hotel in Newark, OH on February 15th– 17th, and this year’s theme, Cultivating Care, is reflective of how accurate and essential care is in our community.  The conference features over 50 workshops from farmers markets to livestock management, numerous exhibits for shopping and networking, locally sourced meals and keynote presentations- ‘My Favorite Mistake’ and ‘Pathways to a Caring and Sustainable Future’ with Jim Embry.

Our team will present a session “Farmers Working Together: Collaborations in Marketing, Purchasing, and Equipment to Improve Your Farm’s Bottom Line” during the Friday morning workshop.  Attendees will be presented with a framework that identifies and discusses challenges that farmers face in marketing, distribution, and acquiring their supplies and equipment, as well as discussion of collaborative approaches to help farmers resolve those challenges and struggles.  Farmers and service providers with some experience in agriculture will have the working knowledge to identify and understand these challenges as well as ways to pursue strategies that are essential to an already functional farm business.

Collaborative approaches to marketing, purchasing, and equipment sharing can be opportunities for farmers to save time, enter new markets, lower costs, and more. In this session you will learn about collaborative strategies in food and farming and joint marketing models via multi-farm CSAs and co-op markets, cooperative supply purchasing, and equipment sharing. You will be introduced to collaborative models in food and farm marketing and distribution as well as supply and equipment access, the problems these approaches may help farmers solve, and important considerations farmers and service providers using cooperative approaches.

Throughout the two-day conference, attendees can talk and network with vendors from across the state, while enjoying locally sourced foods and products that aide in making farm life easier and more enjoyable for everyone.  For more information and registration details click here.

Fall Youth Cooperative Leadership Experience Day a Great Success at OSU South Centers

The CFAES Center for Cooperatives recently held the second Youth Cooperative Leadership Experience Day at the OSU South Centers on Friday, October 6, 2023.  The day-long event welcomed 36 juniors and seniors from four area high schools- in Scioto County, Green High School and Lucasville Valley High School, and in Pike County, Piketon High School and Pike Christian Academy.

The students began their day with a welcome from OSU South Centers Director, Dr. Tom Worley, where he provided the students with an overview of programs and research being done as well as opportunities available to them for future careers at the Center.

Students were then provided with a wagon tour of the campus hosted by South Centers staff of experts, Dr. Logan Minter, Ryan Slaughter, and Thom Harker.  The team described in detail the various types of crops grown in the farm plots and high tunnels, such as strawberries, raspberries, tomatoes, and hops.  They were then given a tour and in-depth look at the hatchery, where they were able to learn about how to raise and care for various types of fish and view the Center’s famous sturgeon.

Students then had the opportunity to experience hands-on lab demonstrations of soil testing, with Dr. Arif Rahman, part of South Centers Soil, Water and Bioenergy Resources team.  They were shown how to field test the soil to estimate quality, active carbons, and nitrogen fertilization, as well as recognizing what the coloration of the soil means.  All students were provided soil test kits they could take home to do their own soil testing.

Small fruits are a major research focus at South Centers and Dr. Dan Remley and Ryan Slaughter demonstrated many ways strawberries and apples can provide key sources of information.  Students were taught how to measure natural and artificial sugar levels using fresh apples and apple cider, as well as how to extract DNA from strawberries.  Students were also shown how to measure the starch level in various types of apples and demonstrate the ways orchards grade their apples to determine when they are ready for harvesting.

Microgreens was another fun lab activity students enjoyed, and was demonstrated by Associate Professor, Dr. Logan Minter.  Microgreens have become a very popular, healthy, easy, and enjoyable way to grow delicious greens from virtually anywhere in a very small area or limited amount of space.  The greens can be grown in small plastic containers, similar to restaurant takeout containers, and placed in a window.  Students were provided, potting soil mix, the opportunity to select from lettuce or kale seeds and were then able to plant their seeds with information about providing care and the growth of their microgreens from their home.

The aquaponics lab was a popular activity of the day and Research Associate, Thom Harker, gave students a first-hand account of what running an aquaponics system looks like, and provided detailed information about care of the fish and their importance in the growth process for the crops.

During lunch, students enjoyed a taco bar while hearing from several cooperative business leaders as they provided details about their cooperative, job opportunities available and the education and/or skills set needed to perform those jobs.  Companies represented were South Central PowerFarm Credit Mid-AmericaAtomic Credit UnionAdams Rural Electric CooperativeDairy Farmers of America and United Producers, Inc. Following lunch, students were able to engage one-on-one with each of the business leaders while visiting their tables during the Co-op Career Fair.  Company representatives not only offered students information and potential job opportunities but provided hands-on displays and a look at a bucket truck and lineman’s tools from Adam’s Rural Electric Cooperative.

Students also had the opportunity to speak with representatives from Ohio State University Manufacturing Extension Partnership (MEP), who provided details available to them through their high school internships program.  Under this program, the MEP assists manufacturers with their workforce needs, while also providing students valuable career skills.  Financial assistance is available to those manufacturers who hire interns through this program, reimbursing 50% of the students’ wages, for a maximum amount of $1500 per student.

When asked how educators plan to use the information they received during the event, educator Kristen Campbell of Piketon High School said, “We are continuing to research different Cooperatives in the area for potential employment after high school and are planning on implementing some of the lesson plan activities at the school and dive deeper into the practice of Aquaculture and Hydroponics. As well as, looking at the advantages of a “greenhouse/tent system” for the availability to grow crops all year instead of in the spring and summer months.  The activities and the tour were both amazing! We also enjoyed the meet and greet with the different employers. Honestly, the entire event was very beneficial for my students!”

Cooperatives Help Sustain Communities

Cooperatives have always been a great source of economic growth in all parts of the world, in both rural and urban areas.  According to the National Cooperative Business Association CLUSA International, their are four major areas in which cooperative economic growth can help development, build, sustain and grow in virtually any environment.

1.   Flexibility– Cooperatives are created specially to meet the needs of the members they serve, and because of this are able to have a more flexible nature to adapt and thrive in communities of all types and sizes, tailoring their products and services to meet the needs of the areas they serve.  Rural communities are known to have a shortage of people and jobs, but agriculture tends to thrive in these areas.  Farmers can join together to form cooperatives to assist each other with common expenses.

2.  Circulate Money– in both rural and urban areas where for-profit businesses are common, money doesn’t always circulate properly.  Traditional businesses see money spend in the business stay in the hands of the business owner, where a cooperative will keep the money circulating within the business, hiring new employees or lowering prices.

3.   Create Jobs– Job creation is always a positive and uplifting sign in communities.  There are many types of cooperatives, like worker co-ops and producer co-ops that work to create more and better job security as they allow employees to have a vote and decision-making power.

4.   Strengthen the Community– Co-ops are created with one thing in mind, to serve their members and the communities.  In turn, they provide jobs, products and services, and help distribute wealth, all while teaching the community leadership and professional skills to help further develop and continue the momentum and movement.

Encourage the cooperative movement in your community by learning more.  Visit our web page https://cooperatives.cfaes.ohio-state.edu and stay connected to what is happening with The Ohio State University CFAES Center for Cooperatives.

Youth Cooperative Leadership Experience Day Held at OSU South Centers

The OSU Center for Cooperatives team hosted 34 FFA students from Peebles High School and Ohio Valley Career Technical Center on Friday, March 31, 2023, for the Youth Cooperative Leadership Experience Day held at OSU South Centers.  The Youth Cooperative Leadership Experience is an educational program that provides high school students in the Appalachian region an opportunity to learn about the cooperative business model and careers in agricultural, while developing leadership skills.

The event kicked off with a welcome from OSU South Centers Director, Dr. Tom Worley, who provided students with details about the uniqueness of South Centers and the opportunities it brings to the southern Ohio region, as well as numerous jobs.  Dr. Worley described the many career paths available at the Center, from agricultural, research, and business development just to name a few.

Students began the day with a wagon tour of the farm, where they were able to view strawberries growing in the high tunnel, see how hops are grown, and hear how research is conducted with small fruits.  They were then given a tour and in-depth look at the hatchery, where they were able to learn about how to raise and care for various types of fish and view the Center’s famous sturgeon.

Students then had the opportunity to experience hands-on lab demonstrations of soil testing, with Dr. Rafiq Islam and Dr. Arif Rahman, part of South Centers Soil, Water and Bioenergy Resources team.  They were shown how to field test the soil to estimate quality, active carbons, and nitrogen fertilization, as well as recognizing what the coloration of the soil means.  All students were provided soil test kits they could take home to do their own soil testing.

Small fruits are also a key point of research at South Centers and Dr. Gary Gao and Dr. Dan Remley demonstrated many ways strawberries and oranges provide key sources of information.  Students were taught how to measure natural and artificial sugar levels using fresh oranges and orange juice, as well as how to extract DNA from strawberries.  Caydence from Peebles said, “The Strawberry DNA and the color machine activity was very interesting to me, in our group we looked at the color of the strawberry compared to the sugar content of each; the darker the strawberry the higher the sugar content, which makes sense that there is more sugar as the strawberry ripens.”

Microgreens was another fun lab activity students enjoyed, and was taught by Research Assistant, Ryan Slaughter.  Microgreens are becoming a very popular, healthy, easy, and enjoyable way to grow delicious greens from virtually anywhere in a very small area or limited amount of space.  The greens can be grown in small plastic containers, similar to restaurant takeout containers, and placed in a window.  Students were provided, potting soil mix, the opportunity to select from lettuce or kale seeds and were then able to plant their seeds with information about providing care and the growth of their microgreens.

A very popular point of interest for the day was visiting the aquaponics lab.  Research Associate, Thom Harker, gave students a first-hand account of what running an aquaponics system looks like, and provided detailed information about care of the fish and their importance in the growth process for the crops.  Both students and teachers were very interested in receiving information on how they can develop their own aquaponics systems at their schools.

During lunch, students had the opportunity to hear from several cooperative business leaders as they provided details about their cooperative, job opportunities available and the education and/or skills set needed to perform those jobs.  Companies represented were South Central Power, Farm Credit Mid-America, Atomic Credit Union, Adams Rural Electric Cooperative, and Dairy Farmers of America. Following lunch, students were able to engage one-on-one with each of the business leaders while visiting their tables during the Co-op Career Fair.  Company representatives not only offered students information and potential job opportunities, but offered help with resume building and even offered a mock interview to one lucky student.

Students also had the opportunity to speak to a representative from Ohio State University Agricultural Technical Institute from Wooster, OH, who painted a picture of ag campus life for students possibly interested in pursuing a degree in agricultural sciences.  There are a number of programs available across all animal species in ag business, marketing, engineering and many others.

Peebles High School ag teacher, Becky Minton, had this to say about the day, “the YCLE event was wonderful!! My students not only had the opportunity to tour the research facilities and hear about the research that is currently happening at OSU South Centers but received a hands-on learning opportunity as well.  Students participated in Strawberry DNA extraction, color & sugar testing of fruits, understanding soil testing, aquaponics and the importance of proper water quality testing for both fish and plants, and growing their own fodder/microgreens system. Students were able to discuss the importance of Co-ops with industry representatives but also engage in one-on-one conversations with them; my students were able to see local opportunities for job placement in the area of cooperatives. The lunch that was provided was a great addition to the day! I could not have asked for a better day with my students to learn and have fun at the same time; it was truly an enjoyable experience for me as a teacher and for them as students.”

National Council of Farmer Cooperatives Annual Meeting 2023

The 2023 National Council of Farmer Cooperatives was recently held in Orlando, Florida from February 8th– February 10th.  This year’s theme was “Strategy and Action: Thriving in a Disruptive Ag Landscape.” The event kicked off with opening remarks from Chuck Connor, President and CEO of National Council of Farmers, Jon Doggett, former CEO National Corn Growers Association, and Hunt Shipman, Principal and Director for Cornerstone Government Affairs.

Keeping with the theme, the group began the discussion with addressing a hot button issue— ‘How do we deal going forward?’ meaning how do we take the various disruptions from the past three years we’ve faced and are continuing to face and plunge forward.  “We have an obligation to turn people’s views around and get back to the times of being able to share the bread,” explained Jon Doggett.  “The political changes are going to come from elected officials in the primary races, and we need to start understanding that.”

The USDA has reported rural America is drastically shrinking, with much fewer farmers in their representative districts.  For example, in the state of Iowa in the 1960’s there were 6 representatives for the state, now there are only 4.  In order to stay relevant today, we must start by telling America what we’re doing for them! Mr. Shipman asked the audience if it’s really enough for America that at the end of the day everyone’s got to eat?  Knowing this is something we worry and think about is not enough to drive a vote, we must continue the dialogue and keep it in the minds of the people for a lengthy period of time.

A very valuable point was articulated by Mr. Doggett, “We can’t educate consumers, we market to them, so what are we doing for them? We must provide the information they’re looking for, as well as advice to navigate co-ops in farming.  We must quit thinking of labeling and bring in new people and perspectives, embracing where we are today.”

The panel concluded their session opener with the importance of making connections and understanding your audience, validating those connections to meet people where they’re at.  Shipman left the group with a very proactive thought, “Don’t try and fit in just to check a box, deal with the core issues that are coming at us, remain engaged at the highest levels and really get involved.”

This is very fitting for each of us.  There will also be a place to get involved and engaged to be proactive.  Let’s take the opportunity to reach out to our friends, neighbors, and colleagues to thrive in disruption.

Unleash the Potential of Cooperative Management Upcoming Online Workshop

As we are aware, cooperatives offer a tremendous amount of opportunities, while opening a door to vast networking and knowledge exchange among their members, stakeholders and even their customers.  Cooperatives agree to a set of principles, the first of which is “voluntary and open membership.” Through this cooperative principle, any individual willing to accept the responsibility of membership and who wishes to use the services of a cooperative are welcome to become a member and should be allowed to voluntarily join the cooperative.  The open membership principle can be contradictive to today’s corporate business practices as firms try to find the “best talent” to compete in their industry. If you or your company are finding yourselves in this situation, consider attending the workshop “Unleash the Potential of Cooperative Management” to gain a better understanding of how the cooperative principle of “voluntary and open membership” can become an advantage for yourself, your business, or your team. You will take away a set of tools to discover the untapped skills that exist within your organization and be able to invite your team members to contribute in new ways.  Please join us for this free workshop on Tuesday, October 18th from 1:00- 2:00 p.m.  To register visit: go.osu.edu/potential. This course will be taught by Daniella Mostow.

Daniella is the founder of MightWe, a consulting firm that helps teams collaborate better even when the challenges are complex, and solutions are unclear. She leads teams through conversations to gain a deeper understanding of core opportunities and experiment with innovative solutions. MightWe is committed to supporting small businesses and worker cooperatives in order to strengthen local economies and create more opportunities for people to shape their futures.

Get Ready for Co-Op Month- Celebrate the History!

You may be aware that Co-Op Month is celebrated in October, but are you aware of some of the history behind the holiday? Several states across the United States began celebrating the holiday in the mid-1930’s, but it wasn’t until Minnesota declared the month ‘official,’ with a proclamation in 1948, that Co-Op Month was designated in that state.  It would take 16 years to gain national recognition, but in 1964 U.S. Secretary of Agriculture, Orville Freeman, also a former Minnesota governor, proclaimed October Co-op Month for the entire country.  The first theme of the national celebration of Co-op Month was “Cooperatives: USDA Helps Build a Better America.”

Since that time, co-ops have been excitedly celebrating Co-Op Month each October across the country working together to build, grow and be more resilient in their respective communities.  Many also use it as an opportunity to tell their stories and share the collective impact co-ops have throughout the country.

According to the Cooperative Network, “It is a time for cooperative businesses to reflect on their shared principles and to educate others about the value of belonging to a cooperative.”  Today, we continue to celebrate the over 40,000 cooperatives, that provide more than $25 billion in wages in the United States alone.  It is also estimated that there are 350 million members of cooperatives nationwide, including those members that belong to more than one cooperative.

According to a 2021 report from the USDA, “the largest number of farmer cooperatives are in Minnesota, followed by Texas, North Dakota, California and Wisconsin.  Farm cooperatives did the most business in Iowa ($18.3 billion) followed by Minnesota ($16.2 billion), California, Illinois and Wisconsin.”

This year’s theme, ‘Co-Ops Build Economic Power’ brings to light the power of cooperative business to strengthen the economy.  According to the National Cooperative Business Association, “As businesses face inflation and supply chain challenges, cooperatives provide stability and opportunity. As employees question their role in the economy, cooperatives are creating dignified, empowering jobs with paths to ownership and wealth-building. As communities tire of rhetoric, cooperatives are creating the meaningful diversity and equity at the heart of an inclusive economy.”

Here at The Ohio State University South Centers, Center for Cooperatives, we plan to celebrate Co-Op Month all October long with informative articles and podcasts, information from our partners and much more.  Be sure and follow our Facebook page, as well as our Twitter account so you don’t miss out on how we celebrate!