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HISTORY and DEVELOPMENT of AGRICULTURAL COOPERATIVES in OHIO DISSERTATION Presented in Partial Fulfillment of the Requirements F
HISTORY AND DEVELOPMENT OF AGRICULTURAL COOPERATIVES IN OHIO DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By WILLIAM TAFT RICHIE, B. S., M. S. The Ohio State University 1958 Approved by: Adviser Department of Agricultural Economics and Rural Sociology ACKNOWLEDGMENTS I am grateful to all the people who have helped to make this manuscript possible. A special word of appre ciation goes to Dr. George P. Henning, of the Department of Agricultural Economics and Rural Sociology, for his guidance and supervision. I also wish to thank Dr. Ralph W. Sherman and Dr. Virgil R. Wertz for their suggestions and assistance. My wife, Sadie, has been a source of inestimable help and encouragement at all times. To her I am indebted for the typing of this manuscript. ii TABLE OF CONTENTS CHAPTER PAGE I. INTRODUCTION................................. 1 Purpose and Scope of Study.............. Previous Studies........ 6 Source of Data ..................... 8 II. ECONOMIC PRINCIPLES AND CONCEPTS OF COOPERATIVES................................ 10 III. STATE AND FEDERAL LEGISLATIONS.............. lk- IV. DEVELOPMENT OF FARMER COOPERATIVES IN OHIO.. 21 Ohio Farmers Late in Organizing Cooperatives............................. 22 Farm Organizations............ 26 Number, Membership and Volume of Business................................. 39 V. DAIRY COOPERATIVES............... 57 Early Developments.......... 57 Some Factors Affecting Development and Growth................................... 61 Background Information of Some of the Associations Operating in Ohio Milksheds. 67 Ohio Milk Producers Federation.......... 82 Statistics and Trends in Dairy Coopera tives.................................... 82 VI. FRUIT AND VEGETABLE COOPERATIVES............ 89 Development of Fruit Cooperatives in Ohio..................................... 90 Development of Vegetable Cooperatives.... 92 Statistics and Trends................... -
Antitrust Status of Farmer Cooperatives
USDA Antitrust Status of Farmer Cooperatives: United States Department of Agriculture The Story of the Capper- Rural Business- Volstead Act Cooperative Service Cooperative Information Report 59 Abstract The Capper-Volstead Act provides a limited exemption from antitrust liability for agricultural producers who market the products they produce on a cooperative basis. Without Capper-Volstead, farmers who agree among themselves on the pric es they'll accept for their products and other terms of trade would risk being held in violation of antitrust law. Even with the exemption, agricultural producers are not free to unduly enhance the prices they charge, consolidate with or collaborate in anticompetitive conduct with nonproducers, or engage in conduct with no legitimate business purpose that is intended to reduce competition. Keywords: cooperative, antitrust, Capper-Volstead Act, law ________________________________________ Antitrust Status of Farmer Cooperatives: The Story of the Capper-Volstead Act Donald A. Frederick Program Leader Law, Policy & Governance Rural Business-Cooperative Service U.S. Department of Agriculture Cooperative Information Report 59 September 2002 RBS publications and information are available on the Internet. The RBS w eb site is: http://www.rurdev.usda.gov/rbs Preface Antitrust law poses a special challenge to agricultural marketing associations. Certain conduct by independent business people-- agreeing on prices, terms of sale, and whom to sell to--violates the Sherman Act and other antitrust statutes. And these are the very types of collaborative activities that agricultural producers conduct through their marketing cooperatives. Since 1922, the Capper-Volstead Act has provided a limited antitrust exemption for agricultural marketing associations. Producers, through qualifying associations, can agree on prices and other terms of sale, select the extent of their joint marketing activity, agree on common marketing practices with other cooperatives, and achieve substantial market share and influence. -
Bibliography of Cooperatives and Cooperative Development
Bibliography of Cooperatives and Cooperative Development Compiled by the following Illinois Institute for Rural Affairs personnel: Original, 1999 Christopher D. Merrett, PhD, IIRA director and professor Norman Walzer, PhD, professor of Economics and IIRA director emeritus Update, 2007 Cynthia Struthers, PhD, associate professor, Housing/Rural Sociology Program Erin Orwig, MBA, faculty assistant, Value-Added Rural Development/Cooperative Development Roger Brown, MBA, manager, Value-Added Rural Development/Cooperative Development Mathew Zullo, graduate assistant Ryan Light, graduate assistant Jeffrey Nemeth, graduate assistant S. Robert Wood, graduate assistant Update, 2012 Kara Garten, graduate assistant John Ceglarek, graduate assistant Tristan Honn, research assistant Published by Illinois Institute for Rural Affairs Stipes Hall 518 Western Illinois University 1 University Circle Macomb, IL 61455-1390 [email protected] www.IIRA.org This publication is available from IIRA in print and on the IIRA website. Quoting from these materials for noncommercial purposes is permitted provided proper credit is given. First Printing: September 1999 Second Printing: September 2007 Third Printing: June 2012 Printed on recycled paper Table of Contents I. Introduction ................................................................................................................................................1 II. Theory and History of Cooperatives ....................................................................................................3 III. Governance, -
Cooperatives and Sustainability: an Investigation Into the Relationship
Cooperatives and Sustainability: An investigation into the relationship Sustainability Solutions Group Community Research Connections Sustainable Community crcresearch Development Sustainability Solutions Group SSG is a workers co-operative with offices across Canada and associates internationally. Our co-operative includes experts in energy, sustainability, policy and design. We inspire sustainable buildings, communities and organizations. http://www.ssg.coop Community Research Connections The Community Research Connections at Royal Roads University is dedicated to the sustainable features of Canadian communities, exploring how to reconcile ecological, social, and economic imperatives through integration of our culture and arts. http://www.crcresearch.org/ Project commissioned by the International Co-operative Alliance International Co-operative Alliance The International Co-operative Alliance unites co-operatives worldwide. It is the custodian of co-operative values and principles and makes the case for their distinctive values-based economic business model which also provides individuals and communities with an instrument of self-help and influence over their development. The ICA advocates the interests and success of co-operatives, disseminates best practices and know-how, strengthens their capacity building and monitors their performance and progress over time. http://ica.coop October 23, 2013 Authors Ann Dale, Community Research Connections and SSG Associate Member Fiona Duguid, SSG Associate Member Melissa Garcia Lamarca, SSG Associate -
Co-‐Op Grocery Stores: More Than Food | Building a Self
Co-op Grocery Stores: More than Food | Building a Self-Determined Food Community in Detroit’s North End Hallie Clark Bill Emerson National Hunger Fellow 2013-2014 Field Site: Detroit Black Community Food Security Network February 2014 Purpose: Detroit is not a food desert; Detroit’s food issue does not come from a lack of physical stores. Detroit’s food issue is rooted in an unequal racial and economic system that produces the necessity for self-determined1 communities. The Detroit Black Community Food Security Network (DBCFSN), a black food justice, is spearheadinG the development of a 7500 square/foot consumer cooperative grocery store in Detroit’s North End neighborhood2. This project is particularly important in the majority black Detroit where residents do not own the majority of food retail stores. The North End is almost 98% African American and has a hiGh concentration of “party stores” (liquor stores) and convenience stores servinG as substitutes for Grocery stores with affordable and quality food products. The area also shows the effect of Government disinvestment, proof of Detroit’s current land Grab3, and remnants of the war on drugs4. Though the North End’s current context and history demonstrates the promise in alternative and creative solutions to encourage food secure communities. This report will examine how the North End is an ideal place for a co-op Grocery store. The North End’s history and present has the appropriate infrastructure for a store that specifically addresses the two-fold issue of ownership and quality food availability in the neiGhborhood. This report also offers a brief history on how Black communities have used the cooperative business model as a strategy for addressing economic inequality and injustice. -
A Day in the Life of Cooperative America
A DAY IN THE LIFE OF COOPERATIVE AMERICA A Project of the National Co-op Month Committee COOPERATIVE PRINCIPLES Cooperatives follow seven internationally recognized principles as adopted in 1995 by the International Cooperative Alliance. The National Cooperative Business Association lists these as: 1. Voluntary and Open Membership Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. 2. Democratic Member Control Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner. 3. Member Economic Participation Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership. 4. Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy. -
“That's Capitalism, Not a Co-Op:”
“That’s Capitalism, Not a Co-op”: Countercultural Idealism and Business Realism in 1970s U.S. Food Co-ops Maria McGrath In the 1970s, dissenting young Americans bolting from what was perceived to be the unhealthy, “toxic” content of 1950s and 1960s corporate-controlled commercial foods, found refuge and like- minded community in food co-ops, or “food conspiracies.” As experiments in participatory democracy, anti-capitalist countercultural business, and centers for alternative foods consumption, co-ops acted as protean clearinghouses for multiple political and cultural concerns. Members could join in hopes of creating a non-traditional business model, to support craft food production, to sustain organic farming, for the believed health benefits of unprocessed foods, or to take part in a communal project. This ideological inclusiveness attended to members’ multifarious countercultural agendas, but eventually led to internal conflict as the everyday exigencies of running a business butted up against the turmoil fostered by anti-hierarchical, volunteer structures. In this paper, I examine two issues that presented the greatest challenge for food cooperatives: the implementation of co-op governance and management systems, and the politics of food. Despite these struggles, from the 1970s forward U.S. food co-ops have remained a flexible forum within which the progressive middle-class can practice conscientious consumption, alternative business, and purposeful communalism. The late 1960s and early 1970s were an especially fertile period for the creation in the United States of what cultural radicals called “free organizations.” Young college-educated activists formed collectives to provide America’s forgotten and poor with medical, childcare, housing, and legal services, funneling their skills into more meaningful work and more egalitarian institutions than the corporate mainstream offered. -
Cooperatives and the Ready-Made Garment Supply Chain
COOPERATIVES AND THE WORLD OF WORK NO 11 Towards a better understanding of the role of cooperatives in the ready made garment supply chain 1 INTRODUCTION A cooperative is defined as an “autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.”2 This business model has a long-standing history dating back to the first cooperative of weavers: the original Fenwick weavers from 1761, which soon expanded into providing affordable food and credit to members. 3 Nowadays, cooperatives exist along the supply chain of garments. From contribute to their prevention and elimination by raising awareness among growing fibres, manufacturing and commercialisation, to the consumption their members, supporting education, providing social services and and recycling of textiles, cooperatives have been serving various social creating better employment opportunities for adults and young workers.6 and economic needs of people directly or indirectly linked to the garment This brief unpacks the engagement of cooperatives in the garment supply industry. As democratic, membership-based organizations, cooperatives chain, describing their implications for decent work and highlighting the have presented socially and environmentally sustainable alternatives for action areas that address the challenges to integration of cooperatives producers and consumers of garments. in mainstream garment supply chains. Cooperatives are instrumental in generating income, creating employment, advancing formalization of the informal economy4 and COOPERATIVES IN THE GARMENT SUPPLY CHAIN AND THEIR promoting decent work5 particularly in the lower tiers of the supply ROLE IN PROMOTING DECENT WORK chains, where informality and decent work deficits are most prominent. -
February 2014 Issue
Rural COOPERATIVESCOOPERATIVES Investing In Your Co-op’s Future Page 10 Commentary Ag co-ops remain strong By Alan Guebert father, John, Sr., an attorney and farmer, and other burley growers employed to start, then manage, the cooperative. It Editor’s note: This guest commentary is reprinted courtesy The was an essential tool, they explain, used by hundreds of Farm and Food File, Guebert’s column that is published weekly in thousands of farmers and generations of farm families in five more than 70 newspapers in North America. Guebert can be states to maintain competitive markets, successful farms and contacted at: [email protected]. vibrant rural communities. The principles harnessed by Berry, Sr., my father, his The weekly hometown newspaper recently Illinois’ neighbors and many others continue to inspire brought news of a family friend’s death. The cooperation today. According to the U.S. Department of friend, a dairy farmer, had lived a long, good Agriculture, 2,238 agriculture, ranching and fishery life and was a respected member of his cooperatives and their 2.1 million members employed church, community and profession. 129,000 full-time and 56,000 part-time employees while My family’s connection, outside of cows and kids, was generating $235 billion in sales last year. business: he, my father and a few dozen farmers in Moreover, notes USDA in a recent issue of its “Rural neighboring southern Illinois counties were members of a Cooperatives” magazine, (http://www.rurdev.usda.gov/ small farm cooperative through which they purchased inputs SupportDocuments/rdRuralCoop_Sept_Oct13Vr_Web.pdf), like feed and fertilizer. -
Articles Cooperative Enterprise As an Antimonopoly Strategy
ART 1 - COOPERATIVE ENTERPRISE (DO NOT DELETE) 10/22/2019 4:02 PM Articles Cooperative Enterprise as an Antimonopoly Strategy Sandeep Vaheesan* & Nathan Schneider† ABSTRACT After decades of neglect, antitrust is once again a topic of public debate. Proponents of reviving antitrust have called for abandoning the narrow consumer welfare objective and embracing a broader set of objectives. One essential element that has been overlooked thus far is the ownership structure of the firm itself. The dominant model of investor- owned business and associated philosophy of shareholder wealth maximization exacerbate the pernicious effects of market power. In contrast, cooperative ownership models can mitigate the effects of monopoly and oligopoly, as well as advance the interests of consumers, workers, small business owners, and citizens. The promotion of fair competition among large firms should be paired with support for democratic cooperation within firms. Antitrust law has had a complicated history and relationship with cooperative enterprise. Corporations threatened by cooperatives have used the antitrust laws to frustrate the growth of these alternative businesses. To *Legal Director, Open Markets Institute. †Assistant Professor, Department of Media Studies, University of Colorado Boulder. The authors thank Lauren Bridges, Michelle Meagher, Sanjukta Paul, and Ganesh Sitaraman for thoughtful feedback on earlier drafts of this Article. 1 ART 1 - COOPERATIVE ENTERPRISE (DO NOT DELETE) 10/22/2019 4:02 PM 2 PENN STATE LAW REVIEW [Vol. 124:1 insulate cooperatives from the antitrust threat, Congress has enacted exemptions to protect cooperative entities, notably a general immunity for farm cooperatives in the 1922 Capper-Volstead Act. As part of an agenda to tame corporate monopoly, all three branches of the federal government and the states should revisit these ideas and seek to protect and enable the cooperative model across the economy. -
Cooperative Education Inventory Study
Cooperative Education Inventory Study By Eklou Amendah & Christina Clamp Center for Co-operatives & CED Southern New Hampshire University February 2014 Prepared for The Cooperative Foundation Table of Contents I. Introduction ............................................................................................................................................... 5 II. Literature: Assessing the need for cooperative education ....................................................................... 6 III. Overview of Co-op Education Organizational Settings ............................................................................ 8 IV. Methodology ......................................................................................................................................... 10 V. Results ..................................................................................................................................................... 12 VI. Discussion of the Results ....................................................................................................................... 19 VII. Conclusion ............................................................................................................................................. 24 1. Limitations ....................................................................................................................................... 25 2. Future research .............................................................................................................................. -
Principles and Practices in the 21St Century
A1457 Cooperatives: Principles and practices in the 21st century Kimberly A. Zeuli and Robert Cropp ABOUT THE COVER IMAGE: The “twin pines” is a familiar symbol for cooperatives in the United States.The Cooperative League of the USA, which eventually became the National Cooperative Business Association (NCBA), adopted it as their logo in 1922.The pine tree is an ancient symbol of endurance and immor- tality.The two pines represent mutual cooperation—people helping people. C OOPERATIVES: q Publication notes ii C ont Chapter 1 1 An introduction to cooperatives Chapter 2 5 ents Historical development of cooperatives throughout the world Chapter 3 15 Cooperative history, trends, and laws in the United States Chapter 4 27 Cooperative classification Chapter 5 39 Alternative business models in the United States Chapter 6 49 Cooperative roles, responsibilities, and communication Chapter 7 59 Cooperative financial management Chapter 8 69 Procedures for organizing a cooperative Chapter 9 77 A summary of cooperative benefits and limitations Notes 81 Glossary 85 Cooperative resources 89 PRINCIPLES & PRACTICES IN THE 21ST CENTURY i Kimberly Zeuli and Robert Cropp, Assistant Publication notes Professor and Professor Emeritus in the This publication is the fourth and most extensive Department of Agricultural and Applied revision of the Marvin A. Schaars’ text, Cooperatives, Economics, University of Wisconsin—Madison, Principles and Practices, University of Wisconsin are responsible for all of the editing and most Extension—Madison, Publication A1457, July 1980. of the revised text. The following individuals What has come to be known simply as “the also contributed to various chapters: Schaars book,” was originally written in 1936 by David Erickson, Director of Member Relations, Chris L.