Cooperative Farming Models

by Alyson ChisholmWindy Hill Organic Farm

www.windyhillfarm.ca

Outline

1. Co-ops defined and different types

2. Benefits and challenges

3. Personal experiences with different types of co-ops:

a) land ownership

b) equipment sharing/shared purchasing

c) marketing

d) promotion

4. Incorporation – benefits and challenges

5. Trouble shooting – issues that have arisen and how we've dealt with them

6. Resources and models

7. Questions

Cooperation is defined as:

The process of working together for the same end

A cooperative is a business, society or enterprise based on cooperation.

● Voluntary and open membership – define the parameters of your membership

● Democratic member control – one person = one vote rather than more shares = more control

● Member economic participation – buy share (s) to become a member

● Autonomy and independence – create your own rules of operation (by-laws) though they must include certain legal provisions

● Education, training, and information sharing

● Co-operation among co-operatives – eg. Cooperative farmer buying group will prioritize purchasing from other co-op businesses

● Concern for community – can pay dividends to members but “put people and planet above profits” - profit generation is not their primary purpose

Benefits● working together makes you greater than the sum of

your parts

● build leadership and management skills

● access larger markets for a longer season by selling cooperatively

● Save money through bulk buying and equipment sharing

● benefits of community: friendship, co-learning, help and support, potlucks

● make a greater impact as a larger entity than as an individual

● access funding for projects that are only available to registered groups

Challenges

● lots of work required to “cooperate”

● people don't always see eye to eye on everything: how to effectively reach decisions

● incorporation is a steep learning curve, lots of work and can be expensive

● accommodating everyone can be hard work and sometimes expensive

● Burnout issue: usually a small number of people end up doing a large proportion of the work

● Giving over control is difficult – learning how to compromise

GVOFC Mission and GoalsMission

● Co-operatively preserving and stewarding organic farmland to support farmers in growing quality food for local communities.

Goals

● provide access to certified organic food for shareholders and the local community;

● own and operate the farm co-operatively;

● steward the entire farm for the mutual benefit of the land, wildlife and people;

● be a model of sustainable living;

● create opportunities to learn about sustainability.

GVOFC Structure

Co-op owns land, buildings, some equipment, pays taxes, maintenance, insurance, electricity and charges rent to farmers.

Co-op manages its business through committees made up of shareholders.

Farmers are all shareholders who rent land, buildings and equipment from the co-op and run their own businesses.

Farmers share workspaces, equipment and markets with one another.

Lots of potlucks!

Consensus Decision-making

Discussion Decision

Green I have a question I agree

Yellow I can clarify I will support but am not fully in favour

Red Stop I cannot support this but will work

for a better solution

Cooperative Farming Benefits

● Shared cost of land when land is very expensive - “how did you get all those people to buy you a farm?”

● Share tools and equipment

● Share marketing

● Mentoring value with farmers of different experience level

● Requiring proposals makes you think things through very well before embarking on plans

Equipment sharing/bulk buying

● Where to store equipment

● Who maintains, services, repairs

● Cost includes running, maintenance, depreciation, replacement

● Keep good records of measurable quantities: eg. hours, litres, pounds

● Bulk purchasing: set dates for purchases

● Plan how to calculate share of shipping cost

Marketing Co-ops

Langley Organic Growers

● Larger more diverse market stalls

● Set priorities in the winter

● Buy from farmers at wholesale and mark up 50% to sell at farmer's markets

● Markup covers marketing costs: labour, transportation, stall fees, supplies and equipment

● End of season surplus pays for following year's startup, donations, distributed to member farms based on their percent of total sales

Coin Bio/Organic Corner Co-op

First model

● Two farms take turns doing the market

● The marketing farm gets priority on produce sold

● Marketing farm also pays all costs: labour, stall fee, transportation

● Both farms share the cost of equipment and supplies (co-own infrastructure and use own scales)

● Any other participating farms who choose not to go to market pay 20% to cover marketing costs

Coin Bio/Organic Corner Co-op

Current system

● We are now incorporated

● Four farms participate though the same two are doing the marketing

● Everyone pays 20% of their total sales and this covers all marketing costs

● Marketing committee proposes the amount CB pays for wages and mileage and brings to members for approval

● Our first season is almost complete and we will meet and decide what worked/what didn't

La Recolte de Chez Nous/Really Local Harvest Co-op

● Runs the Dieppe Farmer's Market

● Manages website and social media to promote local food and local farms

● Gave rise to Terroir Food & Agrimarketing, an organization supplying schools with local food in SE NB

● Lots of great events that call attention to foods of the season: harvest festival, competitive “cook-offs”, food preservation workshops

● Run by a board made up of farmers and a paid executive director

IncorporationBenefits:

● you are now a legal entity and are governed by laws and rules that help guide you in developing your structure and require you to keep good records

● The process requires you to think and plan ahead and prepare for issues rather than reacting to them when they happen

● as an entity you are eligible to apply for credit, grants and other types of funding

● You can generate revenue through the sale of shares

Challenges

● incorporation is complicated and requires lots of reading of dry legal stuff

● you can hire someone to do it for you but it is expensive

● you are now bound by rules and laws and have to file annual reports, keep good records and follow certain procedures

Start small ...

● keep good meeting minutes

● keep good financial records

● define your group's vision, mission and goals

● develop some process in meetings whether it is following Robert's Rules or running your meetings by consensus

Troubleshooting● working together – start with people who are

already in alignment with regards to guiding principles, beliefs, work habits and standards and who are committed to working cooperatively.

● trust – keep really good written records, ensure everyone signs off on them and refer to them regularly

● decision-making – find a method of reaching decisions that works for you and dedicate yourselves to following it. “Trust the process, not the person”

● Building camaraderie – potlucks! Take time to socialize with your co-op to build personal connections

● participation – the more everyone is able to participate in meetings the more a part of the group

they will feel.

● burnout – Plan to share the

workload at the start and consider

rotating jobs if you have enough

members. Raise money to pay

members for important jobs or hire

professionals.

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Resources and Models

● Information on co-ops and help with incorporation: Cooperative Enterprise Council of NB www.cecnb.ca

● Rules of incorporation, documents and other legal information: Financial and Consumer Services Commission

http://www2.gnb.ca/content/gnb/en/services/services_renderer.631.Co-operative_%28Co-ops%29_Incorporation.html

● Co-ops: La Recolte de Chez Nous/Really Local Harvest Co-op https://recoltedecheznous.com

Glen Valley Organic Farm Cooperative

http://www.glenvalleyorganicfarm.org/gvwp/

Coin Bio/Organic Corner Co-op – no website yet but see us at the Dieppe Farmer's Market every Saturday starting in May!

Thank you!

Questions?