al Rur COOPERATIVES - USDA Rural DevelopmentRural Cooperatives / November/Deember 2014 3 Volume 81, Number 6 November/December 2014 Rural Cooperatives(1088-8845) is published bimonthly

Rura

lCOOPERATIVESCOOPERATIVESNovember / December 2014

STAYINGRELEVANT

Page 14

Survey shows co-opsremain vital for

members

By Ramsey Margolise-mail: [email protected]

Editor’s note: Margolis is a writer, speaker and cooperativebusiness development strategist and founder of Huia CDS, aconsulting business in Wellington, New Zealand. He served asexecutive director of Cooperative Business New Zealand from 2006to 2013. This article is slightly adapted from one that originallyappeared in “Real Farmer,” published by Ruralco.

“I only sell the co-op half of what Iproduce; that way I keep them

honest.”

The above words were spoken by a member-owner of a small cooperative during itsannual meeting. He didn’t realize that he wasshooting himself in the foot, and it shouldcome as no surprise that neither the

cooperative nor its member-owners were doing very well.Not only did that shareholder’s actions reduce his ownincome from the cooperative, but that year every memberlost out.

Put simply, he wasn’t engaged enough to know that thecooperative was his business, and he did not realize itsimportance to his own success.

Speaking to people about cooperatives, one of the firstquestions I often ask is this: “Is your cooperative an extensionof your business, or is it your other business?” How wouldyou answer that?

Farmers in New Zealand are generally involved with morethan one cooperative, and the answer will be different foreach. They may get supplies from one cooperative andfertilizer from another, and it’s likely that they are involved inan irrigation cooperative as well. They might also bemarketing their products through a cooperative, such as adairy co-op, a fruit growers’ co-op or a meat co-op. Theymay well get insurance from a mutually owned insurancebusiness. Their relationship to their co-ops is very similar tothat of producers in the United States.

Because farmers are usually more involved with somecooperatives than others, whether a cooperative is viewed asan extension of their business or as their “other business” will

differ according to how important a particular cooperative isto their farm or ranch — their primary business.

But one thing that is true for all the cooperatives withwhich members trade is that, as one of the shareholders of aco-op, they need to look after their co-op(s) with as muchcare as their primary business.

Whether in New Zealand or America, cooperatives helpyour farm by providing the supplies and services you need forthe business to run economically; at the other end of theprocess, your co-op gives you competitive returns for whatyou produce.

As farmers and growers, you use a co-op as your businessbecause you want a self-help solution to a businessopportunity. Collaborating with others as part of acooperative offers that opportunity, whereas on your own,you just can’t achieve the success you’re looking for.

In a cooperative, you will find genuine democratic controlof the business. The benefits you receive throughout the year,as well as at the end of each year, are based on yourparticipation.

Cooperatives are not profit-maximizing entities forthemselves. Rather, they either buy inputs as cheaply aspossible and sell to member-owners as cheaply as possible, orthey pay the highest possible price for your produce, then sellit for as much as possible.

In short, co-ops are in business to maximize the profits oftheir shareholders’ primary businesses, while the cooperativeitself is profit conscious — aiming to do better than breakeven. Otherwise, member-owners would need to supporttheir co-op if it were to incur a loss.

In “accountant speak,” member benefits derived frombelonging to a cooperative are “above the line.” Co-ops arein business to serve the needs of member-owners by ensuringavailability of services. They strive to provide better levels ofservice with either lower charges or higher payments. Acooperative might also act as the representative of member-owners in a particular industry.

Cooperatives are in business for the long run, and whilemost people support their cooperatives through thick andthin, sadly not all do. Cooperatives build up the muscle theyneed to support all members by getting maximum supportfrom all of them. As a co-op member, remember that you’reone of the owners, that you have a say in how that business isrun and that the prosperity of your cooperative is asimportant to you as the prosperity of your farm. ■

2 November/December 2014 / Rural Cooperatives

Commentary Co-ops: an extension of your farm business — or your other business?

Features

Rural Cooperatives / November/Deember 2014 3

Volume 81, Number 6November/December 2014

Rural Cooperatives (1088-8845) ispublished bimonthly by USDA RuralDevelopment, 1400 Independence Ave.SW, Stop 0705, Washington, DC. 20250-0705.

The Secretary of Agriculture hasdetermined that publication of thisperiodical is necessary in the transactionof public business required by law of theDepartment. Periodicals postage paid atWashington, DC. and additional mailingoffices. Copies may be obtained from theSuperintendent of Documents,Government Printing Office, Washington,DC, 20402, at $23 per year. Postmaster:send address change to: RuralCooperatives, USDA/RBS, Stop 3255,Wash., DC 20250-3255.

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Unless otherwise stated, articles in thispublication are not copyrighted and maybe reprinted freely. Any opinions express-ed are those of the writers, and do notnecessarily reflect those of USDA or itsemployees.

The U.S. Department of Agriculture(USDA) prohibits discrimination in all itsprograms and activities on the basis ofrace, color, national origin, age, disabili-ty, and where applicable, sex, maritalstatus, familial status, parental status,religion, sexual orientation, geneticinformation, political beliefs, reprisal, orbecause all or part of an individual’sincome is derived from any publicassistance program. (Not all prohibitedbases apply to all programs.) Personswith disabilities who require alternativemeans for communication of programinformation (Braille, large print, audiotape,etc.) should contact USDA’s TARGETCenter at (202) 720-2600 (voice and TDD).To file a complaint of discrimination, writeto USDA, Director, Office of Civil Rights,1400 Independence Avenue, S.W.,Washington, D.C. 20250-9410, or call (800)795-3272 (voice), or (202) 720-6382 (TDD).USDA is an equal opportunity providerand employer.

Tom Vilsack, Secretary of Agriculture

Doug O’Brien, Acting Under Secretary,USDA Rural Development

Dan Campbell, Editor

Stephen A. Thompson, Assistant Editor

Stephen Hall / KOTA, Design

Have a cooperative-related question?Call (202) 720-6483, or email:[email protected] This publication was printed with vegetable oil-based ink.

08 Co-op Month ‘14: Much to celebrate, but much more to do By Doug O’Brien

11 Co-op Mergers, Acquisitions, 2000-2013 By E. Eldon Eversull

14 Staying Relevant Survey shows that co-ops are still vital to members, but more effort needed to connect with youngproducers

20 Finding CourageAuthor discusses her research into use of cooperatives by African-Americans

24 Gauging PerformanceAn ‘extra value’ assessment of the nation’s top 18 dairy co-ops, 1992-2012K. Charles Ling

Departments02 COMMENTARY

04 VALUE-ADDED CORNER

18 IN THE SPOTLIGHT

28 NEWSLINE

37 2014 ARTICLE INDEX

p. 4

ON THE COVER: “I see a bright future ahead if we cancontinue to react positively and swiftly to the needs offarmers in Tennessee and the other states we serve,”says dairy farmer Stephen Philpott, a director withTennessee Farmers Cooperative (TFC). His co-op haslaunched initiatives to help members incorporate newtechnologies on their farms — just one way co-ops arestaying relevant. See page 14. Photo by Chris Villines,Courtesy TFC

p. 14 p. 20

Editor’s note: Portions of this articlewere excerpted and adapted from thewebsite of the North America AroniaCooperative.

The aronia berry is asmall purple berry thathas been getting a lotof “good press” lately,causing U.S. producers

and consumers to pay a great deal moreof interest to this fruit that has longbeen grown commercially only inEurope, even though it is native toNorth America.

That’s because the little berry packsa big nutritional punch, being rich inantioxidants. The aronia berry is tartand dry and grows on shrubs, similar toblueberries. Berries can be transformedinto a large variety of products,including juices, teas, sauces, jellies,natural colorants and nutritionalsupplements.

The berries are being grown byincreasing numbers of farmers in theMidwest, and the demand for the fruitis growing. The North America AroniaCooperative was formed in 2014 todevelop a network of growers who canjointly promote, educate and shareresources among the members.

The aronia cooperative now has

Value-Added Corner Aronia berry co-op among recipients of $25 million in USDA value-added grants


Interest in products made from aronia berriesis increasing, due in large part to their highcontent of antioxidants. This girl is helping topick aronia berries on Calow Berry Farms inArlington, Neb. Photo courtesy North AmericaAronia Cooperative


members in seven states and Canada,including South Dakota, Nebraska,Iowa, Wisconsin, Missouri, Minnesota,Illinois and Quebec. The cooperative isthe largest source for U.S.-grownaronia berries, with the potential tosupply about 20 million pounds of fruitannually.

The co-op just received a $200,000Value-Added Producer Grant (VAPG)from USDA Rural Development to useas working capital needed to assist theco-op in developing new markets andgrow its sales.

“The grant funds will be usedprimarily for marketing and processingvalue-added aronia products to positionthe co-op to partner with food andbeverage companies,” says ColleenNipp, chairman of North AmericaAronia Cooperative.

Grants to help 247 producersThe berry co-op is just one of 247

recipients, announced in August, of $25million in VAPGs from USDA RuralDevelopment. These investments willhelp recipients, including farmercooperatives and producer-ownedlimited liability companies (LLCs),expand operations to turn commoditiesinto value-added products.

Agriculture Secretary Tom Vilsackmade the VAPG awards announcementduring a visit to Miles Smith Farm inLoudon, N.H., a recipient of a VAPG.The program helps agricultural

producers grow their businesses byturning raw commodities into value-added products, expanding marketingopportunities and developing new usesfor existing products.

“The funding we are announcingwill have far-reaching, positive impactsin rural communities across thecountry,” Vilsack said. “Theinvestments will help businesses createnew products, expand their operationsand support local and regional foodsystems. The new Farm Bill expandsthis program to provide even more ofthese opportunities.”

By helping farmers and ranchers turncommodities into value-added products,producers can take better advantage ofnew markets and keep more dollarsgenerated from the sale of theirproducts at home, supporting their localcommunities.

VAPGs worth more than $2.5million were awarded to 20 producer-owned co-ops.

Other co-op recipients includeIdaho’s Bounty Co-op Inc., whichreceived $48,000 to pay labor,marketing and distribution costs tomarket and deliver local, sustainablyproduced meat, eggs, cheese, poultry,fruit, vegetables and added-valueproducts to new demographic andgeographic regions not previouslyserved by the co-op.

Pacific Coast Producers in Californiawill use its $200,000 VAPG to help

develop a new sliced-tomato productline. Heartland Cooperative Serviceswill use its $200,000 VAPG for value-added marketing activities that willexpand sales of omega-3 milk forcheese.

Since 2009, USDA has awarded 863Value-Added Producer Grants totaling$108 million. About 20 percent of thegrants and 16 percent of total fundinghas been awarded to beginning farmersand ranchers.

The 2014 Farm Bill increasesmandatory funding for the programfrom $15 million to $63 million overfive years, while also reauthorizing anadditional $40 million in discretionaryfunding. The grants can be used tosupport local and regional food systems,further the development of the growingbio-economy, or to finance thedistribution of local and regionalproducts, among other uses.

Miles Smith Farm received a$127,000 VAPG to market and produceburgers made from 55 percent grass-fedbeef and 45 percent organically raisedpork. Mixing the two meats creates anideal fat and flavor level that grass-fedground beef does not have alone.

Value-Added Producer Grants are anelement of USDA’s Know Your Farmer,Know Your Food initiative, whichcoordinates USDA’s work to supportlocal and regional food systems. View afull list of VAPG recipients at:www.rurdev.usda.gov. ■

Editor’s note: Portions of this article are excerpted andadapted from the website of the Side Hill Farmers’Cooperative.

Until recently, most beef and other meats raised in theMadison County area of central New York were shippedout of state for slaughter, eventually winding up ondinner plates in New York City. So when the Side HillFarmers Cooperative was formed eight years ago, thedriving concept was to add value to its products and

market them locally. With 40,000 people within a 60-mile radius of its production area, there were plenty of“local plates” to fill.

Thanks to an active Agricultural EconomicDevelopment program, many new farmers have movedto Madison County, looking for opportunities to produceand market their livestock and produce. The Side HillFarmers members hoped their co-op would not onlyhelp improve the fortunes of the members, but alsoprovide opportunities to their increasingly diverse

Side Hill Farmers Co-op markets local meat through own retail outlet


farming community and boost the overall regional ageconomy.

The initial focus was for the co-op to open a localslaughter facility. But about that time, an existing localslaughter plant re-opened, so that need became less pressing.The members decided instead to use the co-op “to createvehicles that would allow farmers to control their ownproduct, from seed to plate.” Side Hill Farmers Meats &Market in Manlius, N.Y., is just such a vehicle, a retail shopwith local product — meat, dairy, grains, produce and dishesthat combine them — sourced from nearby farms.

The operation centers on a “craft butcher shop,” whichdoes butchery (but not slaughtering) and whole-animalutilization of beef, pork, lamb and poultry. All meat sold inthe store is local and natural (raised without administeredhormones or prophylactic antibiotics).

“We also do our own smoking and cooking of bacon,hams, and deli meats,” says Greg Rhoad, the managing chefat Side Hill Farmers Meats & Market. All parts of animalsare used, with cuts going into the meat cases or into prepareddishes, sauces and soup stocks, as well as ready-to-eat delisandwiches and soups. The co-op does its own curing anddry-aging of meats and offers both grass- and grain-finishedbeef. Product offerings in the store have been expanded toinclude eggs, yogurt, milk and cheese, among others.

Business ahead of projectionsA year and a half after opening, Rhoads says business has

been “exceptional — surpassing all our projections.” Second-year revenue is up 33 percent to date from the strongopening year. There is great potential for further growth, andthe $200,000 Value-Added Producer Grant (VAPG) the co-op recently received from USDA Rural Development will beused to expand consumer awareness of its meat products andto develop systems that will make the retail operation

A sample of beef cuts and prepared meals, displayed here by Managing Chef Greg Rhoad and counter worker Hannah Grajko, that are provingpopular with consumers looking for home-grown foods from the Madison County, N.Y., area. Butcher Dan Putnam is in the rear. Photos courtesySide Hill Farmers Co-op

continued on page 34

Darrell Griff (left) raises Berkshire-cross hogs on his farm in Hamilton,N.Y. The pork will be marketed through the Side Hill FarmersCooperative shop.


Arizona North Leupp Family Farms $26,268 Rural Development funds will be used to determine the feasibility of the farmercooperative producing blue cornmeal from Navajo corns, providing cold storage andestablishing a moblie market to sell products locally on the Navajo Nation.

Arizona San Xavier Cooperative Association $52,206 Rural Development funds will be used to determine the feasibility of the farmercooperative producing various types of flour, providing cold storage and establishing acentral market to sell products locally.

California Pacific Coast Producers $200,000 Rural Development funds will be used to help fund the development of a new, meal-readysliced canned tomatoes product line.

California Blue Diamond $200,000 Rural Development funds will be used to offset the high costs of an international marketintroduction and will spent on freight, processing and personnel costs necessary toensure this venture's success.

California Challenge Dairy Products, Inc. $200,000 Rural Development funds will be used to help with grocery slotting fees to offset the highcosts of new market introduction of New Cream Cheese.

California Sunsweet Growers Inc. $200,000 Rural Development funds will be used to increase grower returns through the processingand marketing of D'Noir Prune Juice.

Georgia Michigan Blueberry Growers Association $200,000 Rural Development funds will be used to help the blueberry growers pay for processingcosts at the packing plant in Georgia.

Idaho Idaho's Bounty Co-op, Inc. $48,000 Rural Development funds will be used to pay labor, marketing and distribution costs tomarket and deliver local, sustainably produced meat, eggs, cheese, poultry, fruit,vegetables and added-value products to demographic and geographic regions notpreviously marketed to by the producers in Idaho’s Bounty Co-op.

Indiana Hoosier Harvest Market LLC $50,000 Rural Development funds will be used to expand the marketing capabilities of thiscooperative food hub and the farmers it serves.

Iowa North American Aronia Cooperative $200,000 Rural Development funds are made available to agricultural producers seeking toestablish or expand markets for their value-added agricultural products and to providecritical working capital to assist in developing new markets and growing sales.

Maryland Garrett Growers Cooperative, Inc. $16,115 Rural Development funds will be used to hire a coordinator and delivery personnel toexpand the market area of Garrett Growers Cooperative, to sell fresh produce to newoutlets in and around Garrett County, expand the amount of produce sold to currentoutlets, and to develop a cooperative Community Supported Agriculture (CSA) service.

Maryland Chesapeake Fields Farmer’s Cooperative $33,370 Rural Development funds will be used to hire a co-op manager to expand customer andmember base.

Massachusetts Ocean Spray Cranberries, Inc. $200,000 Rural Development funds will be used to assist with processing costs to produce 100,000cases of PACT, a new beverage platform, using natural cranberry extract.

Minnesota Stones Throw Agricultural Cooperative $49,950 Rural Development funds will be used for expansion of a marketing and distributioncooperative serving immigrant farmers and other beginning farmers.

Missouri Ozark Famers Agricultural Cooperative (OFAC) $50,000 Rural Development funds will be used to assist with the cost of a feasibility study for afood hub and distribution center in West Plains, Mo., which will serve consumers in bothMissouri and Arkansas.

New York Side Hill Farmers Cooperative, Inc. $199,426 Rural Development funds will be used to expand consumer awareness of Side HillFarmers Cooperative branded beef and pork products, which are marketed through theco-op's retail store.

Pennsylvania Penn's Corner Farm Alliance $49,800 Rural Development funds will be used to help pay for UPC codes, processing, marketingand labeling costs associated with ongoing development of a value-added product line.Canned tomatoes, salsas, jams, sauerkraut and pickles are some of the items that will beproduced for both CSA and retail outlets.

Wisconsin Heartland Cooperative Services $200,000 Rural Development funds will be used for value-added marketing activities associatedwith expanding the sales of omega-3 milk for omega-3 cheese.

Wisconsin Westby Cooperative Creamery $200,000 Rural Development funds will be used to expand the product line and market organicGreek yogurt. Greek yogurt has about double the protein and a much different nutritionalprofile compared to regular yogurt. Organic Greek yogurt offers higher margins andprices, positively impacting the sustainability of this 111-year-old farmer co-op.

Wisconsin Fifth Season Cooperative $197,696 Rural Development funds will be used to support custom processing, labor and otherworking capital and marketing needs as it expands its IQF (individually quick frozen)vegetable blends to institutional market channels.

$2,572,831

STATE AWARD RECIPIENT AWARD AMOUNT PROJECT DESCRIPTION

Co-op recipients of 2014 USDA Value-Added Producer Grants

By Doug O’Brien, Acting Under Secretary, USDA Rural Development

There was much to celebrate all across theUnited States during National CooperativeMonth in October. The U.S. co-op businesssector, after all, is thriving, generating about$650 billion in annual sales and accounting

for more than 2 million jobs. Agricultural co-ops alonegenerated a record $246 billion in revenue and had recordnet income of $6.2 billion in 2013. And ag co-ops increasedtheir number of full-time jobs by 5 percent.

But the cooperative business model remains a “best-keptsecret” for far too many people who could be benefiting frommembership in co-ops. It is thus imperative that everyoneinvolved with cooperatives make co-op education andoutreach a major priority in the year ahead. That was one ofthe primary messages of a National Co-op Month forum atthe National Press Club in Washington, D.C., Oct. 22,sponsored by the National Cooperative Business Association(NCBA).

I was invited to be one of the speakers at this gathering,during which I used the opportunity to issue three challengesto our nation’s cooperatives and those who work with co-ops:• Look to forge new partnerships that can advance the

cooperative sector;• Strive to innovate, always looking for new ways to make

your co-op a better resource for its members and theircommunities;

• Don’t be afraid to take some well-calculated risks.I grew up on a farm in Iowa, drinking milk from the Swiss

Valley cooperative and where we depended on co-ops for ouranimal feed, farm supplies and our electricity. So I know howvital co-ops are to rural people and of their potential to helpeven more people. There are historic opportunities for thegrowth of co-ops in America, and co-ops have a role to playin helping to improve the living conditions for the nearly onein four kids in the United States who lives in poverty.

More challengesMichael Beall, NCBA president, also issued three

challenges geared to strengthening the co-op sector:• Self-identify as a co-op by adopting the “.coop” Internet

domain name; • Work with your co-op boards to find new ways to achieve


T

CO-OP MONTH ‘14

Muchto celebrate,

but much moreto do


cross-sector collaborations, reaching out to other types ofcooperatives to achieve common goals;

• “As individuals, choose to bring more co-ops into yourlife.” For consumers, that could mean joining a food co-opor credit union, buying co-op branded foods and otherproducts, looking for a co-op preschool for your children,etc. The need to get instruction about co-ops incorporated

into the curriculum of more secondary schools and collegeswas stressed several times during the forum. It is all toocommon that students can earn a master’s degree in businessadministration without ever having been taught even themost basic concepts of the co-op business model.

Even when students do get some training in co-ops andare enthused about them, co-ops often don’t keep them in thefold. Beall cited the example of a very successful, student-runcredit union at Georgetown University. But the co-op leadersusually wind up going to work for Wall Street firms, not acooperative. He called the situation a “co-op brain drain.”

The surging interest in local and regional foods has givenbirth to a new wave of cooperatives, and these are often being

formed by young people, many of whom may have knownlittle, or nothing, about co-ops in the past. Beall also notedthe trend of new co-op brew pubs around the nation isexposing many people in their 20s and 30s to the benefits ofco-ops.

Untapped potentialDespite many successes in recent years, the co-op sector in

America is not even close to reaching its potential. “We’reswinging below our weight,” said panelist Charles Snyder,president of National Cooperative Bank (NCB), adding thatthe co-op sector should be a far more powerful force in theeconomy than it is.

Even the best intentions and most worthwhile goals willgo for naught if a co-op does not operate on sound businessprinciples and hire skilled management. “No margin, nomission,” said Snyder, citing a common axiom amongbankers.

NCB generates positive publicity about co-ops eachOctober through the release of its annual “NCB Top 100Co-ops” list (see page 31 for more). Snyder said the list

Co-ops should forge new partnerships and innovate to better serve their members, Doug O’Brien, acting under secretary for USDA RuralDevelopment, said during a Cooperative Month Forum in Washington, D.C. Looking on are panel members Lillian Solerno, administrator for USDA’sRural Business-Cooperative Service, and Charles Snyder, president and CEO of National Cooperative Bank. USDA photo by Dan Campbell


shows just how successful co-ops arein a variety of economic sectors, withtotal revenue for 2013 of $234.5billion, a 3.6-percent increase from2012.

Need more evidence of themarket clout of co-ops? Considerthis: the combined revenue of theworld’s 300 largest co-ops wouldabout equal the $2.2 trillion grossdomestic product of Brazil, theworld’s 8th largest economy.

Several speakers mentioned theJackson Rising conference — whichdrew about 1,000 people last May toJackson, Miss. — as an example of anexciting event that helped exposemore people to co-op concepts. “Theprimary objectives of the conferencewere to stimulate the creation of cooperative enterprises inJackson to [address] unmet economic and social needs,”according to the conference website. The event also helpedlaunch Cooperation Jackson, “an emerging cooperativenetwork that is building four interdependent andinterconnected institutions: a federation of emerging workercooperatives, a cooperative incubator, a cooperative educationand training center, and a cooperative bank or financialinstitution.”

Complicating the creation of new co-ops in Mississippiand many other states in the South is the lack of statecooperative laws, Beall said, adding that NCBA is working tobring together lawyers, accountants and others with expertisein co-ops to develop strategies for addressing the situation.

Progress on many frontsA sampling of points made by other panelists during the

forum included:■ Cooperatives fit in well with the model of a “sharedeconomy,” a concept that is attracting a great deal of interest,especially among young people, said Lillian Solerno,administrator of the Rural Business-Cooperative Service, partof USDA Rural Development. She noted that the growth ofinterest in local foods in the Washington metro area is sogreat that it is almost impossible to go into a restaurantwithout seeing a card on the table or a note in the menutrumpeting the restaurant’s use of locally grown foods, suchas heirloom tomatoes. Solerno oversees a number of loan andgrant programs that aid in the establishment and growth ofrural co-ops and other businesses. The day after the forum,USDA and NCBA held a webinar that discussed proposedchanges to USDA’s Business and Industry (B&I) GuaranteedLoan program that could make it easier for co-ops to benefitfrom the program. (An article with highlights of that webinar

will be included in the Jan-Feb.issue of Rural Cooperatives.) ■ Ann Marie Mehlum, associateadministrator with the U.S. SmallBusiness Administration, saidchanges have also been made inSBA programs, with more in theworks, that will make it easier forthe agency to work with co-ops.She said SBA has worked closelywith NCBA and NCB for morethan 30 years and will continue todo so as it strives to throw itssupport behind the growth of theco-op sector.■ Debbie Trocha, executivedirector with the IndianaCooperative Development Center,said the nation’s network of more

than 30 co-op development centers is helping to launch newco-ops all across the country. As an indication of the risingtide of interest in local foods, she noted that her center in2010 began sponsoring a conference in Bloomington, Ind.,for people interested in launching new food co-ops, foodhubs or farmers markets. That first event attracted about 30people. This year, the now two-day event attracted more than100 people. Her co-op center helped to create Indiana’s firstfood hub (a facility that aids local producers in theaggregation and distribution of their products). In this case,Hoosier Harvest Market is a “virtual food hub,” whichmaintains a website on which producers post their productavailability and which consumers use to place orders. USDARural Development helps to finance co-op developmentcenters through its Rural Cooperative Development GrantProgram. ■ Leta Mach, representing Parent Cooperative PreschoolsInternational (PCPI), spoke about how preschool co-ops canhelp provide a nurturing learning environment for children.These co-ops depend on high levels of parental participation.PCPI represents more than 50,000 families and teachers,providing ongoing support to families, educators and socialagencies. In the past year, the organization has engaged intalks with the U.S. Department of Education about howpreschool co-ops benefit children, she said. Mach alsodiscussed the Greenbelt Cooperative Alliance, anorganization of six community co-ops in the Washington,D.C., suburb of Greenbelt, Md., that work together toimprove the quality of life for residents.

This is just a sampling of the many exciting developmentsoccurring in the co-op sector that should help to inspire usall to redouble our efforts — not just during CooperativeMonth, but throughout the year — to help build a betterworld by spreading the word about cooperatives. ■

Ways in which co-ops can provide economicopportunities for more people were explored during theJackson Rising conference last spring in Jackson, Miss.This panel talk included Michael Beall, president of theNational Cooperative Business Association (secondfrom right).


By E. Eldon EversullAgricultural EconomistUSDA Co-op Programe-mail: [email protected]

There have been manychanges among farmer,rancher and fisherycooperatives during thepast 35 years. But the

biggest change is undoubtedly theconsolidation that has occurred withinthe ag co-op sector. Most local co-opshave merged and merged again, oftenforming “super locals” and even largerregional cooperatives.

Other ag co-ops now “gone from theranks” converted into investor-ownedfirms (IOFs) or were bought out byIOFs. Others simply closed their doorsdue to competition or changes in theirterritory and markets. While today’s

larger co-ops exert a lot moremarketing clout for their members, theycontinue to face many of the samechallenges as did the typically smallerco-ops of 35 years ago.

There were 6,445 farmercooperatives in 1979 vs. 2,186 in 2014.At the same time, the $77 billion inrevenue that ag co-ops earned in 1979has been eclipsed. While fewer innumber, the larger ag co-ops of todayset an all-time co-op sales record in2013: $256 billion. This is a rate ofgrowth of 5 percent per year, justslightly less than the 6-percent rate ofinflation in the Consumer Price Indexover the same time period.

This article looks at how cooperativemergers, consolidations, acquisitionsand conversions have changed the agco-op sector between 2000 and 2013.

Short-term trendIn the early 2000s, conversion of ag

co-ops to investor-owned firms (IOFs)seemed to be a trend for the newmillennium. Eight ag cooperativesconverted to IOFs or were acquired byIOFs in the first few years of the newcentury. Two of these cooperatives hadpreviously ranked No. 1 on USDA’sannual list of the top 100 cooperatives.The other six were also large co-ops,each with annual sales in excess of $100million (table 1).

Three more co-ops converted to, orwere purchased by, IOFs in 2005, butthe trend then slowed as the majority oflarge cooperatives that ceased individualoperations did so due to a merger orconsolidation with other cooperatives(figure 1).

The information in table 1 wascompiled from local and national news

Co-op Mergers,Acquistitions2000–2013

Editor’s noteThis is the author’s final article for “RuralCooperatives.” Eversull is retiring Jan. 1 after a careerof 35 years as an ag economist at USDA. Since 2001,he has led the statistics unit of USDA CooperativePrograms, where he directed USDA’s annual survey offarmer, rancher and fishery cooperatives.

From 1988 to 2001, he directed CooperativePrograms’ research, education and technicalassistance program on farm supply cooperatives. Priorto that, Eversull was a staff economist with USDA’sFood and Nutrition Service. He began his USDA careeras a grain/oilseed specialist with USDA’s Economics,Statistics and Cooperative Service.

Eversull grew up on a grain farm in Iowa, of whichhe continues to be part owner. He received bachelorsand masters degrees in ag economics from Iowa StateUniversity.

Concrete is poured for new silos being built by CentralValley Ag Cooperative (CVAC) in Nebraska, whichrecently merged with United Farmers Cooperative.“Speed and space is ‘king’ today in grain andagronomy for our producers,” says Reed Nelsen, theco-op’s senior vice president for marketing. Photocourtesy CVAC


sources. (USDA Cooperative Programsnever uses information from itsstatistical survey to publish informationabout an individual cooperative withoutfirst obtaining the cooperative’spermission.) Some of the cooperativesthat converted to, or were acquired by,IOFs also had their meat packingoperation or some of their supplyoutlets purchased by othercooperatives. Aggregate informationfrom our database has been combinedwith the public information for theother tables in this article.

From 2000 through 2013, 1,181U.S. ag cooperatives ceased operations(table 2). Cooperatives that merged orconsolidated with other cooperativescomprised 46 percent of these, whilecooperatives that converted to, or wereacquired by, IOFs represented 12percent of the total.

We were unable to determine thereason for the other co-ops that ceasedoperating — 42 percent of the 1,181.In these cases, surveys were returnedstating that the co-op no longer was inbusiness, but no reason was given (suchas bankruptcy, merger or consolidationwith another cooperative or purchaseor conversion to an IOF). The“unknown” group also includes mailreturned as “undeliverable,” meaningthere was no longer a business at theaddress.

While “unknown” is a big category,representing 42 percent of the co-opsthat ceased operations, thesecooperatives tended to be small, withcombined sales representing less than 9percent ($2.6 billion) of the total $30billion in sales made by the 1,181 co-ops that ceased operations from 2000-2013.

Mergers vs. IOF conversionCooperatives that merged or

consolidated with other co-ops had$13.9 billion in sales while cooperativesthat converted to, or were acquired by,IOFs had $13.7 billion in sales (45percent of the total). The merged orconsolidated cooperatives — as well as

Merged or consolidated Cooperatives acquired by IOFswith other cooperatives or converted to an IOF

2000 Interstate Producers Livestock Assoc., IL Minnesota Corn Processors, MN

2001 Calavo Growers Inc., CACrestland Cooperative, IA

2002

2003 Farmers Cooperative Elevator Company, NE Farmland Industries Inc., MO

2004 Agway Inc., NYDiamond Walnut Growers Inc., CAUS Premium Beef Ltd, MOGold Kist Inc., GA

2005 Seald-Sweet Growers Inc., FLCF Industries Inc., ILFCStone Group Inc., IA

2006 Norbest Inc., UTAllied Federated Cooperative, NYO-AT-KA Milk Products

Cooperative Inc., NY

2007 M & M Cooperative Inc., CO Naturipe Berry Growers Inc., CACentral Counties Cooperative, IA Great Lakes Cooperative, IASunrise Cooperative Inc., OHCass-Clay Creamery Inc., ND

2008 AGRI Co-op, NE Alto Dairy Cooperative, WIMidwest Farmers Cooperative, IA

2009 Sully Cooperative Exchange, IAAccess Ag Inc., ILAg Vantage FS Inc., IAThe Farmers Commission

Company, OHCountry Star Cooperative, OH

2010 Southwest Landmark Inc., OHProgressive Ag Cooperative, IAFrontier FS Cooperative, WI

2011 Grainland Cooperative, CO Minnesota Energy, MNPrairie Land Cooperative, IAHamilton Farm Bureau

Cooperative Inc., MIAgriPride FS Inc., IL

2012 Shipman Elevator Company, ILLarsen Cooperative Company, WISecurity Milk Producers

Association, CA

2013 Agri-Partners Cooperative, WIHusker Coop, NEFarmers Cooperative Co., NE

Table 1—Cooperatives with over $100 million in sales that went out of business,merged or consolidated, or became investor-owned-firms, 2000-2013

Table 2—Number, sales, assets, members, and full-time employees of cooperatives thatmerged, became investor-owned-firms (IOFs), or went out of business, 2000-2013


those that converted to, or wereacquired by, IOFs — were usuallylarger cooperatives, as evidenced by the44 cooperatives with more than $100million in sales listed in table 1.

Iowa was home to six of the largecooperatives that merged, while Illinois,Nebraska and Ohio were home to foureach. Iowa was also home to three ofthe cooperatives that became IOFs, aswas California. Cooperatives thatbecame IOFs held about 50 percent ofthe assets, while co-ops that mergedheld 41 percent of the assets (table 2).

Focusing on number of farmer orrancher members, the picture is heavilyskewed toward cooperatives thatmerged (representing 62 percent of allmembers), while several of thecooperatives that became IOFs (with 22percent of the members) had othercooperatives as their members, ratherthan direct membership of farmers orranchers.

The opposite is true for number ofemployees. Cooperatives that becameIOFs often operated processing ormanufacturing operations and thus hadlarge numbers of employees. As agroup, these co-ops accounted for42,006, or 69 percent, of the employeesvs. the merged co-ops, which accountedfor 24 percent of the employees.

Fulll-timeCooperatives Sales Assets Members employees

Number -----Billion $----- Thousand Number

Cooperative merger 539 13.899 5.489 384 14,826IOF, acquisition 146 13.726 6.836 139 42,006Out of business 496 2.575 1.159 97 4,240Total 1,181 30.200 13.484 622 61,072

Number

Cotton gins 15 4 53 72Dairy 20 13 60 93Fruit and vegetable 5 11 65 81Grain and oilseed 212 35 56 303Service 7 6 26 39Sugar 5 6 5 16Supply 260 42 120 422Other1 15 29 111 155Total 539 146 496 1,181

1 Types with less than four or more cooperatives.

Table 3—Cooperative mergers, consolidation or acquisition; cooperatives thatwere acquired by or became investor-owned-firms; and cooperatives that wentout of business, by type, 2000-2013

Cooperativemerger,

consolidationor acquisition

Investorowned-firm

acquisition orconversion

Cooperativewent out of

business All


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Years

l l l l l l l l l l l l l l

6

5

4

3

2

1

0

Figure 1—Cooperatives that no longer exist, measured by sales, 2000-2013

No longer a cooperative (IOF)

Out of business

Combined with another cooperative

Sales, Billion $


Editor’s note: This article wasprovided courtesy the National Council ofFarmer Cooperatives.

Does the philosophy ofworking together forthe betterment of allstill resonant withtoday’s farmers? Does

the marketing concept of pooling goodsto gain a foothold in the marketplacestill create value in modern commoditymarketing?

These ideas, and others, were put tothe test in a survey conducted for theNational Council of FarmerCooperatives (NCFC) to discover whatrole cooperatives continue to play in theagriculture community and, moreimportantly, how co-ops can retaintheir members.

NCFC sponsored the nationalsurvey, focusing on both large-scalefarmers (defined as producers with $2.5million annual gross farm income orgreater) and young producers (definedas age 45 and younger). The goal of thesurvey was to help cooperatives gain anaccurate view of opportunities andchallenges facing these twogroups andhow cooperatives can bring additionalvalue to all members.

The survey results show thatcooperatives are still relevant to today’sfarmers, but that challenges remain,especially with reaching out to youngermembers.

Building lasting relationships“We know that co-ops must build an

ongoing relationship to remain relevantand valuable to their farmer-owners,”says Chuck Conner, president and CEOof NCFC. “Farmers of every size andevery age need cooperatives that will

help them remain competitive in today’seconomy. Drilling deeper into theirthoughts gives us a chance to look attwo growing segments of co-opmembership,” he adds, noting thatNCFC strives to stay abreast ofindustry trends to best serve current

STAYINGRELEVANT Survey shows that co-opsare still vital to members,but more effort needed to

connect with youngproducers

Ben Seaton, a recent high school graduate and all-star baseball pitcher, turned down a numberof college scholarships, preferring to work full time on his family’s farm. Tennessee FarmersCooperative (TFC) offers services and products that appeal to today’s producers, young and old.Photo by Chris Villines, Courtesy TFC


and anticipated needs of its members. The research shows that 71 percent

of large-scale producers currently workwith a cooperative. Of those producers,nearly 85 percent do not believe theywill outgrow the need for that

relationship within the next five years.Large-scale producers who work with acooperative are four times more likelyto expand than those who do not.

“Our members should be proud ofthe role they are playing in the businessof these expanding producers,” Connersays. “Agriculture needs thesepartnerships to support the demands offarming.”

Attracting and retaining the young

Young farmers were asked abouttheir perception of cooperatives andwhether they thought they would be asinvolved with cooperatives as wereprevious generations. The resultsshowed that young farmers do value thesupport and services of cooperatives, yetthey did not exhibit much interest inparticipating in the leadership orsustainability of the cooperative.

The young farmers surveyedindicated they are embracing the futurepotential of agriculture. More than 75percent of young farmers surveyed saidthey are excited about the integration ofnew technologies into their farmingbusiness. They want to increaseefficiency, engage in better marketingand believe they are willing to takemore risks than were previousgenerations. About half of youngfarmers surveyed are seeking to expandtheir operations.

The challenge for cooperatives is toencourage participation in thecooperative by younger members and tobuild succession plans for leadershippositions.

“We understand that for an

organization to be relevant and valuableto its membership, we must be in touchwith them,” says Conner. “Thecooperative system listens and learnsfrom younger farmers, as well as olderones, because cooperatives want to fitthe needs and future goals of allproducers.”

Many NCFC member cooperativesare exploring ways to build loyalty andleadership skills in their membership.Michigan Blueberry Growers (MBGMarketing) is a cooperativeheadquartered in Michigan servingblueberry growers in eight states andBritish Columbia. It is embarking on aninnovative and aggressive youngmember leadership program to help fillthe pipeline with potential leaders.

“When we look at the fact that theaverage age of today’s farmer is gettingclose to 60, we know that we have to dosomething to engage and attractyounger growers,” says Lorrie FordMerker, MBG’s vice president forgrower relations and cooperative affairs.

Leadership program getting results

Last January, MBG kicked-off a two-year leadership immersion program forgrowers ranging in age from 25 to 45.Each applicant was either a principalowner of a MBG-member farm or wassponsored by a member farm. Theapplicants completed an essay and

application. Twelve growers werechosen the first year, including 10 menand 2 women from both Michigan andGeorgia.

Throughout the past year, theparticipants have traveled to the U.S.

Pacific Northwest and British Columbiato visit farms and customers (includinga one-on-one meeting with leadershipfrom a large retailer). They alsoobserved board meetings, met withlegal and tax advisors to learn aboutcooperative business structures andattended NCFC legislative and businessconferences. This winter they willattend a food safety summit inCalifornia and visit with growers in thatregion.

“The younger generation wants tobe engaged, but it is no longer enoughto mail them a meeting notice andexpect them to show up,” Merker says.“We need to reach out to them,connect them with each other and showthem how they can be a part of thecooperative. We have invested a greatdeal of resources in this program; webelieve we will have a better informedand more engaged leadership team as aresult.”

The benefits of the MBG programnot only include building future leadersfor the cooperative, but can also canhelp the industry as a whole.

“We are hearing from the oldergeneration that the participants comehome energized and excited — not onlyabout what the cooperative is doing, butabout what is happening in theindustry,” Merker adds. “Participantsfeel connected to something biggerthan their own farm. They have met

“The younger generation wants to be engaged, but it is no longer enoughto mail them a meeting notice…We need to reach out to them…and show

them how they can be a part of the co-op.”

people like themselves from all over thecountry who they can now reach out toand build relationships with.”

MBG plans to launch its second classof young leaders in January 2016. Theywill continue to call on the 2014 class tokeep them engaged as the programevolves.

“This is not a ‘one-and-done’program,” Merker stresses. “We plan to

keep building the program by adding 12or so people every other year to theoriginal group. Those that have beenthrough the program will be asked tobe mentors to the next group, creatinga bigger and stronger group each year.

Keeping pace with large-scale farmers

The majority of large-scale farmerssurveyed said they work with a localcooperative to support their operation.Of those, 54 percent have expandedtheir operations. Conversely, just 31percent of large-scale farmers who areexpanding say they do not work with acooperative.

“Successful farmers understand that

cooperatives work on behalf of theirmembers,” Conner says. “Their co-opsare there for them with products,services and information to improveagronomics, reduce risk and capitalizeon market opportunities.”

Service is key for the large-scalefarmers who say they value the cropinputs, commodity marketing and risk-management services they get from

cooperatives. Ninety percent whobelong to a cooperative said they have apositive view of the cooperative system,while 85 percent do not believe theywill outgrow their need to work with acooperative.

These findings show thatcooperatives have been able to keeppace with their large-scale farmers andthose with expanding operations.

NCFC member Tennessee FarmersCooperative (TFC) has put in place anumber of initiatives to help farmersincorporate new technologies. “Ourcooperatives utilize input from theirboard of directors, who are allproducers,” says Bart Krisle, CEO ofTFC, a federated farm supply

cooperative system with 57 membercooperatives. “The directors share theirpersonal needs and challenge themanagement teams to deliver solutions.Our cooperatives also have several fieldstaff positions directly with producersto keep updated on farmer’s needs.”

TFC believes in investing in theeducation and training of staff so theycan deliver the best service to theproducers.

“We invest in education and trainingfor our staff on the latest technologyand realities. Then, combining inputfrom our producers and staff, weincorporate the technologies thatrepresent the greatest opportunity toadd value for our producers,” Krisleadds.

Members value co-op financial services

In addition to keeping pace with newtechnologies, TFC has also introducednew financial programs that offercentralized accounts receivable andinput financing to its membercooperatives. Co-op Financial Services(CFS) is a program that allowsindividual member cooperatives theopportunity to outsource their creditfunction to TFC.

TFC sets the credit limits andassumes the credit risk. The membercooperatives receive cash for their openaccounts each day and remove theircredit risk.

“CFS is beneficial to the membercooperatives and the producers,” Krisleadds. “Producers now have a singlecredit line that can be used at anyparticipating member cooperativelocation, simplifying the managementof their credit lines.”

In addition to the credit mechanism,TFC employs area finance managers towork with producers on their farmsprior to the planting season to evaluateneeds.

“This program has reduced ourcooperative system’s credit risk andfreed working capital for our member


“This is not a ‘one-and-done’ program,” Lorrie Ford Merker says of Michigan BlueberryCooperative’s (MBG) Young Cooperator Leadership program. Here, program participants andleaders tour a field where new, MBG-proprietary varieties Keepsake and Sensation wererecently plated. Photo courtesy MBG



Editor’s note: This article wasprovided by Naturipe Farms LLC, agrower-owned producer andinternational marketer of premiumberries. Berry production primarilycomes from multi-generation familyfarms in the berry-growing regionsthroughout North and South America.

The White House and UnitedStates Department of Agriculturehonored a select few new andbeginning ranchers and farmers as“Champions of Change” during theFuture of Agriculture two-day eventin Washington, D.C., in July. Theevents celebrated agriculture leadersfrom across the country who aretaking innovative approaches tosupport American farming andranching, both now and in the future,by showcasing their actions thatensure and advance the future ofagriculture.

Kristin Fritz Kubiszak ofBrookside Farms, a grower forMichigan Blueberry Growers (MBGMarketing) — TheBlueberry People — wasone of only 15 nationalhonorees. Kubiszak is theretail manager forBrookside Farms in PawPaw, Mich. Her fifth-generation family farmdistributes freshblueberries throughMBG’s cooperativemarketing network underthe Naturipe brand.

After obtaining her bachelor’sdegree in social work fromCornerstone University, Kubiszakreturned home to her family farm,that grows and packs top-quality

blueberries. Herinvolvement in theagriculture industrydoesn’t stop with justher family farm. Shealso sits on the board ofdirectors for the VanBuren County FarmBureau and chairs itsPromotion andEducation Committee.

In this position, shehas dedicated her time to educatingthe community with trips to localschools, staffing the Ag Venture tentat the local Youth Fair and otheryouth and consumer education

programs. “Kristin is anothermember of the Fritz family farmingoperation who makes us proud thatthey are part of our MBG andNaturipe families,” says Bob Hawk,president and CEO of MBGMarketing.

Kubiszak’s primary goal is toeducate others not only aboutagriculture, but also about howfamilies impact agriculture and howimportant it is to continue familyfarms.

Brookside Farms started as a dairyfarm in 1876. Her grandfatherplanted his first blueberry bush in1956. That was the same year the

Kristin Fritz Kubiszak (left foreground) with family members and boxes of the “first pick” ofthe 2014 season from their Michigan blueberry farm. She was recently saluted as a“Champion of Change” by Agriculture Secretary Tom Vilsack during a ceremony at theWhite House. With them is Bob Hawk (in white shirt), CEO of the Michigan BlueberryGrowers (MBG) cooperative. Photo courtesy MBG

MBG grower honored by White House, USDA



In the Spot l ight Foremost’s Dave Fuhrmann looks backon 40 eventful years in dairy industry

Question: Foremost Farms isprobably best known as one of thenation’s leading dairy co-op cheeseproducers. What changes in the cheesemarket do you see ahead, and how wellpoised is the co-op to adapt to them?

Answer: Per capita consumption ofcheese will contine to grow for theforeseeable future and we’re at a placewhere I think consumer tastes willconstantly evolve, leading to morespecialty cheese production. I expect

the styles of cheese will change andincrease. Foremost Farms has a greattrack record of adapting, because wehave had the ability to look at themarket conditions and reinvest in ourinfrastructure to meet changes.

David Fuhrmann recentlystepped down from his position aspresident of Baraboo, Wis.-basedForemost Farms USA, a job he

began in 2001. A 40-year veteran of the dairyindustry, Fuhrmann will retire on Jan. 1. In theinterim, he is assisting in the transition to hissuccessor, Michael Doyle.

Fuhrmann’s career with the cooperativebegan in 1980, when he was picked to managebarrel cheddar cheese production at theRichland Center, Wis., facility of WisconsinDairies Cooperative, one of the co-opsthat consolidated to become ForemostFarms USA.

In 1986, Fuhrmann was put incharge of the cooperative’s engineeringdepartment and in 1989 becamespecialty products division manager,working with the co-op’s ingredientsproduction facilities. Fuhrmannwas promoted to vice president formanufacturing in 1993 and then tovice president of the cheese division in1998.

He has served on the boards of theNational Milk Producers Federation(NMPF), the International DairyFoods Association and the National

Cheese Institute. Fuhrmann has also served aschairman of the NMPF’s Federal Order TaskForce, created in 2007 to address milk pricingissues. He was co-chair of the Dairy 2020Council, a Wisconsin initiative to help betterposition the state’s $26 billion dairy industry forlong-term viability. In 2012, Fuhrmannreceived the International Dairy FoodsAssociation “Soaring Eagle” award.

Fuhrmann, a graduate of the University ofWisconsin-Stevens Point in biology, was raisedon a dairy farm in rural St. Cloud, Wis.

“The export business and global demand make this a great time to be in thedairy business,” says Dave Fuhrmann (third from left), former president ofForemost Farms USA. He is seen here with employees at the co-op’s wheyingredient plant in Plover, Wis. Photo Courtesy Foremost Farms


Q. Foremost is also the leading dairyco-op manufacturer of whey products,dating back to the 1980s — long beforethe recent surge in that market(especially for exports). What factorscontributed to the decision to enter thewhey market, and do you see itcontinuing to grow?

A. If you go back 30 years, whey wasa disposal problem. It’s now very clearlya value-added business. We saw anopportunity in the early days to captureall of the milk solids and enhancemember returns. Will whey productdemand continue to grow? Absolutely.There is a worldwide shortage ofprotein, and that is very good for thedairy business. In fact, whey productconsumption continues to grow globallyat a faster rate than domestic cheeseconsumption. That is a concern.

Q. Have you seen a change over theyears in member commitment to doingbusiness through cooperatives? Does theyounger generation of dairy farmersunderstand the role and need forcooperatives?

A. I don’t see less commitment. Wehave a lot of strong leaders in ourcooperative, of all ages. They arededicated business men and womenwho happen to own a dairy marketingcooperative. There is a significantportion of young producers whorecognize the value that cooperativesbring. However, it is the challenge ofcooperatives to provide value every dayto all members.

Q. You also served as the chairmanof the NMPF’s Federal Milk MarketOrder Task Force. Any experiencesfrom that endeavor stand out?

A. I learned that there is no easyanswer when it comes to federal dairypolicy. People are very quick to criticizethe Federal Order system, but it is verydifficult to come up with a bettersystem than what’s in place. It’s even

harder to get widespread agreement.We did make real gains for dairyfarmers with the new Farm Bill, butFederal Order reform was ultimatelyleft off the table as no consensus couldbe reached.

Q. Foremost divested its fluid milkbusiness a few years ago. Was thatmove strictly dictated by thin profitmargins in the fluid market?

A. The reality is that fluid milk is abusiness that has seen a steady declinein consumption for 40 years. Excessplant capacity, particularly in the UpperMidwest, combined with decliningconsumption was a business without abright future for us. We sold the fluidbusiness and put the assets into cheeseand whey ingredient production anddemand for those products continues togrow.

Q. If there were no cooperatives,what would the impact be on dairyfarmers?

A. Cooperatives are member-owned,and that is a much different philosophythan other types of businesses. If therewere no cooperatives, dairy farmerswould feel a great deal of downwardpressure on milk prices. What’s more,from a dairy policy standpoint, dairyfarmers would have significant troublebeing heard in the national farm policydebate. Cooperatives afford thegrassroots opportunity to have thatvoice.

Q. What trend or event in recentyears gives you the most optimismabout the future of the U.S. dairyindustry? Or cause for concern?

A. The export business and globaldemand for dairy products makes this agreat time to be in dairy. There will bestrong demand for dairy protein for theforeseeable future. It is a great businessfor the long-term. As I said before, theconcern is that domestic cheese

consumption keep pace with the growthin whey ingredient demand. Also, wecontinue to be challenged with pricevolatility, and I expect that willcontinue. The long-term future isbright for anyone entering thisbusiness, but volatility of pricing willcontinue to cause strong price peaksand valleys.

Q. If you could change one thingabout the dairy industry, orcooperatives, what would it be?

A. Cooperatives need to worktogether on behalf of all dairy farmers.Opportunities are out there for all of usif we could set aside differences and dobetter for the dairy farmers we serve.

Q. Ultimately, what accomplishmentsare you proudest of during your yearswith Foremost?

A. There are two main things thatcome to mind. First, Foremost Farms isthe result of a lot of hard work by dairyfarmer-members and employees whowere here long before me. I owe thosefounding farmers who saw the value ofcooperation, and that spirit continuestoday. In my tenure, we have evolvedfrom a series of small dairy plants, tolarger, state-of-the-art productionfacilities with a streamlined supplychain. I am proud that we have beenable to take costs out of our productionstream and enhance member returnswhile upholding the cooperative model.Second, I am very proud of theemployee team we have put together atForemost Farms USA. I am a firmbeliever in the adage that you are onlyas good as the members of your team.

Q. Plans for retirement?A. I plan to travel a bit with my wife,

Sandy, and spend some quality timewith family. I might even take a ride ortwo in a tractor. ■


Jessica GordonNembhard’s new book,Collective Courage: AHistory of African

American Cooperative EconomicThought and Practice, was examined byUSDA rural sociologist Tom Gray in theSeptember-October issue of RuralCooperatives (available online at:www.rurdev.usda.gov). In the followingQ&A with Gray, she provides morebackground about the book and whyshe undertook the project.

Gordon Nembhard is a politicaleconomist and professor of communityjustice and social economicdevelopment in the Africana StudiesDepartment at John Jay College, CityUniversity of New York. An affiliatescholar with the Centre for the Study ofCo-operatives, University ofSaskatchewan, Canada, she is amember of the Grassroots EconomicOrganizing (GEO) Newsletter andCollective, as well as the U.S.Federation of Worker Cooperatives, theEastern Conference for WorkplaceDemocracy, the Southern GrassrootsEconomies Project, The Federation ofSouthern Cooperatives/Land AssistanceFund, the Association of CooperativeEducators (ACE), and the U.S. SolidarityEconomy Network.

Gordon Nembhard is also a memberof the Shared Leadership Team ofOrganizing Neighborhood Equity (ONE)DC (a community organizingorganization in Washington, D.C.).

For more information, visit herwebsite at: www.geo.coop/collectivecourage.

Finding CourageAuthor discusses her research

into use of cooperatives byAfrican-Americans

Prior to doing research on her book, “I did not realize what a strong role African-American women played in both the black and the wider cooperative movements,” saysJessica Gordon Nembhard.


Question: There has been a myththat only a few predominantly blackcooperative efforts existed historicallyin the United States. Why do you thinkthat perception exists?

Answer: I think there are a couple ofinterconnected explanations. First, itwas often dangerous for African-Americans (in particular) to be involvedin alternative economics, such ascooperatives. White competitors, the“plantation bloc” and whitesupremacists did not want African-Americans to separate from theexploitative economic relationships theyestablished with them as laborers andconsumers. Whites were profiting fromthe exploitation.

Black and white members of groupslike the Knights of Labor, for example,in the 1880s had to go underground tohide from vigilantes who would kill,lynch and undermine their cooperativeeconomic and labor organizing. Manyof their efforts were also targeted withfinancial sabotage in addition to thephysical violence.

In the 1950s and 60s, the virulentanti-communism movement similarlytargeted people and groups advocatingalternative economic strategies, ruiningtheir political reputations andblacklisting them from jobs andprofessional opportunities. Blacks wereoften the most impacted. Groupsadvocating political and civil rights feltthey would be targeted or marginalizedif they included full economic justiceand cooperatives in the demands.

In addition, not all African-Americans agreed to the cooperativeeconomic strategy — some still hopedto make it in the mainstream society.For the sake of unity, most of the civilrights organizations publicly ignored, ordidn’t mention, cooperatives (even asthey locally and quietly supportedcooperative practices). As recently asthe 1970s, there is evidence of whitebanks colluding not to give loans or aline of credit to a black cooperative,particularly one that was competitive

with a similar white business. It is partly because of these kinds of

dangers that I named the book“Collective Courage,” because it tookall kinds of courage to persist in acooperative economic effort in the faceof the violence and sabotages.

In addition, because small businessesin general are precarious and vulnerable— and because African-Americanbusinesses have often been targeted andfail — many blacks have been wary ofbusiness development, are risk-averseand remember and talk about thefailures more than the successes. Assmall businesses, cooperatives are seenas risky and often better rememberedfor their failures, so they are notdiscussed or pursued.

However, the irony is that most ofthe black co-ops that “went under,” didso because of outside sabotage and/orbecause of inadequate capitalization(often because of financial sabotage). Ifthe true stories were shared and thecases analyzed, however, there wouldhave been better understanding of whathappened and less feelings of aversionand shame around the idea ofcooperative businesses.

Finally, research shows thatcooperatives have longer survival ratesthan other small businesses, and thatthe process of developing a cooperativebusiness increases financial literacy,business and industry-specific skills,leadership capacity, social capital andother tangible and intangible capacitiesin individual members and theorganizations involved. But thesebenefits are not well known.

Q. What surprised you the most asyou researched this topic?

A. I did not expect there to be somuch history to uncover — thatcooperatives and economic cooperationtook place in every era. I did not realizewhat a strong role African-Americanwomen played in both the black and thewider U.S. cooperative movements. Idid not realize that the black

cooperative movement was truly a silentpartner throughout the long civil rightsmovement, or that almost all thepolitical, civil rights and black liberationmovements and their leaders includedeconomic cooperation, often quietly, aspart of the strategy and/or wereinvolved in a cooperative enterprise insome way from as early as the 1600sand 1700s. I also hadn’t realized thatthe U.S. labor movement and thecooperative movement started outtogether — for both blacks and whites.

Q. Can you cite an example of a co-op that you found to be particularlyinspiring or that serves as anoutstanding example of an African-American cooperative?

A. Freedom Quilting Bee, establishedin 1967 in Alberta, Ala., is a handicraftcooperative founded by women inshare-cropping families, who beganselling quilts to supplement theirfamilies’ meager farm incomes.Freedom Quilting Bee was a foundingmember of the regional cooperativedevelopment organization, theFederation of Southern Cooperatives.

In 1968, the cooperative bought 23acres of land on which to build thesewing plant. It sold eight lots tofamilies who had been evicted fromtheir homes and land they weresharecropping because of their civilrights activities. Some were evictedfrom their farms, for example, forregistering to vote.

Having the cooperative own andcontrol land gave membersindependence and an alternative sourceof land to farm, as well as a way to helptheir neighbors. The 23 acres were thusimportant not only to the co-op’s ownsurvival and growth, but also to theirfamilies’ and communities’ survival.

By 1992, the cooperative owned thesewing factory, over 20 acres of land,and owned or leased a daycare center.They also operated an after-schooltutoring program and a summerreading program. The women


established programs andactivities to support theirworking outside of thehome and to addressneeds in theircommunity.

At its height (around1992), the cooperativehad 150 members,offered a diverse set ofsewn products, and wasthe largest employer inthe town. At a time whenthe political climateseverely reducedeconomic options forAfrican-Americans in theSouth, through thiscooperative women were able to asserteconomic independence and augmenttheir family’s income, to createalternative sustainable economicactivity, to own their own land and toprovide needed family- and community-friendly services.

Q. You highlight Nannie HelenBurroughs and Halena Wilson, inparticular, as black women who playednotable roles in African-American co-ops. Could you say something aboutwhy they were so distinctive?

A. This was part of my discovery thatAfrican-American women were integralto, and often leaders in, the blackcooperative movement. Burroughs isalso an example of a black leader whowas much better known (or onlyknown) for achievements in other areas.Nannie Helen Burroughs ofWashington, D.C., was one of thefounders of the National BaptistWomen’s Convention (for which sheserved as the corresponding secretaryand president for over 60 years), andfounder and CEO of the NationalTraining School for Women and Girlsin D.C. in 1909 (which the NationalBaptist Convention and its Women’sConvention sponsored, and is now

called the Nannie Helen BurroughsSchool). She was also president of theNational Association of Wage Earners(with Mary McCloud Bethune as vicepresident).

In 1932, she was appointed byPresident Herbert Hoover to chair aspecial committee on housing forAfrican-Americans. In the 1930s,Burroughs also founded CooperativeIndustries of Washington, D.C. (firstcalled the Northeast Self-HelpCooperative), a worker cooperative forchair and broom making, laundry and acannery that morphed into a hybrid co-op after winning a federal grant thatallowed the co-op to buy a farm inMaryland and sell the produce in D.C.

The co-op successfully putunemployed and very-low-incomewomen to work, controlling their ownbusiness. The Training School helpedto support the co-op and offered acooperative study class. In addition,Burroughs was a member of the Districtof Columbia Cooperative League andwas often requested by them and othergroups, such as the Joint CitizensCommittee of D.C., as an advisor andspeaker on consumer rights andcooperatives.

Halena Wilson is an example of anactive, influential black woman whom

history has largelyoverlooked. I learnedabout her from MelindaChateavert and her bookMarching Together, aboutthe Ladies Auxiliary tothe Brotherhood ofSleeping Car Porters(BSCP). TheBrotherhood was the firstindependent black unionin the 20th century.

Halena Wilson was thefirst president of theBSCP’s Ladies Auxiliary(1938-1956), as well asthe first president of theactive Chicago branch

(1930-1953). She was also educationdirector of Consumers CooperativeBuying Club in Chicago in the late1940s, an elected member of thenational Consumer CooperativeCouncil and led the Chicago BSCP’sLadies’ Auxiliary in becoming a chartermember of the Cooperative Union EyeCare Center (with the Coalition ofTrade Unions and ConsumerCooperation in Chicago) in the 1950s.

Wilson worked closely with theBSCP’s founder and president, A. PhilipRandolph, especially on consumers’ andcooperative education and thedevelopment of brotherhoodcooperatives. She and Randolph issued“instructions and directions” to thechapters which urged members tosubscribe to journals/newsletters aboutconsumer economics and cooperatives,as well as to study credit unions andconsumer co-ops.

She wrote articles on cooperativesfor BSCP’s organ, The Black Worker,and assisted the Ladies Auxiliary informing study groups aboutcooperatives throughout BSCP chaptersin the United States and Canada. Shewas a co-founder of severalcooperatives. In addition, Wilson wascalled upon by the larger U.S.

The Freedom Quilting Bee, formed in 1967 by women from Alabama share-cropping families, is a particularly inspiring co-op discussed in her new book,“Collective Courage,” says Jessica Gordon Nembhard. Here, Nettie Young, thelast surviving original member of the Gees Bend co-op, discusses her work.Photo by Bob Gathany, courtesy Huntsville Times


cooperative movement, especially in herhome town of Chicago, to representblack labor and black women in co-opmeetings and conference planning, co-op development and at regional andnational conferences.

For example, in the late 1940s, as theeducation director of NationalCooperatives Inc., she wrote severaltimes to Randolph, commenting on theimportance of the BSCP’s Ladies’Auxiliary’s input as a member, and thatthese black women helped shape “thecourse of a total cooperative programfor the labor communities.”

Q. Do you think this book could helpserve to deepen interest in cooperativesamong black Americans, as well asothers?

A. This was one of the reasons why Iwrote the book, because I want African-Americans to know about thiswonderful and noble history — tounderstand that we have cooperatedsuccessfully and can cooperate. Myresearch uncovers the roles of blackwomen, as well as men, of black youth,of black independent schools and labor

unions in the development ofcooperatives and in the cooperativemovement.

I give examples of a variety of typesof cooperatives — consumer, worker,agricultural, credit unions and housingco-ops — in rural and urban settingsthat were financed in a variety of waysso that we can see that this can be done,regardless of the conditions. I also triedto be honest about the challenges, butto show how black people overcamethese challenges; and to explain thesuccessful elements even when therewas failure.

So, yes, I very much hope that thisbook and the coverage the book isreceiving will deepen the interest incooperatives among African-Americans.I want to see more cooperativesflourishing and new cooperativesspringing up all over. These times callfor alternative strategies, and I wantmore people to understand thecooperative model and not be afraid ofit.

So far on my book tours, I have alsofound that this history is inspiringpeople from all different races andethnicities. People have been thankingme for expanding our understanding ofcooperatives and showing thecooperative movement from a non-European perspective.

Q. Are there any areas(geographically and/or functionally)where you think African-Americanscould most benefit from greatermembership in co-ops?

A. There aren’t really any specificgeographic areas that I wouldrecommend for African-Americancooperatives because we need them and

they have flourished everywhere — inthe South, North, West, Midwest, etc.,and in rural and urban areas. I startedout focusing on black urban cooperativedevelopment as a strategy to revitalizecities. However, Melbah Smith,formerly of the Mississippi Center forCooperatives and the Federation ofSouthern Cooperatives/Land AssistanceFund, and others at the FSC/LAFconvinced me that rural issues andneeds for cooperatives were similar tourban issues and needs.

Cooperatives solve problems in allgeographies. Similarly, there is no one

function or type of cooperative orindustry that I think African-Americansshould target for cooperativedevelopment. Again, cooperatives lendthemselves to any kind of industry, andsome kind of cooperative can addressalmost any need.

People who want to form acooperative should form one based on aneed or set of needs (what good orservice is lacking in some way or shouldbe addressed or satisfied better?)identified by a community of peoplewho trust one another and want tocollectively solve a problem.Cooperatives can be adapted to fitalmost any need, because a co-op isbased on a set of values, principles andprocesses that revolve around solidarity,equality, inclusion, return toparticipation, democratic participation,information, education andtransparency.

Where better access to affordableand quality financial services areneeded, for example, then start a creditunion. If the need is affordable qualityhousing, then a housing cooperativeand maybe even a limited equity

housing co-op can address that. Ifaccess to healthy, quality and affordablefood (especially fresh produce,vegetarian foods and/or culturallysensitive foods) is needed, then thegroup should start a co-op grocerystore, etc.

However, I am partial to workercooperatives because they contribute tobuilding economic and social justice bydirectly addressing issues ofemployment, meaningful work, controlover work and income, and assetbuilding. ■

“I want to see more cooperatives flourishing and new co-ops springing up all over. These times call foralternative strategies, and I want more people to understand the co-op model and not be afraid of it.”


The nation’s top 18 dairy cooperativesshowed a substantial shift in their relativeperformance levels during the past 20years, a recent report shows. For thestudy, cooperatives were evaluated on the

value they generated from the use of members’ equity. The equity retained by dairy cooperatives represents a

substantial sum of the members’ money and competeswith the capital needed for members’ farm operations.Therefore, the retained equity should not be regarded asfree capital for the cooperative but should carry an“opportunity cost” that reflects the value of the capital inalternative uses. The opportunity cost is an interestcharge on the equity at a rate equivalent to the amountthe money could earn elsewhere.

If the cooperative’s net savings exceed the opportunitycost of members’ equity, it has generated “extra value”and enhanced the value of the equity for members.Conversely, a cooperative has diminished the value of theequity if it generates a negative extra value — membersbear the opportunity cost of equity capital that is notfully recovered.

Calculating and analyzing such extra values generatedby dairy cooperatives is the approach to measuringperformance in this article. Extra value is defined as thesurplus of a cooperative’s net savings after accounting forthe opportunity cost of equity capital.

For comparing performance among cooperatives,extra value can be made neutral to the scale and themode of a cooperative’s operation by expressing it as apercentage of operating capital. The resulting extra-valueindex shows the rate at which extra value was created,using the co-op’s operating capital.

Operating capital is the sum of non-current assets andnet working capital and, in the context of dairycooperatives, is a more accurate measure of a dairycooperative’s scale of operation than is total assets. Thisis due to the way producer milk payroll is handled, which

An ‘extra value’ assessment ofthe nation’s top 18 dairy co-ops,

1992-2012

Gauging Performance

Editor’s noteThis article includes highlights from a forthcomingreport, “Performance of the Top 18 Dairy Co-ops,1992-2012,” USDA Cooperative Programs ResearchReport 232. The full report will soon be posted on theUSDA website at: www.rurdev.usda.gov/BCP_Coop_LibraryOfPubs.htm.

By K. Charles Ling, Agricultural Economist


tends to inflate the current assets on thebalance sheet.

Financial information on dairycooperatives is from a data setmaintained by the USDA CooperativePrograms for its annual financialanalysis of Top 100 cooperatives. Thetime series of data covers three periods:1992-1996, 2000-2004 and 2008-2012.In the 2008-2012 period, there were 18dairy cooperatives (or their predecessorcooperatives) that had beencontinuously on the top 100 co-ops listsince 1992. For comparing performanceover time, the data of all thepredecessor cooperatives werecombined, as if they had already beenconsolidated into their respectivesuccessor cooperatives.

The interest rate for calculating theopportunity cost of equity is based onthe respective year’s December averageLIBOR (London Inter-Bank OfferedRate) for U.S. dollar loans with a 12-month maturity. Banks generally willextend loans to a firm with a better-than-average credit rating at an interestrate of about 200 basis points above theLIBOR.

Thus, the basic rate used to calculateinterest on equity is “LIBOR+2%.” Inaddition, “basic interest rate+5%” and“basic interest rate+10%” are also usedin the analysis to account for riskpremium of equity investment at 5 and10 percent levels.

To avoid revealing identifiableproprietary data, the performance ofthe cooperatives is portrayed in threeways to form a composite picture forevaluation: performance categories,changes in performance indexes andperformance rankings. To furthermaintain proprietary dataconfidentiality, the extra-value indexesused in the evaluation for eachcooperative are 5-year averages for eachof the three study periods; theserepresent the cooperative’s average levelof performance in the respectiveperiods. Some information is lostbecause the averages gloss over intra-period performance variations.

Performance categoriesCooperatives are placed into four

performance categories according toaverage extra values generated in thethree five-year periods (table 1):• Cooperatives that did not fully

recover the opportunity cost of equitycapital and did not generate extravalue at basic interest rate: sevencooperatives in the first period; oneeach in the second and third.

• Cooperatives that generated extravalues beyond the opportunity cost ofequity capital at basic interest rate butshort of reaching 5 percent riskpremium: three cooperatives in thefirst period; eight in the second; andthree in the third.

• Cooperatives that generated extravalues beyond the opportunity cost ofequity capital at basic interest rateplus 5 percent risk premium but shortof reaching 10 percent risk premium:

two cooperatives in each of the threeperiods.

• Cooperatives that generated extravalues beyond the opportunity cost ofequity capital at basic interest rateplus 10 percent risk premium: 6cooperatives in the first period; 7 inthe second; and 12 in the third.

Eleven cooperatives in the firstperiod and 17 in each of the second andthird periods generated extra valuesbeyond the opportunity cost of equitycapital at basic interest rates(performance Category II and higher).Most cooperatives shifted arounddifferent performance categories overthe three periods. However, there werethree cooperatives that remained in thetop performance category (CategoryIV) throughout.

In the first period, performanceCategory I had the most cooperatives,

I. Cooperatives that did not fullyrecover the opportunity cost of equitycapital and did not generate extravalues at basic interest rate

II. Cooperatives that generated extravalues beyond the opportunity cost ofequity capitals at basic interest rate

III. Cooperatives that generated extravalues beyond the opportunity cost ofequity capitals at basic interest rateplus 5% risk premiums

IV. Cooperatives that generated extravalues beyond the opportunity cost ofequity capitals at basic interest rateplus 10% risk premiums

12, 13, 14, 15,16, 17, 18

11 15

First Period(1992–96)

Second Period(2000-04)

Third period(2008-12)Performance category

9, 10, 11 6, 10, 12, 13, 14,15, 16, 17

12, 13, 16

7, 8 3, 9 5,10

1, 2, 3, 4, 5, 6 1, 2, 4, 5, 7, 8,18

1, 2, 3, 4, 6, 7,8, 9, 11, 14, 17,18

Table 1—Categories of dairy cooperative performance based on averageextra values generated in the three 5-year periods


seven in total. In the second period,performance Category II had the most,with eight. And in the third period,two-thirds (12) of all 18 cooperativeswere in the top performance CategoryIV.

Changes in performance indexes

Successively lower level of interestrates over the three study periodspresumably made achievingcontinuously higher extra-value indexes(EVIs) easier. However, only sixcooperatives improved their EVIs from

the first to the second period and thento the third period.

Five cooperatives improved theirperformance indexes from the firstperiod to the second, but theperformance indexes turned lower fromthe second period to the third.Conversely, the performance indexes ofanother six cooperatives declined fromthe first period to the second, butimproved from the second period to thethird. One cooperative’s performanceindexes declined continuously throughtime.

Performance rankingsCooperatives are ranked according to

their performance measures (EVIs) forthe three study periods. Forconvenience of presentation, the 18performance rankings are divided intothree groups of equal number, 6 each:ranks 1 to 6 are the first ranking group,ranks 7 to 12 are the second rankinggroup, and ranks 13 to 18 are the thirdranking group (table 2, column 1).Cooperative codes are assignedaccording to a cooperative's ranking byEVI, using the basic interest rate forthe 1992-96 period (table 2, column 2).

EVI EVI EVI EVI EVI EVI EVI EVI EVIRank (Basic) (Basic+5%) (Basic+10%) (Basic) (Basic+5%) (Basic+10%) (Basic) (Basic+5%) (Basic+10%)

#1 1 1 1 1 1 1 1 1 12 2 2 2 2 2 2 7 17 173 3 3 3 7 7 8 17 7 74 4 4 4 5 8 7 3 3 35 5 6 6 8 5 4 14 14 26 6 5 5 4 4 5 2 2 14

7 7 7 8 9 9 18 11 11 118 8 8 7 18 18 9 8 8 89 9 9 9 3 3 3 4 4 610 10 10 10 14 13 6 6 6 411 11 12 12 17 6 13 18 18 1812 12 11 13 13 15 15 9 9 9

13 13 13 11 16 16 16 5 5 1014 14 15 15 6 14 17 10 10 515 15 16 16 10 17 10 12 12 1316 16 14 18 15 10 14 13 16 1617 17 18 17 12 12 12 16 13 1218 18 17 14 11 11 11 15 15 15

Column 1 2 3 4 5 6 7 8 9 10

1Co-op codes are assigned according to a co-op's ranking by EVI using the basic interest rate for the 1992-96 period (column 2). Co-ops Nos. 1-6 are shaded ingreen, Nos. 7-12 are in yellow, and Nos. 13-18 are in red for easier visual identification to show how co-ops shifted their relative rankings over time.

1992-1996 2008-20122000-2004

Table 2—Rankings by extra-value indexes (EVIs) based on the respective averages for the three 5-year periods

Cooperative standing in the ranking shown by cooperative code1


Therefore, initially, cooperatives aregrouped following the performanceranking grouping: cooperative Nos. 1-6are in the first ranking group (shaded ingreen for easier visual identification),cooperative Nos. 7-12 are in the secondranking group (in yellow), andcooperative Nos. 13-18 are in the thirdranking group (in red).

Performance ranking shows acooperative’s efficiency in usingoperating capital to generate extra valuerelative to one another, given that allcooperatives operate in the sameeconomic environment and marketconditions. The rankings are

particularly useful for comparingcooperatives that are in the sameperformance category, such as for thethird period where performanceCategory IV has 12 cooperatives (table1; the same 12 top-ranked cooperativesin table 2, column 10). The rankings ofthese 12 cooperatives are very differentfrom their initial performance rankingsequence.

By the end of the third study period,

performance rankings of thecooperatives had spread out from theiroriginal standings:• The six initially top-ranked

cooperatives (shaded in green) sawthree of their peers remain in the firstranking group, while two dropped tothe second ranking group and onewas further down in the third rankinggroup.

• The cooperatives in the initial secondranking group (in yellow) had onecooperative elevated to the firstranking group, three stayed in thesecond ranking group, and two fell tothe third ranking group.

• Two of the six cooperatives that wereinitially in the lowest ranking group(in red) rose to the first rankinggroup, and one moved to the secondranking group, although three stillremained in the third ranking group.

Structural changesIn the interim years between the first

and the second periods, 12 cooperativesunderwent structural changes to form 4

successor cooperatives, and between thesecond and the third periods, 4cooperatives underwent structuralchanges to form 2 successorcooperatives. In the period immediatelyfollowing the respective structuralchanges, 4 out of the 6 successorcooperatives actually did perform betterthan the sum of their respectivepredecessor counterparts. (Furtherdetailed analysis is necessary todetermine what factors, or what post-merger/consolidation measures thesurviving cooperatives undertook, madethe improvements possible.)

Scale of cooperatives and performanceFor comparing the performance of

cooperatives of different scales, theweighted averages and the simpleaverages of performance indexes ofthe 18 cooperatives were calculated.The weighted averages are heavilyinfluenced by the performance oflarger scale cooperatives, while thesimple averages give an equal weightto each cooperative regardless ofscale.Comparisons between weighted-

average performance indexes andsimple averages indicate that at leastsome of the larger scale cooperativesdid not perform as well as the rest ofthe cooperatives in all three periods(table 3). Some of the larger scalecooperatives also relied more on debtand less on equity than the rest of thecooperatives to finance theiroperations, as shown by thedifferences between the weighted-

average equity shares of the operatingcapital and the simple averages. Butthese cannot be generalized to concludethat larger scale dairy cooperativesalways perform better or worse thansmaller scale ones.

Summary/conclusionsCooperatives’ performance changed

substantially over time as well as

Table 3—Performance of 18 dairy cooperatives as a group, 5-year averageextra-value indexes (EVIs) and equity share of operating capital

Period EVI EVI EVI Equity share of(i=basic) (i=basic+5%) (i=basic+10%) operating capital

...........................................Percent................................................

Weighted Averages

1992-96 3.9 0.4 (2.9) 682000-04 3.2 0.5 (2.2) 542008-12 5.6 2.9 0.2 54

Simple Averages

1992-96 9.0 5.2 1.6 742000-04 9.2 5.6 1.9 732008-12 10.4 7.1 3.8 66


Get Smart: USDA Ag Outlook Forum Feb. 19-20

“Smart Agriculture in the 21stCentury” is the theme of the 2015USDA Ag Outlook Forum, being heldFeb. 19-20 at the Crystal GatewayMarriott in Arlington, Va., just outsideWashington D.C. First held in 1923,the Ag Outlook Forum brings togetherrenowned speakers including farmers,

ranchers, economists, academics,statisticians, consultants, industryleaders, and government policymakers.

U.S. Agriculture Secretary TomVilsack will present the keynote address,followed by a distinguished guestspeaker. The economic outlook for thecoming year will be presented byUSDA Chief Economist JosephGlauber. In addition, a plenary panel of

industry leaders will discuss animportant topic relevant to agriculture.

Breakout session topics on thetentative agenda include: Perspectiveson Global and U.S. Trade; “Big Data’s”Impact on U.S. Agriculture; CurrentCommodity Situation and Outlook;Food Price and Farm Income Outlook;Moving Feed, Food and Fuel toMarket; Opportunities in the Bio-


NewslineSend co-op news items to: [email protected]

Co-op developments, coast to coast

Agriculture Secretary Tom Vilsack, right, will deliver the keynote address at the USDA Agriculture Outlook Forum in February, one of the nation’sforemost events for discussion of agricultural and rural issues. Here, Vilsack visits Pennwood Dairy Farms in Berlin, Pa. USDA photo by Bob Nichols


Economy; Anti-Microbial Resistance;and Bee/Pollinator Issues FacingAgriculture.

Other breakout session topicsinclude: USDA Conservation andRegulatory Program Updates;Environmental/Meteorologic Outlook,Including Water Issues, Drought,Weather Patterns and Climate Change;Nutrition Trends and NewOpportunities for Producers; RegionalApproaches to Rural Growth; LocalFood Marketing Trends; The 100thAnniversary of USDA Market News;and Reducing Food Waste.

Forum attendance records have beenregularly exceeded in recent years, andregistration this year will be capped at1,800, so early registration is advised.Online registrations can be madestarting in early November at:www.usda.gov/oce/forum. That websitewill also include regular programupdates and other information aboutthe Forum.

USDA grants helping small co-ops

U.S. Agriculture Deputy SecretaryKrysta Harden in October awarded 17grants in 12 states to help small, sociallydisadvantaged agricultural producers —including a number of co-ops and co-opassociations — expand their operationsand create jobs.

“These grants help small producersand other business owners who oftenlack access to the capital and technicalassistance they need to grow andprosper,” Harden says. “By providingassistance to small and diverseproducers, USDA is expanding healthyfood options in small markets.Additionally, many of these grants willallow even the smallest producers totake advantage of the latest innovationsin ag production.”

USDA is investing $3 millionthrough the Small SociallyDisadvantaged Producer Grantprogram. The program funds technicalassistance and other services to helpproducers develop new markets and

business opportunities. For example, the Mississippi

Association of Cooperatives is receivinga $200,000 grant to provide innovativetechnical assistance tools, includingpersonal and business record-keeping,business planning and marketingassistance. Also in Mississippi, the TriCounty Agricultural Cooperative wasawarded a $200,000 grant to helpsocially disadvantaged agriculturalproducers develop diversified farms anduse production and managementstrategies that will enhance their long-term viability.

The Kohala Center Inc. in Hawaiiwas awarded a $197,000 grant toprovide technical assistance to the MauiAcquaponics Workers Cooperative, thePalili ‘O Kohala Cooperative, the Ka’uCoffee Growers Cooperative and theMolokai Livestock Cooperative.

The Alabama State Association ofCooperatives received a $200,000 grantto help African-American producers ofvegetable and forest products in anumber of counties. In Arizona, the SanXavier Cooperative Association Inc.received a $188,000 grant to providebusiness planning and marketingassistance to socially disadvantagedproducers.

For the full list of grant recipients,visit the “press room” section of USDARural Development’s website at:www.rurdev.usda.gov.

More dairy farms adopt FARM care practices

Dairy farmers nationwide continueto demonstrate widespread adoption ofindustry standards that assure high-quality care for their animals, accordingto a report released by the NationalMilk Producers Federation (NMPF).The summary report quantifiespractices by farmers participating in theindustry’s responsible care program,known as the National Dairy FARMProgram (Farmers AssuringResponsible Management).

“The latest report shows dairyfarmers continue to demonstrate their

extensive commitment to the well-beingof the animals in their care throughadherence to the standards in theFARM program,” says Jamie Jonker,NMPF’s vice president of scientific andregulatory affairs. The report quantifiesthe results of more than 12,000 dairyfarm evaluations conducted during theprevious three years. All of the data iscollected by second-party evaluatorswho visit each of the farms.

Overall participation in the FARMProgram has increased to more thanthree-quarters of the nation’s milksupply, up 5 percentage points from theprevious year.

To ensure full participation in theprogram, NMPF’s board recently votedto require that each dairy marketingorganization participating in theprogram must enroll all of its farmer-suppliers. NMPF Chairman RandyMooney hailed the unanimous vote,saying it sends a clear message that theprogram must not be implemented

selectively if it is to continuedemonstrating the universal value andintegrity of the FARM program.

“The FARM program has becomethe dairy industry animal-care standardbecause of its integrity, rigor andauthenticity,” Mooney says. “Thisdecision means each farm in aparticipating cooperative will be held tothe same high standards, with noexceptions. It demonstrates that thenation’s dairy farms, regardless of size,are committed to high-quality animalcare across the supply chain.”

The report found that nearly 95percent of farms enrolled in the


program train their employees toproperly move animals that cannotwalk; more than 98 percent trainemployees to handle calves so as tocause a minimum of stress.

Available to all U.S. dairy farmers,the FARM program is now in its fifthyear. Participants are given trainingmaterials and are evaluated by aveterinarian or another trainedprofessional. Evaluators provide a statusreport and, if necessary, recommendareas for improvement.

The NMPF board also has reviewednew provisions in the FARM programthat establish a clear process toinvestigate allegations of animalmistreatment on farms enrolled in theprogram. Any such farm will be subjectto an independent review and may betemporarily suspended from theprogram if the allegations aresubstantiated. A corrective action planwill be developed to address any issues.

For more information on the FARMprogram, visit: http://www.nationaldairyfarm.com/.

NRECA supporting Energize Africa Act

National Rural Electric CooperativeAssociation (NRECA) CEO Jo AnnEmerson has congratulated the U.S.Senate Foreign Relations Committeeon the recent passage of the EnergizeAfrica Act, which promoteselectrification in Sub-Saharan Africa.The House of Representatives passedcompanion legislation in May.

The Energize Africa Act prioritizesand coordinates U.S. governmentresources to achieve three goals in sub-Saharan Africa by 2020:• Promote first-time access to

electricity for at least 50 millionpeople in Sub-Saharan Africa;

• Encourage the installation of at leastan additional 20,000 megawatts ofelectrical power, using a broad mix ofenergy options to help reducepoverty, promote sustainabledevelopment and drive economicgrowth;

• Encourage the necessary in-countryreforms to make such expansion ofpower access possible.NRECA says it stands ready to

partner with public and privateorganizations to achieve these goals.International development experts alsosupport this legislation, knowing howelectrification acts as a multiplier andwill ensure sustainable and successfulU.S. foreign aid investments in sub-Saharan Africa.

The association’s internationalprogram — NRECA International —has been working in developingcountries since 1962 as a collaboratingpartner with the U.S. Agency forInternational Development. Its globalcommitment has helped provideelectricity to more than 110 millionpeople in 42 countries.

NRECA is the national serviceorganization that represents the nation’smore than 900 private, not-for-profit,consumer-owned electric cooperatives,which provide service to 42 millionpeople in 47 states.

New solar farms provide ‘solar surge’

Three new utility-scale solar farmshave begun producing power in NorthCarolina, racking up another 18.2megawatts of power, equal to takingabout 2,400 passenger vehicles off theroad for a year.

The farms — in Laurinburg,Clarkton and Spring Hope — are hometo 60,436 solar panels and are projectedto produce 30 million kilowatt hoursannually. The three new arrays willdisplace about 16,000 tons of carbondioxide each year, about the same asproviding electricity for 2,300 homesfor one year.

A significant portion of theinvestment was managed byWashington, D.C.-based solarinvestment and financing firm SolSystems, which developed the project,while National Cooperative Bank(NCB) served as the lender. “NationalCooperative Bank has a strong

commitment to the solar industry, andwe look forward to working with StrataSolar and Sol Systems on futuretransactions,” says Matthew Wright,senior vice president for NCB.

Rural utility co-ops are also playing amajor role in developing solar power inIowa. Farmers Electric Cooperative insoutheast Iowa is adding 2,900 solarpanels to the state’s largest solar farmnear Kalona, Iowa, adding to theregion’s growing solar-power industry.The cooperative will buy the solarpower generated by Eagle Point Solar,which built and owns the farm. The co-op is to take possession of the facility inabout 10 years.

The solar farm will generate up to1.1 million kilowatt hours per year, orenough energy to power about 120homes. Heartland Power Cooperative isinvestigating options for a $1.5 millionarray of 1,200 solar panels near innorth-central Iowa

Study to gauge co-op impact in Canadian city

The Ontario CooperativeAssociation (On Co-ops) is conductingextensive research on the social,economic and environmental impact ofcooperatives and credit unions withinthe city of Guelph, Ontario. The six-month study should be completed bythis February.

Preliminary results of the study,“Why Co-ops Work: A Socio-Economic Impact Study of the GuelphCo-op Sector,” show that Guelph’s co-op sector includes finance, housing,information technology, agriculture,childcare, energy, retail, transportation,co-op development services and studententerprises. Guelph is a city of 120,000people, about 100 miles west ofToronto.

Guelph is home to 58 cooperatives,credit unions and co-op insuranceagency offices. These organizationsemploy more than 1,500 full-timeworkers and have about 7,500 members.

Financial co-ops (which include


The nation’s 100 largestcooperatives — including co-ops in allsectors of the economy — hadcombined revenue of $234.5 billion in2013, up about 3.6 percent since 2012,according to National CooperativeBank (NCB), which released its annual“NCB Co-op 100” list in October. (Bycontrast, USDA’s top 100 co-op list,which appeared in the September-October “Rural Cooperatives,” focusesstrictly on agricultural and fishery co-ops).

“NCB’s report, along with our role ineducating the public about the impactof cooperatives, are two ways the bankcan connect with the community andshowcase the economic contributionof this business model,” says CharlesE. Snyder, president and CEO of NCB.“We hope more co-ops celebrate theirsuccesses and connect in thecommunity to share their stories.”

The top two revenue-producing co-ops, by economic sector, in 2013 were: ■ Agriculture:

• CHS Inc., Saint Paul, Minn., $44.5billion in revenue; No. 1 overall onthe NCB Co-op 100;

• Land O’ Lakes Inc., Saint Paul,Minn., $14.2 billion; No. 2 overall.

■ Grocery:• Wakefern Food Corp., Keasbey,

N.J., $11.5 billion; No. 4 overall; • Associated Wholesale Grocers

Inc., Kansas City, Kan., $8.4 billion;No. 6 overall.

■ Hardware & Lumber:• ACE Hardware, Oakbrook, Ill., $3.9

billion; No. 9 overall. • Do It Best Corp., Fort Wayne, Ind.,

$2.7 billion; No. 14 overall. ■ Finance:

• Navy Federal Credit Union,Merrifield, Va., $3.7 billion; No. 11overall.

• CoBank, Greenwood Village, Colo.,$2.1 billion. No. 19 overall.

■ Healthcare:• HealthPartners Inc., South

Bloomington, Minn., $5.2 billion;No. 8 overall.

• Group Health Cooperative, Seattle,Wash., $3.7 billion; No. 13 overall.

■ Energy & Communications:• National Cable Television

Cooperative Inc., Lenexa, Kan.,$2.5 billion; No. 17 overall.

• Basin Electric Power Cooperative,Bismarck, N.D., $2 billion; No. 21overall.

While the companies and rankingschange year to year on the list, thecooperative sector continues toadvance, playing an increasinglyinfluential role in the national andglobal economy, Snyder notes.

As a long-time advocate forcooperatives, NCB’s mission is toprovide critical financing to support thegrowth and expansion of cooperativebusinesses while also deployinghundreds of millions of dollars tosupport underserved communitiesand cooperative expansion initiatives.

“NCB and other cooperatives namedon the NCB Co-op 100 list arecontinually hard at work on getting themessage out on the advantages ofmember-owned organizations,” Snydersays.

Co-ops provide over 2 million jobsand create more than $75 billion inannual wages with revenue of nearly$650 billion, NCB notes. Althoughsimilar to other business models, acooperative has several uniquefeatures. It is owned and controlled byits members, who have joined togetherto use the cooperative’s goods,services and facilities.

By pooling resources, NCB saysthat members can leverage theirshared power to buy, sell, market orbargain as one group, achievingeconomies of scale and sharing in anyprofits generated. In addition,communities benefit both socially andfiscally by the cooperatives’ ability toaccess and deliver goods and servicesfrom across the nation. The entire NCB Co-op 100 report is

available at: www.coop100.coop or at:www.ncb.coop.

‘NCB Co-op 100’revenue tops $234billion

Basin Electric Power Cooperative (BEPC), with $2 billion in revenue in 2013, rankedsecond nationally among energy and communications co-ops, according to the NCB Top100 co-ops list. Here, work progresses on one of the co-op’s facilities. Photo courtesyBEPC


credit unions and insurance co-ops)represent about 65 percent of all jobsrelated to the local co-op sector in thecity. The Guelph Technology & DesignCluster Cooperative represents about20 percent of the city’s informationtechnology jobs.

“A community report of thismagnitude has never before beenproduced,” says Peter Cameron, OnCo-op’s development manager andcoordinator of the study. “It will bebeneficial to us when speaking withgovernment officials on the significantimpact that cooperative businesses havein the region. We will also be able toestablish a template for other regions toadopt when compiling their ownlocalized statistics.”

Patrie changing roles at CEDC

Bill Patrie is stepping down asexecutive director of the CommonEnterprise Development Corporation(CEDC), in Mandan, N.D., effectiveDec. 31. He will continue on staff as asenior co-op developer to serve existingclients.

CEDC is an economic developmentcorporation that focuses on assistingcooperatives and mutually ownedenterprises in the Dakotas andMinnesota. It also supports cooperativeeducational initiatives across NorthAmerica.

The CEDC board met in earlyOctober for a visioning and strategysession to discuss the future direction ofthe organization and to ensure asmooth transition in leadership. TheCEDC board has named Tyler Demarsas interim executive director, effectiveJan. 1. He is currently director ofcommunity and cooperativedevelopment for CEDC. The boardwill conduct a search for a newexecutive director.

Patrie previously served for 16 yearsas the rural development director forthe North Dakota Association of RuralElectric Cooperatives (NDAREC) inMandan. While at NDAREC, Patrie

worked on more than 104 projects,representing an investment of debt andequity of more than $800 million.

“Bill is the ever-present optimist. His‘we-can-do-this’ attitude was always on

duty and display,” says Lori Capouch ofNDAREC.

Patrie has been engaged indevelopment efforts for NativeAmerican Nations involving agriculture,energy, housing and healthcare. He hasalso served as the executive director ofthe North Central Regional PlanningCouncil in Devils Lake and as thedirector of the North Dakota EconomicDevelopment Commission during theadministration of Governor GeorgeSinner.

Patrie is a founding member ofCooperationWorks!, a nationalorganization of cooperativedevelopment centers and practitioners.“Bill helped create a training programfor new cooperative developers that isnow in its 10th year. Alumni of thistraining program are now creatingcooperatives across the nation,” saysAudrey Malan, former executive

director of CooperationWorks! A natural storyteller, Patrie is the

author of “Creating Co-op Fever: ARural Developer’s Guide to FormingCooperatives,” a USDA publication on

starting cooperatives. He alsopublished “100 Stories of Hope” in2005. This book is based on his 100interviews of those living in poverty.Patrie is also a frequent contributor to“Rural Cooperatives” magaziune.

He has received a number of awardsfor his contribution to cooperativesincluding the Honored CooperatorAward from the National CooperativeBusiness Association, the NationalFarmers Union’s Cooperative ServiceAward, and the John Logue ACE Awardpresented by the Association ofCooperative Educators.

Co-op Foundation grantssupport education

The Cooperative Foundation isawarding nearly $45,000 in grants tosupport 13 cooperative educationprojects. The foundation’s mission is toexpand and enhance cooperatives

Bill Patrie

through research, teaching, extension,innovation and development.

The two largest grants were: • $7,300 to ROC USA to help

community-resident leaders ofcooperatively owned manufacturedhome parks attend theNeighborWorks CommunityLeadership Institute.

• $7,500 to the University of WisconsinCenter for Cooperatives to develop aset of online financial tools for use inmember education, board training andnew cooperative development.The foundation also revised its grant-

making guidelines to provide betterguidance to applicants and announced anew social investment initiative.

Hoop house construction guide available

Steve Upson, a Noble Foundationhorticulture consultant, has authoredThe Noble Foundation High Tunnel HoopHouse Construction Guide, which draws

on Upson’s 17 years of experiencedesigning, constructing and using hoophouses (a type of unheated greenhousethat uses plastic sheeting). Thepublication contains a detailed review ofthe various models of permanent andmoveable hoop houses, as well astraditional and novel building materialsand methods used in construction.

Many small, local food co-ops areusing hoop houses to expand theirgrowing seasons.

In the past, Upson says he had beenhesitant to produce a construction guidebecause hoop house design andconstruction techniques have constantlyevolved during the past 20 years.However, with few detailed publicationson hoop house construction beingavailable, he set forth to develop aresource to meet the need.

“My intent was not to offer acomplete set of construction plans forany particular type or size of hoophouse,” Upson says, “but rather to

introduce novice growersand hoop house builders tothe various tools andtechniques used inconstructing a wide range ofhoop house models.

“Admittedly, myexperience with hoop housestructures has a Southernflavor,” Upson says.“Therefore, the guidelinesmay, or may not, haveapplication in other regionsof the country. However,careful study of thispublication prior topurchasing a hoop house kitor materials to custom-builda structure will save thebuilder time, money andfrustration.”

The 96-page, full-colorpublication is accessible onthe Noble Foundationwebsite at: www.noble.org/ag/horticulture/hoop-house-construction-guide. ■


relative to one another, reflecting thechallenges of operating in the dynamicdairy industry over the past twodecades.

Performance did improve for themajority of the surviving cooperativesof mergers and consolidations, at leastinitially. In the time periods underconsideration, larger was notnecessarily better, as at least some ofthe larger scale cooperatives did notperform as well as the rest of thecooperatives. To finance theiroperations, some of the larger scalecooperatives also relied more on debtand less on equity than the rest of thecooperatives.

Some words of caution are in orderregarding measuring cooperativeperformance. A cooperative is amembership organization as well as abusiness entity. It has to achieve itsbusiness goals but also has to satisfy itsmembers’ objectives. Besides expectinggood returns by marketing milkthrough the cooperative, dairy farmersalso look to the cooperative to providemany other services to help sustaintheir farming operations. The benefitsof providing such member services maynot be fully measurable and thus maynot be fully reflected in the financialstatements.

The board and members should becognizant of the value of such benefits,in addition to financial returns, whenevaluating their cooperative’sperformance. They should also taketheir cooperative’s pricing policies intoconsideration, because the distinctionbetween a cooperative’s milk pay pricesand net savings is not clear-cut. In theend, there is no substitute for a well-informed membership and a vigilantboard that understands the complexityof operating a cooperative toadequately oversee its operations andsatisfy members’ expectations. ■

Gauging Performancecontinued from page 27

This guide may prove helpful to the many local food co-opmembers who are using hoop houses to extend their growingseasons.


sustainable over the long term. “The largest use of the VAPG funds

will be to develop systems that will letus consistently replicate our productsand our operational systems, so thatour products will be consistent and ourbusiness model will be sustainable,”says Bee Tolman, one of the co-op’soriginal organizers and currentdirector. This will include establishingsystems for recipe development anddocumentation, standard operatingprocedures and inventory management,customer and sales databasemanagement, staff training practicesand development of an employeehandbook.

“Butchers are scarce, particularly if whole-animalutilization and craft butchery is required,” Tolman says. “Soour best means of securing a skilled butchery team is to trainin-house. Thus, the second-largest use of the VAPG will befor training junior staff in the arts of butchery, starting withprimary fabrication, but moving into seam butchery, craftbutchery and charcuterie. The third, and smallest, use of thefunds will be for marketing efforts, ranging from getting ourlogos out into the marketplace, to in-store demonstrationsand sampling events.”

In addition to the retail trade, the co-op has about half adozen small wholesale accounts and would eventually like toopen a second store, Rhoads says. The co-op operates a CSA(community supported agriculture) service that makesmonthly deliveries of frozen local meat to subscribers. TheCSA may be expanded in the future to include twice-monthlyor weekly deliveries.

Members share passion for ‘local’

The producer-members of Side Hill Farmers Co-opreflect the face of the burgeoning local foods movement.

Among the founding members of the co-op are Paul andCindy O’Mara. Until the mid-1980s, they were primarilycommercial vegetable growers in Madison County, east ofSyracuse, selling most of their veggies to Birds Eye. Butwhen the local Birds Eye plant closed, it nearly took downtheir farm with it.

While the O’Maras also grew grain, the sudden loss oftheir primary vegetable market hit the farm hard. “That firstyear without the vegetable production, income was tough —

we had to do side jobs to buygroceries,” Paul O’Mara recalls.

So the O’Maras diversified. Theystarted growing alfalfa, hay and cornsilage for dairy farmers around them.Because their rented land was bettersuited to grazing than crop production,“we diversified some more and addedsome beef cows,” O’Mara says.

The beef operation has grown intoa 60-head herd today for the O’Maras,who also farm with their sons, Scottand Ryan. Their guiding philosophy,Paul says, is that: “People should knowwhere the cows are raised, how they’retaken care of and that they’re raised bysomebody who cares. To me, it’simportant to know where our foodcomes from, otherwise there’s noguarantee of its quality.”

NY farmland more affordable for Ohioans

Daniel and Joanna Kline are also producers whose animalsare marketed through the Side Hill Farmers butcher shop.They moved from Ohio eight years ago to start IngallsideMeadows Farm in Perryville, Madison County. “To buy afarm in Ohio required a lot of cash — generally between$10,000 and $20,000 per acre,” Daniel Kline explains. “Landprices push some people out.”

The Klines wanted to farm and direct-market theirproducts to the local community. “We chose MadisonCounty because of the small farms, the rolling hills andparticularly the Honeoye loam soil and the climate. Becauseof the ‘lake effect,’ there aren’t many actual droughts here,not like they have in Ohio,” he says.

The Klines pasture-raise their chickens, pigs, beef cattleand turkeys. Chicks are started in a chicken house but aresoon moved to a hoop house out on pasture. The chickensreceive fresh pasture every day and are fed non-GMO(genetically modified) grains and organic minerals. “Butthere’s no substitute for the natural thing — we can’tsubstitute what they can get in the grass,” says Kline.

On the Klines’ diversified, “polycultural” farm, the variousspecies all complement each other on pasture. The horses eatwhat the cows don’t, then the chickens follow and scratcheverything apart to eliminate fly problems. “We wanted a connection to the land — to be good stewardsof the land,” Kline says. “I see the land improving here, andwe’ll leave it better for the next generation.”

For more information, visit the co-op’s website at:www.sidehill farmers.com, or visit the retail shop’s facebookpage at: Facebook/side hill farmers. ■

Value-added cornercontinued from page 6

It is difficult to find well-trained “craft”butchers, so the co-op is using a USDA grant tohelp train new butchers.

Of the 539 cooperatives that merged,consolidated or were acquired byanother cooperative, 53 no longer exist.Ten of the 53 cooperatives had becomeIOFs by 2013 while 43 merged yetagain with another cooperative and thusno longer exist under the prior name.

Multiple merger cooperativesAnother 44 cooperatives were

involved in multiple mergers with othercooperatives. These 44 co-ops eachrepresented the merger of three ormore co-ops — accounting for a totalof 246 cooperative mergers. Thenumber of mergers for these 44 co-opsranged from 3 to 53 mergers, with amedian of 4 mergers per cooperative.The multiple-merger cooperativesaccounted for $7.5 billion of the $13.9billion in sales of cooperatives thatmerged.

Regional cooperatives have inter-state sales and, as such, are generallylarger than local cooperatives with onlyintra-state sales. Regional cooperativesthat were involved in more than 3mergers acquired a total of 70cooperatives, representing $2.3 billionin sales (31 percent of the $7.5 billionsales total). Included in this mergergroup are 8 cooperatives that had morethan $100 million in sales. Regionalcooperatives acquired from 4 to 53cooperatives.

Local cooperatives that wereinvolved in more than 3 mergersacquired 176 cooperatives with acombined $5.2 billion in sales (69percent of the $7.5 billion total sales).Local cooperatives in this groupmerged with 9 other cooperatives thathad more than $100 billion in sales.The number of cooperatives acquiredranged from 4 to 9 cooperatives.

Merger by co-op type and stateTables 3 and 4 show co-ops that

ceased operations, based on type of co-op and their home state. Any states orco-op types that represented less thanfour co-ops were eliminated from thetable.

Focusing on co-ops types, farmsupply and grain/oilseed cooperativesdominated, as would be expected sincethey are by far the most numerous typeof cooperative in USDA’s database.Supply cooperatives comprise 40percent of the overall co-op databaseand 36 percent of the cooperatives thatceased operations. Grain and oilseedco-ops comprised 22 percent of all co-ops and 26 percent of those that ceasedoperations during our survey timeperiod (table 3).

By state, North Dakota and

Minnesota had the most cooperativesthat ceased operations (8 percent), whilethey are home to 7 percent and 9percent (respectively) of all agcooperatives. Iowa and Texas rankednext, accounting for 7 percent of thecooperatives that ceased operations and4 percent and 8 percent (respectively) ofall ag cooperatives.

Iowa, Minnesota and North Dakotahad the most cooperatives that merged,consolidated or were acquired by othercooperatives, with at least 50 from eachstate.

Farm growth fuels co-op growth

USDA’s Census of Agriculture showsthat average per-farm sales of $47,424


Number

Alaska 0 0 5 5Alabama 7 0 7 14Arkansas 4 5 10 19California 9 14 41 64Iowa 64 4 17 85Illinois 45 8 9 62Kansas 31 7 6 44Maine 0 0 5 5Minnesota 56 16 23 95Missouri 4 7 7 18Montana 10 4 9 23North Dakota 53 15 31 99New York 9 5 32 46South Dakota 38 4 9 51Tennessee 14 0 4 18Texas 17 11 50 78Wisconsin 42 6 24 72Other States1 136 40 207 383Total 539 146 496 1,181

1 States with less than four or more cooperatives.

Table 4—Cooperative mergers, consolidation or acquisition; cooperatives thatwere acquired by or became investor-owned-firms; and cooperatives that wentout of business, by State, 2000-2013

Cooperativemerger,

consolidationor acquisition

Investorowned-firm

acquisition orconversion

Cooperativewent out of

business All

Co-op Mergers, Acquisitions,2000-2013continued from page 13



family joined Michigan BlueberryGrowers Association, a grower-ownedcooperative, and the year Kubiszak’sfather, Bill Fritz, was born.

Like his farming predecessors, Fritzhas continued the family tradition ofactive agricultural leadership by servingon the boards of both MBG Marketingand Naturipe Farms, of which MBG isan owner/partner. “We were absolutelydelighted when we learned that Kristinwas selected for this program” saysFritz. “She is a wonderfulrepresentative of the next generationthat has the desire and drive tocontinue our commitment to familyfarming and the broader agriculturalcommunity.”

Kubiszak and the other honoreeswere congratulated by Secretary ofAgriculture Tom Vilsack andrecognized at a ceremony in the WhiteHouse by Deputy Secretary ofAgriculture Krysta Harden andAssistant to the President and Directorof the Domestic Policy Council CeciliaMunoz. They were given a tour of the

First Lady’s Garden at The WhiteHouse by Sam Kass, President BarackObama’s senior policy advisor fornutrition policy and the executivedirector of the Let’s Move program.

“It was a true privilege to representthe blueberry industry as a Championof Change,” Kubiszak says. “Since wegrow blueberries, which are known fortheir great flavor and incredible healthattributes, I was especially pleased tolearn first-hand about some of theefforts by the First Lady to encouragechildren to eat a healthy, brighter arrayof fresh fruits and vegetables. It wasgreat to share the story of our familyblueberry farm. It has always been apassion of mine to educate others aboutwhat we do, and this was another greatopportunity.”

To learn more about “Champions ofChange” visit: http://www.whitehouse.gov/champions. For more informationabout Naturipe, visit: www.naturipefarms.com or https://www.facebook.com/Naturipe. ■

MBG grower honored by White House, USDAcontinued from page 17

in 1978 grew to $187,097 in 2012, anannual growth rate of more than 11percent. That’s almost double the rateof inflation experienced in theconsumer price index during thatperiod. Farms have increased in size,sales and complexity, and their ownershave supported the correspondinggrowth of their cooperatives.

Cooperatives are owned by theirfarmer members and, as such, willcontinue to operate to serve theirmembers’ changing needs. Farmer co-ops that continue to thrive do sobecause they have been ready to add the

products, services and markets thattheir members desire.

Growth in cooperative size will likelycontinue as co-ops position themselvesto better compete with both investor-owned firms and other cooperatives.The fastest way to grow a cooperative,or any business, is through merger,consolidation or acquisition.

One of the most recent cooperativemergers occurred in September inNebraska when Central Valley AgCooperative in O’Neill merged withUnited Farmers Cooperative in York.According to a press release, this

merger provides “opportunity forexpanded services and facilities,increased savings and accelerated equityredemptions for the benefit of ourmember-owners. [The cooperative]also expects to be able to attract andretain the best employees to provideworld-class service for every customer.”

As of today, this larger cooperativewould rank number 20 on USDA’s top100 cooperative list. At least two-thirdsof the memberships of each co-op votedto “grow” this business — which theyown and control through their electeddirectors. Similar economics andmember needs can be expected to driveother cooperative mergers in the yearsahead. ■

Co-op Mergers, Acquisitions, 2000-2013continued from page 35

cooperative retail stores,” Krisle says.“This is one example of how we look tomeet the changing needs of ourmember cooperatives and theproducers.”

Regulation concerns Large-scale farmers say government

regulations are as important to them ascommodity prices and input costs.Specifically, they are concerned aboutthe lack of understanding aboutagriculture among consumers andpolicymakers.

According to the research, 50percent of large-scale farmers look tocooperatives as a source of informationregarding regulations.

“Farmers appreciate the fact thattheir cooperatives are educatingpolicymakers about the science oftoday’s agriculture,” Conner says,“because they are hopeful that betterunderstanding leads to policy that ispractical to implement and effective inachieving a beneficial outcome.” ■

Staying relevantcontinued from page 16


2014 Art ic le IndexInformation appearing in Rural Cooperatives magazine during calendaryear 2014 has been indexed to help you find past articles. Articles areindexed by issue and page. Back issues can be found online at: http://www.rurdev.usda.gov/BCP_Coop_RurCoopMag.html

TITLE FEATURES ............................................................................................ISSUE / PAGE

Back from the BrinkGrocery co-op conversion prevents food desert in rural Wisconsin ..............Sept./Oct. 23

Building Success on ServiceExpanded agronomy service enhances value of Texas co-op for cotton and grain producers .................................................................................May/June 4

Celebrating CommunityWhitley Country Farmers’ Market marks seven years of steady growth .......Sept./Oct. 19

Clean Energy Co-op promotes solar energy in Pennsylvania ..............................Sept./Oct.18Collective Courage

New book relates history of African-American cooperation............................Sept./Oct. 32Consultant Donald Senechal remembered as a major force for co-op

development ......................................................................................................Sept./ Oct.31Co-ops = Community Development

Cooperative developers share ideas in Minneapolis ...........................................Jan./Feb. 18Co-ops: leadership with a difference

Consensus is the goal, but can be a long process ................................................July/Aug. 8Co-ops urged to observe Grain Bin Safety Week ..................................................Jan./Feb. 29Dairy co-ops’ milk volume up, but market share down slightly ......................March/April 27Farmers on the Move

Michigan Hispanic growers co-op helps improve viability of small farmers ..................................................................................................Sept./Oct.20

Farmers, processors work together to boost Egypt’s tomato industry .............March/April 30Finding Courage: Author discusses her research into

African-American co-ops....................................................................................Nov-Dec. 20 Grain, dairy sales help ag co-ops set revenue and income records .......................Sept./Oct. 4From the Ashes of War

Rebuilding ag co-op system in Bosnia and Herzegovina presents huge challenges ...................................................................................Sept./Oct. 36

A ‘Human Soul on Fire with Great Cause’William Hirth’s iron-forged will and vision were essential to the formation of MFA. ......................................................................................May/June 24

Investing in your co-op’s future Key finance, marketing issues examined during Farmer Co-ops Conference. .............................................................................................Jan./Feb. 10

The Long RunNumber of ag co-ops celebrating 100th anniversaries on the rise ..................May/June 18

Making the Co-op Connection..............................................................................Sept./Oct. 18The Missing Piece

Why women farmers are key to global food security .......................................July/Aug. 26Mothers’ Milk Co-op

Co-op provides critical help for premature babies while generating income for moms .......................................................Sept./Oct. 28July/Aug. 30


The New Deal Co-opsDepression-fighting strategies involved co-ops in ag, utilities and health-care sectors ......................................................Mach/April 22

On the Road with Youth TCIPeer-to-peer training program helps young people pursue co-op dreams .............................................................................Sept./Oct.27

Our First Year As a Co-opWorker-owned food processor shares lessons learned since converting to a co-op ..................................................................July/Aug. 30

The Precision DecisionFarm supply co-ops help members adopt precision ag technology to boost productivity .................................................March/April 8

The Privileges of MembershipCo-ops pursue wide range of ways to communicatethe ‘co-op difference’ ...........................................................................July/Aug. 10

Ready-Made CommunitiesManufactured housing co-ops offer affordability, stability and security .............................................................................................Oct./Sept.22

Remembering the ‘Badlands’ Report ........................................................May/June 30The Right Blend

Fifth Season’s vegetable mixes help scale-up Wisc. farm-to-school marketing program.....................................................May/June 12

The Ripple Effect Co-op uses USDA-funded program to improve

education for Pakistani girls. .............................................................March/April 4Side Hill Farmers Co-op markets local meat through

own retail outlet ........................................................................................Nov./Dec. 5Sheets, Hamon, Geans named top co-op communicators .....................July/Aug. 22Soup’s On!

Stone Soup Farm Co-op part of worker-owned farm trend ...........Sept./Oct. 24Top 100 ag co-ops’ sales soar 9 percent over 2012 ..................................Sept./Oct. 8‘A Trend, Not a Fad’

Growing markets for local foods examined during Ag Outlook Forum...................................................................March/April 14

Turning solitude into solidarityMontana Midwives Co-op helping to improve conditionsfor workers and clients ........................................................................Sept./Oct. 30

Twin Cities Co-opLocal food system study finds success factors ...............................Sept./Oct. 26

A Two-Way Street Members must fulfill responsibilities to their co-op............................July/Aug. 4

Welcome to the Club! Food buying club co-ops have potential to help increase

food security for many ...........................................................................Jan./Feb. 24What leads to satisfied co-op members?

Surveys of dairy farmers show management and pricing are key .........................................................................................Jan./Feb. 20

What We’ve Learned So Far Food hub operators share insights needed for

business success ...................................................................................July/Aug. 14Your Guide to the New Farm Bill ...............................................................May/June 35

MAGAZINE DEPARTMENTS

COMMENTARYAg co-ops remain strong ...............................................................................Jan./Sept. 2Farm Bill boosts co-op development .....................................................March/April .2Farm Credit partners with USDA to strengthen rural America .............May/June. 2Local food investments expand market opportunities..............................July./Aug. 2National Cooperative Month, October 2014................................................Sept./Oct. 2Co-ops: an extension of your farm business – or your

other business? .........................................................................................Nov./Dec. 2

CO-OP DEVELOPMENT ACTIONMaine island community creates worker-owned co-op to

retain local businesses, jobs ................................................................July/Aug. 20Making the Co-op Connection .....................................................................Sept-Oct 18.

CO-OPS & COMMUNITYComing Home – Skills learned in the military often transfer

to the rural workforce ...........................................................................May/June 28Putting skills to work ...................................................................................May/June 29Portion of co-op’s livestock sales earmarked to support

FFA, 4-H ................................................................................................March/April 12Restoring a Living Landmark ........................................................................Jan./Feb. 16

Scholarships help students ‘follow their dreams’ ...............................March/April 12

FOCUS ONBahati Mamas Cooperative

Somalia women refugees form co-op to market produce from small farm ..................................................................March/April 20

IN THE SPOTLIGHTJerry Kozak: Life Lessons .............................................................................Jan./Feb. 15Foremost’s Dave Fuhrmann looks back on 40 eventful

years in dairy industry............................................................................Nov./Dec. 18

NEWSLINEOcean Spray sales top $1.6 billion ..............................................................Jan./Feb. 30USDA Ag Outlook Forum Feb. 20-21 NCB financing autism, elder care organizations$70 million to promote economic growth in AfricaTexas Tractor Drive helps feed hungryCo-op leaders honored by Co-op NetworkACE conference slated for Austin in JulyFour co-ops win dotCoop AwardsFlorida’s Natural makes co-op’s third-highest payoutForemost earns Green Professional designationNOVEC distributes more green energy Co-op merger creates Prairieland FSCo-op educator Ian MacPherson diesLand O’Lakes Inc. acquires GeosysC-FARE launches national co-op education project

Dairylea members approve DFA merger ..............................................March/April 33Organic Valley sales hit $928 MillionCHS earns $992.4 million on record $44.5 billion salesAurora Co-op, CHS building shuttle loader in NebraskaFenner to succeed Taylor at MFA OilNCB commits $379 million to serve low-income communitiesBrenner new CEO of Countryside Co-opLand O’Lakes’ record year yields 30 percent boost in cash to membersPolidoro succeeds Leonard at ACDI/VOCAFrontier Cooperative, Husker Co-op mergeLeslie Mead to lead CDFCDI expands product portfolioRecord sales, patronage for United FarmersCo-op communicators to meet in PittsburghKirkpatrick saluted for dairy vision

Two co-ops share wind energy honors ....................................................May/June 36AMPI reports $1.8 billion in salesFarmer Co-op Conference Nov. 6-7USDA investing $7.8 million for local food enterprisesCDF grant helps in typhoon recoveryUSDA supporting food hub development DFA sales hit $12.8 billionDakota food co-op finds strong supportMMPA sales nearing $1 billionTurkish delegates studying U.S. co-opsNCB backing solar power projects Arkansas ag co-ops pursue mergerOregon co-op markets GMO-free cherriesCo-op using USDA loan to create new jobs in forest productsTrupointe Co-op opens Indiana facility

GROWMARK names Spradlin new CEO ....................................................July/Aug. 33Agreement to boost Kenya’s co-op sectorAlpaca herd rescue shows need for educationI Love My Farmers Market celebrationCo-op promotes SweetTango ApplesIllinois grain co-op to merge with CHSDiglio new GM at Michigan MilkUSDA investments help grow rural businessesSecond Harvest opens distribution centerIowa co-op producing cellulosic ethanolUSDA funding supports bioenergy researchNebraska co-ops to mergePolicinski honored as ‘Master Entrepreneur’


CoBank/USDA Partnership to build rural infrastructure .......................Sept./Oct. 37USDA helps butterfly farming take wingMore co-ops for the ‘century club’Ag Law Center receives USDA grantSouthern States allies with Kentucky Equine ResearchGrowmark reports record salesMichael Doyle new CEO of Foremost FarmsUSDA’s Catherine Woteki to address Farmer Co-op Conf.Sunkist moves headquarters to ValenciaDairy safety-net program caps 5-year effortForemost, MMPA form strategic allianceAlaskan food co-op wins Startup of the YearInternational Co-op Summit in Quebec

Get Smart: USDA Ag Outlook Forum ..........................................................Nov./Dec. 31USDA grants helping small co-opsMore dairy farmers adopt FARM care practicesHoop house construction guide availableNRECA supporting Energize Africa Act‘NCB Co-op 100’ revenue tops $234 billionStudy to gauge co-op impact in Canadian cityPatrie changing roles at CEDCCo-op Foundation grants support educationNew solar farms provide ‘solar surge’

UTILITY CO-OP CONNECTIONCarolina co-op uses USDA loan to help members

conserve energy ................................................................................March/April 11USDA works with co-ops on $250 million energy-efficiency

effort ............................................................................................................Jan./Feb. 8

VALUE ADDED CORNERAronia berry co-op among recipients of $25 million in USDA

value-added grants...................................................................................Nov./Dec. 4Side Hill Farmers Co-op markets local meat through own

retail outlet .................................................................................................Nov./Dec. 5

SUBJECTS

Communications/ Public RelationsCo-op career of accomplishment................................................................July/Aug. 22Co-op communicators to meet in Pittsburgh........................................March/April 35The Privileges of Membership

Co-ops pursue wide range of ways to communicate the ‘co-op difference’ .........................................................................July/August 10

Sheets, Hamon, Geans named top co-op communicators .....................July/Aug. 22

CommunityComing Home

Skills learned in the military often transfer to the rural workforce ......................................................................................May/June 28

Portion of co-op’s livestock sales earmarked to support FFA, 4-H..................................................................................March/April 12

Restoring a Living Landmark.........................................................................Jan./Feb. 16Scholarships help students ‘follow their dreams’ ...............................March/April 12The Privileges of Membership

Co-ops pursue wide range of ways to communicate the ‘co-op difference’ .............................................................................July/Aug. 10

Conferences/MeetingsChanging ownership structure ....................................................................Jan./Feb. 11Cooperatives developers share ideas in Minneapolis.............................Jan./Feb. 18The Co-op Connection: How does your co-op connect?

Much to celebrate, but much more to do.............................................Nov./Dec. 8The long view of a changing world ............................................................Jan./Feb. 13Investing In Your Co-op’s Future

Key finance, marketing issues examined during Farmer Co-ops Conference ....................................................................Jan./Feb. 10

Co-op DevelopmentBahati Mamas Cooperative

Somali women refugees form co-op to market produce from small farm .................................................................March/April 20

Back from the BrinkGrocery co-op conversion prevents food desert in rural Wisconsin .......................................................................Sept./Oct.23

Celebrating CommunityWhitley County Farmers’ Market marks seven years of steady growth ...........................................................................Sept./Oct.19

Clean Energy, Co-op promotes solar energy in Pennsylvania.............................................................................................Sept./Oct.18

Collective CourageNew book relates history of African-American cooperation..............................................................................................Sept./Oct. 32

Consultant Donald Senechal remembered as a major force for co-op development ................................................................Sept./Oct. 31

Cooperative developers share ideas in Minneapolis...............................Jan./Feb. 18Farm Bill boosts co-op development........................................................March/April 2Farmers on the Move

Michigan Hispanic growers co-op helps improve viability of small farmers.........................................................................Sept./Oct.20

Farmers, processors work together to boost Egypt’s tomato industry .................................................................................March/April 30

Farmers work together to meet common needs.......................................Sept./Oct.25From the Ashes of War

Rebuilding ag co-op system in Bosnia and Herzegovina presents huge challenges.....................................................................Sept./Oct. 36

Maine island community creates worker-owned co-op to retain local businesses, jobs ..................................................................July/Aug.20

Mothers’ Milk Co-op .....................................................................................Sept./Oct. 28Ready-Made Communities

Manufactured housing co-ops offer affordability, stability and security ...............................................................................Sept./Oct.22

Remembering the ‘Badlands’ Report Thoughts about co-ops in North America .........................................May/June 30

Side Hill Farmers Co-op markets local meat through own retail outlet ........................................................................................Nov./Dec. 5

Soup’s On!Stone Soup Farm Co-op part of worker-owned farm trend..............Sept./Oct.24

The Missing PieceWhy women farmers are key to global food security.......................July/Aug. 26

The New Deal Co-opsDepression-fighting strategies involved co-ops in ag, utilities and health-care sector ...............................................March/April 22

The Ripple EffectCo-op uses USDA-funded program to improve education for Pakistani girls ...............................................................March/April 4

Turning solitude into solidarity ....................................................................Sept./Oct. 30USDA supports co-op development of small and

mid-sized farmers...................................................................................May/June 37Welcome to the Club!

Food buying club co-ops have potential to help increase food security for many............................................................Jan./Feb. 24

Co-op MonthNational Cooperative Month proclamation.................................................Sept./Oct. 2Co-op Month Special Section

Making the Co-op Connection..............................................................Sept./Oct. 18The Co-op Connection: How does your co-op connect?

Much to celebrate, but much more to do.............................................Nov./Dec. 8

Co-op Principles/Advantages/ImpactA Two-Way Street

Members must fulfill responsibilities to their co-op............................July/Aug. 4Cooperative Principles.....................................................................................Jan./Feb. 7Emergence of food hubs..................................................................................Jan./Feb. 5Food hubs: an evolution of the co-op business model...............................Jan./Feb. 7Remembering the ‘Badlands’ Report

Thoughts about co-ops in North America .........................................May/June 30The Co-op Advantage....................................................................................July/Aug. 11The Privileges of Membership


DairyDairy co-ops’ milk volume up, but market share

down slightly ......................................................................................March/April 27


Foremost’s Dave Fuhrmann looks back on 40 eventful years in dairy industry ............................................................Nov./Dec. 18

Gauging Performance An ‘extra value’ assessment of the nation’s top 18 dairy co-ops, 1992-2012....................................................................................Nov./Dec. 24

Kirkpatrick saluted for dairy vision .......................................................March/April 39Jerry Kozak: Life Lessons..............................................................................Jan./Feb. 15What leads to satisfied co-op members?

Surveys of dairy farmers show management and pricing are key ..........................................................................................Jan./Feb. 20

EducationCo-ops urged to observe Grain Bin Safety Week .....................................Jan./Feb. 29The Co-op Connection: How does your co-op connect?

Much to celebrate, but much more to do.............................................Nov./Dec. 8Finding Courage

Author discusses her research into use of cooperatives by African-American ..............................................................................Nov./Dec. 20

Scholarships help students ‘follow their dreams’ ...............................March/April 12The long view of a changing world ............................................................Jan./Feb. 13The Privileges of Membership


On the Road with Youth TCI .........................................................................Sept./Oct. 27Portion of co-op’s livestock sales earmarked to

support FFA, 4-H..................................................................................March/April 12Staying Relevant

Survey shows that co-ops still vital to members, but more effort needed to connect with young producers ............Nov./Dec. 14

Environment/EnergyCarolina co-op uses USDA loan to help members

conserve energy .................................................................................March/April 11Clean Energy Co-op promotes solar energy in Pennsylvania.................Sept./Oct.18Foremost earns Green Professional designation......................................Jan./Feb. 33Leveraging with other USDA programs .......................................................Jan./Feb. 9USDA works with co-ops on $250-million, energy-efficiency effort........Jan./Feb. 8

Farmers MarketsCelebrating Community

Whitley County Farmers’ Market marks seven years of steady growth ......................................................................................Sept./Oct.19

Farmers on the MoveMichigan Hispanic growers co-op helps improve viability of small farmers........................................................................................Sept./Oct.20

Farm Supply and Services3 IN A ROW!

Grain, dairy sales help ag co-ops set revenue and income records .........................................................................................Sept./Oct. 4

A ‘Human Soul on Fire with Great Cause’William Hirth’s iron-forged will and vision were essential to the formation of MFA .......................................................May/June 24

Building Success on Service Expanded agronomy service enhances value of Texas co-op for cotton and grain producers ..................................................May/June 4

The Precision DecisionFarm supply co-op helps members adopt precision ag technology to boost productivity........................................................March/April 8

Rain or shine, farmers depend on co-op ....................................................May/June 8Top 100 Ag Co-ops

Sales soar 9 percent over 2012 ..............................................................Sept./Oct. 8

Finance/ Financial ServicesChanging ownership structure ......................................................................Jan/Feb. 11Farm Credit partners with USDA to strengthen rural America...............May/June 2Investing In Your Co-op’s Future


Food/Grocery Co-ops‘A Trend, Not a Fad’

Growing markets for local foods examined during Ag Outlook Forum .............................................................................March/April 14

Back from the BrinkGrocery co-op conversion prevents food desert in rural Wisconsin....................................................................................Sept./Oct.23

Food buying clubs in Canada........................................................................Jan./Feb. 27New approach to food distribution ......................................................March/April 19Twin Cities Cooperative

Local food system study finds success factors .................................Sept./Oct.26Welcome to the club!


Food HubsFood hubs: an evolution of the co-op business model................................Jan./Feb 4What We’ve Learned So Far

Food hub operators share insights needed for business success .....................................................................................July/Aug 14

Foreign Co-opsFarmers, processors work together to boost Egypt’s

tomato industry .................................................................................March/April 30From the Ashes of War

Rebuilding ag co-op system in Bosnia and Herzegovina presents huge challenges .............................................Sept./Oct. 36

The Missing PieceWhy women farmers are key to global food security.......................July/Aug. 26

The Ripple EffectCo-op uses USDA-funded program to improve education for Pakistani girls ...............................................................March/April 4

Fruit, Nuts, VegetablesAronia berry co-op among recipients of $25 million in

USDA value-added grants.......................................................................Nov./Dec. 4Farmers, processors work together to boost Egypt’s

tomato industry .................................................................................March/April 30MBG grower honored by White House, USDA ........................................Nov./Dec. 17

Grains/Oilseeds/RiceA ‘Human Soul on Fire with Great Cause’

William Hirth’s iron-forged will and vision were essential to the formation of MFA .......................................................May/June 24

Building Success on Service Expanded agronomy service enhances value of Texas co-op for cotton and grain producers.......................................May/June 4

Co-ops urged to observe Grain Bin Safety Week .....................................Jan./Feb. 29

HealthTurning solitude into solidarity ....................................................................Sept./Oct. 30

HistoryCollective Courage

New book relates history of African-American cooperation..............................................................................................Sept./Oct. 32

Finding CourageAuthor discusses her research into use of cooperatives by African-Americans....................................................Nov./Dec. 20

Finding the co-op links ...........................................................................March/April 25A ‘Human Soul on Fire with Great Cause’


The Long RunNumber of Ag Co-ops Celebrating 100th Anniversaries on the rise ...............................................................................................May/June 18

The New Deal Co-opsDepression-fighting strategies involved co-ops in ag, utilities and health care sector ................................................March/April 22

HousingReady-Made Communities

Manufactured housing co-ops offer affordability, stability and security ...............................................................................Sept./Oct.22

Legal/LegislativeFarm Bill boosts co-op development........................................................March/April 2Your guide to the new Farm Bill .................................................................May/June 35


Livestock & PoultryAlpaca herd rescue shows need for education .......................................July/Aug. 35Side Hill Farmers Co-op markets local meat through

own retail outlet ........................................................................................Nov./Dec. 5

Local/Sustainable/Organic FoodsEmergence of food hubs ...............................................................................Jan./Feb. 5Farmers on the Move

Michigan Hispanic growers co-op helps improve viability of small farmers.........................................................................Sept./Oct.20

Food hubs: an evolution of the co-op business model...............................Jan./Feb. 4Local food investments expand market opportunities...............................July/Aug. 2New approach to food distribution ......................................................March/April 19Partners in Health

Co-ops have role to play in improving student nutrition .................May/June 12The Right Blend


Side Hill Farmers Co-op markets local meat through own retail outlet ........................................................................................Nov./Dec. 5

Soup’s On!Stone Soup Farm Co-op part of worker-owned farm trend..............Sept./Oct.24

A Trend, Not a Fad’Growing markets for local foods examined during Ag Outlook Forum .............................................................................March/April 14

Twin Cities Cooperative Local food system study finds success factors: ................................Sept./Oct.26

What We’ve Learned So FarFood hub operators share insights needed for business success ....................................................................................July/Aug. 14

ManagementCo-ops: Leadership with a difference

Consensus is the goal, but can be a long process..............................July/Aug. 8Foremost’s Dave Fuhrmann looks back on 40 eventful

years in dairy industry............................................................................Nov./Dec. 18Investing In Your Co-op’s Future


Jerry Kozak: Life Lessons .............................................................................Jan./Feb. 15Our First Year As a Co-op

Real Pickles shares lessons learned since converting to a co-op ..................................................................................................July/Aug. 30

What We’ve Learned So FarFood hub operators share insights needed for business success .....................................................................................................July/Aug. 14

Marketing3 IN A ROW!


‘A Trend, Not a Fad’Growing markets for local foods examined during Ag Outlook Forum .............................................................................March/April 14

Aronia berry co-op among recipients of $25 million in USDA value-added grants.......................................................................Nov./Dec. 4

Building Success on Service Expanded agronomy service enhances value of Texas co-op for cotton and grain producers ..................................................May/June 4

Dairy co-ops’ milk volume up, but market share down slightly ......................................................................................March/April 27

Farmers on the MoveMichigan Hispanic growers co-op helps improve viability of small farmers.........................................................................Sept./Oct.20

Gauging Performance An ‘extra value’ assessment of the nation’s top 18 dairy co-ops, 1992-2012.....................................................................Nov./Dec. 24

MBG grower honored by White House, USDA ........................................Nov./Dec. 17Mother’s Milk Co-op......................................................................................Sept./Oct. 28Partners in Health

Co-ops have role to play in improving student nutrition .................May/June 12The Right Blend


Top 100 Ag Co-ops Sales soar 9 percent over 2012 ..............................................................Sept./Oct. 8

Member RelationsA Two-Way Street

Members must fulfill responsibilities to their co-op............................July/Aug. 4Co-ops: Leadership with a difference

Consensus is the goal, but can be a long process...............................July/Aug 8Rain or shine, farmers depend on co-op ....................................................May/June 8Reach out with effective member relations ................................................July/Aug. 6Staying Relevant

Survey shows that co-ops are still vital to members, but more effort needed to connect with young producers ....................................................................................Nov./Dec. 14

What Leads to Satisfied Co-op Members?Surveys of dairy farmers show management and pricing are key ..........................................................................................Jan./Feb. 20

MergersCo-op Mergers, Acquisitions, 2000-2013 ..................................................Nov./Dec. 11

Minority Co-opsCollective Courage


Farmers on the MoveMichigan Hispanic growers co-op helps improve viability of small farmers.........................................................................Sept./Oct.20

Finding CourageAuthor discusses her research into use of cooperatives by African-Americans....................................................Nov./Dec. 20

Statistics3 IN A ROW!


Ag co-ops remain strong ................................................................................Jan./Feb. 2Co-op Mergers, Acquisitions, 2000-2013 ...................................................Nov./Dec. 11Dairy co-ops’ milk volume up, but market share

down slightly ......................................................................................March/April 27Gauging Performance

An ‘extra value’ assessment of the nation’s top 18 dairy co-ops, 1992-2012..........................................................................Nov./Dec. 24

The Long RunNumber of ag co-ops celebrating 100th anniversaries on the rise ...............................................................................................May/June 18

Top 100 Ag Co-ops Sales soar 9 percent over 2012 ..............................................................Sept./Oct. 8

Utility Co-opsCarolina co-op uses USDA loan to help members

conserve energy .................................................................................March/April 11Leveraging with other USDA programs .......................................................Jan./Feb. 9The New Deal Co-ops

Depression-fighting strategies involved co-ops in ag, utilities and health care sectors ......................................................March/April 22

USDA works with co-ops on $250-million, energy-efficiency effort .............................................................................................................Jan./Feb. 8

USDAAronia berry co-op among recipients of $25 million in

USDA value-added grants.......................................................................Nov./Dec. 4Farm Credit partners with USDA to strengthen rural America...............May/June 2Finding the co-op links ...........................................................................March/April 25Leveraging with other USDA programs .......................................................Jan./Feb. 9Local food investments expand market opportunities...............................July/Aug. 2MBG growers honored by White House, USDA ......................................Nov./Dec. 17The New Deal Co-ops

Depression-fighting strategies involved co-ops in ag, utilities and health-care sectors ...........................................March/April 22

USDA supports co-op development, small- and mid-size farmers .....................................................................................May/June 37

USDA works with co-ops on $250-million, energy-efficiency effort ............................................................................Jan./Feb. 8


Worker Co-opsMaine island community creates worker-owned

co-op to retain local businesses, jobs.................................................July/Aug. 20Our First Year as a Co-op

Real Pickles shares lessons learned since converting to a co-op ..................................................................................................July/Aug. 30

Soup’s On!Stone Soup Farm Co-op part of worker-owned farm trend .............Sept./Oct.24

Farmers work together to meet common needs.......................................Sept./Oct.25

AUTHORS

Ali, Sarah3 IN A ROW!


Top 100 ag co-op’s sales soar 9 percent over 2012 ...................................Sept./Oct. 8

Brummelm, LukeThe Precision Decision

Farm supply co-op helps members adopt precision ag technology to boost productivity ..................................................March/April 8

Campbell, DanBuilding Success on Service

Expanded agronomy service enhances value of Texas co-op for cotton and grain producers.......................................May/June 4

The Privileges of Membership Co-ops pursue wide range of ways to communicate the ‘co-op difference’ .............................................................................July/Aug. 10

Catto, ChelseaReady-Made Communities

Manufactured housing co-ops offer affordability, stability and security ..............................................................................Sept./Oct. 22

Cheney, Emily M. LippoldOn the Road with Youth TCI

Peer-to-peer training program helps young people pursue co-op dreams.............................................................................Sept./Oct. 27

Chesnick, DavidTop 100 ag co-ops’ sales soar 9 percent over 2012...................................Sept./Oct. 8

Clostio, ShariseTurning solitude into solidarity

Montana Midwives Co-op helping to improve conditions for workers and clients ......................................................Sept./Oct. 30

Everett, RebeccaSoup’s On!

Stone Soup Farm Co-op part of worker-owned farm trend.................................................................................................Sept./Oct. 24

Eversull, E. Eldon3 IN A ROW!

Gran, dairy sales help ag co-ops set revenue and income records .........................................................................................Sept./Oct. 4

Co-op Mergers, Acquisitions, 2000-2013 ...................................................Nov./Dec. 11The Long Run

Number of ag co-ops celebrating 100th anniversaries on the rise ................................................................................................May/June 18

Top 100 ag co-op’s sales soar 9 percent over 2012 ...................................Sept./Oct. 8

Gray, ThomasCollective Courage


Guedenet, Hannah and PaulThe Missing Piece

Why women farmers are key to global food security.......................July/Aug. 26

Hanson, James C.From the Ashes of War

Rebuilding ag co-op system in Bosnia and Herzegovina presents huge challenges .............................................Sept./Oct. 36

Hines, Twanna A.The Ripple Effect

Co-op uses USDA-funded program to improve education for Pakistan girls ................................................................March/April 4

Howard, KristinOur first year as a co-op

Worker-owned food processor shares lessons learned since converting to a co-op....................................................July/Aug. 30

Lay, ChuckA ‘Human Soul on Fire with Great Cause’


Liebrand, Carolyn B.What leads to satisfied co-op members?

Surveys of dairy farmers show management and pricing are key ..........................................................................................Jan./Feb. 20

Lihlani, SkipperThe Right Blend


Ling, CharlesDairy co-ops’ milk volume up, but markets share

down slightly........................................................................................March/April 27Gauging Performance

An ‘extra value’ assessment of the nation’s top 18 dairy co-ops, 1992-2012..........................................................................Nov./Dec. 24

Locker, AliWelcome to the Club!


Ludwig, RobertConsultant Donald Senechal remembered as a major

force for co-op development ................................................................Sept./Oct. 31

Matavulj, MiodragFrom the Ashes of War.................................................................................Sept./Oct. 36

Matson, James; Shaw, Jessica; Thayer, JeremiahFood hubs: an evolution of the co-op business model...............................Jan./Feb. 4What We’ve Learned So Far

Food hub operators share insights needed for business success ....................................................................................July/Aug. 14

Mbevi-Nderitu, LydiaThe Missing Piece

Why women farmers are key to global food security.......................July/Aug. 26

Morales, AlfonsoWelcome to the Club!

Food buying club co-ops have potential to help increase food security for many ..........................................................Jan./Feb. 24

The Right BlendFifth Season’s vegetable mixes help scale-up Wisc. farm-to-school marketing program.....................................................May/June 12

O’Brien, DougThe Co-op Connection: How does your co-op connect?

Much to celebrate, but much more to do.............................................Nov./Dec. 8

Farm Credit partners with USDA to strengthen rural America...............May/June 2

Patrie, BillRemembering the ‘Badlands’ Report.........................................................May/June 30Consultant Donald Senechal remembered as a major

force for co-op development ................................................................Sept./Oct. 31


Pitman, LynnInvesting in your co-op’s future

Key finance, marketing issues examined during Farmer Co-ops Conference ..................................................................................Jan./Feb. 10

Ramsey, MargolisCo-ops: an extension of your farm business – or your

other business? .........................................................................................Nov./Dec. 2

Reynolds, Bruce J.Co-ops= Community Development

Cooperative developers share ideas in Minneapolis ........................Jan./Feb. 18Co-ops: Leadership with a difference

Consensus is the goal, but can be a long process..............................July/Aug. 8The New Deal Co-ops

Depression-fighting strategies involved co-ops in ag,utilities and health-care sectors ......................................................March/April 22

Shah, DanialThe Ripple Effect

Co-op uses USDA-funded program to improve education for Pakistani girls ....................................................................Jan./Feb. 4

Smith, CathyClean Energy Co-op promotes solar energy in Pennsylvania ...............Sept./Oct. 18

Stocking, JoanTwin Cities Co-op

Local food system study finds success factors ................................Sept./Oct. 26

Thomas, MarkFarmers on the Move

Michigan Hispanic growers’ co-op helps improve viability of small farmers........................................................................Sept./Oct. 20

Thompson, Stephen‘A Trend, Not a Fad’

Growing markets for local foods examined during Ag Outlook Forum...................................................................March/April 14

Wadsworth, JamesA Two-Way Street

Members must fulfill responsibilities to their co-op............................July/Aug. 4

Webster, MeganBack from the Brink

Grocery co-op conversion prevents food desert in rural Wisconsin .......................................................................................Sept./Oct. 23

Witting, KristinFarmers, processors work together to boost Egypt’s

tomato industry....................................................................................March/April 30

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