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Cooperative Farming Models
by Alyson ChisholmWindy Hill Organic Farm
www.windyhillfarm.ca
Outline
1. Co-ops defined and different types
2. Benefits and challenges
3. Personal experiences with different types of co-ops:
a) land ownership
b) equipment sharing/shared purchasing
c) marketing
d) promotion
4. Incorporation – benefits and challenges
5. Trouble shooting – issues that have arisen and how we've dealt with them
6. Resources and models
7. Questions
Cooperation is defined as:
The process of working together for the same end
A cooperative is a business, society or enterprise based on cooperation.
● Voluntary and open membership – define the parameters of your membership
● Democratic member control – one person = one vote rather than more shares = more control
● Member economic participation – buy share (s) to become a member
● Autonomy and independence – create your own rules of operation (by-laws) though they must include certain legal provisions
● Education, training, and information sharing
● Co-operation among co-operatives – eg. Cooperative farmer buying group will prioritize purchasing from other co-op businesses
● Concern for community – can pay dividends to members but “put people and planet above profits” - profit generation is not their primary purpose
Benefits● working together makes you greater than the sum of
your parts
● build leadership and management skills
● access larger markets for a longer season by selling cooperatively
● Save money through bulk buying and equipment sharing
● benefits of community: friendship, co-learning, help and support, potlucks
● make a greater impact as a larger entity than as an individual
● access funding for projects that are only available to registered groups
Challenges
● lots of work required to “cooperate”
● people don't always see eye to eye on everything: how to effectively reach decisions
● incorporation is a steep learning curve, lots of work and can be expensive
● accommodating everyone can be hard work and sometimes expensive
● Burnout issue: usually a small number of people end up doing a large proportion of the work
● Giving over control is difficult – learning how to compromise
GVOFC Mission and GoalsMission
● Co-operatively preserving and stewarding organic farmland to support farmers in growing quality food for local communities.
Goals
● provide access to certified organic food for shareholders and the local community;
● own and operate the farm co-operatively;
● steward the entire farm for the mutual benefit of the land, wildlife and people;
● be a model of sustainable living;
● create opportunities to learn about sustainability.
GVOFC Structure
Co-op owns land, buildings, some equipment, pays taxes, maintenance, insurance, electricity and charges rent to farmers.
Co-op manages its business through committees made up of shareholders.
Farmers are all shareholders who rent land, buildings and equipment from the co-op and run their own businesses.
Farmers share workspaces, equipment and markets with one another.
Lots of potlucks!
Consensus Decision-making
Discussion Decision
Green I have a question I agree
Yellow I can clarify I will support but am not fully in favour
Red Stop I cannot support this but will work
for a better solution
Cooperative Farming Benefits
● Shared cost of land when land is very expensive - “how did you get all those people to buy you a farm?”
● Share tools and equipment
● Share marketing
● Mentoring value with farmers of different experience level
● Requiring proposals makes you think things through very well before embarking on plans
Equipment sharing/bulk buying
● Where to store equipment
● Who maintains, services, repairs
● Cost includes running, maintenance, depreciation, replacement
● Keep good records of measurable quantities: eg. hours, litres, pounds
● Bulk purchasing: set dates for purchases
● Plan how to calculate share of shipping cost
Marketing Co-ops
Langley Organic Growers
● Larger more diverse market stalls
● Set priorities in the winter
● Buy from farmers at wholesale and mark up 50% to sell at farmer's markets
● Markup covers marketing costs: labour, transportation, stall fees, supplies and equipment
● End of season surplus pays for following year's startup, donations, distributed to member farms based on their percent of total sales
Coin Bio/Organic Corner Co-op
First model
● Two farms take turns doing the market
● The marketing farm gets priority on produce sold
● Marketing farm also pays all costs: labour, stall fee, transportation
● Both farms share the cost of equipment and supplies (co-own infrastructure and use own scales)
● Any other participating farms who choose not to go to market pay 20% to cover marketing costs
Coin Bio/Organic Corner Co-op
Current system
● We are now incorporated
● Four farms participate though the same two are doing the marketing
● Everyone pays 20% of their total sales and this covers all marketing costs
● Marketing committee proposes the amount CB pays for wages and mileage and brings to members for approval
● Our first season is almost complete and we will meet and decide what worked/what didn't
La Recolte de Chez Nous/Really Local Harvest Co-op
● Runs the Dieppe Farmer's Market
● Manages website and social media to promote local food and local farms
● Gave rise to Terroir Food & Agrimarketing, an organization supplying schools with local food in SE NB
● Lots of great events that call attention to foods of the season: harvest festival, competitive “cook-offs”, food preservation workshops
● Run by a board made up of farmers and a paid executive director
IncorporationBenefits:
● you are now a legal entity and are governed by laws and rules that help guide you in developing your structure and require you to keep good records
● The process requires you to think and plan ahead and prepare for issues rather than reacting to them when they happen
● as an entity you are eligible to apply for credit, grants and other types of funding
● You can generate revenue through the sale of shares
Challenges
● incorporation is complicated and requires lots of reading of dry legal stuff
● you can hire someone to do it for you but it is expensive
● you are now bound by rules and laws and have to file annual reports, keep good records and follow certain procedures
Start small ...
● keep good meeting minutes
● keep good financial records
● define your group's vision, mission and goals
● develop some process in meetings whether it is following Robert's Rules or running your meetings by consensus
Troubleshooting● working together – start with people who are
already in alignment with regards to guiding principles, beliefs, work habits and standards and who are committed to working cooperatively.
● trust – keep really good written records, ensure everyone signs off on them and refer to them regularly
● decision-making – find a method of reaching decisions that works for you and dedicate yourselves to following it. “Trust the process, not the person”
● Building camaraderie – potlucks! Take time to socialize with your co-op to build personal connections
● participation – the more everyone is able to participate in meetings the more a part of the group
they will feel.
● burnout – Plan to share the
workload at the start and consider
rotating jobs if you have enough
members. Raise money to pay
members for important jobs or hire
professionals.
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●
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Resources and Models
● Information on co-ops and help with incorporation: Cooperative Enterprise Council of NB www.cecnb.ca
● Rules of incorporation, documents and other legal information: Financial and Consumer Services Commission
http://www2.gnb.ca/content/gnb/en/services/services_renderer.631.Co-operative_%28Co-ops%29_Incorporation.html
● Co-ops: La Recolte de Chez Nous/Really Local Harvest Co-op https://recoltedecheznous.com
Glen Valley Organic Farm Cooperative
http://www.glenvalleyorganicfarm.org/gvwp/
Coin Bio/Organic Corner Co-op – no website yet but see us at the Dieppe Farmer's Market every Saturday starting in May!
Thank you!
Questions?