Cooperative development

10 Questions to Ask your Attorney When Building your Cooperative

Cooperators building a new enterprise encounter many questions. Some of those questions are best answered by professionals with specialized expertise, including lawyers, accountants, tax professionals, insurance advisors, financial experts, and others.An illustration of two people in business attire sitting across the table from a person in a business suit with a computer with a checklist, scales of justice, and a law book in the background.

In a recent online learning program of the Appalachia Cooperates Initiative, cooperative attorneys Mike Russell and Jacqueline Radebaugh, shared their perspectives on how cooperators can prepare for working with an attorney and the 10 questions they suggest cooperators consider asking their attorney, including:

  1. What do we need an attorney for?
  2. How do you bill? What should we budget for the services we need, or you recommend?
  3. You’re very expensive! What questions should we think about on our own time? Can you recommend an attorney within my budget?
  4. What kinds of cooperatives have you worked with in the past? Can we talk with one of them?
  5. Given our goals and our situation, what entity structure(s) should we consider and why?
  6. What do your words mean?
  7. Why and when should we talk to an accountant? What other professionals should we talk to? Do you have referrals in my state?
  8. We need to raise funds. Is there anything we should know before we start talking with people, posting things online, or seeking investors? When do we need to think about securities law?
  9. Do we need insurance? When?
  10. Consider framing your questions as “If we want to do X, what do we need to think about?” rather than “Is this allowed?”

A thumbnail image of the handout "10 Questions to Ask your Attorney When Building your Cooperative" Download the pdf to read.

Access the handout “10 Questions to Ask Your Attorney when Building your Co-op_Handout_12.2024.”

Preparing for Meeting with an Attorney

To make their time more effective and efficient, it can be useful for cooperators to do some “homework” before meeting an attorney. For example, business planning can help cooperators explore their needs, grow their understanding of potential issues, and identify questions for professionals.

Consulting knowledgeable business development experts, like cooperative developers, can help with business planning, and exploring reputable online educational resources can help cooperators develop their understanding of concepts that will form the foundation of their business. For example, the following online cooperative education resources are great places to start when learning the foundations of cooperative business:

View a recording of the program, “10 Questions to Ask your Attorney when Building your Cooperative,” with Mike Russell, Esq., The Legal Aid Society of Cleveland, and Jacqueline Radebaugh, Esq., Jason Wiener p.c., on December 11, 2024.

Finding Legal Services for Cooperative Development

Cooperators should seek advice from competent, appropriately licensed advisors as they make decisions for their cooperatives. The resources below offer a helpful starting point for cooperators identifying legal service providers but are not the only way to locate an attorney.

  • Similar businesses may be able to offer feedback or recommendations for professionals they worked with.
  • State and local bar associations and law libraries may be able to help cooperators identify legal service providers in their communities.
  • In Ohio and West Virginia, the CFAES Center for Cooperatives built the Cooperative and Collaborative Enterprises Legal and Accounting Resources Directory to help locate cooperative expertise. The information was provided by the listed individuals and does not indicate a referral or reference by the Center or The Ohio State University.
  • The Cooperative Professionals Guild is a national member-led community of legal and accounting professionals specializing in cooperatives.
  • Legal aid organizations might provide transactional support to cooperatives for qualifying individuals.
  • Community-facing business clinics at law schools may provide limited assistance to cooperatives as part of their mission.

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

Russell, M. & Radebaugh, J. 10 Questions to Ask your Attorney When Building Your Cooperative. [Presentation]. CFAES Center for Cooperatives Appalachia Cooperates Initiative. go.osu.edu/ten

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.

Food & Farm Marketing Program Hosted in Meigs County, Ohio

The CFAES Center for Cooperatives, OSU Direct Food and Agricultural Marketing program at OSU South Centers, and OSU South Centers Small Business Development Center recently collaborated to present Food and Farm Marketing Basics at the Meigs County Fairgrounds on October 29th.  The free workshop hosted 10 participants with interests in learning and gaining information on marketing their food and farm businesses.

Attendees were introduced to marketing skills and how to better connect with their customers.  Christie Welch, who leads the Direct Food and Agricultural Marketing Team for OSU Extension, provided detailed information about how customers make buying decisions.  The importance of market analysis and how to understand the customer mix and developing customer profiles provided participants key takeaways from this session.

Melanie Sherman, Business Counselor with the OSU South Centers Small Business Development Center, presented effectively representing your brand through your food and farm business.  Attendees worked through the stages of brand and logo development and the importance of brand identity, while deciding what type of emotional response you want your brand to produce.

The team will host this free event again on Wednesday, January 8, 2025 from 12:00 pm- 3:00 pm in Lancaster, Ohio at the Fairfield County Agriculture Center.

Learn more and register here for the January 8, 2025 program.

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

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.  

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/.

Cooperative Governance; Where do you stand?

Over the past 6 months there has been a common theme to questions, and it boils down to one word, participation. How can we get people involved, how can we get people to engage, how do we get others to join? This isn’t only in the cooperative world but in all organizations; personal and professional.
Participation is defined as “to take part in” or “to have a part or share in something”. For cooperatives, participation is a large part of being a member. Either an expectation of using the services of the cooperative, utilizing the resources that accompany the cooperative or reaching a certain quota or goods sold to the cooperatives. All these are dependent on the cooperative by the structure of their bylaws and policies.

Graphic of light colored light bulb and hands connecting colored puzzle pieces
Cooperatives are as unique as people, one cooperative is not the same as another, or the saying of “If you’ve seen one co-op, you’ve seen one co-op.” This holds true for cooperative board of directors. Participating in a cooperative as an individual is difference as representing your cooperative as a director. Directors are elected by the members of the cooperative to represent them, to uphold the cooperative mission and values set forth and to keep the cooperative members informed.

Cooperative board directors have several duties and responsibilities that members have entrusted them with such as the welfare of the co-op, hiring and evaluation the management of the cooperative, setting goals for the cooperative and overseeing the financial health of the cooperative. They aren’t the individual that is in the daily operation role of the cooperative. That responsibility goes to the general manager of the cooperative, the person the board of directors entrusted to run the daily operations. While cooperative board of directors can look similar to those from 20 or 30 years ago, today’s boards need to have a more active role in the cooperative to ensure the longevity of the cooperative is successful and effective.

As stated on the University of Wisconsin, Center for Cooperatives website, the Center released their findings from the Cooperative Governance Research Initiative (CGRI) that was conducted in 2021. As stated in the CGRI report, “Democratic member control is cooperatives’ superpower and Achilles heel. Decades of research has found that strong governance is essential for cooperatives to thrive. Yet cooperatives have lacked the robust data that is needed to benchmark, reflect upon, and improve their governance practices.” The reason for the research was to help understand and improve cooperative governance so cooperative members, directors, developers and interested parties had knowledge to compare to. Those that participate in the survey were from all across the cooperative sector. The Centers website states that the “results of the survey show that one-third of board members tenure of serving on the board is 10 years or more, whereas 36% have 3-9 years’ experience and 34% have less than 3 years. While two-thirds of board members are serving less than 9 years, efficient and effective boards need to always have a plan for succession and ways to recruit new board members.”

Multiple blue gears with various business related graphics inside, such as a light bulb, people, and target.
Part of being a board director is to recognize the need for board trainings, and educational development for not only members but the directors themselves. USDA released in 2002, the ‘Circle of Responsibilities for Co-op Boards‘ and are as follows; 1. Represent members 2. Establish cooperative policies 3. Hire and supervise management 4. Oversee acquisition and preservation of cooperative assets 5. Preserve the cooperative character of the organization 6. Assess the cooperative’s performance 7. Inform members.

As a cooperative director, how do you stack up against the circles of responsibility? As a cooperative member, how can you get involved or engaged? Educational trainings are offered by various organizations and in multiple formats that make is more accessible to attend while maintaining a busy professional or personal workload.