Military vets raising heritagelivestock breeds For Farm andCountry Rur al COOPER COOPER Page 20 ATIVES ATIVES July/August 2016 Commentary Answering the Call

By Sam Rikkers, Administrator USDA Rural Business- Service

What could be better than receiving an honor for something you feel privileged just to be doing? Better still, for doing something that strengthens USDA’s ability to fulfill its mission while also helping to strengthen our nation’s defense? That’s how I felt recently when the Rural Business- Cooperative Service was presented with the Patriot Award Receiving the Patriot Award presented to the USDA Rural Business- for “going beyond the norm” to support members of our Cooperative Service (RBCS) (front row, from left) are: Mark Brodziski, workforce who are also members of the National Guard or energy programs director; Chad Parker, deputy administrator for Reserve. The award was presented by the Employer Support cooperative programs; and Sam Rikkers, RBCS administrator. Award of the Guard and Reserve (ESGR) program, a Department presenters (back row, from left) are: Jacob York, volunteer with the of Defense effort launched in 1972 to promote cooperation Employer Support of the Guard and Reserve (ESGR) program; Lt. Col. and understanding between Reserve members and their Farish of the District of Columbia National Guard; Owen Edoohonba, National Guard member and RBCS energy programs specialist; and civilian employers. A national network of more than 4,500 Bill Schatzman, program support technician for ESGR. volunteers helps to support ESGR. Sure, it can create some challenges for remaining staff when one of their valued co-workers leaves for a period of raising heritage breeds — animals such as Red military training or active duty. But here at USDA — as well Devon and . Many veterans as at and other businesses around the nation — and current Reservists are already doing so. that it is such a small price to pay for the essential work There are many great stories here, such as the Virginia members of the Reserve and Guard do to not only defend ranch that is not only helping to conserve endangered, our freedom, but also for the assistance they often provide in colonial-era horse breeds (brought to America by Spanish times of natural disasters and other emergencies. explorers), but also helps veterans from a nearby VA hospital These brave men and women put their lives on the line who may be recovering from post traumatic stress disorder, for all of us, so the least we can do as employers is provide and who find working with the horses therapeutic. the logistical support needed to “fill the holes” while they A critical factor for success in the military, as one vet in are gone. the article notes, is recognizing that the success of your unit The cover story for this magazine examines a closely requires teamwork, along with the recognition that “each of related topic: helping to foster careers in agriculture for us have inherent strengths and weaknesses. The mark of a service men and women after they return to civilian life. As good leader is to understand them and work to achieve the the article (page 20) notes, the skill sets required for success common objective.” The same could certainly be said about in the military — including adaptability, strong work ethic, a successful cooperative. team orientation and commitment to mission — relate A number of cooperatives have helped to sponsor or closely to what it takes to be successful in agriculture. participated in these livestock workshops and tours. I salute Cooperatives have an established track record of hiring all cooperatives that are “answering the call” to open the military veterans because they value the skills vets bring to doors to agricultural careers of all types for vets entering the the workplace. The fact that so many vets have rural roots civilian workforce. You are not only helping vets find good also helps to cement the bond between agriculture and jobs, but you are also helping your co-ops tap this great veterans. resource of talent while helping keep our nation strong. ■ The focus of the cover story is the Livestock Conservancy’s efforts to expose veterans to the possibility of

2 July/August 2016 / Rural Cooperatives Features

Volume 83, Number 4 July/August 2016

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

The Secretary of Agriculture has determined that publication of this periodical is necessary in the transaction of public business required by law of the Department. Periodicals postage paid at Washington, p. 4 p. 8 p. 20 DC. and additional mailing offices. Copies may be obtained from the Superintendent of Documents, Government Printing Office, Washington, DC, 20402, at $23 per year. Postmaster: send address change to: Rural Cooperatives, USDA/RBS, Stop 3255, Wash., DC 20250-3255. 04 Grain cooperatives are bracing for a challenging Mention in Rural Cooperatives of company and brand second half of 2016 names does not signify endorsement over other companies’ products and services. By Tanner Ehmke

Unless otherwise stated, articles in this publication are not copyrighted and may be reprinted freely. Any 08 Stronger. Together. opinions express-ed are those of the writers, and do not After 100 years, Michigan Milk Producers Assoc. still taking care of business for necessarily reflect those of USDA or its employees. producer-members In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, 14 “Cooperatives Build” theme for Cooperative Month 2016 offices, and employees, and institutions participating in or administering USDA programs are prohibited from 16 Co-ops and community development efforts have played discriminating based on race, color, national origin, religion, sex, gender identity (including gender changing roles in addressing rural poverty expression), sexual orientation, disability, age, marital Bruce J. Reynolds status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program 20 For Farm and Country or activity conducted or funded by USDA (not all bases ‘Service to Stewardship’ event opens doors for military veterans to raise heritage apply to all programs). Remedies and complaint filing deadlines vary by program or incident. ■ Persons with livestock breeds disabilities who require alternative means of By Dan Campbell communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA's Berry, Hollins win top co-op communications honors TARGET Center at (202) 720-2600 (voice and TTY) or 30 contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. ■ To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at How to File a Program Discrimination Departments Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your COMMENTARY completed form or letter to USDA by: (1) mail: U.S. 02 Department of Agriculture, Office of the Assistant 13 UTILITY CO-OP CONNECTION Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; 28 LEGAL CORNER or (3) email: [email protected]. ■ USDA is an IN THE SPOTLIGHT equal opportunity provider, employer, and lender. 32 33 NEWSLINE

Tom Vilsack, Secretary of Agriculture ON THE COVER: U.S. Marine Corps veteran Harry Oldland gets a close look at Milking steers Chip Lisa Mensah, Under Secretary, USDA Rural Development and Dale during the Service to Stewardship workshop at

Dan Campbell, Editor the Lakota ranch in Remington, Va. The Livestock Conservancy and Virginia Cooperative Extension Stephen Hall / KOTA, Design conducted the event to educate military service veterans Have a cooperative-related question? Call (202) 720- about options for raising rare breeds of livestock and 6483, or email: [email protected] poultry. Photo Illustration by Stephen Thompson; Photo by This publication was printed with vegetable oil-based ink. Lance Cheung

Rural Cooperatives / July/August 2016 3 Grain cooperatives

By Tanner Ehmke yet another year of subpar grain-drying revenue. That all Senior Economist, CoBank adds up to what could be a very challenging remainder of 2016 for America’s grain cooperatives. Grain cooperatives started the 2016 crop- To be sure, there are some bright signs. Grain growing season with their weakest financial cooperatives still stand to profit substantially by year’s end prospects in recent years. Though their with the opportunity to buy cheap basis after the harvest. balance sheets remain strong, many co-op Their income statements are also likely to be bolstered by managers report that last year’s harvest was storage fees paid by farmer-members for substantial the driest in recent memory, with revenue generated from inventories in nearly every category. This will help to take grain-drying services falling in many cases to one-third of the edge off the slimmer profits gleaned at the start of the normal. And since last year’s harvest, basis markets have been calendar year. virtually void of volatility, offering few profit-taking But that pales next to the challenges they face in the opportunities. second half of 2016. Below, we will examine these challenges Further, we’re still awaiting the potentially arid fall more closely. associated with La Niña, the periodic climatic phenomenon (related to ocean temperatures and currents) that tends to Weak start to 2016 make for unseasonably cool, dry weather. This may threaten The calendar year started with a stagnant basis market on crop production late in the season and raises the prospect of the heels of a weak grain-drying harvest (see figure 1). With

4 July/August 2016 / Rural Cooperatives no relief immediately in sight, grain sellers. The percentage of old crop in environment for the Southeast hog and merchandisers will likely endure further co-op storage that is farmer-owned is poultry feed markets. Cheap ocean belt-tightening throughout the year as commonly reported at around 30 freight rates and weak currencies in ample grain and oilseed supplies, slow percent — a record for many co-ops competing wheat-exporting regions also farmer selling and an anemic export and well above the typical 10-percent raise the prospect of increased feed- program continue to drag on the basis level. wheat imports from the European market. While the basis market has held Union (EU) and Black Sea region. This Barring any significant weather- steady across the United States, grain would add further pressure to old-crop related crop losses this year, grain merchandisers in the western Corn Belt basis levels, further shrinking profitable handlers could also be tasked with and the Plains have seen basis holding marketing opportunities for some co- managing huge farmer-owned at consistently weak levels since last fall. ops with large market shares in the inventories into the new crop year and These western sellers are holding the Southeast United States. creating (at least temporarily) additional largest crop inventories seen in decades storage. (see Figure 2). Grain handlers in the Mitigating factors In the eastern Corn Belt, grain eastern Corn Belt, meanwhile, have There is some good news on the cooperatives were also dealt a storm of experienced consistently tighter basis way, though. By this fall, co-ops hope to additional losses, including sharply gain substantially from buying cheap lower agronomy sales and reduced new-crop basis as farmers expand total custom applications resulting from corn and soybean acreage. USDA now excessive rains last summer that kept Of growing concern predicts that farmers will boost corn applicators out of fields. Grain handlers among co-op managers is plantings this year to 93.6 million acres, in that area of the country also are up 5.6 million from last year, with struggling with how best to market last the availability of storage soybean acreage seen shrinking slightly, year’s poor-quality wheat crop, which by 400,000 acres, to a total of 82.2 was contaminated with high levels of space this fall. million acres. vomatoxin, as heavy summer rains Assuming a corn trend-line yield of caused widespread head scab and 168 bushels per acre and a soybean sprouting issues in ripe wheat fields. trend-line yield of 46.7 bushels per Corn and soybean crop development acre, both corn and soybean stocks are across large swaths of the eastern Corn likely to expand this fall to even higher Belt was also hampered, resulting in a levels. Barring a significant weather- shortfall of marketable bushels and a induced crop failure, a reversal of the persistently tight basis. The general trend towards a build-up of crop manager of one farmer-owned co-op in following last year’s drop in crop yields. inventories is unlikely. Ohio estimates that his corn receipts Basis movement is likely to be held In the event that farmers endure a fell 20 percent, with soybean receipts down by the more than ample supplies subpar growing season, ample old-crop down 10 percent. The sharpest cuts to across the United States. As of March 1, supplies still are expected to restrain the income, though, came from sub- U.S. corn stocks totaled 7.8 billion basis market from making significant stantially lower grain-drying revenue. bushels, which approached near-record moves. For instance, a repeat of the volumes, even though the size of the 2012 drought that resulted in a 15- Stagnant basis corn crop shrank last fall to 13.6 billion percent reduction in corn yield and a The grain and oilseed basis markets bushels, down from the previous year’s 10-percent abandonment rate could still continue to drift sideways amid the 14.2 billion bushels. With the help of a boost total corn supplies to nearly 14 ample inventories in the United States bumper crop, soybean stocks were also billion bushels this fall. Persistent, and a lackluster export market. This huge at 1.5 billion bushels, while wheat burdensome world supplies will also limits opportunities for elevators to find stocks were at their highest level in five dampen any potential rally efforts. post-harvest profits in basis years at 1.4 billion bushels. Total U.S. Potential upside exists if basis stays appreciation, mostly as a result of the grain and oilseed stocks are the highest weak through the fall harvest. Elevators little amount of grain owned by the since 1987. would be able to buy basis at a elevators. With crop prices having Another factor that figures to further significant discount to prior years and retreated from the multiyear highs weaken old-crop basis: Wheat and potentially gain on basis appreciation achieved in recent years, farmers have soybean meal imports from Argentina post-harvest — an opportunity missed understandably remained reluctant have created a much more competitive in the 2015 harvest.

Rural Cooperatives / July/August 2016 5 Storage availability concerns have left co-ops exposed to the risk of production expenses. While farmers Of growing concern among co-op insufficient space should farmers will be tightening their belts on managers is the availability of storage continue holding on to old crop. production costs this year, many of space this fall. The surplus of grain and However, those elevators that them nevertheless will be keen on oilseed stocks has haunted co-ops with expanded their storage in more holding out, waiting for prices to the prospect of insufficient storage profitable years and set storage fees improve to levels above breakeven. In heading into the new-crop harvest. commensurate to the marketplace stand the event that farmers carry substantial While they’re very sensitive to to benefit from fees collected on crop inventories into the new-crop year, production costs, farmers are not yet in farmer-owned grain. Elevators will also co-ops are preparing to store more grain dire straits financially and could be profit slightly on storage hedges in the in bunkers or on flat storage this fall. willing to take a chance that there will futures market if they carry grain into be weather-driven rallies this growing the new-crop marketing window. Weather and La Niña risks season; they could even hold-out for a Elevator managers will, however, be A significant portion of co-ops’ post-harvest rally. keen on watching whether declining profits come from grain drying, which Farmers’ hedges on new crop are crop quality of grain inventories carries took a substantial hit last fall, when also the lowest in recent memory, into the new crop year. farmers hauled in the driest crop in according to market advisors, Farmers’ willingness to hold on to recent memory. The prospect of La portending even more growth in grain remains the co-ops’ wildcard. Co- Niña, which normally is associated with farmer-owned inventory into the new- ops generally assume that farmer selling dryness in the Midwest, heightens the crop year. Higher than normal farmer- will accelerate later in the marketing risk of a repeat in 2016. The National owned grain and oilseed stocks, though, year to generate income for covering Weather Service currently predicts a

Price Basis for Alternative Crops, April 2014–16

HRW* (Kan) Milo (Kan) Corn (Iowa) Soy (Iowa) SRW** (Ohio) Corn (Ohio) Soy (Ohio) *Hard red winter wheat; **Soft red winter wheat

6 July/August 2016 / Rural Cooperatives Grain and Oilseed Stocks, 1950–2016 (as of March 1)

75-percent chance of La Niña cooperative,” compared to 2015. This downturn. developing this fall, though this pro- allows farmers to bring in a higher Grain merchandisers also stand to bability says nothing about its intensity. quality wheat crop that grain benefit from buying cheaper basis post- For grain handlers in the Plains, merchandisers hope to blend with last harvest in the absence of major weather farmers are now harvesting record year’s lower quality supplies. disruptions, causing a significant wheat yields and quickly filling bin reduction in crop yields. space. With wheat inventories at their Conclusions One other complicating factor: highest level in five years, and with the Following 2015’s weak ending, grain Mergers, acquisitions or joint ventures export market continuing in a slump, cooperatives will be focused on may become more likely as co-ops try wheat basis has continued to weaken as controlling costs, chasing modest to reduce price risk exposure to ample it competes with ample corn and grain profits in the futures market, and grain and oilseed supplies, to address sorghum inventories for inclusion in the collecting storage fees from farmer storage shortage concerns amid record feed mix. Cattle feeders generally are clients. But there is some potential inventories, and to control cost via well covered on feed needs into the fall, upside. Given the strong balance sheet achieving economies of scale. Looking currently leaving wheat little room to enjoyed by most cooperatives following ahead to the longer term, co-op be blended into the feed supply. multiple years of historically strong managers anticipate consolidation to In the Midwest, harvest conditions revenue, farmer-owned co-ops generally continue, even as the period of slimmer have been considerably drier and “more are well-positioned to handle this year’s profits passes. ■

Rural Cooperatives / July/August 2016 7 After 100 years, Michigan Milk Producers Assoc. still taking care of business for producer-members

“We issue this call to all milk muddy, deeply rutted wagon roads to occupation and purpose of existence producers in Michigan to get to the college campus. was seemingly to blow large profits gather at the Michigan Among this “large and for the distributor.” Agricultural College, East enthusiastic” group were those Lansing, Room 402, whose livelihood came primarily Securing a better Agricultural Building, on from farm enterprises. But producer price Tuesday, May 23, 1916, at 11 Michigan’s dairymen of 1916 also With a primary goal of securing a a.m.” included bankers, statesmen, better price for producers’ milk, a manufacturers, insurance salesmen statewide organization open only to The above call to action was shared and law enforcement officers — all farmers was born. It would be with the world via the pages of of whom operated dairy farms while called the Michigan Milk Producers Hoard’s Dairyman on April 22, 1916, also pursuing other jobs. Association. The new association had following adoption of the resolution Regardless of their background, nearly 200 dues-paying members and and meeting notice by members of these producers knew how to “get on its first board of directors at the the Livingston County Milk their feet and state their position conclusion of the daylong meeting. Producers’ Association. The meeting with clearness and no little “If the temper of the … milk attracted 400 dairy farmers from eloquence,” Hoard’s Dairyman producers present at this meeting is across southern Michigan. Some reported. “The thought was repeated evidence of the feeling existing arrived by train in Lansing. Others over and over again that the generally among their neighbors, we came in motorcars — such as Ford’s producer was getting the small end believe the new organization will Model T — that had bumped along of the and that his principal grow in strength and its members

Editor’s note: This article is adapted from MMPA’s centennial publication: “Stronger. Together.” written by Donna Abernathy.

8 July/August 2016 / Rural Cooperatives Michigan Milk Producers Assoc. (MMPA) milk pickup vehicles have changed markedly during the past 100 years, from horse-drawn wagons in the early years of the co-op to the large tanker trucks of today (right). Smaller tanker trucks, such as this Traverse City truck fleet, were used in the 1950s (below, left). All Photos courtesy MMPA

YE RA S

MMPA Defining Moments

1916 MMPA is formed at Michigan Agricultural College partnership to be a member (now Michigan State University) 1975 MMPA establishes antibiotic milk policy 1919 Michigan Milk Messenger (co-op member 1978 Michigan Milk Political Action Committee formed publication) first published 1979 Dairy Communicators network formed 1922 MPA leads development of the classification of milk 1981 Constantine Cooperative Creamery Merger; MMPA pricing system acquires Constantine plant 1924 Resolution passed saying that only milk from 1982 MMPA Merges with Michigan Dairy Producers Co. members would be sold through the association 1984 Advisory Committee forms to serve as liaison 1932 MPA starts transporting milk from county receiving between board, management and members stations 1987 Joint agreement with Leprino Foods 1937 First 4-H Milk Marketing Tour held 1988 Quality Premium Program begins, providing producer 1948 Michigan passes Pasteurized Milk Law incentives for higher quality milk 1950 Outstanding Young Dairy Cooperators Program begins 1995 Adopts Multiple Component Pricing System 1951 Federal Milk Marketing Orders begin in Michigan 2007 Member farms required to Provide rBST-Free milk 1956 MMPA districts established 2008 Ovid expansion project begins 1956 MMPA helps members replace cans and purchase 2011 Members begin participating in the National Dairy bulk tanks F.A.R.M. Program for animal care 1957 Co-op purchases Ovid Plant 2014 Strategic alliance with Foremost Farms USA; 1962 Disaster Protection Program initiated for members Installation of reverse osmosis operation 1965 Adoption of the Grade A Milk Inspection Law; 2015 MMPA attains Level 3 SQF (Safety Quality Food) Membership bylaw changed, allowing any person in a certification at plants in Ovid and Constantine

Rural Cooperatives / July/August 2016 9 [will] stand shoulder to shoulder in Capper-Volstead Act was passed in continuously until 1982, when it the cooperative endeavor,” the 1922. The founders therefore elected merged with MMPA. Hoard’s story predicted. to form a member corporation, an Milk production was rising and MMPA was originally formed as a organization allowed by law. feed prices declining just as the federated association — a statewide Great Depression brought the organization composed of many local Growing pains economy — and milk sales — to a associations that were autonomous, In its first years of existence, grinding halt. Automobile sales dried farmer-governed groups. R.C. Reed, MMPA quickly made an impact on up, along with consumers’ bank appointed as the new association’s Michigan milk prices. From a rock accounts. So, the majority of field secretary, had the job of bottom $1.16 per hundredweight Detroit’s workforce was out of a job. organizing these local groups. when the association was formed in Unemployed factory workers moved Each local association paid a $5 1916, prices had steadily climbed to a to the country to save money, leaving annual membership plus 50 cents per high of $3.40 in 1920 before settling the majority of MMPA’s milk buyers individual member to join the state at an average $3 per hundredweight. without customers. MMPA. Individuals paid dues of $1 Attractive pricing led to steady Guaranteeing a market for

Hundreds of dairy farmers agreed on one simple principle: unifying was the best way to market their milk to the greatest advantage possible.

per year to sustain local operations. membership and milk volume members’ milk resulted in MMPA The state association would serve increases for MMPA. The state emerging from the Depression with as the selling agency for all member association was marketing milk for a system of receiving stations, a milk. The association, with member nearly 100 local producer transportation fleet and its own approval, set a milk price based on organizations in the Lower fluid-milk processing plant. By generating a fair return over Peninsula. That number would peak necessity, more than design, the co- production costs. Then, it was the at 103 by the end of the decade. op developed considerable marketing association’s job to get dealers to pay To oversee the necessary muscle. the target price. employees and paperwork now Membership growth, along with By MMPA’s first annual meeting involved in marketing members’ the stations, transportation and on Oct. 17, 1916, the success in milk, the board hired John Near in processing capability developed member recruiting was apparent. 1921 as MMPA’s first secretary- during the Depression, resulted in The auditorium in the MAC general manager. Along with Near’s MMPA controlling a very significant Agricultural Building was hiring came the establishment of and growing percent of the total overflowing as almost 1,000 milk MMPA’s headquarters in Detroit, pounds of milk flowing into the producers “from nearly every county where the majority of members’ milk Detroit market by the time World in Southern Michigan” attended. was being sold to fluid bottlers. The War II ended in September 1945. They represented more than 80 local new office opened at the end of 1922 Soldiers returning home to their associations that had formed in the in downtown Detroit. Michigan dairy farms found their few weeks since MMPA was founded. In 1921, MMPA organized the milk marketing association larger Other local associations were Michigan Producers Dairy Co. and stronger. MMPA was poised to forming as fast as Reed could process (MPDC) to manufacture and market tackle an explosive postwar era. requests. dairy products from milk When MMPA was formed in oversupplies. MMPA owned 40 Growing and changing 1916, bargaining cooperatives were percent of the company, with the In the years following World War considered to be in violation of remainder held by individual II, change came to practically every federal antitrust laws until the farmers. MPDC operated aspect of dairy farming and milk

10 July/August 2016 / Rural Cooperatives Ken Nobis, MMPA president, addresses the co-op’s 100th annual meeting; the co-op’s Ovid Plant (below left); a co-op Y E A R S butter-packing plant, seen in 1956.

marketing in Michigan and across inspected Class I milk. the 1960s debuted. the country. Soldiers, exposed to new The availability of affordable rural The Motor City’s population ideas and practices while in service, electricity, combined with equipment climbed along with automobile returned to their farms with greater innovations, quickly brought the era industry sales, causing a housing expectations and plans for of three-legged stools, open buckets, shortage that sent workers sprawling improvement. The age of the milk cans and cream separators to a from the city center in search of modern dairy farm was rooted in close on the majority of MMPA homes. Farmland disappeared as new their aspirations. farms by the mid-1950s. residential neighborhoods sprouted MMPA’s membership soared to In 1955, MMPA hastened the where dairy cows had grazed. The more than 17,000 in 1954 before conversion from milk cans to suburbs were born. decreasing dramatically over the next electrified bulk tanks by offering A similar exodus occurred two decades. The cooperative, like premiums to members and selling throughout the state as families the entire dairy industry, contracted them bulk tanks at wholesale prices. looked beyond the city limits for as families exited the dairying In just a year, more than 600 room to grow. Everywhere, the lines lifestyle. producers in the Detroit market between town and country began to The farms that remained grew alone were using bulk deliveries. blur. larger and more specialized. The Housewives’ shopping habits average dairy herd size and milk Signs of the times changed along with their addresses. production per cow climbed. Milk Though MMPA’s markets New kitchens equipped with quality changed, too, as more encompassed a much larger area, the spacious refrigerators eliminated the producers shifted away from fortunes of the people of Detroit need for daily deliveries of milk and uninspected manufacturing grade and the fate of co-op members other dairy products. Instead, there milk in favor of the premium-priced, remained closely intertwined when were weekly grocery-buying trips to

Rural Cooperatives / July/August 2016 11 large chain supermarkets that often affiliate with MMPA. way to dispose of milk not sold for anchored new retail shopping fluid consumption, but rather a chief centers. New directions profit center. A major portion of Grocery lists modified as well. By 1985, MMPA was, by far, the MMPA milk began flowing into Increasingly, milk was sharing space largest dairy cooperative cooperative-owned facilities. in the grocery cart with soft drinks headquartered in Michigan. That and other beverages. Fluid milk year, members marketed 3.3 billion The greatest advantage consumption began a dramatic pounds from just 4,000 farms. It looked as though MMPA’s 75th decent. Tankers moved that milk over long anniversary would be bittersweet. As the cooperative approached its distances to reach a handful of USDA was predicting a year 50th year in business, MMPA leaders cooperative-owned processing “characterized by sharply lower kept a close watch on consumers facilities. prices, continued expansion in milk because their choices affected the co- MMPA had formed a Milk production and increased op’s future. Adjustments, advocacy Products Division in 1982 to better commercial sales.” and advertising would be key to manage the milk flowing into By spring, the predictions played keeping the company viable for the manufacturing. The division out with the lowest milk prices in 13 next half century. included plants acquired in a merger years. MMPA President Elwood Milk marketing was primarily a with the Michigan Milk Producers Kirkpatrick called on members to function of local associations when Dairy Co. as well as Constantine and write their congressmen and MMPA’s operational and governance Ovid. The McDonald Division President George Bush to urge dairy structure was established in 1916. remained a separate operation. policy changes. “It is vital that the

Through good times and turbulent times, the cooperative spirit has endured as a testament to what can be achieved through loyalty and commitment.

Things were different by the end of In the early 1980s, MMPA legislative body know of the crisis at the 1950s. Local markets were fast purchased a butter plant in Remus hand,” he wrote in his monthly disappearing, and milk marketing and converted it into a cheese plant. column. was being conducted over large Later, MMPA inked a deal with General Manager Walt Wosje was areas. Denver-based Leprino Foods Co., more upbeat by the time members Adjustments in the cooperative’s which supplied mozzarella cheese to gathered for the annual meeting in political and operation structure that four of the top pizza chains in the 1992. He reported that the were intended to improve marketing country. The deal gave MMPA a 20- cooperative had helped members and bargaining efficiency included: year milk supply contract, lease remain financially stable by paying forming a single operating income from the Remus plant and the highest ever over-order department for the Lower Peninsula, profit sharing from sales of premiums in 1991. MMPA creating a new department to oversee mozzarella made there. In 2005, distributed $14 million above the MMPA’s manufacturing and bottling Leprino bought out the cooperative’s Federal Order price to members. operations, and replacing local sales remaining interest in its assets and Flagging product sales picked up committees with a single market extended the milk supply agreement, in the second half of the year to committee. ensuring a market for MMPA further help the financial situation. A A year later, the Upper Peninsula member milk for an additional 24 year later, MMPA reported record- would also experience a makeover years. breaking profits due largely to the when five dairy cooperatives The Leprino agreement brought positive impact of its renovated representing 850 producers voted to manufacturing to the forefront. It manufacturing plants. form a single, large cooperative and was no longer regarded as simply a continued on page 38

12 July/August 2016 / Rural Cooperatives Utility Co-op Connection USDA energy efficiency programs can benefit utility co-ops and members in many ways

By Oumourumana Jalloh, USDA Rural their monthly energy Utilities Service summer fellow, bill. and Denise Scott, USDA Rural Utilities The RESP focuses on Service project assistant helping rural families e-mail: [email protected] and small businesses reduce energy use Editor’s note: Jalloh is an undergraduate through investments in student majoring in environmental studies energy efficiency. In and political science at the University of addition to offering a Pennsylvania. lower cost financing option — a zero- Everyone loves saving percent interest rate for money. Even if we don’t Blowing insulation into an attic can have a up to 20 years — than is save as much as we major, beneficial impact on a member’s available through the EECLP, RESP should, we all wish we heating and cooling bills. Photo courtesy also provides loans to utilities that serve could save more! Roanoke Electric Membership Corporation people in rural areas. RESP has a Finding ways to reduce payments on broader pool of eligible borrowers our energy bills — both for homes and Energy Efficiency and Conservation which includes (but is not limited to) businesses — can be a significant Loan Program (EECLP) and the Rural state agencies, territories and nonprofits strategy for saving money. However, Energy Savings Program (RESP). Both that provide energy services to rural this is more difficult for some than for programs provide flexibility for residents. others. borrowers to design their own energy Energy efficiency is vital to our Reducing energy consumption is efficiency or savings programs. nation’s economic growth and to the generally harder for people living in EECLP provides loans to finance development of local communities. rural areas than it is for those in urban energy efficiency and renewable energy USDA is strongly committed to areas, because rural residents have to projects that help reduce consumption offering a variety of flexible financing travel further for basic goods and and manage load. With EECLP, options to expand efforts to help rural services and, on average, have larger utilities that provide service to people in communities save money, reduce the households, among other reasons. The rural areas can borrow money at U.S. need to purchase or generate energy U.S. Energy Information Treasury rates, then re-lend the money and to reduce emissions from Administration estimates that rural to help consumers develop new, diverse generation of electricity. These efforts families spend about $400 more per energy products. will strengthen rural economies year in energy bills compared to the One example of this is the $6 million through job creation for energy typical urban household. EECLP loan awarded to North efficiency and conservation projects. The Rural Utilities Services (RUS) Carolina’s Roanoke Electric For cooperatives and cooperative of the U.S. Department of Agriculture Membership Corporation to finance members looking for ways to save (USDA) recognizes that high energy improvements in members’ heating, money through energy efficiency, costs are a burden for rural residents ventilation and air conditioning USDA may be able to help. and is working to bridge the gap (HVAC) systems, for the replacement of General information regarding USDA between rural and urban areas. USDA appliances, and to upgrade their homes loan programs for energy efficiency is committed to providing flexible with energy efficient windows, floors programs can be found at: programs that help finance energy and walls. These energy efficiency www.rd.usda.gov. For specific questions efficiency efforts for rural communities. improvements have yielded savings for about the RESP or EECLP programs, The newest energy efficiency customers who pay back their loan over contact Titilayo Ogunyale at: programs managed by RUS are the time through a small fee added onto [email protected]. ■

Rural Cooperatives / July/August 2016 13 theme for Cooperative Month 2016

The theme for national Cooperative Month in October is “Cooperatives Build,” which cooperatives are urged to reflect in their communications and outreach activities. The theme can be used on its own or extended with sub-themes, such as: Cooperatives Build Trust; Cooperatives Build Communities; Cooperatives Build Jobs; Cooperatives Build a Better World. “Cooperatives build in so many ways, so we encourage cooperatives to insert what they feel their co-op helps build as part of the broad theme,” says Jenny Bernhardt, chair of the Co-op Month Planning Committee. “The key thing is that your co-op plan some type of communications effort to help spread the word in October about why cooperatives are so important to your community, region and to the nation,” adds Bernhardt, who is director of commun- Jim Crawford of Tuscarora Organic Growers Cooperative discusses the co- ications for Cooperative Network, a regional association op’s marketing strategy during a panel talk on co-ops and local food systems, of cooperatives in Minnesota and Wisconsin. held at USDA headquarters during last year’s Cooperative Month.

Here are some key messages to relate in interviews and press releases that have been found to resonate with the media and the public. They help achieve the goals of Co-op Month, which are to raise public awareness of cooperatives and celebrate their accomplishments. ■ There are more than 29,000 cooperative businesses in the United States with 350 million members (many people belong to more than one co-op). These cooperatives generate $514 billion in revenue and more than $25 billion in wages, according to a study conducted by the University of Wisconsin Center for Cooperatives, with support from USDA Rural Development (http://reic.uwcc.wisc.edu/default.htm). ■ Cooperatives represent a strong business model and greatly contribute to both the national and local economies. ■ Studies show that consumers want to do business with companies that share their values, making today’s environment ideal for cooperatives and their commitment to the communities in which their members live and work. ■ Co-ops don’t have to answer to outside shareholders; they care about meeting their members’ needs. ■ Co-ops represent democracy in action, with control exercised by a board of directors elected from the ranks of members; the board hires and directs management and is ultimately responsible to the members; ■ Cooperatives generate jobs in their communities, keep profits local and pay local taxes to help support community services. Cooperatives often take part in community improvement programs, ensuring that everyone has an opportunity to benefit from the cooperative experience.

To better “bring home” these messages, gather additional data about the role and power of co-ops in your state, region or community.

14 July/August 2016 / Rural Cooperatives Co-op Month activity ideas ■ Hold an open house at your co-op. Include tours of a co-op facility. A farmer co-op could show visitors how to mix different types of livestock feed or test members’ milk quality. Have a satellite-enabled applicator rig available as part of your tour and explain how such gear helps to reduce the environmental impact of farming. Offer directions to a member farm they The planning committee was formed can also visit. through the Cooperative ■ Supply stores can hold a raffle and cookout to boost interest in their open Communicators Assoc. (CCA) and house. These types of activities can be a great way to showcase the includes the participation of the services and products of the cooperative. National Cooperative Business Assoc., ■ Set up Co-op Month posters at your cooperative and/or at a public facility. National Rural Electric Cooperative ■ Hold a workshop for members and/or the general public on an important Association, National Cooperative topic for your co-op. For example, an electric co-op can hold a workshop on Bank, USDA Cooperative Programs, energy conservation in homes and businesses or address what the co-op is Cooperatives for a Better World, the doing to promote renewable energy. Minnesota Cooperative Education ■ Write a letter to the editor about the importance of co-ops in the economy Foundation and communicators from a and the part your co-op plays locally. number of diverse cooperative businesses. ■ Contact your governor’s office with a draft of a state Co-op Month With support from participating Proclamation (this is sometimes done by state co-op councils, so check cooperatives and funding from the CHS with them first. This often takes many weeks of lead time). Foundation, the committee is creating a ■ Add some Co-op Month content to your website. Co-op Month toolkit with a variety ■ Perform a community service project or hold a fundraiser in observance of promotional/educational materials. The Co-op Month. These activities can range from cleaning up a stretch of campaign will be announced and highway or a public park to staging an event such as the annual race in materials will be made available at Washington, D.C., held to raise money for co-op development. www.CoopMonth.coop in early August. ■ Hold a Co-op Month breakfast, luncheon or dinner for members and/or The toolkit will include the new Co-op community members, and include a short co-op presentation. Month logo, posters, print and radio ■ Co-op stores can distribute special coupons for members to use during public service announcements, a sample October. press release, sample Co-op Month ■ Provide co-op educational brochures and booklets at your event, such as proclamation, social media resources, the “Do Yourself a Favor, Join a Co-op” brochure from USDA Rural co-op success stories, talking points and Development. Visit http://www. rurdev.usda.gov/BCP_Coop_Library activity ideas, among others. OfPubs.htm to see the co-op publications available from USDA. To order, “National, regional and local polls send an e-mail to [email protected], or call (202) 720-6483. consistently show that Americans really like the idea of doing business with a Like co-ops themselves, this annual observation is a do-it-yourself effort. cooperative, but so many people still Let your members know that your co-op celebrates its unique business don’t understand what co-ops are,” structure and service to them, and that it in turn fully appreciates their Bernhardt notes. “That’s what participation. Cooperative Month is all about: to help attract attention to the many benefits of the producer-, worker- and user-owned business model, and letting people Activities can be as a simple as cooperatives to schedule a Co-op know that cooperatives are all around putting up some posters, making Month screening of the upcoming PBS them.” classroom visits or hosting a field trip, Visionaries Series documentary The same communications efforts holding an open house or tour of your highlighting the power of cooperatives that help educate the public can also co-op, issuing a press release to your both in the U.S. and abroad. More serve as reminders for co-op members local and/or statewide media, holding a information at www.ncbaclusa and employees about “the co-op charity fundraising event. New this 100.coop/visionaries-documentary. ■ difference.” year, NCBA CLUSA encourages

Rural Cooperatives / July/August 2016 15 CO-OPS AND COMMUNITY DEVELOPMENT EFFORTS have played changing roles in addressing rural poverty

President Lyndon B. Johnson (LBJ) greets a resident during his “Poverty Tour” through Appalachia in May 1964. The tour was used to help win Congressional votes from the South for the proposed Economic Opportunity Act. USDA planned the trip, and Agriculture Secretary Orville Freeman was part of the delegation. Photo courtesy LBJ Presidential Library By Bruce J. Reynolds, Agricultural Economist USDA Cooperative Programs [email protected]

Twice in U.S. history, Presidents have mobilized the federal government to pursue major new initiatives to reduce or eliminate poverty: Franklin D. Roosevelt’s “New Deal,” from 1933-1942, and Lyndon B. Johnson’s “War on Poverty,” which started in 1964 and continued through the Nixon Administration. The War on Poverty was a part of President Johnson’s pursuit of a general reform of America, including civil rights and Medicare, called “The Great Society.” The New Deal was intended to help solve the Great Depression. Cooperatives had a leading role, primarily in rural areas, as vehicles for making the economy work for vast numbers of the unemployed or underemployed. Some of the agencies and types of cooperatives that were used to deliver services of the New Deal were examined in the March/April 2014 issue of this magazine (back issues are posted at: www.rd.usda.gov). In contrast, the War on Poverty addressed America’s “poverty in the midst of plenty,” so that the challenge was more to target impoverished communities than to fix a general economic crisis. Cooperatives were regarded as a useful strategy, but more direct methods of meeting development needs were favored. For the New Dealers, America was more rural in the 1930s and the ubiquitous presence of farmer cooperatives provided a base of knowledge for starting new co-ops using the same organizational model (Knapp). When the War on Poverty was launched in the 1960s, consumer and worker co-ops did not have as large of a presence in urban areas to establish public understanding of the cooperative model (Jackal). The War on Poverty was led by the Office of Economic Opportunity (OEO), a new agency created by the Economic Opportunity Act of 1964. The OEO launched several initiatives, such as Job Corps, Head Start, Legal Services, Volunteers in Service to America (VISTA) and the Community Action Programs (CAPs). Although the OEO was terminated in 1974, many of its initiatives continue to operate, albeit with reduced funding (Stevens). The Department of Housing and Urban Development (HUD), established by President Johnson, also played a role in the War on Poverty.

Lessons from the New Deal The New Deal experiments with cooperatives had a mixed record of accomplishments. Notable success resulted for rural electric cooperatives and the agricultural system, although the latter was not experimental but an extension of the Farm Credit system that served a well-established and relatively large sector of farmer cooperatives. Rural health care and most of the land settlement cooperatives for collective farming did not outlast the New Deal. Some New

Rural Cooperatives / July/August 2016 17 Deal cooperative housing communities, such agreement between the CAA and a proposed as Greenbelt, Md., were a success, and food co-op. A detailed manual for continue to thrive today. But the decline of establishing and operating food cooperatives the rural health care and many of the farm was developed by OEO (see photo, left). settlement cooperatives has been attributed The manual emphasized the autonomy of to the federal government’s “top down the co-op: “Staff of the co-op must be approach.” New Deal government officials answerable to the co-op board, not the made decisions and administered programs CAA, must pay salaries and must have the with the term “cooperative” functioning in power to hire and fire co-op staff.” Such name only (Knapp). advice has been time-tested and is important in starting cooperatives with members who Community action need to develop operating and governance The policies of the OEO engaged skills. economically distressed communities with The extent to which OEO food involvement in solving problems or cooperatives and buying clubs were This OEO operations manual was overcoming constraints. OEO leaders established and sustainable has not been used by the Community Action believed that the best vehicle for pursuing Agencies to organize co-op stores documented. The persistence of “food economic uplift was to work with and buying clubs in low-income deserts” in low-income communities to the community-based organizations that would neighborhoods. present day suggests that many of these co- implement programs — such as job training op initiatives were either difficult to and early education — to overcome barriers The New Deal experiments establish or proved to be unsustainable. The to economic development. Support for recent renewal of food cooperatives in business development, such as cooperatives, with cooperatives had a mixed underserved neighborhoods has better was also important, although the OEO’s record of accomplishments. prospects with more availability of guiding policy was to target government experienced technical assistance providers assistance on problems rather than rely on Notable success resulted for (www.foodcoopinitiative.coop ). general economic uplift. rural electric cooperatives and Community-based organizations, which Financing rural co-op development OEO called Community Action Agencies the When the New Deal ended in 1942, (CAAs), played a major role in the War on banking system. USDA substantially reduced its financial Poverty. By 1967, there were more than support to alleviate rural poverty. Its 1,000 CAAs, most of which were new Farmers Home Administration (FmHA) was organizations for grassroots efforts to fight poverty established in 1946 to carry forward some of the programs of (Lehman). Federal grants were provided to the CAAs to fund the New Deal’s Farm Security Administration. Its legislative delivery of services, such as Head Start, Job Corp and Legal mandate focused on farm operating loans and housing, as Services. related to farmers and farmworkers. The CAPs involved economic projects that were Lending for water facilities was added later, and in 1961, developed by CAAs in consultation with citizens in low- FmHA was authorized as a lender for single and multi-family income neighborhoods. Rural communities also organized housing. The Economic Opportunity Act of 1964 brought CAAs and received financial support from the OEO. By about a return to programs for improving the economies of working directly with communities and bypassing city, state low-income rural communities. Funds for FmHA’s lending to and local governments, OEO initiatives were politically address rural poverty were provided by the OEO, while its divisive (Carlson- Lehman- Woods). traditional lending to farmers remained as part of USDA’s budget appropriations (“A Brief History”). Food co-ops Cooperatives became a key strategy of the civil rights Food cooperatives and buying clubs were established in movement in the South during the 1960s. These efforts many cities during the late 1930s and throughout the 1940s received grants from OEO and loans from FmHA (Marshall - and grew in popularity during the 1960s (Co-op Handbook). Nembhard). Several of the cooperatives organized by African This movement set an example for OEO to initiate food co- American farmers received start-up funding from both ops and buying clubs to improve access to nutritious foods in nonprofit development organizations and from federal low-income neighborhoods. government sources. Part of the motivation of these The lessons learned from the New Deal about top-down cooperatives was to stop land loss resulting from decision-making are evident in the OEO approach to its food discrimination against African-American farmers in trying to cooperatives initiative. The OEO required a delegation obtain commodity loans from USDA and farm input loans

18 July/August 2016 / Rural Cooperatives Division in 1967 that consulted with OEO on developing rural cooperatives (Rasmussen). The OEO did not consider establishing an agency similar to FCS for technical assistance to urban consumer and worker cooperatives. The relative lack of funding for technical assistance for starting cooperatives in low-income communities has limited their sustainability. (FCS was renamed the Agricultural Cooperative Service in 1980 and was the predecessor of the 1994 reorganization of Cooperative Programs in USDA Rural Development.)

Cooperatives = community The War on Poverty oriented government policy to work through community-based organizations for delivering services to those who do not reap the benefits of general Sargent Shriver, director of the Office of Economic Opportunity (OEO), economic growth and prosperity. The cooperative business meets with President Johnson on April 5, 1965. Photo courtesy LBJ model was not neglected by OEO, but it was not regarded as Presidential Library a major strategy for reducing poverty, as was believed by the from FmHA (Reynolds - Equal). New Dealers. OEO’s authority to bypass state and local government In the decades after the OEO ended, cooperatives proved to be crucial for African-American cooperatives to continued to have a limited role in government economic receive grants and FmHA loans from its Washington, D.C., development policy. Possible explanations include the office (Marshall). However, OEO could not influence experience that cooperatives take more time to get organized USDA’s state offices to provide equal opportunity for than community planning groups. Furthermore, for quickly individual minority farmers to receive facilities and operating spurring economic activity, alternative business models with loans (Equal). In 1994, FmHA’s housing and community investor ownership may offer advantages in meeting time lending services were reorganized into USDA’s new Rural constraints. Development mission area. The OEO strategy of partnership between the federal Some of the civil rights-era cooperatives in the South did government and community development organizations to not sustain over the long-run, in part due to weaknesses in target economically depressed areas continues as the primary management and record-keeping (Marshall). While financial mechanism for delivering assistance, according to U.S. assistance was delivered during the startup phase of the co- Agriculture Secretary Tom Vilsack. In addition, U.S. ops, there was less delivery of technical assistance and economic development strategy has incentivized cooperative education later in the life of the businesses, corporations, banks and other financing entities to invest in which was much needed to address the challenges of impoverished communities with income tax credits and other balancing business operations with member democratic programs to encourage private investment (Stevens). Some control. The Federation of Southern Cooperatives was cooperatives have been financed with these incentive formed in 1967 to help start and sustain cooperatives. It is programs. But the application of cooperatives for one of the earliest cooperative development centers to strengthening the economies of communities is not a high provide training and technical assistance for addressing the priority strategy in federal government policy. challenges of sustainability for small farmers and There are distinctive contributions from cooperatives for cooperatives. community development. More of the income from cooperatives stays in the communities where they operate, in Providing technical assistance contrast to businesses with ownership by outside investors. In The largest resource in the federal government for addition, because they have strong ties to their communities, cooperative technical assistance, education, and research is cooperatives do not relocate the business away from the housed within USDA. In the 1960s, these services were membership base. Another advantage is the development of a provided by USDA’s Farmer Cooperative Service (FCS). FCS wide range of skills and business know-how by cooperative had been spun off from the Banks for Cooperatives to be an members that is often more selectively available to hired agency of USDA in 1953. Its technical assistance and employees in investor-owned firms. research work traditionally served established farmer Cooperatives in low-income communities face special cooperatives. challenges that can be remedied with a combination of public The War on Poverty influenced USDA’s cooperative support to help finance start-up costs and technical assistance programs. FCS established a Cooperative Development continued on page 37

Rural Cooperatives / July/August 2016 19 Top: U.S. Air Force Veteran James Marry, right, is among those watching a demonstration about grading sheep during the Service to Stewardship workshops and tours. Bottom: Red Devon cattle are the main breed of livestock at Lakota Ranch, the central location for the two-day event. The ranch is considered a model for an organic, grass-based operation. For Farm By Dan Campbell, editor Photos by Lance Cheung

Editor’s note: In addition to taking photos for this and Country article, USDA photographer Lance Cheung also conducted a number of interviews, upon which much of this article is based. Additional information was also drawn from subsequent interviews and the websites of some of the participants.

‘Service to Stewardship’ event opens doors for

20militaryJuly/August veterans2016 / Rural Cooperatives to raise heritage livestock breeds The experiences of military veterans transition into military veterans can farming, but also underscores their include everything commitment to maintaining the from overhauling the genetic diversity that heritage engines on troop livestock breeds represent. transports and tanks to driving Cooperatives have long been active entrenched insurgents down from a in hiring vets for jobs, finding that mountainside in Afghanistan. their varied experiences in uniform Regardless of the many thousands of make them especially well-suited for different tasks they might have been jobs that entail interfacing with their assigned, their military years taught producer-members. In recent years, them at least one over-arching skill: this publication has included articles how to make a total commitment to about the veteran-hiring programs of achieving a mission. Their success — co-ops such as CHS Inc. and the sometimes a matter of life or death — Farm Credit System. Many other co- often depended on their ingenuity, ops have similar veteran recruitment the ability to adapt to changing conditions and to overcome unforeseen obstacles. In many respects, farmers and ranchers need these same skills. Successfully raising a crop or a herd of livestock requires a total commitment to the mission. And who, more than a farmer, knows about having to revert to “Plan B” when Mother Nature or the marketplace throws a wicked curve? This convergence of skill sets is a primary reason that the Livestock Conservancy — a nonprofit organization dedicated to the conservation of endangered livestock breeds — has made a commitment to educating military veterans about the Top: Jeff Adams, of Walnut Hill Farm at Elm Springs, shares his knowledge about the commercial opportunities of raising business of raising rare breeds of cattle. Below: Richard Larson, owner of Old Gjerpen Farm, heritage livestock. Saving breeds such discusses the basics of grading sheep and the benefits of showing them in competitions. as Leicester Longwool sheep, Larson, who raises Milking Shorthorn cattle and Leicester Longwool sheep, is a two-time Scottish , Buckeye winner of the Supreme Champion Fleece award. and any of nearly 200 other endangered breeds of livestock and poultry is the Conservancy’s mission be their next great adventure. This is and hiring programs. For its part, (see sidebar, page 26). the third year the Livestock USDA has made a strong Fifty six military veterans, other Conservancy has staged the event for commitment to hiring veterans, and it beginning farmers and workshop veterans and other beginning farmers. supports reservists in the USDA leaders gathered in May on the It hopes to make it an annual event. workforce when they are called up for Lakota Ranch, near Remington, Va., Ag co-ops — such as Culpeper duty (see page 2). for two days of demonstrations, (Virginia) Farmers’ Cooperative, Following are a few glimpses of hands-on workshops and tours of area Southern States Cooperative and some of the people — both beginning farms. The goal of the “From Service Organic Valley — have helped to co- farmers and workshop instructors — to Stewardship” event is to help sponsor these gatherings. For co-ops, who participated in the “From participants decide if raising heritage supporting such events not only Service to Stewardship” event. breeds of livestock and poultry could shows their support for helping

Rural Cooperatives / July/August 2016 21 do it. I learned a lot and took it from there.” The joys of ‘low-tech farming’ The slow rate of progress mowing by yourself with a scythe can be a little discouraging, he admits. Scything is best In these days of air-conditioned, satellite-guided combines, done in group, anywhere from 3 to 12 people, Cooper says. the harvesting method being demonstrated by Larry Cooper With “several people in echelon cutting in 10-foot arcs, you seems more akin to the Bronze Age than the Silicon Age. He can clear a field in no time.” is using a scythe to mow a field of grass. With each smooth, While many conference-goers are fascinated by his level swing, there is a whispered “swoosh” as 10-foot arcs of demonstration, even if only as a backup option, others are grass collapse in neatly shaven waves. skeptical that this is something they would ever try on any This simple, but elegant device “is one of the greatest kind of scale. “I’m sorry, but there is no way I am going to tools ever invented,” Cooper says, and it should not be mow 100 acres of hay with a scythe,” one man says later in confined to the trash bin of technological history. the day. ■ Cooper makes his own scythes (he also sells them), ordering the blades from Italy. They aren’t made in America any more, he notes. “Light as a feather and so sharp you could shave with it — every homestead should have one,” says Cooper. After working as a blacksmith for 30 years, Cooper decided to concentrate on toolmaking and producing more of his own food. One day, his gas-powered weed-eater died, which got him looking at other ways to manage the acre of grass around his place. “In Wisconsin, you must keep your prairie grass cut,” he says. So he scythed that acre of grass. Not long afterward, a prairie fire burned 40 acres of grass around his home. The house survived “because I had done my duty with my scythe.” Lesson learned: “Surely this must have been the way to manage grass before we had gasoline engines.” Cooper continued scything, but soon learned that his technique was “all wrong. I finally met a person who really knew how to Larry Cooper

Genetic conservation requires tough decisions

“People talk about breed and livestock conservation, but The overall purpose of this workshop, he explains, “is to I prefer to talk about genetic conservation,” says Richard give people without much experience working with sheep a Larson during his workshop on raising Leicester Longwool base of knowledge needed when making decisions on what sheep. breed of sheep they want to raise.” The initial purchase of It is all well and good for a farmer to raise heritage animals that will become the foundation of a flock is the breeds to help preserve them, “but if you are doing it in an most important decision a farmer will make, he stresses. uninformed way, making bad decisions or not making Many people involved in breed conservation discourage tough decisions [such as when to cull an animal], ultimately showing the animals in competitions, their thinking being you are hurting that breed. Someday, you will have that you then begin to breed only for show traits. Larson changed the breed in a way that is undesirable,” Larson disagrees, finding great value in getting the independent, says. “You must be able to identify desirable traits and expert assessment of livestock judges. make tough decisions, otherwise you are not helping to Larson maintains four bloodlines of Leicester preserve rare breeds.” Longwools on his farm, which he maintains in a “closed

22 July/August 2016 / Rural Cooperatives Opting out of ‘corporate life’ When he left the U.S. Marine road, then find out things we shouldn’t Corps, Wes Rosson tried to make the have done, or should have done,” Wes transition to “working in the corporate says. He is still working off-farm to pay world.” But he soon learned that for the land and health insurance and manning a desk for corporate America will continue to do so for the wasn’t where his head or heart was at. foreseeable future. After leaving the service, “I went the Farming is hard work, the opposite way from farming. But I Rossons say. “But we would rather put realized all of that was completely the work in on our own home and wrong for me. It was not the future I business than for a corporate-type wanted,” Rosson recalls. The life that future,” Wes says. “We hope to have attracted both him and his wife, kids soon, and plan to home-school Monique, was small-scale farming and them. We want to build a home where becoming self-sufficient in raising most our family can live and be self- Wes & Monique Rosson of their own food. sufficient.” They now have land near Gum The Rossons believe their skills Springs, Va., about 30 minutes west of Richmond, where and personalities will complement each other well on the Monique cares for a flock of laying hens. “They are a lot farm. “I’m a very Type A, very organized person while more work than I ever expected,” says Monique, who is she is a bit more of a Type B, very creative person.” planning to soon quit her off-farm job as a baker so that Wes sees his Marine experience as converting well to she can better focus on caring for the hens and the farming. “In military service, you learn to pursue your gardens they have planted. mission…and to stick to it when things get hard. You Their 10 acres of land is mostly wooded, but Wes is have to figure out what the obstacles are to achieving working weekends to clear some of it to create more your goal, then do whatever it takes to achieve your gardens and a pasture where they plan to raise a yet-to- objective. be-determined heritage breed of livestock. Hence, they “The military teaches you teamwork and comradery say the Livestock Conservancy workshops were made to and that each of us have inherent strengths and order for them. weaknesses,” he continues. “The mark of a good leader is “We are learning more about getting started with to understand them and put them to work to achieve the livestock — what breeds should we raise? We want to common objective.” ■ find out all the ins and outs before we head down the

Line breeding, Larsen explains, is basically inbreeding. “The difference is that line breeding is an informed process. Inbreeding is haphazard — an ‘I don’t know what I am doing’ practice. If you are going to line breed, you must be knowledgeable about the genetics and be prepared to make difficult decisions.” “How do you assess quality if you are new to sheep or to the breed? Reputation of the seller is one way. Ask for Richard Larson references. Look at production records. Talk to other breeders. Select livestock that is suitable to your land. How will you feed them? Do you have enough pasture and water?” These are just a few of the key questions you must answer before getting started. Another key is to find a skilled veterinarian, Larson says. flock” and uses a “line-breeding” system. “We don’t have to “I can’t over-estimate how important vets are — not all vets bring in rams — our flock has been closed for 15 years,” he says. are the same.” ■

Rural Cooperatives / July/August 2016 23 Ranch work helps veterans

Elise Gibson and Lydia Barr work on the Mill Swamp looking for ways to use animals to help people.” She has Indian Horses ranch, a nonprofit breed-conservation interned on an organic farm in Maryland, where she gained program near Smithfield, Va. The ranch is working to experience working with all types of farm animals. She has prevent the of the Corolla Spanish Mustang, which also volunteered at the zoo in Norfolk, Va., and currently its website says is “perhaps the oldest and rarest distinct raises her own meat rabbits. “I’m very interested in animals genetic grouping of American horses,” as well as other and how to take care of them in a sustainable way.” endangered early horse breeds of the Americas. The tours, workshops and networking has greatly In their work on the ranch, Barr and Gibson often interact expanded their understanding of multiple-animal, rotational with military veterans from a nearby V.A. hospital who may grazing systems, Gibson and Barr say. “It does not necessarily have suffered some type of trauma. The ranch has “a strong make me want to own a farm, because that can be pretty emphasis on working with service members,” Barr says. stressful,” Gibson says. “There is lot of pressure when you While the program for vets is technically not a have a lot of money invested in something that could go rehabilitation program, it is part of a post-traumatic stress terribly wrong.” disorder (PTSD) program, Barr explains. The vets come to But the experience has added to Gibson’s desire to work the ranch to work with the horses for a series of sessions. on a farm, possibly as the “top hand” so that she could still There is also a program that works in a similar way with “have an impact” on how food is produced, she says. foster children and troubled youth. “Horses can really affect “My brother and his wife farm in Minnesota, where they them — help them understand how to trust and reconnect in rent land in exchange for providing the landowner with fresh ways that they wouldn’t be able to understand from another produce, eggs and meat,” Barr says. “They get to manage the human,” Barr says. land however they want.” Such arrangements, she notes, are “They learn to accept responsibility for things,” Gibson becoming increasingly common. “That is probably more the adds. direction I would go.” ■ Because of these experiences, Barr says she will “always be

Lydia Barr

24 July/August 2016 / Rural Cooperatives What’s in a name?

Leading a tour of Hock- on a farm in the arid country Newberry Farm, near near Newberry Springs, Marshall, Va., Erica Calif., east of Barstow. Govednik is discussing how Govednik began she manages the farm’s campaigning to convince her forest-raised, American parents to get her a horse. To Guinea Hogs. She also has a see how committed she was Nubian dairy herd and to caring for a large animal, free-range chickens. her parents “sent me down The 25-acre farm, about the road to a farm [Hock- an hour west of Washington, Newberry Farm] where this D.C., benefits weekly from older man had horses.” the help of a couple of Lester Hock ran a quarter volunteers who exchange Erica Govednik horse-breeding ranch and work for fresh pork and knew his trade well. At that , as well as the time, Hock was about 85 and chance to learn skills they she was 11. hope to one day employ on “He taught me how to their own farm. ride horses, handle sheep and Asked if she needs more how to deal with animals of volunteer help, Govednik all shapes and sizes.” Her says, “Yes, I have pigs I need parents were impressed by to castrate — want to help?” her ranch work, and on her The ensuing laughter all 13th birthday she got a pair around indicates that this of mustang mares through might not be a job for a the U.S. Bureau of Land beginner. Management’s wild horse But there are plenty of adoption program. less demanding jobs, and she Hock passed away when says farm volunteers are she was 15. No one in his indeed most welcome. “We family wanted to take over like folks to come and learn. Most of the time, I will the farm. Showing how much she loved and respected put you right to work because I don’t have time to the man who had taught her so much about horses and stand around talking without also getting work done.” caring for farm animals, Govednik pedaled her bike Govednik served in the U.S. Coast Guard for a little down the road to the farm, took the big plywood sign more than 10 years, leaving the service in 2010, with the farm name, strapped it on her back and rode although she is still a Reservist. home with it. Asked how the farm got its name, Govednik tells of “When I have a farm of my own someday, this is her childhood in rural California. When she was 8, her going to be my farm’s name,” she promised. “So he family was living in Los Angeles, but her parents hated lives on through what we do here every day.” city life, and they wanted to escape it. Govednik urges those starting a farm to “pick a Opportunity knocked in the form of a friend of her farm name that means something to you.” A generic father who had a business importing and who name, like “Green Pastures Farm is not really going to had decided to also try importing ostriches. He knew mean much to anyone. Naming your farm should be that her father was good with computers and knew like naming a child — this is my baby.” something about incubators. Soon, the family had left And she still has Lester Hock’s farm sign. ■ LA behind and was raising ostriches and goats

Rural Cooperatives / July/August 2016 25 From guiding missiles to herding sheep

Andrea Chandler, attending her second Livestock sure they have the income “needed to pay for the mortgage Conservancy conference for vets, spent nearly 10 years in the and for health insurance.” U.S. Navy, including duty onboard a destroyer, where she That’s a fairly common arrangement for many of the worked on the guided missile system. Living and working in participants, whether already raising heritage breeds or such close quarters with 350 other sailors certainly teaches getting ready; for them the livestock will, at least initially, be one the value, and necessity, of teamwork. a secondary source of income. The farm lifestyle (some refer “Maybe you didn’t like all 350 of them, but you certainly to themselves as “homesteaders”) is more the driving force took care of each other,” Chandler says. “Nobody gets left in than is the chance of getting rich from livestock. a situation they can’t handle.” While some aspects of military experience are invaluable After a decade of service, Chandler felt it was “time to fish to farming, Chandler says she also has “had to learn to let or cut bait — to either get out or stay in and do my 20 go” of some of her Navy experience. years.” She decided to “move back into the “In the military, we like to plan a lot. We civilian world,” where she took a job with a joke in the Navy about the plan for the day defense contractor, working on the same being the point of standard deviation. So you guided missile system she had helped to have an idea of what you are going to do that operate on the ship. day, but often it does not work out that way.” From there, she decided to move into Likewise, her sheep often confound her small-scale agriculture, and now has a small expectations. It turns out her sheep “did not flock of (primarily) British . read the same book on sheep [rearing] that I Chandler markets their and “sends the had,” she jokes. “Sometimes, I have had to let occasional animal to slaughter.” She plans to the sheep teach me, and to just have a broad expand the flock, but finds the thought “a idea of what I need to do that day.” little scary.” “It is wonderful to meet other veterans who Chandler describes her farm as a “one- are interested in ag. I’ve had a lot of help in and-a-half-person operation” in which she getting started, and maybe I can give other oversees the animal husbandry while her beginning farmers a hand up — things like husband helps with the heavy labor, when not finding breeding stock. Like in the military, engaged in his off-farm job — which makes we have each other’s backs.” ■

Why save endangered livestock breeds?

Why is it important to save endangered breeds of as these, account for the vast majority of cattle in North livestock and poultry? America. Because rare breeds have genetic traits not found in “Over the years, we’ve bred the best to the best to the commercial livestock breeds, which may be needed to best, so they are all related to each other,” she continues. ensure biodiversity for future generations, says Alison But problems “creep in when you have a high degree of Martin, executive director of the Livestock Conservancy, inbreeding.” The best way to deal with such problems is headquartered in Pittsboro, N.C. to sometimes bring in genetics from other, non-related breeds. “It’s like maintaining a stock portfolio — you don’t “Other breeds could have disease resistance, good feet want to put all of your investments in one or two stocks,” or good mothering ability,” Beranger says. “It is important adds Jeannette Beranger, the Conservancy’s research and to everyone to keep these endangered breeds around. It is technical programs manager. “For example, with cattle, securing the future of American agriculture.” we’ve become very dependent on Hereford and Angus for “Some livestock — such as draft horses, lost their jobs beef, and Holstein for dairy.” Very few cattle breeds, such to mechanization,” Martin says, adding that we may need

Editor’s note: Information for this article is excerpted and adapted from the Livestock Conservancy website and podcast.

26 July/August 2016 / Rural Cooperatives Jeff Adams with Milking Shorthorn steers Chip and Dale. Opposite page: Andrea Chandler listens intently during a workshop on fleece quality for ideas she can try with her own sheep flock. The “Service to Stewardship” event was conducted by The Livestock Conservancy, Virginia Cooperative Extension and Lakota Ranch.

“It is important to everyone to keep these endangered breeds around. It is securing the future of American agriculture.”

draft horses again someday if we lose our supply of identical to diabetes in humans and has been used in affordable oil. university trials for new diabetes treatments. Heritage breeds are also important culturally and Since its inception in 1977 (first as the American Minor historically. For example, the Marsh Tacky horse, a Breeds Conservancy), the Livestock Conservancy has done descendent of horses brought to America by Spanish research, education, outreach, marketing, promotion and explorers, played an important role in the American genetic rescues. No breed on its Conservation Priority List Revolution. Francis Marion (nicknamed the Swamp Fox) has ever become extinct. rode these horses when waging guerilla warfare against the “Heritage” is largely a “term of art, not science,” Martin British. says. The Conservancy is working to define “Heritage” for “It was the ultimate all-terrain vehicle for that low various species in order to codify the term in the country,” which the heavier British horses could not pursue marketplace. “Heritage” labels have not been officially through the swamps, Beranger says. recognized by the USDA certification process. Rare livestock breeds can be useful for human medical The Livestock Conservancy 2016 National Conference research. The Ossabaw Island hog adapted to survival in will be held Nov. 3-5 at Hampshire College in Amherst, periods of severe drought on its island home off the coast Mass. For more information about the Conservancy, visit: of Georgia. It developed a genetic condition that is https://livestockconservancy.org/. ■

Rural Cooperatives / July/August 2016 27 Legal Corner Mississippi’s proposed general co-op law would “help people with a dream to embrace a different life”

By Meegan Moriarty Reaching out to industry USDA Cooperative Programs Cooperative supporters also reached out to members of industries that West Virginia citizens care about, including Cooperative Month — October — is around woodworkers, furniture-makers, artists, crafts people, food the corner, and cooperative supporters in and beverage providers and distributors, and individuals Mississippi are gearing up for action that engaged in recycling, composting, and “re-purposing.” To could expand the number and types of co- encourage industry support of the legislation, these ops in the state. The Southern Grassroots industries were specifically enumerated in the legislative Economies Project is spearheading an initiative to enact a language that describes the purposes for which cooperatives Mississippi general purpose cooperative law. Supporters are organized. Although West Virginia’s law does not hope the proposed legislation and a coalition to support it include language saying that a cooperative can be operated will be ready by October. At a round table planning session for “any lawful purpose,” meeting attendees broadly agreed in May, a group of cooperative supporters gathered in that this kind of language should also be included in the Jackson, Miss., to brainstorm on how to persuade Mississippi proposal to facilitate the widest possible use of stakeholders that a broad cooperative law is in their best the cooperative law. interest. Tom Pierson, who chairs the Advocacy Committee of Currently, Mississippi’s cooperative legislation allows only Cooperation Works (an organization for cooperative agricultural and electric cooperatives, as well as credit development practitioners), described lessons learned from unions. Melbah Smith, former executive director of the lobbying for a general purpose cooperative law in Illinois. Mississippi Center for Cooperative Development and 2009 He encouraged the group to consult with supporters of honoree (also featured in the agricultural interests and other cooperative groups to ensure May-June issue of Rural Cooperatives), has been trying for that all interested parties are “informed and on board” with four years to get a comprehensive cooperative law enacted in the changes. Mississippi. Attendees at the planning session discussed Pierson said the first attempt to enact an Illinois general lessons learned from successful legislative initiatives in West purpose cooperative law failed because bill supporters did Virginia and Illinois. Elandria Williams, with the not reach out to agricultural interests. Stakeholders were Highlander Research and Education Center, organized and then invited to a council meeting held at a university to facilitated the gathering. discuss the proposal; the co-op law then passed on the Williams described West Virginia’s recent legislative second attempt. success in expanding the state’s cooperative law. Lobbyists in The Illinois cooperative law, as enacted, is based on the West Virginia engaged in a thoughtful campaign where they Ohio cooperative statute, with some changes made to studied the marketplace and contacted businesses to identify accommodate local Illinois cooperative practice, Pierson specific market gaps that cooperative businesses could fill. said. The Mississippi group had drafted a bill, but plans to For example, they explained how difficulties with getting polish it, possibly by considering comprehensive statutes food to urban areas can be solved using multi-stakeholder enacted in Wisconsin, Minnesota, Ohio, Illinois or other cooperatives, in which agricultural and non-agricultural states with more sophisticated cooperative laws. The group members can be part of the business. Under prior West also discussed the possibility of adding Virginia law, multi-stakeholder cooperatives were not provisions. possible. Williams said that organizations such as CoBank The group identified interested parties to contact to try and Farm Credit System associations advised West Virginia to form a coalition to support the proposed legislation. policymakers about the business opportunities that would be Possible supporters include church groups, the American facilitated by a broad cooperative law. These organizations Bar Association, agriculture and utility cooperatives, local were successful in using loan exemptions to finance urban banks and credit unions. Potential support could also come cooperatives. from the Rainbow Co-op (a Jackson, Miss., food

28 July/August 2016 / Rural Cooperatives cooperative) and other established cooperatives, the legislature as a package with other similar legislation. Mississippi Council of Cooperatives, the Mississippi Black Smith agreed to continue to garner support for the Caucus, Alcorn State University, grass roots organizations legislation with elected and appointed government and regional planning authorities. representatives. Myra Bryant, executive director the Mississippi field office of the Federation of Southern Gaining support from lenders Cooperatives, agreed to gather cooperative members and Smith noted that the American Bar Association has enlist their help in contacting particular stakeholders and already shown support for cooperatives by sponsoring the taking on roles in promoting the legislation. drafting of the Uniform Limited Cooperative Association Zippert and Pierson noted that a success in Mississippi is Act. According to Pierson, local banks could vouch for the likely to lead to broader cooperative law in other states in financial viability and responsibility of cooperatives by the South. Legislative affairs people read about what other telling legislators that co-ops are reliable, known for paying state councils have accomplished, Pierson said, and when a their bills on time and generally a “good risk” from a state has enacted particular legislation, other similar states lending perspective. want to “catch up.” The group also focused on best practices for promoting Toward the beginning of the meeting, Williams asked the their agenda. Members cited “people power,” or the power group why they should work to pass a cooperative law. Many of polite, persistent personal contact by interested parties, of the participants, including Pierson, cited the specific

Bryant said that a cooperative law would empower all residents of Mississippi. It would bring a better quality of life to people and provide them with access to capital.

including both elected and appointed officials. Other best characteristics of cooperatives that are not present in other practices discussed included the use of social media, business entities: democratic member ownership and testimonials, research and data. They noted the importance control; one member, one vote; economic autonomy and of crafting a uniform message and telling a simple story. The independence; and community development. Several group also mentioned the persuasive power of bringing participants, including Smith, discussed the value of the potential supporters on site visits to different types of educational process involved in forming a cooperative. cooperatives. Learning to work with others to cooperatively take care Lack of information and misperceptions about of each other’s economic well-being develops skills and cooperatives are an obstacle to legislative enactment, Smith leadership capabilities, Smith noted. Bryant said that a said. Some people erroneously believe that cooperatives are cooperative law would empower all residents of Mississippi. socialist — even communist — or that co-ops will open the It would bring a better quality of life to people and provide door to unions. Others fear that cooperatives will cause a them with access to capital. According to Bryant, a general change in the status quo, resulting in a shifting of economic cooperative law would “help people with a dream to or political power. To those who fear cooperatives, Williams embrace a different life.” responded that cooperatives are about workforce and Other attendees at the meeting included Wendell Paris of business development and economic opportunity. She the Federation of Southern Cooperative Development, advocated using research and data to prove the important Andrew Campbell of Cooperation Jackson and Samir economic role cooperatives play in many states. Hazboun of the Highlander Research and Education Center. Also in attendance were Rachel Plattus and Eli Feghali, co- Next steps editors at Williams of Beautiful Solutions (an online Smith and John Zippert, director of program operations platform that operates to share stories on systems change) for the Federation of Southern Cooperatives’ Rural Training and Earlene Wheeler (a Mississippi resident who is currently and Research Center, said that a committee established by working with the Federation of Southern Co-ops to develop the Mississippi secretary of state evaluates legislation. If the a cooperative). ■ committee approves the legislation, it is put forth to the

Rural Cooperatives / July/August 2016 29 Heather Berry, associate editor of Rural Missouri magazine, has been honored with the 2016 H.E. Klinefelter Award for her achievements as a cooperative communicator. This is the highest honor bestowed by the Cooperative Communicators Association (CCA) to “recognize contributions in furthering the cooperative system and raising the standards of cooperative communications.” Rural Missouri is the member publication of the Association of Missouri Electric Cooperatives. CCA also honored Casey Hollins, communications specialist for Rappahannock Electric Cooperative in Fredericksburg, Va., with this year’s Michael Graznak Award, signifying her status as one of the nation’s top young cooperative communicators. The awards were presented during CCA’s annual Cooperative Communications Institute in Omaha, Neb., in June.

Missouri’s own Martha Stewart Berry is an award-winning writer and photographer, as well as a social media Heather Berry of Rural Missouri magazine, right, won the Klinefelter Award, while Casey Hollins, expert. While she had no formal communications specialist with Rappahannock Electric Cooperative, won the Graznak Award education in communications, “What during the 2016 Cooperative Communications Institute in Omaha, Neb. Photo by Greg Brooks, she did have was a tremendous desire to Walton EMC contribute to the publication in ways other than what her [original] job comments as our recipe page.” Indeed, “An entire generation of young description dictated,” says Jim McCarty, he notes, some see her as Missouri’s people has a positive impression of longtime editor of Rural Missouri. “In answer to Martha Stewart. electric co-ops thanks to Heather and her 27 years of service, she has put an In 1992, Berry created “Buddy Bear,” Buddy Bear,” says Barry Hart, AMEC’s indelible mark on the publication,” the character that appears on the executive vice president and CEO. which circulates 545,000 copies each magazine’s “Just4Kids” page. She and Berry has left a lasting legacy at month, making it the state’s most others don a bear suit (that she CCA, first as a regional representative, widely read magazine. designed) to appear at fairs, parades and then as board treasurer, secretary and Berry, an avid cook and “foodie,” annual meetings. Co-op employees use vice president. She was president from overhauled the magazine’s Rural Living the coloring and comic books, 2000-2001. “Hallmarks of her section, “making it her own,” McCarty backpacks and stuffed Buddy Bears that presidency included building a more says. “No other section of Rural she designed to promote safety, energy active website and offering more Missouri gets as many favorable efficiency and co-op education. accessible, professional development

Editor’s note: this article is excerpted an adapted from articles that originally appeared in CCA News.

30 July/August 2016 / Rural Cooperatives programs,” says Susie Bullock, former CCA executive director.

Keeping communications fresh At Rappahannock Electric Cooperative, Hollins coordinates a comprehensive annual communications Chip Nelson, CEO at Cobb Electric Membership Corporation, plan which includes not only traditional Marietta, Ga., is the recipient of the CEO Outstanding communications efforts, but also special Communicator Award for 2016, presented by the Cooperative projects and campaigns. She’s involved Communicator’s Association. He was selected based on his unique in the cooperative’s membership brand of leadership, commitment to quality member service and “a magazine, REC Review, the Power Lines management approach that places a premium on the importance of employee newsletter, annual report, communication, from the board president to the night custodian.” social media, print advertising, website, Nelson took the reins at photography and videography. Cobb EMC in 2011 after From convincing management to the co-op experienced a give social media a try, then watching it profound transformation. grow exponentially, to putting on her There was a total turnover boots and heading out into the field to of its board of directors, find the right people to tell the right and the co-op made only stories, she has a keen sense of what her its sixth managerial audience wants and needs to hear. change in its 75-year “Casey is doing a wonderful job at history. Though he had making her cooperative relevant and served the cooperative’s communicating with its membership on 180,000 consumers in platforms that its members value,” says various capacities — Amber Sheridan of Maryland and including as chief Virginia Milk Producers. Hollins also operating officer — for serves as a director on the national more than four decades, Chip Nelson Certified Cooperative Communicators Nelson heard an board. “unmistakable clarion call “When presented with opportunities for change resounding from the membership. He sensed that the to learn, she will take advantage of best path to success was to make sure that active listening became a them to help her grow both personally central component of the organization’s corporate culture.” and professionally,” says Ann Lewis, the During the past five years, Nelson has created a productive REC’s director of communications and working environment in which employees are encouraged to play a public relations. substantial role in determining the future course of the organization “She is never content with recycling and how it succeeds in fulfilling its mission to deliver safe, reliable, the same communication tactics,” adds competitively priced electricity to its members. nominator Kevin Flores, vice president “Chip believes continuous improvement, open communication of Padilla CRT. “She understands the and engagement should be a part of our daily routine,” says Angela importance of keeping member Croce, Cobb EMC director of corporate communications. “And it’s communications fresh and relevant, and that attitude that helps us and our cooperative to remain relentlessly strives to improve the accountable to our members for everything we do. Chip believes effectiveness of her cooperative’s our job is to listen to our members and maintain true honesty with communication with each campaign.” ■ our members.”

Rural Cooperatives / July/August 2016 31 In the Spotlight

Todd Van Hoose: President and CEO, Farm Credit Council

As president and CEO Van Hoose: After years of strong of the Farm Credit performance, the agricultural economy Council since January now faces challenging times. 1, 2016, Van Hoose Commodity prices have fallen while leads efforts to the cost of production remains high. represent the Farm Credit System’s Forecasters don’t predict quick interests before Congress, the commodity price rebounds, barring Administration and various federal unexpected changes in demand, supply regulatory agencies. He previously or both. worked for the council in a variety of Fortunately, farm balance sheets roles before departing in 2008 as senior were mostly strong entering this cycle vice president for government affairs. after several profitable years. Perhaps Prior to his current role, Van Hoose the best news is that interest rates served as senior vice president, remain historically low, providing government affairs, at CoBank, where financial flexibility for producers. he led the bank’s Washington Office. As did the producers we serve, Farm In addition to Van Hoose’s more Credit anticipated the current cycle than 25 years of experience in the Farm and built financial strength. Farm Credit System, he has held positions in companies that provide vital Credit finances are the strongest ever, the U.S. Department of Agriculture and infrastructure to rural communities, and we’re prepared to use that strength on Capitol Hill. He is a graduate of the helping bring clean water to families, to fulfill our mission. We know our University of Kentucky with a reliable energy to farms and towns, and customers well, understand and respond bachelor’s degree in journalism and modern, high-speed telecommun- to their needs, and work cooperatively public relations. ications that connect rural America to with them to analyze and structure our the world. Modern infrastructure makes transactions to maximize their success. Q: How has Farm Credit’s mission rural communities competitive, changed since its founding a century provides jobs and improves the quality Q: How is Farm Credit working to help ago? of life for rural residents. beginning farmers? Rural communities and agriculture Van Hoose: Farming and rural life have are at the heart of everything we do. Van Hoose: As a cooperative, owned and changed dramatically since Farm Credit With every loan made, we’re committed governed by our customers, Farm was established 100 years ago, and we to demonstrating our mission. We help Credit has an especially strong are constantly evaluating our programs these areas grow and thrive by financing commitment to serving beginning and to ensure we are able to serve the full vital rural infrastructure and commun- small farmers. Last year, Farm Credit breadth of rural capital needs. As ication services, and providing farmers made 80,000 loans totaling $12.7 billion American producers prepare to feed a and with the capital they to beginning farmers. For every hour of planet of 9 billion people by 2050, need to succeed. Because a steady flow every day in 2015, we averaged more significant capital will be needed to of credit means jobs and economic than $1 million in loans to beginning ensure that agriculture and the growth, Farm Credit also helps ensure farmers. We increased lending to small infrastructure it needs are up to the the vibrancy of communities farmers and, by year-end, more than task. throughout rural America. half — some 500,000 — of our Farm Credit’s mission goes beyond outstanding loans were to small agriculture to support rural Q: How does the next year or two for producers. communities — Farm Credit finances U.S. agriculture look to Farm Credit? continued on page 38

32 July/August 2016 / Rural Cooperatives Newsline Co-op developments, coast to coast

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

Co-op storytelling project begins Cooperative Network, the regional co-op association serving Minnesota and Wisconsin, is embarking on a multimedia storytelling project with its member co-ops this summer to help amplify the cooperative business difference. The goal of the project, funded by the CHS Foundation, is to demonstrate the values and defining aspects of cooperatives through short- form stories. Narratives are being collected from a combination of pieces already produced by cooperatives as well as new stories uncovered and told specifically for the project. Cooperative Network intern Erin Bormett, a University of Missouri photojournalism student, is identifying and collecting stories on the themes of community giving, education, sustainability, employment, co-op Member-residents of Becketwood Cooperative, a senior housing co-op in Minneapolis, Minn., history, personal testimonials, and share a song and a laugh. Photo by Steve Woit Photography, courtesy Cooperative Network responding to community need. The goal is to work with cooperatives from Census urged to cooperative business sector in any of its across sectors. include co-op query census or business reporting surveys,” Some of the stories that have already The co-chairs of the House Co-op they continue. “As a consequence, there been collected include STAR Credit Caucus — Rep. Ed Royce of California is no readily available federally reported Union, the world’s only youth- and Rep Mark Pocan of Wisconsin — data on cooperatives in the United chartered at the Madison, are requesting that U.S. Commerce States (Editor’s note: USDA Cooperative Wis., Boys and Girls Club; addressing Secretary Penny Pritzker include a Programs does conduct an annual survey of racial and economic equity through question about cooperative businesses agricultural cooperatives, but does not community involvement at a new in the 2017 Economic Census, which survey other co-op sectors.) Seward Food Co-op location; and her office oversees. “Given the unique Prior to 1997, the economic census personal testimony from co-op niche that cooperative businesses survey had a checkbox for “cooperative” employees that went from internships continue to fill in the U.S. economy, it among the list of options for legal form to full-time positions. is unfortunate that so little is known of organization. But the co-op response The stories will be featured on social about where and how they operate and was eliminated after that. The media throughout the summer using the economic impact they make,” the justification was that such information the hashtag #ourcooperativestory and Congressmen write in their letter. was available from the U.S. Internal during National Co-op Month. A “Unlike the data-reporting agencies Revenue Service (through an collection will be later catalogued of many other countries, the U.S. interagency data-sharing agreement). online. Census Bureau no longer identifies the “Unfortunately, this data does not

Rural Cooperatives / July/August 2016 33 identify cooperatives directly,” Royce coming together will allow us to put the according to its attorney, Jason Wiener. and Pocan note in their letter. appropriate level of resources into Cooperatives can be found in U.S. programs and services that help our Halverson to succeed Census Bureau data files, but because customers grow their operations,” says Engel as CoBank CEO they are not identified as such, “any Douglas W. Manning, board chairman Tom Halverson has been named as summary data produced by Census and of CHS Kalispell. CoBank’s new chief executive officer, reviewed by researchers likely “Our combined size and scope will effective Jan. 1. Halverson is currently underestimates cooperative economic enhance our leverage with chemical CoBank’s chief banking officer. He will activity to some degree,” the manufacturers and strengthen our risk Congressmen write. management of market positions, “We believe it’s in the best interest among other advantages,” says Brien for Census to change data gathering in Weber, board chair of Mountain West a way that enables more accurate and Co-op. “Together, we’ll be able to reach comprehensive identification of efficiencies that we could not achieve cooperatives directly. The next individually.” Economic Census in 2017 provides the Pending due diligence, the co-ops perfect opportunity to again measure expect to begin operating as one their impact nationwide. We support business, under the name CHS this work and ask that the Census Mountain West Co-op, on Sept. 1. The Bureau coordinate with all stakeholders boards have appointed Chuck on this issue and work together with Thompson as general manager and them on how to best ensure more data- Mark Lalum as assistant general driven information is readily available manager for the new business. As full- on cooperatives.” service ag retailers, the two co-ops The letter goes on to say cooperative currently serve farmers, ranchers and businesses are “a niche within the other customers in 10 counties across Tom Halverson overall economy, but they are a well- Montana, from the Canadian border to established niche that accounts for a Idaho. significant fraction of economic activity. succeed current CEO Bob Engel, who Until there is a U.S. Census-based New taxi co-op has served as CEO since 2006. Engel cooperative identifier, the identification to serve Colorado had previously announced plans to leave of cooperatives in the U.S. will Colorado’s Public Utilities the post at the end of this year, when he continue to have its challenges and the Commission (PUC) has given will move into a strategic advisory role value they provide to the U.S. economy unanimous approval to the 800-member for the bank. will not be fully quantified, understood, Green Taxi Cooperative’s application “Tom is extremely well qualified to or appreciated.” to serve seven metro Denver counties, lead CoBank forward due to his many Other signatories of the letter according to a news item posted on the years of experience in the banking included Reps. Ron Kind (Wisconsin), www.CompleteColorado.com website. The industry and his deep understanding of Reid Ribble (Wisconsin), Walter B. co-op began operations the evening of our business and the needs of customers Jones (North Carolina), Barbara Lee July 4, when it offered free rides for in the industries we serve,” says Everett (California), Steve Stivers (Ohio), Bruce four hours. Green Taxi is the first Dobrinski, CoBank board chairman. Westerman (Arkansas) and Robert A. company to start under a 2015 state law Halverson joined CoBank in 2013 Brady (Pennsylvania). that created more liberal taxi and has responsibility for banking regulations. groups serving , Montana co-op ag About 50 of the co-op’s drivers, communications, power and project retailers merging many of them immigrants, packed the finance customers. He is a member of The producer boards of two locally PUC hearing room when the the bank’s Management Executive governed CHS ag retailers — CHS application was considered, according Committee and serves as vice chairman Mountain West Co-op and CHS to CompleteColorado. Most of the and director of the bank's leasing Kalispell — have agreed to merge to members have been driving either for subsidiary. better serve the needs of farmers, traditional taxi companies or newer, Previously, Halverson spent more ranchers and other customers in platform-based companies, such as than 16 years in a variety of executive western Montana. “Both of our Uber and Lyft. Green Taxi Co-op will positions with Goldman Sachs, businesses are financially strong, and be the largest taxi co-op in the nation, including managing director and chief

34 July/August 2016 / Rural Cooperatives cooperative of manipulating prices has been denied class action status by U.S. District Judge Rya Zobel, in Boston, International Forum on Co-op Law in Uruguay Nov. 16 Mass., according to an article in the Capital Press newspaper. The ruling is a The first International Forum on Cooperative Law will be held Nov. 16-18 major blow to the case, according to in Montevideo, Uruguay. The event is being planned by the Co-operative Maria Glover, a law professor at Law Committee (CLC) of the International Co-operative Alliance (Alliance), in Georgetown University who specializes collaboration with the CLC of Cooperatives of the Americas. The event will in class actions. coincide with the Continental Congress on Co-operative Law. In 2012, several cranberry farmers The forum will take stock of initiatives related to knowledge of filed a complaint claiming that Ocean cooperative law and explore how cooperative law can respond to 21st Spray violated federal antitrust law by century economic and social challenges. driving down the price paid for For more information, visit: http://ica.coop/node/13010, or e-mail: cranberries produced by certain [email protected]. growers. The plaintiffs have remained anonymous, due to their fears of retaliation, according to the Capital of staff for Goldman Sachs Bank USA, expected to soon vote on a proposed Press. head of credit risk management for merger with co-ops in Anthony and According to the lawsuit, Ocean Goldman Sachs in Asia (ex-Japan) and Kiowa. Spray was using a two-pool payment executive director of credit risk Lower commodity prices and the system to artificially depress prices for management and advisory in London. impact on farm incomes is helping to juice concentrate, setting low opening Before joining Goldman Sachs, he drive mergers, according to an article in prices that restricted bidder participa- served as principal credit officer for the Wichita Eagle. The number of co- tion. Ocean Spray denies the allegation. country risk at the European Bank for ops in Kansas has fallen from about 350 Reconstruction and Development. in 1950 to about 80 today, according to DFA to expand Michigan plant Halverson holds a bachelor’s degree Brian Briggeman, a professor at Kansas Dairy Farmers of America has from Wabash College and a doctorate State University. The newspaper cites announced plans to expand its 33,000- in war studies from King’s College USDA estimates that net farm income square-foot Cass City, Mich., facility. London. nationwide is expected to be down 56 The plant, constructed in 2013, “We will continue to fulfill our percent from the 2013 peak. currently processes up to 3 million mission of service to rural America by The merger of Andale Farmers Co- pounds of milk into cream, condensed focusing on building the financial op and Kanza Co-op creates a business whole milk and condensed skim milk. strength and flexibility of the bank, with about $270 million in gross sales “When we made the initial creating an exceptional experience for and a net profit of $8.6 million, investment in the Cass City plant, we our customers, and attracting an according to the St. John News. It will were already considering its expansion,” outstanding team of people who can offer grain and crop production services says Greg Wickham, DFA’s chief deliver on our value proposition,” and fuel and farm supplies. financial officer. “The time is right for Halverson says. “It is important that our cooperatives this continued investment, as CoBank is a $118-billion cooperative grow in size and scale to effectively Michigan’s milk supply continues to bank serving vital industries across rural continue to serve our members to be grow, but the processing capacity within America. Halverson will be the fourth able to supply them with the products, the region has not kept pace. The CEO in the history of CoBank, which services, and risk management tools plant’s location makes it ideal to provide was formed in 1989 through a merger that today’s producer expects and both domestic and global customers of 11 Banks for Cooperatives. deserves,” Earl Wetta, board chairman with safe, high-quality dairy ingredients.” of Andale, and Mike Christie, board Cooperative leaders are continuing Lower grain prices chairman of Kanza, said in a joint to finalize details of the expansion and drive Kansas mergers statement. are working closely with local and state Members of Andale Farmers Co-op, agencies on appropriate incentives. The Andale, Kan., voted in December to Cranberry lawsuit plant reflects DFA’s focus on merge with Kanza Co-op, Iuka, Kan. denied class action status sustainability, being designed to recover Members of Farmers Cooperative A group of cranberry farmers who and re-use water in plant clean-up Elevator in Garden Plain are also filed a lawsuit accusing the Ocean Spray operations.

Rural Cooperatives / July/August 2016 35 Michigan Sugar consolidates offices Michigan Sugar Co. has moved its International Co-op Summit to be held Oct. 11 in Quebec corporate offices into Bay City’s uptown area as part of an ongoing commitment The International Summit of Cooperatives will be held in Quebec, Canada, to invest in the community. The new Oct. 11-13. Among the featured speakers will be Navi Radjou and Jeremy offices will house more than 60 full- Rifkin. time corporate and management Radjou is a strategic consultant, based in Palo Alto, Calif., who is a fellow employees who previously worked in at Judge Business School and a contributor to the Harvard offices at multiple area locations. Business Review. His topic is: “Frugal Innovation: How to Do More with Less.” The company is a cooperative owned Inspired by affordable solutions found by entrepreneurs from emerging by sugar beet growers that makes countries, he will explore the possibilities offered by this approach for Pioneer and Big Chief brand sugars. It Western countries, particularly for cooperatives. was founded in Bay City more than a Rifkin is an essayist and president of the Foundation on Economic Trends, century ago. Across the region, based in Bethesda, Md. His talk, “Towards a New Economic Model,” will Michigan Sugar has nearly 1,000 full- propose new growth strategies to mitigate the limitations of the traditional time employees and more than 1,000 capitalist system. seasonal workers. For more information, visit: www.intlsummit.coop. In related news, the International Cooperative Alliance (ICA) has released Former MMPA President “Sustainability Reporting for Co-operatives: A Guidebook.” It builds on ICA’s Elwood Kirkpatrick dies “Sustainability Scan” and “Co-operative Growth for the 21st Century” reports. Dairy industry leader and former The report is online at: https://ica.coop/en/media/library/publications/ Michigan Milk Producers Association sustainability-reporting-co-operatives-guidebook. (MMPA) President Elwood Kirkpatrick died May 16 at age 79. Kirkpatrick When elected to the MMPA board promotion program. in 1979, his aptitude for finance quickly Kirkpatrick served as first chairman earned him the respect of fellow board of the U.S. Dairy Export Council, members. He was elected as co-op which helped to expand dairy exports president in 1981, a position he held from less than 3 percent of annual U.S. until he retired in 2007. milk production at its inception to more “The dairy industry lost a great than 15 percent today. leader. Elwood Kirkpatrick made a tremendous impact on the dairy Three co-ops study joint industry on both the state and national ownership of Michigan level,” MMPA President Ken Nobis cheese plant says. “He played an important role in Three farmer-owned dairy shaping today’s dairy industry, and his cooperatives are exploring joint vision will live on.” ownership and operation of a major On the national level, Kirkpatrick new cheese processing plant in served on the executive committee of Michigan. The cooperatives — the National Milk Producers Foremost Farms USA, Dairy Farmers Federation (NMPF) for 23 years, of America (DFA) and Michigan Milk Elwood Kirkpatrick including serving as NMPF vice Producers Association (MMPA) — all president from 1983-2003. have farmer-members in Michigan. served the dairy industry for over 28 In the late 1980s, he helped lead the The plant would produce 220 years in various leadership positions, charge to unify the promotion and million pounds of American-style including 26 years as president of marketing efforts of the U.S. dairy cheese annually. The co-ops say the MMPA. Throughout his presidency, industry, bringing together the activities idea is driven by the growing milk Kirkpatrick served the cooperative and of the United Dairy Industry supply in Michigan, the lack of available dairy industry on both state and Association and the National Dairy processing capacity within the region, national levels through his involvement Board through the formation of Dairy desire for improved market accessibility in a number of agriculture and dairy Management Incorporated, creating and transportation benefits. related organizations. greater efficiencies in the national dairy “Michigan dairy producers own

36 July/August 2016 / Rural Cooperatives some of the most progressive and in 2012 to promote fair pay to its Stocksy “hand selects” all new artist- efficient dairy operations in the world, contributing artists — doubled its members. Candidates are interviewed to and they have positioned themselves to revenue in 2015 to $7.9 million. It paid ensure they understand the co-op be a long-term supplier to domestic and out more than $4.3 million in royalties business model and their ability to global markets,” explains Michael Doyle, to artists last year and paid its first contribute fresh, modern imagery. president and CEO of Foremost Farms. dividends of $200,000 to member-artists. Greg Wickham, DFA chief financial “Our member-artists are invested in Farmer Co-op Conference officer, says that “Strategically, the company’s growth and are paid Nov. 2-4 in Minneapolis Michigan is well situated geographically equitably so they can spend more on The 19th annual Farmer to serve not only major U.S. markets, photo shoots, making the Stocksy Cooperative Conference will be held but also global markets. In addition to collection uniquely vibrant and Nov. 2-4 in Minneapolis. The the quality milk supply in the region, it current,” says Brianna Wettlaufer, CEO conference, conducted by the has a solid transportation infrastructure, of Stocksy. The co-op was founded on University of Wisconsin Center for one well served by major highways and the principles of equality, respect, and Cooperatives, highlights the various ports.” fair distribution of profits. Contributing latest strategic thinking on current “Working collaboratively helps photographers receive 50 percent of a cooperative issues and trends. This year, enhance our ability to better serve dairy standard license purchase (ranging from conference speakers will address trends producers in this region and align the $15-$125) and 75 percent of an in the agricultural economy, cyber marketing strengths of our extended license ($100-$500), one of security and big data, and organizations together,” adds Joe the highest royalties in the industry. mergers, among others. Diglio, general manager of MMPA. Although Stocksy grew exponentially The conference will be held at the in several countries in 2015, it added Radisson Blue in downtown Stocksy doubles just 174 new artists, passing over nearly Minneapolis. For more information and revenue in 2015 3,000 applications, bringing its current to register, visit: www.farmercoops. Stocksy United — an artist-owned artist-member total to just over 900. The uwcc.wisc.edu/, or contact: info@uwcc. stock photo/image cooperative founded co-op has set a membership cap at 1,000. wisc.edu, or (608) 262-3251. ■

Co-ops and Community increase awareness of the potential of CA: University of California Press. Development Efforts cooperatives to improve our society. • Knapp, Joseph G. (1973) The Advance of American Cooperative Enterprise: 1920-1945. continued from page 19 Hopefully, this brief review of how Danville, IL: Interstate Printers & Publishers, cooperatives were regarded and utilized Inc. during the War on Poverty, and the • Lehman, Nicholas (1988) “The Unfinished War”, The Atlantic Monthly, December, v. 262. earlier article about the New Deal, will that includes business training and • Marshall, Ray and Lamond Godwin (1971) contribute historical perspective for the cooperative education. This type of Cooperatives and Rural Poverty in the South. road ahead. ■ Baltimore: The Johns Hopkins Press. assistance would provide lasting benefits • Nembhard, Jessica Gordon (2014) Collective and economic growth. Courage: A History of African American References Cooperative Economic Thought and Practice. • A Brief History of Farmers Home Administration University Park, PA: The Pennsylvania State Interagency Working (1989), unpublished document, FmHA, USDA. University Press. Group on Cooperatives • Carlson, Mary (1993) The Vermont State Office of • Rasmussen, Wayne D. (1991) Farmers, In October 2015, the Interagency Economic Opportunity: a case study in Cooperatives, and USDA: A History of Agricultural organizational relationships. Center for Research Cooperative Service, Washington, DC: USDA, Working Group on Cooperatives on Vermont Occasional Paper Series. Pape 1 Agricultural Information Bulletin 621. convened its first meeting to share (http://scholarworks.uvm.edu/crvocc • Reynolds, Bruce J. (2002) Black Farmers in information on programs that support • Co-op Handbook Collective (1975) The Food America, 1865-2000; The Pursuit of Independent Co-op Handbook: How to Bypass Supermarkets to Farming and the Role of Cooperatives. cooperatives throughout the federal Control the Quality and Price of Your Food. Boston: Washington, DC: USDA, RBCS, RR 194. government. With a third meeting Houghton Mifflin Company. • Stevens, Sally (2007) “The Economic hosted by the White House Domestic • Co-op Stores and Buying Clubs (1972) Office of Opportunity Act of 1964”, Economic Opportunity, OEO guidance 6148-2. Policy Council on May 5, 2016, there https://independent.academia.edu/SallyStevens • Equal Opportunity in Farm Programs: Am • Vilsack, Tom (2014) Fighting the War on Poverty are signs of more understanding of the Appraisal of Services Rendered by Agencies of the in Rural America. USDA Blog, cooperative model as a key to income United States Department of Agriculture (1965) http://blogs.usda.gov/2014/01/09/fighting-the- growth in underserved communities. Washington, DC: U.S. Commission on Civil war-on-poverty-in-rural-america/. Rights. • Woods, Randall B. (2016) Prisoners of Hope: The process of several agencies • Jackall, Robert and Henry M. Levin, editors Lyndon B. Johnson, The Great Society, and the sharing information and experience will (1984) Worker Cooperatives in America. Berkeley, Limits of Liberalism. New York: Basic Books.

Rural Cooperatives / July/August 2016 37 Stronger Together A century of progress From a simple bargaining association continued from page 12 May 23, 2016, marked the 100th with no assets, MMPA has grown to be anniversary of the meeting called by the nation’s 26th largest agricultural some frustrated Livingston County cooperative and the 10th largest dairy dairymen who wanted more money for cooperative. Annual sales exceed $1 In the 21st Century, MMPA has their milk. That founding day, hundreds billion, and members market more than faced challenging economic times. of dairy farmers agreed on one simple 4.6 billion pounds of milk each year. Though farms were fewer than two principle: unifying was the best way to The cooperative’s dairy farmer- decades earlier, milk production in market their milk to the greatest owners care for cows and steward the Michigan was increasing every year. advantage possible. Since then, the land on more than 1,200 farms spread Expanding the capabilities and capacity Michigan Milk Producers Association across Michigan, Indiana, Ohio and again at the co-op’s two member-owned has survived and thrived throughout a Wisconsin. plants promised the best return on century characterized by extraordinary Though science and technology have investment. progress. significantly altered how milk is A $62-million expansion at the Ovid produced and dairy products are made, plant was completed in 2010. The MMPA remains unaltered at its very expansion nearly doubled the plant’s core. Through good times and capacity and quickly proved its value. turbulent times, the cooperative spirit Three years after the expansion’s has endured as a testament to what can completion, it had already generated a be achieved through loyalty and 150-percent return on investment. commitment. Modifications at the Constantine plant In 2016, as in 1916, the belief that improved butter churning capacity, and dairy producers can be stronger and a reverse osmosis system was installed This graphic shows how many gallons of milk achieve more by working together through a strategic alliance with fellow the Michigan Milk Producers Assoc. is remains the solid foundation upon dairy co-op Foremost Farms USA. donating to a local food bank. which MMPA stands firm. ■

In the Spotlight profile 100 people and organizations professor finding better ways to help continued from page 32 that are helping to strengthen farmers manage their risk exposure or a agriculture and rural America. What local meat processor creating new was your overall goal for this project? wholesale channels for farmers. The examples are inspiring; these are the Van Hoose: In celebrating the types of people who will help ensure Farm Credit goes beyond lending to contribution that Farm Credit has made that the rural economy remains strong beginning farmers, offering incentives to American agriculture during the past for many years to come. and education on topics such as 100 years, we also wanted to look We are happy that Farm Credit has intergenerational family farm transfer, forward to the future — to those who been able to help many of these people risk management and effective business are helping shape the future of achieve their goals. We thought the planning. We are engaged with the full agriculture by applying their fresh Fresh Perspectives 100 would be a great spectrum of new entrants to agriculture, perspectives to current challenges and way to celebrate Farm Credit’s 100th including organic, sustainable or local changing rural communities and birthday by turning the spotlight on food-related operations, direct-to-retail agriculture for the better. The Fresh some of the people we are here to serve. and other emerging models. A constant Perspectives 100 search was an Editor’s note: To see more of the stories supply of credit helps make agriculture opportunity to showcase the best and surrounding the Farm Credit Fresh a driving engine for the U.S. economy the brightest; it highlights the amazing Perspectives program, visit and enables U.S. farmers to feed the degree of innovation and leadership www.farmcredit100.com/fresh- world. that exists in rural America today. perspectives/honorees. For more information Whether that might be a college about Farm Credit, visit Q: In the last issue of this magazine, we student finding ways to double crop in www.farmcreditnetwork.com. ■ ran some excerpts from Farm Credit’s the Dakotas or producing crops that Fresh Perspectives 100 where you will be turned into bioenergy; a college

38 July/August 2016 / Rural Cooperatives Now available from USDA To order: USDA co-op publications are free, and available both in hard copy and on the Internet, unless “Web only” is indicated.

For hard copies: Please include the publication title and number, as well as the quantity needed. Send e-mail to: [email protected], or call (202) 720-7395.

Send mail requests to: USDA Co-op Info., Stop 3254, 1400 Independence Ave. SW, Washington, D.C. 20250.

Co-ops 101: An Introduction Co-op Essentials To download from the Web: Visit to Cooperatives (CIR 55) (CIR 11) www.rd.usda.gov/publications/publicati ons-cooperatives. Probably the most widely read co-op primer A companion volume to Co-ops 101, this is in the nation, this report provides a bird’s- an educational guide that teaches further eye view of the cooperative way of basic information about cooperatives. It organizing and operating a business. Now explains what cooperatives are, including in an attractive new, full-color format. Ideal their organizational and structural traits. It for classroom use and member organization examines co-op business principles and the meetings. responsibilities and roles of cooperative members, directors, managers and employees.

NEW! NEW!

Organizations Serving Cooperatives Cooperative Statistics 2014 How to Start a Cooperative (July-Aug. ’15 magazine) (SR-78) (CIR 7)

This special issue of USDA’s Rural Provides a vital window on the agricultural This long-time favorite has been freshened Cooperatives magazine includes complete cooperative economy, based on a survey of with updated editorial content and a new contact information for nearly 150 2,186 U.S. farmer, rancher and fishery design. This guide outlines the process of organizations that provide services to cooperatives during calendar year 2014. It organizing a cooperative business, cooperatives, with detailed overviews of 52 shows another record year for ag co-op including the necessary steps involved in of the larger organizations. Listings include business volume and net income (before taking the co-op from idea to launching pad. co-op financial institutions, trade/legislative taxes). It also includes a wealth of groups, co-op development and co-op information about financial ratios and other education organizations, among others. A performance data that co-ops can use as a limited number of these back issues are still yardstick to examine their own available. performance. United States Department of Agriculture Washington, DC 20250 Periodicals Postage Paid U.S. Department of Agriculture OFFICIAL BUSINESS

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