Rural

COOPERATIVESCOOPERATIVESUSDA / Rural Development November/December 2012

Preserving Common Ground Page 18 Commentary

‘How Can a Bunch of Farmers Do It?’

By Dan Campbell, Editor As co-op member David Hughes said when leading a tour of his farm: “This co-op is a true, grassroots success story.” he question above is what some bankers Indeed, there is no more dramatic example of the value of T asked when approached by Virginia poultry cooperatives than in a situation such as this, involving a growers about financing their takeover of a processing plant or other critical facility which, if shuttered, major turkey processing plant in the would likely also put producers out of business and hurt the Shenandoah Valley seven years ago. After all, rural economy. one of the nation’s largest poultry corporations had not been There are many valuable lessons in this story, including: able to make a go of the operation, the bankers reasoned, so • Farmers can better control their own fate when they own how could a bunch of farmers possibly make the operation the processing and marketing infrastructure that is critical to fly? their survival. There is no guarantee of success with a co-op, Farmers may know how to grow verdant fields of grain and but at least farmers themselves will be making the key raise livestock, but when it comes decisions about whether to make to further processing and investments or changes needed to marketing, those tasks are best left keep the plant in business. to “real business people,” some • Farmers don’t run the have long reasoned. Never mind processing plant or make day-to- that farming today is a highly Some still feel day decisions. They employ complex business undertaking, skilled management to do that some still feel a farmer’s place is a farmer’s place for them. The board establishes on the tractor, not in the board policy, directions and goals, then room. holds management accountable But the Virginia Poultry is on the tractor,not for performance. Growers Cooperative (VPGC) • Use of outside (non-farmer) was not about to take “no” for an in the board room. directors on a board of directors answer. There was no other is always a source of debate in processing plant they could co-op circles, but VPGC is a economically ship their flocks to, proponent of the practice, based so they had to find a way to keep on its experience with three the plant open or face possible ruin. Fortunately, the farmers outside directors and the wider industry, financial and were able to tap other sources of financing, including USDA regulatory experience they bring to board meetings. Rural Development (through its Rural Economic • While co-ops are sometimes criticized for being too slow Development Loan and Grant program), the Farm Credit to adapt to change, VPGC managers, who have worked System (itself a producer-owned cooperative) and some other under both co-op and corporate ownership, stress that red funding sources. tape has been cut under the co-op, so decisions can be made There are other examples in the turkey industry — in much more quickly. Iowa, Michigan and South Dakota — where growers assumed • In developing a new production contract, farmers never ownership of processing plants and are successfully operating overlooked the need to ensure that the interests of the co-op these businesses. These examples show that growers can were given as much emphasis as were farmer needs. guide their own destiny through expanded entrepreneurial How can a bunch of farmers do it? If you are ever in the ownership, rather than becoming “piece-wage” growers. vicinity of Hinton, Va., check out the VPGC plant or its feed As you can read in this issue (“Flying High,” page 4) seven mill or rail facility and see for yourself. Need further proof? years after its founding, the co-op is thriving and still playing Visit the American Crystal Sugar Company processing plant a vital role in the economy of the Shenandoah Valley region. continued on page 36

2 November/December 2012 / Rural Cooperatives Features

Volume 79, Number 6 November/December 2012

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 p. 18 p. 18 p. 40 periodical is necessary in the transaction of public business required by law of the Department. Periodicals postage paid at Washington, DC. and additional mailing Flying High offices. Copies may be obtained from the 04 Superintendent of Documents, Key to success for turkey producers is their willingness to put co-op first Government Printing Office, Washington, By Dan Campbell DC, 20402, at $23 per year. Postmaster: send address change to: Rural Cooperatives, USDA/RBS, Stop 3255, 10 Minnesota home to largest number of ag co-ops; Wash., DC 20250-3255. Iowa tops for business volume Mention in Rural Cooperatives of By E. Eldon Eversull company and brand names does not signify endorsement over other companies’ products and services. 18 Preserving Common Ground Unless otherwise stated, articles in this Co-ops play key role in preserving shared grazing and fishing resources publication are not copyrighted and may Bruce J. Reynolds and Alan D. Borst be reprinted freely. Any opinions express- ed are those of the writers, and do not necessarily reflect those of USDA or its 24 The Many Faces of Cooperatives employees. By Charles Ling The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disabili- ty, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 30 Mine tailing sites tested for growing miscanthus grass for biofuel 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice), or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer. Departments 02 COMMENTARY 12 UTILITYCO-OPCONNECTION 14 CO-OPS&COMMUNITY 16 LEGALCORNER

Tom Vilsack, Secretary of Agriculture 31 NEWSLINE 2012 ARTICLE INDEX Dallas Tonsager, Under Secretary, 37 USDA Rural Development Dan Campbell, Editor ONTHECOVER: The “Tragedy of the Commons” is a classic study Stephen Hall / KOTA, Design describing what happened to English pasturelands, such as this, used as

Have a cooperative-related question? a common resource. The result was often over-grazing and depletion of Call (202) 720-6483, or email: the resource. Many farmers and fishermen are using cooperatives to [email protected] help preserve resources for future generations. This publication was printed with vegetable oil-based ink.

Rural Cooperatives / November/December 2012 3 A tunnel ventilation system—employing seven, 52-inch fans — can completely exchange the air inside one of David Hughes’ (left) poultry houses in only about a minute. Keeping his birds cool and comfortable is the best way to ensure they thrive. USDA Photos by Dan Campbell

Flying High Key to success for turkey producers is their willingness to put co-op first

By Dan Campbell, Editor variety of turkey cuts, marketed Hughes or one of the other growers in nationally and internationally to his co-op. he success of few further-processors. These food industry Hughes says he has much to be TAagricultural sectors and customers may buy the co-op’s breast grateful for this Thanksgiving. But marketing days are as meat and turn it intoadeli item, or buy seven years ago, he was staring at closely linked as are the drumsticks for ground turkey or scores possible financial ruin when the word turkey industry and of other food products. came down that the poultry company Thanksgiving. But the turkeys being So, if your drive to Granny’s house he shipped to was shutting down its raised on David Hughes’ farm in for Thanksgiving dinner involvedapit processing plant in Hinton, Va., leaving Virginia’s beautiful Shenandoah Valley stop forasliced turkey and cheese him with few other marketing options aren’t destined for the holiday platter. sandwich, there’s a chance your lunch for his birds. Rather, they will be processed into a may have originated on the farm of

4 November/December 2012/Rural Cooperatives Stunning news When he first heard the news in April 2004, that the Pilgrim’s Pride turkey processing plant would be closed in just five months, Hughes wondered if it New contract was would be the end of his Rivermont a cooperative effort Farm. There was only one other turkey processing plant in the area, but after it Nearly two years ago, work began on a new grower contract signed up a dozen or so of the 160 that would replace the contracts first signed when the Virginia Pilgrim’s growers, it had all the turkey Poultry Growers Cooperative (VPGC) was formed. The new supply it needed. That left Hughes and contract, developed by the co-op’s grower council, board of the vast majority of other growers out in directors and management team, was completed last summer. the cold, without a home for their birds. “More than half the committee members were growers,” says “I didn’t know what to think at first; it Mickey Baugher, VPGC’s complex manager. Growers also was like, well, what can I do?” Hughes completed surveys to see what changes they hoped to see in the recalls of that fateful day. Chickens were new contract. Members were given regular updates through the the only other “crop” his four poultry co-op newsletter and other means to keep them apprised of the houses could be efficiently used to raise. progress. But new feeding, watering and “In the end, it didn’t change a whole lot,” Baugher says. ventilation systems would have been “Growers wanted to be paid more if they did better. Our contract needed. is probably still a little friendlier [for producers on the lower end “The conversion cost was of productivity] than you would find in non-co-ops. It’s based on astronomical,” he says. “People also production cost. We have a prime cost, based on feed, suggested raising goats or calves, even medication and poult costs. If a grower does better than average, catfish or tilapia; but I never considered they make more money. But we put in a nice floor price, so you any of those as serious options.” can only go down so far.” Although they were well aware that “I worked for integrators most of my career, and the big the plant had been losing money for difference here is that growers not only participated in writing the some time, news of the looming contract, they all got copies before it was done and were able to shutdown was also a shock for plant comment,” says co-op President Jimmy Mason. “That just doesn’t management. happen in the integrator world. It’s the first time I’ve ever seen “Plant managers were called into a that done.” room and told that the plant would The vast majority of growers on the committee did a good job continue processing through September wearing their co-op hat vs. their grower hat during the talks, (when the last of the birds it was under Mason says. contract for would be harvested) and “Different segments of growers wanted to see different things would then be closed,” recalls Charlotte in the contract, sometimes unrealistic but other times very Waller, director of quality assurance and realistic things,” says John King, vice president for sales and technical services at the plant. “It marketing. “No one got everything they wanted, but the wouldn’t have surprised me to hear that collaborative process used was very educational for all.” the plant was being sold, but it was a “The old contract was pretty cut and dried,” Mason says. “If shock to be told it was being closed.” you had a disaster on the farm that wasn’t your fault, you still Community leaders were also didn’t get paid very much.” Now pay will be based on a four-flock stunned. In 2004, a Virginia Tech study average – an idea put forward by a grower. estimated that the turkey plant and all “It was important that everyone got to hear each other’s the farming and related businesses it concerns, and it was important that it was the growers supports were generating about $200 themselves who said ‘no’ to a lot of proposals,” says Charlotte million in annual economic activity in Waller, the co-op’s director of quality assurance and technical the region. Even with the rapid growth services. “Management’s role was to be a facilitator and provide of James Madison University in nearby data. Growers had to ultimately decide what made sense and Harrisonburg and many other non-farm what didn’t, and what the impact was on their co-op.” businesses and institutions, agriculture is I still a cornerstone of the Shenandoah Valley economy. To lose such a critical

Rural Cooperatives / November/December 2012 5 part of the ag industry would have dealt looking at the business just as a matter supplying the plant, most of them with a serious blow to the economy. of ‘what’s in it for me,’ but rather farms within a 65-mile radius of the ‘what’s in it for the co-op.’ We want this plant. “When the co-op started, we had Co-op saves the day co-op to succeed.” 146 producers, but have since grown to But the plant didn’t close and the 157,” says Mason. Shenandoah Valley did not lose one of Controlling their own destiny “If we hadn’t got the REDLG loan its most important agricultural The ability to better control their from USDA, we wouldn’t be here,” industries. It was saved when turkey own destiny through ownership of Mason says. “We didn’t have the farmers formed the Virginia Poultry processing and marketing of their crops capital, and banks would not go with us. Growers Cooperative (VPGC), forged and livestock has always been the Pilgrim’s had been losing millions of in a matter of just five months from the primary motivator for farmers to form dollars, so banks would say: how in the initial growers’ meeting to the day co-ops. It was no different for the world are these farmers going to make a when co-op leaders signed the purchase Virginia Poultry Growers Cooperative, go of it when Pilgrim’s couldn’t do it?” agreement. although the urgency to form it in such The co-op is still repaying the The effort involved strong support a short timeline, and for such a large REDLG, but otherwise it has been able from local, state and federal enterprise, is certainly remarkable. to operate using only member equity. government leaders, with crucial “It was a risky venture,” says “Right now, we are our own bank; we’re financial help coming from USDA Rural Development’s Rural Economic Development Loan and Grant “We were emphasizing our commitment to the local community (REDLG) program. The plant began processing under co-op ownership on long before the ‘local movement’ really caught on.” Nov. 29, 2004. Seven years later, Hughes says he still feels a real sense of pride of ownership every time he drives into town and sees the plant humming like a well-oiled machine. Hughes was raised on a beef, dairy and pork farm, but decided to try raising poultry after he graduated from Virginia Tech. He says he finds being a poultry grower more enjoyable. He also belongs to farm supply, fuel and credit co-ops. “So I was very familiar with the concept of a co- op and how profits flow back to growers instead of to a CEO and distant shareholders.” By focusing on tom turkeys weighing about 40 pounds for the further-processing food trade, Hughes has served two terms on the the co-op has found a successful market niche. co-op’s grower council, and “was there for the birthing process” of VPGC. “I Hughes. Growers had to invest equity not financing with anybody,” Mason helped write the code of best practices,” in the co-op, based on the size of their says, adding that “the co-op is always he says, which addresses topics such as operations, and many outside resources evaluating market conditions and capital humane treatment of the birds. “Being also had to be tapped, he recalls. “We requirements.” on the council helps producers learn eventually made it, but there were some how the business works, and learn more sleepless nights, not knowing if I would More focused industry niche about how we can work together to be have to put the farm on the market or The co-op processes about 250 successful.” not.” million pounds of turkey annually, up Late last summer, the co-op “All the growers were under a lot of from 180 million pounds when it completed overhauling the grower pressure at that time — they initially started in 2004. One of the main ways contract (see sidebar, page 5) for the didn’t know whether there would be a VPGC has been able to turn the plant first time since VPGC was formed. “I’m co-op to keep the plant running,” says into a money maker is by focusing on a very satisfied with the new contract — VPGC President Jimmy Mason. narrower niche of the industry, Mason it treats everyone fairly,” Hughes says. At the time of the announced shut explains. “As grower-owners, we’re no longer down, there were 169 turkey producers Co-op producers are growing bigger

6 November/December 2012 / Rural Cooperatives Co-op rail facility boosts feed security

If you’re in the turkey business, you are also in the corn business, whether you grow corn or not. Corn-based feed is the “fuel” that poultry farms run on, and the Virginia Poultry Growers Cooperative (VPGC) goes through about 125,000 bushels of it each week. It mills corn into turkey feed at its feed mill in Broadway, Va., where it is mixed with soybean meal, vitamins, fat, trace minerals and protein supplements, in varying formulas. The vast majority of that grain is delivered via the Norfolk-Southern Railroad. Until a few years ago, the co-op received grain deliveries via trucks from another local integrator. The co-op management did not feel comfortable with this arrangement long term, says Mickey Bauger, complex manager for VPGC. In 2007-08, the co-op spent $10 million to build a grain-unloading and storage facility at Linville, Va., about 8 miles from its feed mill. The facility has enough rail siding to handle a 125-car train. It can unload 75 cars in 16 hours. The 80-acre site has space to add a feed mill or for other expansions in the future, Mason notes. The co-op needs a delivery from a 75- car unit train (or 300,000 bushels of grain) about every eight days, so it also built two, 300,000-bushel grain silos at the site. Using shuttle cars, grain is then transported to the co-op feed mill and to The co-op’s rail facility at Linville, Va., has enough rail siding to store a 125-car other grain customers, which pay the co- train. It can unload 75 cars in 16 hours. op a handling fee. The Broadway mill makes about 5,000 reliable as trucks. With a truck, if you tell them you need to 6,000 tons of turkey feed per week. The co-op had them here Wednesday morning at 9 a.m., they will be looked at replacing the facility, but the cost would have here. With rail, your delivery might show up Monday, or it been $15 million to $20 million. So it instead spent $3 might show up Friday. There are just so many more million to modernize the existing feed mill, Baugher says. variables. So the extra storage gives us a buffer, because “Besides getting our corn a little cheaper with the 75- if we run out of corn, there is no way to feed our car discount rate, it also better secures our corn supply,” turkeys.” I Baugher says. “Railroads, good as they are, are not as — Dan Campbell

Rural Cooperatives / November/December 2012 7 birds these days, thanks to a combin- Flexible business model room and lend a whole new ation of improved genetics, carefully Having worked under both corporate perspective,” Mason says. formulated feeds and more comfortable and co-op ownership, the VPGC The grower board members housing conditions for the birds, which management team offers valuable represent broad diversity — both by thrive best when not under stress. perspective into the differences. A production niche and geography — Only large toms, weighing about 40 common criticism of co-ops is that they King says. Directors are elected to pounds, are grown and sent to the are slow to react to market changes, but three-year terms, with a slate of four plant. That has helped increase tonnage the co-op’s management says its candidates nominated for every two and to produce the type of turkey cuts experience has been quite the opposite. seats on the board. desired by further-processor customers, “The levels of authority above Board President Steve Bazzle is which are its sole market focus now. management have decreased a lot,” involved with member relations, Birds of that size are too large for the Waller says. fielding dozens of calls from members retail trade, which usually wants smaller Management follows policy and with questions during a typical week. hens. directions as set by the board, but has “Members are welcome to call The narrower product mix allows the leeway to make the day-to-day decisions management directly, but most tend to plant to operate with a smaller work in how to best run the operation. go through the chairman,” Baugher force of about 500 (down from as many “When a customer needs something, says. as 900 before the purchase). Because the co-op is not geared toward the holiday trade, it maintains a consistent “I tell everyone I can about the co-op,because volume flow through the plant all year. “Pilgrim’s really was primarily a it is a true, grassroots success story.” chicken company, and in this day it is very difficult to be both a chicken and a turkey company,” Mason says. Citing high-debt level and soaring feed prices, Pilgrim’s Pride filed for bankruptcy in 2007 and was purchased in 2009 by JBS S.A., the Brazilian- owned food company that is the largest chicken producer in the United States. Now known as Pilgrim’s Corp., it con- tinues to operate as a subsidiary of JBS. Does being a co-op help with marketing? “I think it does,” says John King, vice president for sales and distribution. “We do get questions about the make- up of the company, and we stress that About 5,000 to 6,000 tons of turkey feed are produced every week at the co-op’s feed mill in we are a true co-op, with profits that Broadway, Va. The co-op spent $3 million to modernize the facility rather than up to $20 million to flow back to our growers.” Customers replace it. seem to like that concept, he says. Supplying only further processors, not we can usually give him an answer in “Our member-growers feel the the retail trade, means VPGC is not in five minutes,” Mason says. “Some of freedom to call and discuss any topic — competition with its customers, our corporate competitors might need and they do,” says Bazzle. “Some call something they appreciate, he adds. five days to get that same answer. to discuss the financial performance of The Pilgrim’s Pride operation There’s just a lot less bureaucracy with the cooperative, while others will call to included a turkey hatchery, but it was this co-op — our corporate office is discuss the economic impact of recent sold separately to AgForte. “That right here.” changes on their farms, or even issues meant the turkey breeders had to follow The co-op’s nine-member board with their current flock.” Other the hatchery. Even though they work includes six growers and three “outside” producers call just to express for AgForte, most of the eggs they members — one each representing the appreciation for the cooperative or to produce still come back to the co-op,” financial sector, poultry buyers and the compliment a particular employee, he Mason says, which helps the co-op with county board of supervisors. “They adds. “The important take away is that its “large toms-focused” business model. bring so much expertise to our board the growers have the opportunity to

8 November/December 2012 / Rural Cooperatives communicate and engage in the Baugher says plant jobs pay better started, it was like the dark ages functioning of the cooperative.” than most people think. “Base wage for compared to now.” a processing line worker is $11.15 per The biggest improvement in the Plant improvements, audits hour, with the chance to earn poultry houses is the installation of Plant improvements in recent years premiums,” he notes. For example, tunnel ventilation. Hughes points to include a $2.5-million project to reduce workers who handle live turkeys make seven, 52-inch fans at one end of the levels of phosphorous and nitrogen in $15 per hour. More highly skilled poultry house that can completely wastewater discharges. Continual workers, such as those who maintain exchange the air inside in only about a investments are made to improve food plant machinery and refrigeration minute. This system replaced a single safety throughout the plant. “We are systems, earn from $16-$22 per hour. row of smaller fans hanging from the staying on the cutting edge of “We also offer a 401-K plan, paid center of the roof. technology,” King says. vacations and a very competitive health “The only birds that benefitted from “Pilgrim’s left us a pretty good insurance plan,” Baugher notes. that were the ones right in front of a facility,” Baugher adds, noting that the The co-op spent $100,000 the past fan.” Hughes plans to improve cooling prior owner made some major several years on scholarships for grower further this year with the installation of improvements to the facility before the and employee family members. It foggers which emit a high-pressure mist sale. “Based on audits and feedback supports United Way, Relay for Life in the houses. from customers, we feel our facility is in Keeping the birds cool in summer is the top 10 percent of plants nationally.” a much bigger challenge than keeping Plant audits (or inspections) are an them warm in winter, he says. But great increasing part of life for meat progress has been made there, too. In processors today. USDA has four full- the past, area heaters were placed in time inspectors stationed at the plant, the center of the houses with fans and many customers, animal welfare blowing both ways, but that wasn’t very organizations and others want to do effective or energy efficient. “Now we their own plant audits. “We average six “When a customer needs have space heaters around the houses or seven audits each year, and have something, we can usually that keep them uniformly warm in achieved 95 percent or better scores on winter.” all of them,” Waller says. give him an answer Litter quality has also been “We are very proud this year that we in five minutes.” improved, and the feeds are continually passed an audit conducted by Silliker rebalanced based on the age of the for BRC (British Retail Consortium) Co-op managers such as Mickey Baugher, birds. certification,” Waller says. BRC is part left, say they have greater flexibility now to “Animal welfare is huge with us — of the Global Food Safety Initiative, run the operation than under corporate you can tell just by looking that these and passing the audit means the co-op ownership. birds are comfortable,” he says. adheres to International standards, she Modern poultry production is highly adds. and other local charities. automated, so much so that Hughes Even more audits are now conducted “We were emphasizing our needs only two helpers to produce in the field, King says. Animal welfare commitment to the local community 108,000 pounds of turkey per year. audits look at the conditions the birds long before the ‘local movement’ really While feed and watering systems are are raised in on the farm. caught on,” King says. “We try to buy automated, drive belts can break or VPGC has a certified organic as much as we can locally, and strive to other things can go wrong, causing a program, and although still a small part do business with minority-owned feed line to stop or watering troughs to of the business, it is growing. All of the businesses when we can.” overflow. organic growers are in Pennsylvania, Frequent walk-throughs of each where they must pass an audit and be It all starts on the farm house are thus a must, he says, because certified by Pennsylvania Certified All the progress that has been made if the birds aren’t comfortable, the Organic. in the plant and with the co-op growers won’t be for long either. VPGC also has a much larger marketing efforts won’t add up to much “The formation of the co-op was a antibiotic-free program. “If a bird in if the members don’t produce quality god-send for growers,” Hughes says, this program gets sick, it is treated, but turkey. As with any agricultural co-op, looking back at the past seven years. “I it is then out of the program,” says success starts on the farm. tell everyone I can about the co-op, King. “The co-op absorbs the cost of Back on Hughes’ farm, he says there because it is a true, grassroots success moving these birds into our has been a big push to improve the story. Many others would like to do conventional program.” comfort of the flocks. “When we something similar.” I

Rural Cooperatives / November/December 2012 9 Minnesota home to largest number of ag co-ops; Iowa tops for business volume

By E. Eldon Eversull, Ag Economist innesota continues to ops. Texas ranks second among the Cooperative Programs, USDA Rural M be home to more states, with 187 cooperatives, followed Development agricultural by North Dakota with 159 farm co-ops. cooperatives than any (figure 1). Editor’s note: For USDA’s annual look at other state, a There are about 2,200 U.S. the top 100 ag co-ops, see the Sept.-Oct. distinction it has held since 1900 agricultural cooperatives in USDA’s data 2012 issue, available online at: (according to the first USDA survey of base. www.rurdev.usda.gov/BCP_Coop_RurCoop cooperatives in 1913). In 2011, The top 10 states for number of Mag.html. Minnesota had 203 ag cooperatives agricultural cooperatives has remained headquartered within its borders, the same since 2007, with the exception ranging in size from 14 cooperatives on of the No. 4 and No. 5 slots, where the top 100 ag co-op list to much California and Illinois have twice traded smaller local farm supply and grain co- places. California, with 120 ag co-ops,

Figure 1 — Top 10 States’ Number of Cooperatives, 2011 Figure 2—Top 10 States’ Cooperative Gross Business Volume, 2011 (billion $)

Texas, 187 Minnesota, $22.0 Minnesota, 203 Iowa, $22.4

North Dakota, 159 Illinois, $15.5 Tennessee, 64 Texas, $7.3 South Dakota, 73

Kansas, $7.9 Wisconsin, $12.0 Kansas, 91 California, 120 North Dakota, $8.8 Iowa, 97 Illinois, 118 Missouri, $9.6 Nebraska, $11.3 Wisconsin, 115 California, $11.1

Table 1—Top 10 States by Number of Cooperatives, 2011-2007

2011 2010 2009 2008 2007

Minnesota Minnesota Minnesota Minnesota Minnesota Texas Texas Texas Texas Texas North Dakota North Dakota North Dakota North Dakota North Dakota California California Illinois Illinois California Illinois Illinois California California Illinois Wisconsin Wisconsin Wisconsin Wisconsin Wisconsin Iowa Iowa Iowa Iowa Iowa Kansas Kansas Kansas Kansas Kansas South Dakota South Dakota South Dakota South Dakota South Dakota Tennessee Tennessee Tennessee Tennessee Tennessee

10 November/December 2012 / Rural Cooperatives is currently ranked 4 while Illinois, with 2) with $22 billion in gross business Minnesota had been ranked No. 1 the 118 ag co-ops, is now No. 5. (table 1). volume. four previous years. Texas has moved The top 10 states account for about steadily up the list, from No. 13 in 2007 Iowa No. 1 for 60 percent of sales by agricultural to No. 10 in 2011. business volume cooperatives. Gross business volume of the top five Iowa leads all states with $22.4 There is a $15 billion difference co-op states is shown in figure 3, with billion in gross business volume between the No. 1 and No. 10 ranked all five having record volume in 2011. generated by ag co-ops (this includes states on the business volume list. Iowa and Minnesota had almost equal sales to other cooperatives for resale) Numerous position changes occurred sales volume in 2010, while Iowa holds and also has 14 cooperatives in USDA’s on the co-op business volume list a slight volume advantage in 2011. top 100 ag co-op list. Minnesota, which between 2007 and 2011, with only Illinois trailed Wisconsin in 2007 and had ranked No. 1 the four previous North Dakota holding steady at No. 8 2008 but pulled ahead in 2009 and years, was a close second in 2011 (figure and Kansas at No. 9 (table 2). widened the gap in 2010 and 2011. I

Figure 3—Top 51 Cooperative State Gross Business Volume, 2007 – 2011 Billion dollars

25 Iowa

20 Minnesota

Illinois 15 Wisconsin

10 Nebraska

5 2007 2008 2009 2010 2011 1 Top 5 based on 2011 cooperative gross business volume

Table 2—Top 10 States by Cooperative Business Volume, 2011-2007

2011 2010 2009 2008 2007

Iowa Minnesota Minnesota Minnesota Minnesota Minnesota Iowa Iowa Iowa Iowa Illinois Illinois Illinois Wisconsin Wisconsin Wisconsin California Wisconsin Illinois Illinois Nebraska Wisconsin California California California California Nebraska Nebraska Missouri Missouri Missouri Missouri Missouri Nebraska Nebraska North Dakota North Dakota North Dakota North Dakota North Dakota Kansas Kansas Kansas Kansas Kansas Texas South Dakota South Dakota South Dakota South Dakota

Rural Cooperatives / November/December 2012 11 Utility Co-op Connection The First Fuel: co-ops view energy efficiency, conservation as priorities

By Anne Mayberry, the National Rural Electric Cooper- USDA Rural Utilities Programs ative Association. Many of USDA’s enables rural utilities and cooperatives Rural Utilities Service (RUS) borrowers to lend to homeowners or businesses. Editor’s note: Energy efficiency will be — predominantly rural electric Eligible projects include efforts that among the many agricultural and rural cooperatives — have a history of improve consumer energy efficiency, development topics addressed during offering energy efficiency programs to modifications that reduce electricity USDA’s 2013 Ag Outlook Forum, Feb. reduce costs for their business, farm and consumption, that increase use of 21-22, in Washington, D.C. For details, residential members, helping them renewable fuels, or that increase the visit: www.usda.gov/oce/forum/. better manage power use during periods efficiency of electric generation, of peak demand while also offering new transmission and distribution. an energy efficiency efficiencies for utilities. Improving home energy efficiency is C programs reduce Rural communities may see an expected to boost energy savings and consumers’ electric increase in energy efficiency programs expand job opportunities in rural areas. bills, curb billion-dollar because of a proposed regulation to “Rural electric cooperatives have investments in power help fund affordable, energy efficient been promoting energy efficiency generation for rural utilities and boost improvements for rural business and programs for eons,” notes Aaron the economies of rural communities? residential consumers. The proposed Ridenour, manager of marketing and Rural electric cooperatives nationwide rule would allow the Rural Utilities economic development at Prairie Power say that these programs have been Service of USDA Rural Development Inc., a rural electric generation and doing that for years. They’re also to finance energy efficiency transmission cooperative in Illinois. “A paying close attention to a proposed improvements that are aligned with meeting of our distribution co-op rule that would increase investment in USDA’s Rural Economic Development members’ marketing staffs led to our energy efficiency programs. Energy Efficiency Effort (REDEE). focus on how we could help consumers “Investment in energy efficiency can This effort is designed to create jobs in address energy costs.” save money, curb emissions and help the energy efficiency market by boost rural economies,” says Dallas building on rural electric cooperatives’ Energy walls show the way Tonsager, the U.S. Department of programs that help consumers — As a result of that meeting, the Agriculture’s under secretary for Rural including homeowners, farmers and cooperatives built two “energy walls,” Development. “Our rural electric co- ranchers and other business owners — complete with doors, windows, ducts, ops are leading the way in improve their energy efficiency. light fixtures, various types of insulation implementing energy efficiency The proposed rule stems from the and other features designed to show programs and have accumulated 2008 Farm Bill, which identified energy how becoming more energy efficient is extensive data that demonstrate the efficiency as an eligible purpose for a wise investment. benefits of these programs.” RUS funding. As a result, RUS electric “The energy wall travels to annual borrowers may be able to use their meetings and actually shows consumers Most co-ops promote loans to fund energy efficiency projects real life examples of how co-ops can energy efficiency for their business and residential help save energy,” Ridenour explains. Currently, 96 percent of rural consumers. “The energy walls have been to 22 electric cooperative utilities have some Designed to leverage and expand different venues, including annual form of energy efficiency program and energy efficiency programs for existing meetings, community colleges, expos, 70 percent offer financial incentives to RUS borrowers, the proposed rule state fairs, farm progress shows and promote energy efficiency, according to includes a re-lending program that schools. The display has even been to

12 November/December 2012 / Rural Cooperatives The co-op built two “energy walls” — with doors, windows, ducts, light fixtures and various types of insulation — to show consumers how energy efficiency is a wise investment. Photo courtesy Prairie Power Inc. the U.S. Senate to help explain the Why co-ops want help remove one of the barriers to value of energy efficiency to members to lower demand efforts to reduce energy use and waste of Congress and their staffs.” Why would a rural electric in rural areas. Tonsager is optimistic Over 912,000 people have been cooperative promote energy efficiency that the new source of funding can help exposed to the energy wall this year, he if it results in reduced demand, which rural consumers reduce energy costs says. “During the past 2 ½ years, about results in reduced revenue? In South and boost rural economies through 2.7 million consumers have seen the Carolina, once energy efficiency increased purchase of goods and wall.” programs are fully operational, they are services to implement energy efficiency. One of the more popular features of expected to help rural electric “For example,” Tonsager notes, the energy wall demonstrates the value cooperatives avoid having to build or “projects to conduct home energy of cellulose, or foam insulation, invest in costly new generation audits and finance improvements Ridenour says. While air blows through facilities. The potential result is a necessary to reduce energy use would fiberglass, foam fills cracks and helps savings of $4 billion during a 10-year be eligible for financing, as would save heating and cooling dollars. period — that’s one-half the cost of a demand side management projects that “The value of the energy wall is that new nuclear unit. are designed to more efficiently control once people see the difference, they get Mike Couick, president and CEO of the use of electricity during peak it. The response to the wall has been the Electric Cooperatives of South periods. terrific.” Ridenour says that his Carolina, credits members as a driving Great River Energy, a generation statewide co-op conducts training, force in South Carolina rural electric and transmission cooperative utility that including how to audit for energy utility cooperatives’ investment in provides electricity to its 28 distribution efficiency, what’s needed to apply for a energy efficiency programs. member cooperatives in Minnesota and rebate and certification of the results. Energy efficiency programs can help Wisconsin, included energy efficiency The expense of energy rural electric utilities avoid buying or in a plan filed with the Minnesota improvements often prevents building additional electricity, which Public Utilities Commission four years homeowners and businesses from can be expensive. Ridenour explains ago. The plan identifies the need to investing in cost-effective, energy that if the average home uses 1,000 meet members’ increasing demand for efficiency upgrades, Tonsager says. kilowatts (kw) per month, or 12,000 kw electricity with aggressive conservation “This rule will help make those costs per year, the energy efficiency projected and efficiency. It says reducing future more affordable through increased from this program would be enough to electricity demand needs to be their availability of financing.” provide electricity to another 125 “first fuel.” The Eastern Illini Electric houses each year. “That’s the Increasing electric grid reliability Cooperative’s energy efficiency program significance of this program,” he says. while reducing greenhouse gas provides loans for up to $10,000 for the Energy efficiency is typically defined emissions and lowering energy costs for purchase of a geothermal power unit. as the use of technology to reduce consumers are benefits of energy The units can help customers reduce energy use, while energy conservation efficiency programs. Ridenour puts it heating and cooling costs by about refers to changes in behavior to reduce another way: “The cheapest kilowatt is $1,200 annually. The loan cost is energy consumption. At the national the one that you don’t purchase or recovered in nine years. level, an energy efficiency program can build. So we work hard to save it.” I

Rural Cooperatives / November/December 2012 13 Co-ops&Community Land O’ Lakes’ nutrition program helps thousands in Pakistan

By Sarah Ali, Ag Economist Cooperative Programs USDA Rural Development

Editor’s note: The “Co-ops & Community” page spotlights co-op efforts that fulfill the mission of “commitment to community.” Regardless of whether these efforts make a co-op’s home town a better place to live and work, or are helping people on the other side of the world, co-ops are reaching out to make a difference. If you know of a co-op,aco-op member or co-op employee whose efforts deserve to be recognized on this page, please contact: [email protected]. Reprint articles from co-op publications are welcome.

and O’Lakes — the L nation’s third largest cooperative, with annual sales of $13 billion — has made international development and aid to struggling farmers one of its top corporate responsibilities. Farmers in developing countries face many critical problems, such asascarce amount of arable land (compounded by rising populations in many areas) and lack of Students in classrooms such as this are benefiting from the Pakistan School Nutrition Program, a access to sources of credit. three-year effort centered in the Sindh province. The Jacobabad area of the province suffered Other challenges include lack of severely in the floods of 2010. Photo courtesy Land O’ Lakes access to fertilizer, crop protectants and other farm inputs; inexperience in competitiveness; business and and gaining a greater understanding of marketing; and the need for general cooperative development; improved how to increase their agricultural agricultural skills training, among other food systems and food safety; food productivity. When their production barriers to production efficiency and security; and nutrition and health. rises, they are more likely to have a market entry. Subsistence farmers often need surplus (beyond their own family’s Most of the co-op’s international aid agricultural training or extension-like needs) that they can market, leading to efforts have focused on areas where services to help them adopt improved increased incomes and a better quality these problems are most dire: Sub- agricultural technologies and practices. of life. Saharan Africa, South Asia and South- The services that Land O’Lakes east Asia. The emphasis of Land O’ provides to subsistence farmers are one Pakistan floods Lakes’ aid initiatives has been on: of the many ways that these farmers are create critical needs agricultural productivity and learning about new farming techniques In March 2010, Land O’Lakes

14 November/December 2012/Rural Cooperatives USDA program helps expand ag production in Malawi

Land O’Lakes International Development recently methodology through the program. AgPro isatraining launched a new USDA-funded Food for Progress tool that strengthens the efficacy, as well as the Program, as well asa“Buy Malawi” public awareness organizational and financial management, of farmer- campaign designed to boost domestic demand for locally owned producer groups and cooperatives. It was grown and processed farm products. Representatives developed by Land O’Lakes under the United States from Malawi’s Ministry of Industry and Trade, the U.S. Agency for International Development (USAID)-funded Embassy to Malawi and Land O’Lakes International Cooperative Development Program. Development all spoke at the launch event in Blantyre, Strengthening farmer groups, associations and Malawi. cooperatives will enhance commercialization capacities The nearly four-year program will work to improve and market linkages, giving farmers greater negotiating agricultural productivity in the Nkhotakota and Salima power. The program will also engage financial service districts by expanding irrigation opportunities and taking providers in increasing access to insurance, credit and private sector-led approaches to revitalizing how rice, other financial services for smallholder farmers. cassava and small livestock are farmed. Valued at $18 As insufficient domestic demand for local products million, the Food for Progress program will train 51,000 remainsakey constraint to agricultural production, the farmers, particularly female farmers, on best production event in Blantyre also launchedaBuy Malawi campaign. practices, improved farming technologies and the Employing TV, radio and billboard ads, in-store events importance of maintainingadiverse diet. and social marketing tools and tactics, the campaign will “More Malawian investments need to be locally be followed by three other campaigns that specifically owned, and more local entrepreneurs need to be at the target rice, cassava and small livestock value chains. helm of businesses that employ locals as they prepare On Aug. 5, U.S. Secretary of State Hillary Rodham for growth,” says Nebert Nyiranga, principal secretary Clinton announceda$46 million expansion of U.S. for Malawi’s Ministry of Industry and Trade. government investment in Malawi duringavisit to the Building on Land O’Lakes’ agribusiness cooperative Lumbadzi Milk Bulking Group, one of 23 dairy producer heritage, more than 200 farmer associations will be groups assisted. trained in International Development's AgPro

initiatedanew food security program: Program, female students and teachers nant women; 141,000 family members will the Pakistan School Nutrition Program. take home a ration of soybean oil each benefit from the distribution of cooking This three-year program is centered in month if they meet the program’s oil. the Sindh province, district of attendance requirements. This gives In the short run, food assistance Jacobabad, and has been pursued in them an incentive to stay in school, programs help alleviate some of the conjunction with the USDA’s Food for rather than working at home or outside uncertainty and improve societal Education Program. the home as domestic servants. The welfare. In the long run, the Jacobabad suffered severely in the soybean oil is also given to pregnant governments of countries such as floods in 2010, which left many families and lactating mothers who opt to Pakistan may need to develop more displaced. According to the nation’s participate in a health program. programs and cooperation with local Office for the Coordination of Land O’Lakes first started school residents to tackle the problems. Land Humanitarian Affairs, 70 percent of nutrition programs in Pakistan in 2002 O’Lakes is committed to leveraging its district villages in Jacobabad were and it has implemented similar expertise in agriculture and investing flooded and 95 percent of the programs in Bangladesh, Colombia, time and money in programs such as population was affected. Nearly 9,300 Honduras, Indonesia, Malawi, the The Pakistan School Nutrition livestock were lost due to floods. Many Philippines, Uzbekistan and Vietnam. Program to improve the quality of life children were not able to attend school The Pakistan School Nutrition for people in developing nations. due to infrastructure damage. Program aims to assist about 30,000 Under the Pakistan School Nutrition students, 700 teachers and 2,500 preg-

Rural Cooperatives/November/December 2012 15 Legal Corner Capper-Volstead protection and co-op supply management

By Alan Borst, Ag Economist asides, planting restrictions, diversions, Supporters have made the argument Cooperative Programs buy-outs or quotas. These programs that cooperative efforts to limit member USDA Rural Development were controversial and are mostly gone, production to a level that serves but the term is also being applied to member’s economic interest is more hen the Capper- cooperative efforts to limit member economically efficient and less wasteful W Volstead Act was passed production. than these other activities. The in 1922, agricultural Cooperatives in the egg, potato, argument is that if Capper-Volstead producers were facing mushroom and dairy sectors have all protection is lost, it would limit severe economic been subject to recent antitrust suits cooperatives’ ability to avoid hardship. They were small and that have challenged their supply economically inefficient and wasteful numerous relative to the few large firms management activities. Antitrust production decisions. to which they had to sell their plaintiffs have argued that these efforts Cooperatives and their membership commodities. Farmers also produced to limit production are not “processing, face considerable uncertainty at the relatively uniform commodities, and preparing for market, handling, and present time as to whether or not the were rarely involved in the value-added marketing” activities protected under protection of Capper-Volstead extends processing that many farmer co-ops are Capper-Volstead. to their supply management programs. engaged in today. A market power Cooperatives have responded by In the 90-year history of Capper- imbalance thus prevailed in which saying that such activities — which Volstead, there has been no definitive farmers had little market leverage. enable them to function as a unified answer to this. Stronger buyers used their power to pit business in pricing and marketing — In USDA’s 2002 publication, farmers against each other in a “race to necessarily provide for the ability to “Antitrust Status of Farmer the bottom.” limit member production in order to Cooperatives: The Story of the Capper- Capper-Volstead was passed to influence pricing. Thus, the cooperative Volstead Act” (Cooperative Information increase agricultural producer market has the same right as a corporation to Report 59), Donald Frederick, then an power by enabling farmers to engage in engage in advance planning and attorney with USDA’s Cooperative “collectively processing, preparing for agreement among its membership for Programs, examined some of the same market, handling and marketing” their the amount of product that it will arguments that are being made today products. produce and market. about what the legislation allows. The Capper-Volstead has a long history A fundamental part of a cooperative’s entire publication is posted online at: of being the target of legal and political mission is securing better prices for its www.rurdev.usda.gov/rbs/pub/cir59.pdf. challenges that have clarified its membership. An individual corporation For a hard copy, send e-mail to: boundaries. This dynamic process has can adjust its production to serve its [email protected], or call: (202) continued into recent times, with new economic interests, and cooperatives 720-8381. The remainder of this article questions rising and old questions have argued for the same right. The is excerpted from Frederick’s report. evolving. One of the most salient recent case has also been made by some that “One way to raise prices in the legal questions has been the question of because members in a cooperative can marketplace is to reduce available whether a cooperative can lawfully limit work together on price with Capper- supply. Certainly a cooperative entity, its membership’s production. Volstead protection that they should whether selling raw product it controls The term “supply controls” in the also be allowed to restrict production. or processed products made from raw context of U.S. agriculture has usually Some cooperative advocates have commodities provided by its members, been associated with a history of argued that “preparing for market” has the right to resell its inventory mandatory or voluntary federal farm inherently includes making decisions whenever it chooses. But it is less clear programs involving allotments, set- about what quantity to produce. whether producer members can,

16 November/December 2012 / Rural Cooperatives through the mechanism of a producer exemption afforded... by the (FCMA)... and the action was not intended to association, agree among themselves to would be a per se violation of the eliminate competition, it fell within the withhold product from the market to Sherman Act and the Federal Trade scope of conduct protected by the force buyers to pay a higher price for Commission Act… Thus, so long as the Capper-Volstead Act. their products. members of a cooperative are acting “In another action against crab “One administrative opinion pursuant to an agreement voluntarily fishermen, the U.S. Department of interpreting the Fisherman’ s Collective entered into among themselves, they Justice said that commercial crab Marketing Act suggests cooperative are to be considered a single entity for harvesters who simply agree among members may limit production. The antitrust purposes, the same as an themselves to refrain from fishing while Washington Crab Association was ordinary business corporation with a negotiating prices with buyers were organized to negotiate higher prices number of divisions. There is no engaged in a conspiracy to restrain and fairer terms of trade for its obligation on the single corporation to trade in violation of Section 1 of members from the processors who produce at capacity; it may produce any Sherman. However, such conduct was purchased their catches. When a volume that it likes and allocate protected by the Fisherman”s stalemate developed, the fishermen “sat production among its several divisions Collective Marketing Act if the on the beach” for nearly a month, in such proportions as it sees fit... We commercial crab fishermen formed a refusing to fish. see nothing unlawful in their limiting fishermen’s marketing association “FTC Chairman Paul Rand Dixon production by agreement among before agreeing to limit production. found nothing wrong with the themselves, or in their “boat rotation.’ “Using the rationale of Chairman cooperative members limiting “Another case involved a dairy Dixon, a value-added cooperative can, production, either by refusing to fish at producers’ association that sponsored a just like its non-cooperative all or by sending only a few boats out two-week milk withholding action to competitors, limit the amount of each day on a rotating basis to supply attempt to raise the price of milk for its product it offers for sale.” I those processors willing to pay the members. The 8th Circuit Court of association’s requested price. He wrote: Appeals determined that since no ‘To be sure, this is a “limitation on member was coerced into participating production” and, except for the

President Warren G. Harding signs the Capper-Volstead Act, which provides farmer cooperatives with limited exemptions from anti- trust laws in marketing their products.

Rural Cooperatives / November/December 2012 17 Preserving Common Ground Co-ops play key role in preserving shared grazing and fishing resources

Fishing cooperatives are helping avoid resource depletion caused by over-fishing. A fishing boat trawls off the coast of Alaska (above).

Bruce J. Reynolds and Alan D. Borst of a community resource. common-pool resources. Grazing Cooperative Programs Group action for resource associations and fishery cooperatives are USDA Rural Development preservation often takes the form of a two general types of local democratic cooperative or a nonprofit association governance that are having a positive reserving common-use that usually has a cooperative form of impact. P agricultural resources, governance. Cooperatives manage the Livestock grazing presents the such as grazing lands shared use of common-pool resources classic, and perennial, challenge for and fisheries, for for the benefit of their members’ own sustaining a common-pool resource. current and future agricultural and fishing enterprises. Cooperatives have been involved with generations is an intractable challenge, Controlled group use of a resource is grazing for many decades and continue often referred to as “the tragedy of the combined with sharing operating costs. to be a key institutional stakeholder in commons” (see sidebar, page 23, for Cooperatives can even manage conserving America’s grasslands. background). Despite the pessimism controlled use of a resource, along with Fishing cooperatives are an example implied by this term, local stakeholders other joint business activities, such as of local governance of common-pool can successfully coordinate their marketing and purchasing. resources that operate within relatively individual interests in ways that Democratic governance is the key complex and changing regulatory improve the quality and economic value attribute for successful management of institutions. This article provides a

18 November/December 2012 / Rural Cooperatives summary of the role of grazing and 20th centuries, large cattle companies permit holders, many of them fishing cooperatives. grazed vast herds across multi-state incorporated as cooperatives. They regions, crowding-out local ranchers receive an allotment of permits which Grazing cooperatives and resulting in over-grazing (for more are allocated among their members. Public interest in preventing over- background, see: www.fs.fed.us/ The associations coordinate both public grazing of America’s vast grasslands rangelands/uses/allowgrazing.shtml). land use and access to other lands, became a federal government policy Several western states also issued either through leases, grazing with the issuance in 1897 of the USDA regulations for their grasslands and agreements or, in some cases, Forest Service (FS) directives for supported the organization and cooperatives purchase pastureland. grazing permits. The Taylor Grazing incorporation of grazing cooperatives Grazing cooperatives typically have Act of 1934 provided a grazing permit during the 1930s and 1940s. Some of between 30 to 100 members. They not system administered by the U.S. Bureau the western grazing areas can only implement controlled grazing but of Land Management (BLM). accommodate only very few, often also oversee grassland maintenance An ancillary objective of these relatively large, ranchers. So, they projects. These co-ops share the costs regulations was to reserve public operate as direct recipients of permits of range riders, who move herds in a grasslands for controlled use by local from the FS and BLM. rotational grazing system, and for the ranchers. During the late 19th and early Today, 60 grazing associations are FS provision of water and minerals. The

Rural Cooperatives / November/December 2012 19 cooperatives are also a conduit for Governing the ocean commons “fractionalized fishing derby.” implementing technical information Over-fishing of the oceans will and recommendations from USDA’s eventually lead to a global “tragedy of Catch share Natural Resources Conservation the commons” (see page 23), some “Catch share” is a general term used Service (NRCS). resource scientists predict. Traditional in fisheries management strategies that There are variations in how grazing management of fisheries has been dedicate a secure share of fish to cooperatives operate based on described as a derby, or Olympic-like individual fishermen, cooperatives or institutions, markets and grassland event, characterized by short seasons fishing communities for their exclusive conditions in different localities. Many and extreme competition for fish. This use. co-ops operate controlled grazing in often results in low profits and harvests At the state level, the Wisconsin areas under conservation Great Lakes Individual easements held by various Transferrable Quota Program entities, such as NRCS, or in was the first catch-share land trusts owned by program, started in 1971 and is environmental groups, such as still operating. The first The Nature Conservancy. program of this type in U.S. Grazing cooperatives also federal fisheries was an provide members with individual fishing quota organizational capacity to program for the Mid-Atlantic negotiate long-term leases on Surf Clam and Ocean Quahog private lands. Some Fishery, implemented in 1990. cooperatives have purchased Currently, six of the Regional grasslands that member Fishery Management Councils ranchers could not afford on have adopted 15 catch-share their own. An example is the programs across the country. Chimney Canyon Grazing Individual fishing quotas Association in Iliff, Colo. An (IFQs) are one kind of catch article in the Denver Post about share, a means by which the association was reprinted governments may regulate in Rural Cooperatives, fishing. The regulator sets a March/April 2001 issue (see species-specific total allowable magazine archives web page catch (TAC), typically by at: www.rurdev.usda.gov). weight and for a given time The association purchased period. A dedicated portion of 37,000 acres in Logan and the TAC, called quota shares, Weld counties in 1965. It is allocated to individuals. provides opportunities for Quotas can typically be many of its members to bought, sold and leased, a expand their ranching feature called transferability. Some cooperatives, such as the Chimney Canyon Grazing enterprises, not only by having Association in Iliff, Colo. (above), have purchased grasslands that Concerns about distributional access to more grassland but member ranchers could not afford on their own. Photo courtesy impacts led to a moratorium also by sharing operating costs, Denver Post on moving other fisheries into such as herd grazing IFQ programs that lasted from management expenses. that exceed sustainable levels. 1996 to 2004. Some of the association’s 37 Individual operators face an incentive members grow crops on their to harvest as many fish as quickly as Harvesting cooperatives individually owned land and rely on the possible in order to preempt the Harvesting cooperatives are another association manager to tend to their activities of other operators. Such type of catch share in which groups of livestock in the grasslands. About five fisheries are inherently inefficient and organized fishery participants jointly years ago, the association paid off its wasteful, as fishing industry participants manage secure and exclusive access to loan and took out another over-invest in harvesting and processing fishery resources. In return for this loan for buying an additional capacity in an effort to maximize privilege, cooperatives are accountable 6,000 acres. resource capture. The result is a for operating a sustainable fishery

20 November/December 2012 / Rural Cooperatives Common resources, such as pastureland and fisheries, can be sustainably managed by local stakeholders using cooperative governance.

within the scientifically determined in 1989 concluded a private harvest an output-control regulatory system catch limit or dedicated area. agreement and formed the cooperative that allocates a portion of the TAC to Harvesting cooperatives form when Yaquina Herring. harvest cooperatives. The Northeast the government directly allocates shares As a result, the “catch race” among Council has enabled groups of to a group of fishermen or when members has stopped, their season has fishermen to apply for allocations of individual fishermen pool existing been lengthened and members are able catch (based on history) and to develop individually allocated shares. to more optimally time their fishing. their own plans for managing those Cooperative members usually share a There have also been significant cost catches within those allocations. common feature, such as vessel type, savings, with less race pressure to location, community affiliation or target upgrade vessels and equipment and less Individual quotas species. need for gear and labor. vs. harvest co-ops Harvesting cooperatives provide a The first harvesting cooperatives to The Catch Share Design Center of second type of catch share program. be organized as Federal Catch Share the Environmental Defense Fund The first of these — the Yaquina Bay programs were the Pacific Whiting compared the outcomes associated with Roe-herring Cooperative Program — Conservation Cooperative in 1997 and IFQ programs with those of harvesting was organized at the state level in the Bering Sea Pollock Cooperative in cooperatives (also see: http:// Oregon in 1989 and is still operating, 1998. These cooperatives were blogs.edf.org/edfish/files/2010/07/CSC according to Donald Leal, research organized under the North Pacific _Cooperative-Introduction_July- director for the Property and Fishery Management Council. 2010.pdf). This report identifies these Environment Research Center. Fisher- In May 2010, New England’s advantages of harvest cooperatives: men, who had been operating in a groundfish fleet shifted from days-at- • Coordinating efforts and sharing limited-entry fishery for several years, sea controls to sector management — information. Many cooperatives

Rural Cooperatives / November/December 2012 21 effectively coordinate participants’ efforts, including managing the timing, location and amount of each harvester’s catch. Prior to implementing a cooperative, the Alaska offshore pollock fishery experienced intense harvesting that led to a glut of product. Since the cooperative formation in 1999, the season has slowed and participants have increased the amount of product recovered from landings by over 50 percent, reducing biological waste and increasing fishermen revenues. • Improve sustainability. Federal Catch Share programs involving harvest cooperatives Cooperatives often coordinate the effort of participants to ensure the sustainable use of fish stocks, reduce 1997 — Pacific Whiting Conservation Cooperative (cooperative) waste and improve fishery research 1998 — Bering Sea & Aleutian Islands American Fisheries Act Pollock and data. Both the Pacific Whiting Cooperatives (cooperative) 2001 — North Pacific Scallop Cooperative (cooperative) Conservation Cooperative and the 2005 — Bering Sea & Aleutian Islands Crab Rationalization Program (IFQ and Pollock Conservation Cooperative cooperative) pool real-time bycatch data through a 2007 — Central Gulf of Alaska Rockfish Pilot Program third-party vendor, Sea State Inc., 2008 — Groundfish (Non-Pollock) Cooperatives (cooperative) which in turn uses this information 2010 — Northeast Multispecies Sectors (cooperative) to advise vessel captains where 2011 — Pacific Groundfish Trawl Rationalization Program (IFQ and bycatch hot spots are likely to occur, cooperative) so that they can avoid these areas. 2011 — Central Gulf of Alaska Rockfish Program (cooperative) Cooperatives in the Northeast Multispecies Sector Management Program can choose to pool quota of depleted stock. Sector Management Program catch. They can also minimize the • Economic viability of fishing requires each sector to coordinate its transaction costs of negotiating, communities. By receiving a secure own monitoring and catch reporting. monitoring and enforcing contracts share of fish, a community may be This requires increased effort by the among themselves. able to enhance its economic cooperatives, but has reduced the viability. The Community government’s role in administering Co-ops help find Development Quota (CDQ) program the fishery. common ground of western Alaska allocates a portion Cooperatives are involved in of the catch limit to community The economic successes of quota- managing the use of many types of cooperatives to promote jobs and based harvest cooperatives highlight the agricultural resources, in addition to economic development. The Central potential for more extensive forms of grazing and fish harvesting. The Alaska Rockfish pilot program collective behavior afforded by the challenges of sustaining common divides catcher vessels and the Fishermen’s Collective Marketing Act agricultural resources require users to catcher-processor vessels into (FCMA) of 1934. The lack of controls work together and share information. separate cooperatives, with on entry and harvests in the mostly The capacity to resolve member restrictions on trading. open access fisheries has limited the full differences and implement unified • Cooperative governance. Well-run potential of the FCMA. With more planning is one of the strengths of cooperatives can perform many fisheries now being managed by limited democratically controlled cooperatives functions of traditional government access and quotas, fishery cooperatives that favor a long-term view in and ultimately reduce management will be better able to reduce fishing preserving common resources. I costs. The Northeast Multispecies costs and increase the value of their

22 November/December 2012 / Rural Cooperatives Making the case for democratic governance of the commons

Protecting agricultural resources from over–use is a to ration use without either concentrating decision- perennial challenge. While there is general agreement on making power in either individual property rights or in the benefits of controlled use of common-pool government regulations. The field studies by Ostrom and agricultural resources, there are conflicting ideas about colleagues are from foreign countries, but the United best practices and the theories behind them. One of the States also has a long contending ideas is to have stakeholders organize history of collective cooperatives or similar types of associations to action strategies for democratically control utilization of local resources. preserving common-pool At least one barrier to wider application of resources. cooperatives for resource preservation is a general lack U.S. cooperatives of understanding of how local users can organize and have been organized for govern the use of resources. Cooperative education to managing several types of remedy this weakness has taken a back seat in resource-using activities, academic circles after several decades of contentious such as grazing, timber debate, starting in the late 1960s, between advocates of harvesting, irrigation and privatizing public resources vs. those defending Elinor Ostrom fishing. See page 18 of government regulation (Demsetz, Alchian and Hardin). this issue for a small This debate has been named after the so-called sampling of U.S. experience with some of the grazing “tragedy of the commons” history lesson. This “tragedy” cooperatives and the burgeoning application of is based on a much-debated history, spanning more than cooperatives for addressing the critical issue of three centuries, about the failure of English villagers to preserving the coastal stocks of seafood. preserve their common lands from over-grazing, — By Bruce Reynolds excessive hunting or forest clearing. The extent that rural villagers over-used the commons References has itself been a long-standing debate and is often • Alchian, Armen A. (2008- based on his article from incorrectly linked with the transition from open field 1965) “Property Rights,” The Concise Encyclopedia of farming to the fencing of individually owned farm land Economics. Library of Economics and Liberty (Thirsk). Nevertheless, the term “tragedy of the (http://www.econlib.org/library/Enc/PropertyRights commons” lives on as a slogan for skepticism of any .html attempt by local users to share and conserve resources. • Carson, Kevin A. (2010) “Common Versus Government Property,” The Freeman-Ideas on Elinor Ostrom Liberty. V.60/Issue 4 The narrow debate between government regulations (http://www.thefreemanonline.org/features/common vs. private property rights for preserving common-pool -versus-government-property). resources began to open up to more alternatives to these • Demsetz, Harold (1967) “Toward a Theory of polar extremes during the late 1990s, thanks in large part Property Rights,” American Economic Review. V.57, p. to the late Elinor Ostrom (Carson). She produced an 347-72. extensive body of research on local collective action for • Hardin, Garrett (1968) “The Tragedy of the managing shared use of resources. Ostrom received the Commons,” Science. V. 162, p 1243-48. Noble prize in economics in 2009 and passed away in • Ostrom, Elinor (1990) Governing the Commons: The June of this year. Evolution of Institutions for Collective Action. Her major work, Governing the Commons: The Cambridge University Press. Evolution of Institutions for Collective Action (1990), • Thirsk, Joan, ed. (1967) The Agrarian History of applied economic theory to examples of group formation England and Wales. Cambridge University Press. I

Rural Cooperatives / November/December 2012 23 The Many Faces of Cooperatives

24 November/December 2012 / Rural Cooperatives By Charles Ling, Ag Economist Unique cooperative organization — Cooperatives are Cooperative Programs business organizations of member-patrons. They can be of USDA Rural Development any size and can be local, regional or national in scope. All dairy cooperatives in the United States are known to be ooperatives are a model of business that are centralized organizations with direct members. C owned, controlled and used by members and Unique cooperative governance — Members of dairy that accrue benefits to members. Outwardly, cooperatives exercise ownership and business controls cooperatives may seem to be all alike, except through a board of directors that is elected from among in the products (commodities, supplies or member-farmers. The board makes major decisions, sets the services) handled or provided. In reality, the cooperative policy and determines the overall direction of the cooperative business model has many variations. for the management to follow in its day-to-day operations. This article briefly describes dairy cooperatives to Effective communication with members to foster sound showcase the cooperative business model; other types of governance is emphasized. cooperatives are then shown to be variations of the model. Unique cooperative equity financing — Equity for dairy Dairy cooperatives have been previously demonstrated to cooperatives is supplied and owned by members. It can be exemplify the attributes that are prescribed by classic grouped into four categories (percentages are averages as cooperative theories (Ling, The Nature of Cooperatives, CIR reported by 94 cooperatives (Ling, 2009)): common stock (0.1 65, pp.10-15). percent of total equities) is for witnessing membership and carries nominal value; preferred stock (7 percent) is mostly Uniqueness of cooperative model for witnessing retained patronage refunds; retained earnings Cooperative organizations represent the aggregates of (10.8 percent) could be earnings from incidental non- economic units (Emelianoff). In the agricultural sector, member businesses and net savings yet to be allocated; and cooperative associations are aggregates of member-farms. allocated equities (82.1 percent) include retained patronage The intrinsic cooperative structure entails the uniqueness of refunds, capital retains and/or base capital. the cooperative’s organization, governance, equity financing Unique cooperative operation — Being an aggregate of and operation. member-farms usually requires the cooperative to be the exclusive marketing agent of members’ milk. This operating mode entails its own unique economics (Ling, CIR 65, pp. 16-20) that comprises the following elements: (1) the milk volume the cooperative has to handle continually fluctuates; (2) the cooperative does not have its own milk production functions, milk production cost curves, or milk supply curves; and (3) the mismatch between seasonal milk supply and demand requires cooperatives to handle the inevitable seasonal surplus milk volume at a substantial supply- balancing cost.

Cooperative roles in transaction governance In marketing members’ milk, dairy cooperatives interact with other market participants to bring about mutual adaptation so that transactions can take place in the most Unique cooperative structure — Dairy economical and mutually advantageous way; the transactions cooperatives represent aggregates of dairy farms, are under all possible governance modes listed in table 1 (see organized to market milk produced by members. page 27). (For a concise explanation of table 1, see Ling, CIR Members’ farming operations are not under the 65, pp. 21-24.) cooperative’s administrative control. Therefore, Spot milk sales and retail dairy product sales are most the cooperative is neither a horizontal likely under transaction governance Mode B — where a integration of its member-farms nor a vertical competitive market without credible contractual safeguards integration between member-farms and the may expose members’ investments to unrelieved hazards. cooperative. It is a third mode of organizing Regular milk marketing is usually conducted under the coordination (Shaffer). credible contracting mode (Mode C) in order to stabilize the

Rural Cooperatives / November/December 2012 25 relations between the cooperative and the milk buyers (processors) and to protect members’ investments. If a dairy cooperative forward-integrates into processing dairy products, the processing enterprises are under the cooperative’s hierarchical administrative control (Mode D). Most wholesale dairy product sales are under credible contracting, but some may be under Mode B (unrelieved hazards).

Variations on the cooperative model Different commodities have their own characteristics, and different types of cooperatives have their own special features. They all represent variations on the cooperative business model. Marketing cooperatives — Marketing cooperatives share the uniqueness of dairy cooperatives in structure, organization, governance and equity financing that stems membership and delivery rights to ensure that an adequate from their being aggregates of member-farms. The unique level of capital is raised. economics of dairy cooperative operation is applicable in the • The delivery right is in the form of equity shares that can situation where the cooperative is the exclusive marketing be sold to other eligible producers at prices agreed to by agent of the milk produced by members. the buyer and the seller, subject to the approval of the Other agricultural commodities (such as fruits, vegetables, board of directors — to satisfy members’ desire of having nuts, poultry, sugar, etc.) that exclusively rely on a the freedom to cash in on the hoped-for increases in the cooperative to market members’ products would have unique value of the cooperative. cooperative operations similar to that of dairy cooperatives. A new-generation cooperative is organized to market However, they differ from dairy cooperatives in some members’ commodities through its main function of value- important aspects. added processing. By bringing processing functions under For example, milk is produced every day while other farm internal administrative control, the cooperative’s transaction commodities are harvested in concentrated time spans of governance mode is Mode D (table 1). For wholesale several weeks or months toward the end of the growing distribution of finished products, transaction governance is season. In the economic analysis of the supply and demand usually Mode C (credible contracting) but some may be situation of milk marketing operation, the unit of time used is Mode B (unrelieved hazard). per-day (cwt/day). The same analysis of other commodities The delivery right is instituted to ensure that the capacity has to use a unit of time that is appropriate for a particular of the processing plant is fully utilized. A member delivers to commodity. the cooperative according to the volume conferred by such Some producers of commodities that are storable and have right, which may be more or less than the volume the a long marketing season (such as grains and oilseeds) may member produces. Under such terms, the cooperative is not view the cooperative as but one of multiple outlets and an exclusive marketing agent of members’ total production. market through it only if the cooperative offers the best Though the cooperative is still an aggregate jointly owned terms and services among all alternatives. In such a case, the and operated by members to process and market their farm cooperative may still maintain its uniqueness in its production, the volume the cooperative handles is cooperative structure, organization, governance and equity predetermined. This should minimize the cooperative’s financing. Its marketing operation, however, is not different volume variation uncertainties. from other (non-cooperative) marketing firms. Purchasing cooperatives — Farm supply cooperatives New-generation cooperatives — Many new-generation are organized to procure production supplies and services for cooperatives were formed in the 1980s and 1990s in the sales (mainly) to members. Many also handle farm and home belief that this form of cooperative organization would solve items, such as heating oil, lawn and garden supplies and the problem of depressed farm income by engaging in value- equipment, and food. Most supply sales to farmers are at the added processing and capturing processor margins. retail level by local cooperatives that are centralized A distinct feature of the new-generation cooperative is its organizations with direct members. equity financing method. It is unique even among Many local cooperatives also federate with other cooperatives: cooperatives to form regional cooperatives to achieve • It requires significant equity investment as a prerequisite to economies of scale in sourcing major supply items, such as

26 November/December 2012 / Rural Cooperatives Table 1―Transaction governance modes and attributes

Transaction Asset specificity Investment hazard Incentive intensity Administrative control Contract law regime governance mode safeguard

A: Unassisted market 0 0 High Little Competitive norm

B: Unrelieved hazard > 0 < > Legal rules contract regime

C: Hybrid > > < > Credible contracting (Credible contracting)

D: Hierarchy > > Low (Pricing for Considerable (by fiat) Internal implicit contract (Administrative) successive stages is law (Forbearance) cost plus)

Source: Adopted from Williamson, 2005, Figure 1: Simple Contractual Schema. Note: ">" indicates a mode having a higher intensity of the particular attribute than the mode above it. "<" indicates a mode having a lower intensity of the particular attribute than the mode above it. seed, feed, fertilizer and petroleum products. Some federated governance mode for sourcing products is most likely under cooperatives also have individual farmers as members and are, credible contracting (Mode C). therefore, a hybrid organization of centralized and federated Here, they serve as focal points for credible contracting forms. with suppliers and economizing on transaction costs on Many supply cooperatives also market members’ crop and behalf of individual members. If they integrate upstream and livestock production, just as marketing cooperatives may also bring the business of producing supply items under the have supply and service businesses. Supply cooperatives share cooperative’s administrative control, then the mode of marketing cooperatives’ unique structure, organization, transaction governance for this part of the operation is Mode governance and equity financing. However, their operations D. are unique in their own way, because supply cooperatives’ Their transaction governance mode in selling products to main business of procuring supplies for members operates on members depends on the degree of member loyalty. If the buying side of market transaction. Transaction members are loyal patrons, or if the cooperative is the only

Rural Cooperatives / November/December 2012 27 store in the relevant market area, the cooperative would centers. In essence, the production operation is a vertical resemble a buying club. Utility cooperatives and many service integration between producer-members and the cooperative. cooperatives are also in this category. Cooperatives with non-patronage members — Some If member loyalty is low, then the cooperative would states have enacted new cooperative laws in recent years that operate as any other firm in selling supplies, although it may allow cooperatives to have non-patron members (investors) as still maintain its uniqueness in its cooperative structure, well as patron members. These laws vary from reserving the organization, governance and equity financing. voting power only for member-patrons to setting a minimum Consumer cooperatives and credit unions are similar to level of voting power for member-patrons. Requirements supply cooperatives, except that consumer cooperatives’ main regarding earning distribution between patron members and business is in consumer products: foods, groceries, etc., while non-patron members also differ substantially. the business of credit unions is satisfying members’ credit Differences in governance and earning distribution rules needs. There are many more types of purchasing and the type of non-patron members involved (for example, cooperatives. for-profit investors, nonprofit economic development Local-food cooperatives — In recent years, consumers organizations, community supporters, etc.) will cause the have shown increasing interest in locally produced food. cooperative’s structure, organization, governance, equity Because production of locally marketed food is more likely to financing and operation to deviate in various ways from the occur on small farms located in rural regions near uniqueness of the cooperative model that was described metropolitan areas, local-food cooperatives may have a earlier in the article. These organizations have to be analyzed limited geographical scope. However, they should be case by case because of the variety of state laws. classified as marketing cooperatives. Multi-stakeholder cooperatives — Along with local food Conclusions demand, some multi-stakeholder cooperatives have been Variations on the uniqueness of the cooperative business formed that comprise everyone who has a stake in the local model are summarized in table 2, using dairy cooperatives as food chain, including farmers, processors, distributors, the reference “point” for the model. truckers, buyers, etc. Laying out each type of cooperatives (or, for that matter, On the surface, this brings together the successive stages each cooperative) in the format of table 2 provides a of the transaction into the organization and appears to be comprehensive view of their respective structure, Mode D transaction governance. In reality, members are organization, governance, equity, and operation, and their economic units that independently operate their respective similarities and differences from one another: business. The importance of their stakes in the cooperative to • Structure: Cooperatives are aggregates of economic units. their economic well-being may vary widely. However, the economic units can come in many “stripes.” By organizing all stakeholders in the successive stages of Also, the coordination between the economic units the supply chain under one roof, the cooperative becomes a (members) and the cooperative and between members framework for mutual adaptation and for multi-party, multi- through the cooperative can vary substantially. stage credible contracting among members (Mode C) only • Organization: Cooperatives are organized by members to when they deal with each other in attending to the serve some specific purposes, and the purposes can be very cooperative’s business of moving products from farmer- different from one cooperative to another. Cooperatives members to buyer-members. The durability of the may have different sizes and geographical scopes. They cooperative is dependent on the stability of the collective may be centralized, federated or hybrid organizations. credible contracting relationships. • Governance: The directors of cooperative boards are Farm production cooperatives — Several farmers can supposed to be elected from among members, although form a co-op and pool resources to operate a farm. This is different cooperatives may have different election one way of organizing and managing inputs for production at procedures. Each cooperative may also see the a larger scale than the members could as individuals. responsibilities of the board and the roles of management The structure, organization, governance and financing somewhat differently. The degree of transparency and may be the same as a cooperative. Its operation, however, accountability of the board and management to needs to have overall coordination for it to be a coherent and membership may also vary. efficient production entity. Management oversight and • Equity: The composition (categories) of the equities, the administrative control over members’ participation in the proportion of equities that is owned by members, the farming operation is necessary, although the management and rights that are bestowed on equity ownership and the administrative rules may be determined by members themselves. mechanisms that are employed to ensure that ownership is Members cannot make farming decisions independent of in the hands of current members can vary among the farm, and they do not represent independent profit cooperatives.

28 November/December 2012 / Rural Cooperatives Table 2―Variations on the uniqueness of the cooperative business model

Type of cooperatives Structure Organization Governance Source of equity Operation

Dairy Aggregates of Centralized member Member- governed Members Members' exclusive cooperatives1 economic units organizations marketing agent―unique economics

Marketing cooperatives2 Aggregates of Mostly centralized Member- governed Members Unique economics if economic units member organizations; exclusive marketing some are federated agent; otherwise, like other firms

New-generation Aggregates of Centralized member Member- governed Members; tied to Business volume cooperatives economic units organizations delivery rights defined by delivery rights

Purchasing Aggregates of Local (retail) Member- governed Members Sourcing supplies or cooperatives3 economic units cooperatives are services for sale to centralized; many members and patrons federated with other locals; federated cooperatives may have direct members

Multi-stakeholder Aggregates of Centralized member Member- governed Members A framework for multi- cooperatives4 economic units organization party, multi-stage credible contracting among members

Farm production Aggregates of Centralized member Member- governed Members A vertical integration cooperatives economic units that are organization between members and not independent in the cooperative in production operation production

Cooperatives with non- Mixture of patron and Defined by state laws Defined by state laws Defined by state laws Defined by state laws; patronage members non-patron members most likely member- patrons’ business

1 Separately listed due to dairy cooperatives’ role in explaining the cooperative business model. 2 Include local-food cooperatives. 3 Include farm supply cooperatives, utility cooperatives, service cooperatives, consumer cooperatives, credit unions, etc. 4 As defined in this article.

• Operation: The products handled or provided by various • Ling, K. Charles. Marketing Operations of Dairy Cooperatives, cooperatives are very different and, therefore, the 2007, U.S. Department of Agriculture, RBS Research cooperatives’ operations can vary widely. They source their Report No. 218, July 2009. products differently, prepare the products for the market • Ling, K. Charles. The Nature of the Cooperative, USDA differently, and adapt to their respective market differently. Rural Development, Cooperative Information Report The variety of cooperative operations can be discerned (CIR) No. 65, February 2012. through the lens of transaction governance (the transaction • Ling, K. Charles. The Nature of the Cooperative: A Dairy cost economics approach advanced by Williamson and Cooperative Case Study, USDA Rural Development, RBS schematically adopted in table 1). I Research Report No. 224, April 2012. • Shaffer, James D. “Thinking about Farmers' Cooperatives, References Contracts, and Economic Coordination,” Cooperative • Emelianoff, Ivan V. Economic Theory of Cooperation: Economic Theory: New Approaches, ACS Service Report Number 18, Structure of Cooperative Organizations, Washington, D.C. U.S. Department of Agriculture, Agricultural Cooperative 1942 (litho-printed by Edwards Brothers., Inc., Ann Arbor, Service. July 1987, pp. 61-86. Michigan), 269 pages. (A reprint by the Center for • Williamson, Oliver E. “The Economics of Governance,” Cooperatives, University of California, 1995, may be American Economic Review, 95 (May 2005), pp. 1-18. accessed at: http://cooperatives.ucdavis.edu/reports/ index.htm.)

Rural Cooperatives / November/December 2012 29 Mine tailing sites tested for growing miscanthus grass for biofuel

Editor’s note: This article was provided by MFA Oil Biomass and the Doe Run Company.

FA Oil Biomass LLC M and the Doe Run Company are participating in a pilot project with Missouri University of Science and Technology (Missouri S&T) to help transform mine tailings sites into potential biofuel crop sites. In April, Doe Run planted a test plot of 11 acres of miscanthus grass at the company’s Viburnum Mine 28 tailings site in Missouri. If the test plot Verdant stands of miscanthus grass for bioenergy production, such as this University of Illinois grows successfully, additional acres will test plot (top), are the goal of tests being conducted to grow the grass on mine wastes. be planted next year at other closed Miscanthus is irrigated after planting on mine tailings (lower photo). tailings sites. “Doe Run saw this test program as MFA Oil Company, a Missouri-based possibly including other Doe Run sites, an opportunity to potentially bring new fuel cooperative) is looking to during the next planting season. purpose and productivity to former miscanthus to eventually utilize land at “The energy market is changing, and mine sites,” says Chris Neaville, asset mine tailings sites across Missouri. it forces us all to find ways to decrease development director at Doe Run. Since March, MFA Oil Biomass has our dependency on foreign oil and turn “This restoration approach may create planted more than 12,000 acres of to homegrown energy sources,” says new economic and environmental miscanthus in Missouri and Arkansas. Jared Wilmes, project coordinator at benefits and supports our commitment MFA Oil Biomass is working to secure MFA Oil Biomass. “Manufacturing to operating sustainably.” federal grants to fund the expansion of fuels locally is a win-win situation: it MFA Oil Biomass LLC (a division of miscanthus planting to other locations, continued on page 36

30 November/December 2012 / Rural Cooperatives Newsline Co-op developments, coast to coast

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

Beall named NCBA president notes. Beall has beenaleader in credit sectors of cooperatives,” says Beall, who The National Cooperative Business union advocacy in the halls of assumed his new duties Nov. 16. Association (NCBA) has announced the government at both the state and Liz Bailey, who had been interim appointment of Michael V. Beall as its federal levels. He also has been a CEO and president, will continue to president and CEO. Beall (pronounced driving force in the expansion of the serve as NCBA’s vice president for Bell) was previously president and CEO credit union community’s Development public policy and domestic with the Missouri Credit Union Educator program,aprofessional development, as well as executive Association (MCUA). Beall has also development program that instills the director of the Cooperative held leadership positions in the state cooperative principles in senior Development Foundation (CDF). credit union associations in cooperative and credit union executives Beall holds a bachelor’s degree in Maryland/District of Columbia and in the United States as well as abroad. government and politics from the North Carolina, as well as the World During his tenure as president/CEO University of Maryland andalaw Council of Credit Unions of the Maryland and degree from the University of (an international credit District of Columbia Richmond, T.C. Williams School of union development Credit Union Association, Law. He is a member of the Virginia organization). he presided over the first State Bar. “Mike Beall’s selection merger between state credit was based on several key union associations. Liz Bailey honored as factors: his extensive “I am honored by the NAHC Outstanding Leader experience in providing NCBA board to be chosen Liz Bailey, who had been serving as advocacy and development to lead the organization interim president and CEO of the services to credit unions towards stronger domestic National Cooperative Business through state, national and development initiatives that Association, has been recognized for Michael V. Beall international associations; support the strong outstanding leadership by the National his familiarity with cooperative business model so Association of Housing Cooperatives. international development necessary for the success of the U.S. NAHC President Vernon Oakes administration; and his transactional economy and working families,” Beall presented Bailey with the NAHC and business process experience,” says says. NCBA’s work during the next few President’s Award during its annual NCBA Chairman Wilson H. Beebe. years will focus on strengthening efforts meeting in Reno, Nev. “Combined with Mike’s demonstrated to “cross-pollinate” business “Liz has demonstrated outstanding commitment to the cooperative opportunities between cooperative leadership in engaging with the Obama principles of economic self- sectors. Beall says the organization will administration over the role that all determination, his career background also strive to raise awareness of the types of cooperatives play in our made him the outstanding and cooperative business model on Capitol economic recovery,” Oakes says. “Her unanimous choice of the board of Hill and throughout the federal vision for the cooperative sector in the directors to lead NCBA’s revitalization government by showcasing the role U.S. and her dedication in keeping the of its domestic mission and the cooperatives play in the domestic and conversation going at the national level diversification of its work abroad.” worldwide economies and tying further demonstrate her dedication to Beall brings to NCBAabroad international cooperative development cooperative enterprise.” understanding of the cooperative initiatives to the membership of NCBA. NAHC, founded in 1960, in business model andacommitment to “I look forward to enhancing the particular saluted Bailey for taking 150 core cooperative principles, Beebe value of NCBA membership with all leaders of the U.S. cooperative

Rural Cooperatives/November/December 2012 31 community to the White House on retirement of per-unit retains. garment back to some of the farmers May 4 to let top-level administration “We began planning ahead in early who produced the cotton.” officials know that co-ops are values- spring 2011 for the anticipated effects In other PCCA news, the co-op’s based businesses and engines of of the drought by cutting our budget 20 Denimatrix division recently was named economic growth. percent; at year-end, actual expenses Exporter of the Year in Textiles and came in even lower than that,” said Apparel for 2012 by the Guatemalan Accelerated Genetics launches PCCA President and CEO Wally Association of Exporters (AGEXPORT) international subsidiary Darneille. “There were some bright in recognition of the company’s 25 AGSP Global is a new, wholly owned spots this year as both marketing pools percent growth in the value of jeans subsidiary of Accelerated Genetics, a paid out the highest equities in their exports. Baraboo, Wis.-based livestock genetics histories, and the volume of cotton cooperative. The company will bring marketed over The Seam [an online Adelstein saluted for work bovine health products, featuring both marketing system that provides co-op as RUS administrator Accelerated Genetics and TechMix members with access to a large number Jonathan Adelstein in August left his products, to the international of cotton buyers] remained near the position as administrator of the Rural marketplace. previous year’s level. This showed the Utilities Service of USDA Rural “International product sales are not value that our electronic platform Development to take a job in the brand new to Accelerated Genetics; provides to producers who wish to telecom industry. however, we defined the need to market some of their cotton at harvest “I want to thank Jonathan Adelstein globally expand our product exposure or later.” for his stellar service as administrator and support,” says AGSP Global Darneille also reported the over the past three years,” said Dallas General Manager Jill Strangstalien. “In developing this subsidiary, our priority was to identify a business partner who shared our vision. Combining the specialty products of both AGSP Global and Tech Mix allows us to share technical expertise, manufacturing, distribution, sales and support efforts around the globe.” “As a subsidiary of a leading AI [artificial insemination] organization, we at AGSP Global recognize the value of genetics and the importance of herd Photo courtesy PCCA health,” Strangstalien adds. “Offering superior quality products to maximize Marketing and Warehouse Divisions Tonsager, under secretary for USDA production and reproduction is our came close to breaking even due to cost Rural Development. “His calm and primary focus.” control. “Saving money can be equally steady leadership, especially through important as making it. challenging budget times, and his PCCA pays net “Our Textile and Apparel Division remarkable telecommunications policy margins despite drought did not make money this year,” expertise have served us all well.” Plains Cotton Cooperative Darneille said. “However, over a three- Under Adelstein’s stewardship, RUS Association (PCCA) announced at the year period, we have seen a net positive made historic investments in the cooperative’s 59th annual stockholders cash flow of $14.8 million in this deployment of broadband in rural meeting in Lubbock, Texas, that it will division due to depreciation and shared America, which Tonsager said could be pay net margins of $8.4 million from expenses. Innovation and our compared to the Rural Electrification fiscal 2011-2012 operations despite an technological expertise continue to Administration’s expansion of rural 80-percent reduction in cotton volume provide new opportunities. electric infrastructure in the 1930s that due to last year’s drought. Further cash “We now have jeans on the shelf at a helped build the rural economy. distributions to members of $13.6 major retailer with PCCA’s “total “Beyond his rural broadband million were made in September, traceability” system on a hang-tag that accomplishments, he led RUS to make comprised of $6.8 million in cash enables customers to use a cell phone unprecedented investments in critical dividends and $6.8 million in with a scanning application to track the rural water and waste systems, as well as

32 November/December 2012 / Rural Cooperatives efforts to modernize the rural electric The AminoPlus expansion follows on AgBank. The board will now have 24 grid and expand investments in the heels of another major plant elected directors from six regions, as renewable energy, energy efficiency and improvement project recently well as between three and five the smart grid,” Tonsager said. completed at Dawson. That project appointed directors. Adelstein has spent more than 25 included installation of new processing The winning candidates are: East years in public service, including 15 equipment, the addition of more Region — James Kinsey, owner/operator years as a staff member in the U.S. storage capacity and expansion of plant of a purebred Angus seedstock ranch in Senate, a seven-year appointment as handling capability. Operations at the Flemington, W.V.; South Region — commissioner on the Federal plant will not be affected during George Kitchens, general manager & Communications Commission and the construction of the new AminoPlus CEO of Joe Wheeler EMC, Decatur, past three years with USDA Rural production line. Ala.; Robert Behr, chief operating Development. AGP is the largest farmer-owned officer of Citrus World, Lakeland, Fla.; “Throughout his career, he has soybean processor in the world, owned Central Region — James Magnuson, proven himself as a strong public by 175 local and five regional general manager and CEO of Key servant and as someone you can rely on cooperatives that represent 250,000 Cooperative in Sully, Iowa; David to do right by rural America,” Tonsager farmers. Kragnes, owner of a diversified grain, said. “As a fellow South Dakotan and as sugarbeet and soybean farm in Felton, his colleague, it has been an honor to Chelan Fruit Co-op Minn.; Mid-Plains Region — Clint serve rural America alongside acquires Orondo Fruit Co. Roush, owner of a wheat, alfalfa and Jonathan.” Chelan Fruit Cooperative in Chelan, stocker cattle operation in Arapaho, John Padalino, who had been acting Wash., has acquired the Orondo Fruit Okla.; Scott Whittington, general administrator of the Rural Business- Co. packing plant in Orondo, Wash., manager, Lyon-Coffey Electric in Cooperative Service, is now acting from the Griggs and Clennon families. Burlington, Kan.; West Region — Jon administrator of RUS. Lillian Salerno is Along with this purchase comes the Marthedal, owner of a grape, raisin and the new acting administrator of the opportunity to pack and market the blueberry farm in Fresno, Calif.; and Rural Business-Cooperative Service. Orondo Ruby cherry, as well as some of Northwest Region — Erick Jacobson, the state’s premier Rainier cherries. retired president and CEO of AGP expanding operations The Orondo Ruby cherry was NORPAC Foods Inc. in Bend, Ore. at Dawson plant discovered in 2001 and boasts early Term expiration dates for these Ag Processing Inc (AGP) has ripening, an exceptionally sweet, juicy directors vary from 2013 to 2016. approved a multi-million-dollar capital and delicious flavor, with tremendous CoBank also announced that Barry project for construction of an consumer appeal, according to the co- Sabloff has been re-appointed to a four- AminoPlus production facility at its op. Chelan Fruit Cooperative will be year term as an outside director. Sabloff soybean processing plant in Dawson, packing and shipping the Orondo Ruby was formerly executive vice president Minn. AminoPlus is a patented, high- cherry in the summer of 2013. with Bank One in Chicago and is performance soy by-pass product that Chelan Fresh Marketing, a major currently vice chairman of Marquette AGP produces and markets to the dairy marketer of Washington state tree fruit, Bank, a Chicago-based community industry. The project is scheduled to has marketed all of Chelan Fruit bank. begin by winter (subject to gaining Cooperative’s tree fruits under the CoBank uses an independent needed permits). Trout Label for the past nine years. nominating committee to develop a “The additional production capacity slate of qualified director candidates for at our Dawson location will serve our CoBank announces each election. No current board expanding customer base in the upper board election results member may serve as a member of the Midwest, Canada and overseas CoBank — a Denver-based committee, and no member of markets,” says co-op CEO Keith cooperative bank serving agribusinesses, management sits on the CoBank board. Spackler. rural infrastructure providers and Farm The addition of AminoPlus Credit associations throughout the Land O’Lakes helps fight hunger production to the Dawson facility United States — has announced results The Land O’Lakes Foundation will represents the fourth major production of shareholder elections for the bank’s donate $150,000 to Indianapolis-area expansion for the product, which AGP board of directors. Nine seats were food-relief services over the next three currently manufactures at its soybean open due to the transition to a new years to help fight domestic and global processing plants in Mason City, Iowa; governance structure adopted as part of hunger. The donation was announced Hastings, Neb.; and Sgt. Bluff, Iowa. the bank’s recent merger with U.S. in conjunction with FFA Rally to Fight

Rural Cooperatives / November/December 2012 33 Hunger, held in October during the Secretary of State Hillary Rodham that are not made from milk. first day of the 2012 National FFA Clinton and Malawi President Joyce Convention and Expo, held Oct. 24-26. Banda. Washington meat During the event, about 10,000 FFA co-op formed members and volunteers from across NMPF revitalizing REAL Seal North Cascades Meat Producers the country packed 1 million meals to The National Milk Producers Cooperative, formed to provide distribute through Gleaners Food Bank Federation (NMPF) is engaged in a processing and marketing services to in Indianapolis. The other half was revitalization and makeover effort for pasture-raised livestock operations in shipped for distribution in Haiti. REAL Seal, a food label used to identify Washington, is raising capital by selling Purina Animal Nutrition, a wholly real, U.S.-made dairy products. The member equity shares. It hopes to begin owned subsidiary of Land O'Lakes, was effort began with the launch in October operations in the first half of 2013. honored with the FFA Distinguished of a revamped website: www.realseal.com. The co-op says it plans to initially Service Citation recognizing its 60 The previous website functioned offer slaughter and processing services years of supporting agricultural primarily as a resource for dairy to farm members and non-members for education and leadership. FFA — product manufacturers and marketers beef, pork, lamb and goat in Whatcom, formerly known as Future Farmers of Skagit and Island counties. Pat Grover, America — works with agricultural president of the Washington co-op, told education students to develop their the Capital Press that the co-op is leadership potential, personal growth looking to rent a facility that can be and career success through agricultural converted into a processing plant. education. The co-op plans to do wholesale While donations play a role in meat distribution under the North fighting hunger, Land O’Lakes Cascade Meats brand. Products will President and CEO Chris Policinski include pasture-raised, grass-finished says it will take a broader effort. beef and lamb as well as pasture-raised Speaking at “Feed the Future, pork. No antibiotics or hormones can Partnering with Civil Society,” an event be used by producers, and no sponsored by the United Nations interested in putting the REAL Seal on petroleum-based fertilizers can be used General Assembly in September, he their packaging. The new website will on pastures. No detrimental impacts to stressed the importance of the private contain more content to educate riparian areas are permitted. sector in creating shared value through consumers about why they should look The cooperative plans to use a self- hands-on commitments that for the REAL Seal on the foods they contained, mobile processing unit for simultaneously advance agricultural buy, while also continuing to provide USDA-inspected slaughter. The unit development, food security and information for those companies using will be stationed at farms in Whatcom investment opportunities for the private the REAL Seal to enhance their and Skagit counties six days per month. sector. product marketing. Finished carcasses will be transported in “It’s about transitioning from writing “Research has found that 93 percent a refrigerated truck to the co-op a check to working in tandem with of consumers know of the REAL Seal, processing plant. people around the world,” Policinski and that many people find it useful in said. “Land O’Lakes helps farmers in making buying decisions,” says Jerry Swiss Valley Farms developing countries move from Kozak, president and CEO of NMPF. sells Platteville facility subsistence farming to farming as a Management of the REAL Seal Swiss Valley Farms, Davenport, business, helping the private sector gain program was transferred from the Iowa, has announced the sale of its traction and grow a reliable customer United Dairy Industry Association to Platteville, Wis., cheese manufacturing base. It’s authentically sustainable NMPF last March. The two facility to Tritent International corporate social responsibility — organizations agreed that the transfer Agriculture Inc., which was effective helping people move up the value chain would create an opportunity to place a Sept. 1. Details of the transaction are and providing real opportunities for renewed emphasis on highlighting the not being publicly disclosed. Operations public-private partnerships that importance and value of American- were halted at the Platteville facility in promote sustainable food security. The made dairy foods. October 2011 after Swiss Valley development community and private Kozak says use of the seal can help transferred production of its Baby Swiss sector win.” consumers differentiate between real wheels, loaves and no-salt-added Swiss The U.N. event was hosted by U.S. dairy foods and imitation dairy products blocks to White Hill Cheese Co. LLC,

34 November/December 2012 / Rural Cooperatives Co-op Hall of Fame winners announced

Four outstanding cooperative leaders will receive the thousands of workers. Some of the foremost worker co- cooperative community’s highest honor on May 8, 2013, ops in the nation attribute their success to his influence. when they are inducted into the Cooperative Hall of Dawson also understands that much of what affects the Fame. The induction ceremony will be held at the quality of work for direct- care workers emanates from National Press Club in Washington, D.C. The public policy. He thus helped start the Paraprofessional ceremony will be preceded by a cooperative issues forum Healhthcare Institute, a national research, policy analysis (for more information, visit: http://heroes.coop/). and technical assistance organization that works for the The 2013 inductees are: credit union leader Joy benefit of all direct-care workers. Cousminer, worker cooperative leader Steven Dawson, cooperative financer Rebecca Dunn and cooperative I Rebecca Dunn — Dunn is a leader in cooperative educator Leland Ruth. These cooperative leaders will be financing, devising innovative products and methods that recognized at the annual Cooperative Hall of Fame are useful to the entire co-op economy. During her 26- Dinner. year tenure, she oversaw a fund that has grown from “The roster of the Cooperative Hall of Fame tells the $130,000 to almost $15 million and has expanded from story of the U.S. cooperative community through the lending mostly to food co-ops to all types of co-ops — lives and accomplishments of extraordinary individuals,” all while never losing an investor dollar. Her skills in says Gasper Kovach Jr., chairman of the Cooperative banking, communication and borrower relations and Development Foundation, which administers the Hall of development, her steady recruitment and training of Fame. “Induction to the Cooperative Hall of Fame is outreach workers, her inclusive decision-making, her reserved for those who have made genuinely heroic ability to innovate to address diverse and multiple needs contributions to the cooperative community.” and her dedication to the co-op model have been Following are brief biographies of this year’s instrumental in starting many co-ops throughout New inductees: England. Most recently, she was responsible for the Cooperative Fund on New England’s selection as one of I Joy Cousminer — Cousminer has spent 58 years 20 recipients nationally of the Small Business breaking down economic and educational barriers for Administration’s (SBA) pilot Intermediary Lending those in need and improving the lives of the people of Program (ILP), a first use of SBA funds for the benefit New York’s South Bronx, one of the most economically of cooperatives. distressed urban areas in the country. First as a teacher, then as a founder and now president and CEO of Bethex I Lee Ruth — Ruth’s service on the Agricultural Council Federal Credit Union, she helped bring banking to an of California led to his commitment to the cooperative area that had no banking facilities and no access to business model. He helped found the California Center credit. The many innovative programs and partnerships for Cooperative Development — twice — and the offered by Bethex reflect her recognition of the financial, California Association of Cooperatives. He has always educational and business needs of the people of the used his service on various boards to promote the South Bronx and her efforts to meet them. Her work cooperative way of business. As co-chair of the national embodies the ideals of community spirit, determination, Rural Cooperative Development Task Force, he was vision and cooperation. She is a leader with a instrumental in creating the Rural Cooperative quintessentially cooperative spirit. Development Grant program, a USDA source of funding for rural cooperative development that now I Steve Dawson — Dawson was a key figure in laying the supports the work of 29 cooperative development intellectual and structural groundwork of the worker centers across the country. Demonstrating commitment, cooperative movement. He helped found two nationally innovation and leadership, he has mentored cooperative significant organizations: the ICA Group, the first developers, started cooperatives, developed resources for professional consulting group for worker ownership, and cooperatives and won favorable legislation for Cooperative Home Care Associates, the largest worker cooperatives in California. co-op in the nation. His work has changed the lives of

Rural Cooperatives / November/December 2012 35 in Shullsburg, Wis. loan servicing during that period; For further guidance, you may 2) The loan was denied, provided contact a lawyer or other legal services Hispanic, women farmers late, approved for a lesser amount than provider in your community. USDA may seek compensation requested, approved with restrictive cannot provide legal advice. If you are Hispanic and women farmers and conditions or USDA failed to provide currently represented by counsel ranchers who believe that the U. S. appropriate loan service; and regarding allegations of discrimination Department of Agriculture (USDA) 3) They believe these actions were or in a lawsuit claiming discrimination, improperly denied them farm loan based on their being Hispanic or you should contact your counsel benefits between 1981and 2000 because female. regarding this claims process. I they are Hispanic or female may be To receive a claims package, visit: eligible to apply for compensation if: www.farmerclaims.gov, or call 1-888- 1) They sought a farm loan or farm- 508-4429.

Commentary other state-of-the-art ag processing complex in Bryan, Texas, (Sept.-Oct. continued from page 2 plants owned and operated by farmer 2011 issue) show how co-ops are not co-ops across the nation. just serving their traditional farmer- Farm supply co-ops can provide just owners, but also successfully competing in Minnesota’s Red River Valley, which as many examples of “how a bunch of with the big box stores for the home, also converted to farmer co-op farmers can do it.” The Seiver Farmers garden and ranchette trade. ownership when faced with closure. Or Co-op center in Seiver County, Tenn., So, how do farmers operate their visit the Cabot Cheese plant in (Jan.-Feb. 2012 issue) and Producers own modern processing and supply Vermont, or any of the hundreds of Cooperative Association supply operations? Very well. I

Mine tailing sites tested for growing “While we’ve studied other processed biofuels, like corn miscanthus grass for biofuel ethanol and biodiesel, and biomass such as poplar and willow continued from page 30 trees, this miscanthus study is the first of its kind at Missouri S&T,” said Joel Burken, professor of civil, architectural and environmental engineering at Missouri S&T. “Growing creates jobs and, in this case, puts these otherwise un-utilized miscanthus crops in the region could help develop industries properties to productive use while simultaneously improving to utilize the biomass fuel, which is efficient in terms of the composition of the soil.” nutrient and water inputs.” Miscanthus is proven to be one of few plants that can “It takes organizations like Doe Run, which are deeply thrive in challenging soil conditions, such as tailings, which invested in their communities, to carry out this type of are the ground-up rock byproducts created when separating project successfully,” Wilmes says. “We are excited to develop metal from ore during mining and milling. Miscanthus crops a long-lasting partnership with Doe Run in what we hope have been in development for 30 years as commercially will be a series of renewable energy projects.” harvested fuel crops and produce more biomass per acre than MFA Oil Biomass LLC, formed in 2011, is based in any other energy crop, yielding up to 15 feet of growth per Columbia, Mo. MFA Oil teamed up with Altoterra Energy year as a mature plant. LLC to form a fully integrated biomass company that is Because it is not needed as a food source, miscanthus involved in the research, farmer relationships and planting of offers an alternative to other biofuel crops, such as corn and the biomass crop all the way to the marketing and soybeans. Miscanthus roots also penetrate deep into the soil development of products manufactured from the biomass. and deposit nutrients, which restores soil over a 20- to 30- MFA Oil Biomass has three project areas in central year span. Missouri, southwest Missouri and northeast Arkansas. Working alongside Doe Run, Missouri S&T is examining Based in St. Louis, the Doe Run Company is a privately the ability of miscanthus to restore nutrients to the soil at held natural resources company and the largest integrated Mine 28. Missouri S&T is conducting further research to lead producer in the western hemisphere. Dedicated to find the best methods to optimize the growth of miscanthus environ-mentally responsible mineral and metal production, in tailings sites, to improve soil quality and to increase the Doe Run operates one of the world’s largest, single-site lead soil’s capacity to grow biofuel crops. recycling facilities located in Boss, Mo. I

36 November/December 2012 / Rural Cooperatives 2012 Article Index

Information appearing in Rural Cooperatives magazine during calendar year 2012 has been indexed to help you find past articles. Articles are indexed by issue and page. Back issues can be found on-line at: www.rurdev.usda.gov/BCP_Coop_RurCoopMag.html

TITLE FEATURES ...... ISSUE / PAGE A Taste of Gold Co-ops’ world-class cheeses help U.S. dominate international competition ...... May/June 16 Annie’s Project helps women farmers ...... March/April 6 ‘Because we’re all in this together’ Sandhills Farm to Table Co-op’s goal: ‘Meeting local food needs with local food’ ...... Jan./Feb. 4 Business owner benefited from LEDC ...... March/April 14 Can co-ops help drive global recovery? Quebec City to host international co-op conferences ...... July/Aug. 31 Capital Ideas Lessons offered by dairy co-ops shed light on important equity capital issues ...... May/June 30 CCA salutes those who excel at telling the co-op story ...... July/Aug. 32 Central Kentucky Growers helps members transition from tobacco to vegetables ...... Sept./Oct. 29 C-FARE meeting shows progress made in co-op goals, values ...... July/Aug. 24 Changing course Milk producers tackle dairy policy, other key issues at annual meeting ...... Jan./Feb. 16 Cherry Central adds Canadian member ...... March/April 41 CoBank announces drought assistance initiatives ...... Sept./Oct. 45 Colorado launches health insurance co-op ...... Sept./Oct. 25 Comparative performance reports help co-ops learn from peers ...... July/Aug. 17 Continental movement: worker co-ops join forces in Quebec ...... Jan./Feb. 28 Co-op Hall of Fame winners announced ...... Nov./Dec. 35 Co-op leaders confer with White House officials ...... July/Aug. 22 Co-op oil mills play vital role in sustaining cottonseed value ...... July/Aug. 14 Co-op rail facility boosts feed security ...... Nov./Dec. 7 Co-ops of all types benefit from USDA’s value-added grants ...... March/April 26 Co-ops respond to consolidation, global volatility ...... March/April 36 Creating a roadmap for food hub development ...... July/Aug. 18 Dairy co-ops in the 21st century: the first decade ...... March/April 32 Disasters spur co-op formations Louisiana co-op association helps fishermen, farmers recover following hurricanes and oil spill ...... July/Aug. 4 Equity financing issues ...... May/June 31 Farm co-ops set sales, income records Number of full-time jobs up 1,800 ...... Sept./Oct. 4 Feed mill seen as key to success of Amish dairy farms ...... Sept./Oct. 32 Flint Energies turns 75 ...... May/June 43 Flying High Key to success for turkey producers is their willingness to put co-op first ...... Nov./Dec. 4

Rural Cooperatives / November/December 2012 37 Flying High World Wide Web goes local Key to success for turkey producers is their willingness to How the Oklahoma Food Cooperatives uses the Internet put co-op first ...... Nov./Dec. 4 to bring farmers, consumers together ...... May/June 12 Former MFA President Bud Frew dies ...... Jan./Feb. 41 USDA program helps expand ag production in Malawi ...... Nov./Dec. 15 From workers to owners LEDC helps Latino immigrants launch wide variety of MAGAZINE DEPARTMENTS businesses in Minnesota ...... March/April 10 Gearing Up the Co-op Economy COMMENTARY Co-op Month Special Section ...... Sept./Oct. 20 Co-ops: Don’t overlook Rural Development financial programs ...... Jan./Feb. 2 Hispanic, women farmers may seek compensation ...... July/Aug. 39 If only Abe could see us now! ...... May/June 2 How a REDLG works ...... July/Aug. 11 Local food is a cooperative venture ...... March/April 2 Iowa State students team with co-ops to develop National Cooperative Month proclamation...... Sept./Oct. 2 new businesses ...... Sept./Oct. 27 What Main Streets have over Wall Street ...... July/Aug. 2 Jersey shellfish co-op well situated for growth ...... Sept./Oct. 35 “How can a bunch of farmers do it?” ...... Nov./Dec. 2 Keep the co-op candle burning! 2012 International Year of Co-ops perfect time to gear-up CO-OP DEVELOPMENT ACTION co-op education ...... May/June 38 USDA co-op funds leveraged to create resident-owned Keeping the ‘open’ sign on communities ...... May/June 28 Canadian conference promotes employee ownership as alternative to business closures ...... Jan./Feb. 27 CO-OPS & COMMUNITY Largest 100 ag co-ops post near-record sales, margins ...... March/April 16 CoBank program will help co-ops build stronger communities ...... July/Aug. 27 Laying groundwork key to successful launch ...... Jan./Feb. 6 Co-op safety director offers aid in tornado-ravaged communities ...... Jan./Feb. 9 Learning from co-op closure Georgia electric co-op supports equine therapy program, Dissolution of Producers & Buyers Co-op holds lessons other community causes ...... May/June 20 for others pursuing institutional market ...... Jan./Feb. 10 Iowan shares skills with African farmers ...... March/April 30 Making the case for democratic governance of the commons ...... Nov./Dec. 23 Land O’Lakes’ nutrition program helps thousands in Pakistan ...... Nov./Dec. 14 Midwest co-op centers share strategies at regional roundtable ...... July/Aug. 35 Mine tailing sites tested for growing miscanthus grass for biofuel ....Nov./Dec. 30 FOCUS ON Minnesota home to largest number of ag co-ops; Iowa tops Co-Alliance LLP for business volume ...... Nov./Dec. 10 Partnership delivers returns for members of five co-ops ...... May/June 36 Moark donates 1 million eggs ...... May/June 44 Sevier Farmers Co-op Montana’s small-scale poultry growers struggle to find Renovated Tennessee supply co-op attracts 3,000 to economic way to process, market birds ...... Sept./Oct. 23 ‘reopening’ event ...... Jan./Feb. 30 NCB Co-op 100 shows revenue near $194 billion ...... Jan./Feb. 39 Nebraska town striving to recover from loss of grocery store ...... Sept./Oct. 34 IN THE SPOTLIGHT New contract was a cooperative effort ...... Nov./Dec. 5 Brian Henehan New life for a lifeline Senior Extension Associate, Cornell University ...... July/Aug. 12 Cooperative effort in Iowa keeps trains on the tracks ...... July/Aug. 8 Richard Cotta: a life devoted to dairy and co-ops ...... Jan./Feb. 19 New processing facility should improve outlook for fishing co-op ...... July/Aug. 7 Northwest co-ops forge new links for local foods ...... Sept./Oct. 21 LEGAL CORNER Organic federation seen as a strategy for family farm survival, Capper-Volstead protection and co-op supply management ...... Nov./Dec. 16 regional competitiveness ...... Jan./Feb. 20 Legislative, regulatory, court actions in 2012 impact cooperatives .....Jan./Feb. 15 Preserving Common Ground Co-ops play key role in preserving shared grazing and MANAGEMENT TIP fishing resources ...... Nov./Dec. 18 Thoughtful succession planning keeps families farming for Public garden latest addition at resident-owned community generations ...... Sept./Oct. 18 in Maine ...... Sept./Oct. 31 Select Education Initiative Statistics ...... Jan./Feb. 26 NEWSLINE She’s taking care of business Mikhalevsky to lead California Dairies ...... Jan./Feb. 38 Montana producer Mary Fritz paves a trail for women CHS posts record earnings, revenue leaders in Farm Credit System ...... March/April 4 Wisconsin co-ops to merge with United Co-op subsidiaries Some like it hot USDA grant to help create Great Lakes Co-op Center Mary Alice Garay continues family tradition of growing Snokist files for bankruptcy and processing chile peppers ...... March/April 7 Record sales for Blue Diamond Spawning a solution RFA: report shows ethanol not leading to cropland expansion Farmers, Indian tribes, environmentalists form co-op to CoBank closes merger with U.S. AgBank restore Washington salmon run ...... May/June 4 CDF cites achievements in 2011 Students explore world of co-ops ...... March/April 39 Liz Bailey named interim CEO at NCBA; search firm hired Study raises important questions about co-op education efforts ...... Jan./Feb. 25 USDA REAP funds create jobs while reducing energy costs The Many Faces of Cooperatives ...... Nov./Dec. 24 Coopeative Network elects two new directors The Nature of Cooperatives Proposed rule extends minimum wage to home care workers Roles in economizing transaction cost a new dimension for understanding value of co-ops ...... Jan./Feb. 32 Land O’Lakes sets sales record ...... March/April 38 “The pillar of my home” Federated Co-op tops Canadian co-op list Coffee co-ops brew better quality of life for Ethiopian CoBank earnings rise 15 percent; patronage tops $340 million farm families ...... Sept./Oct. 40 Ocean Spray and PepsiCo pursue Latin America markets Top 100 ag co-ops eclipse previous sales record by $18 billion ...... Sept./Oct. 8 Frank Bragg to lead FRC USDA funds renewable energy efforts ...... July/Aug. 41 NCBA videos explore thriving food co-ops USDA program helps expand ag production in Malawi ...... Nov./Dec. 15 Co-ops and trade focus on WIIT USDA Value-Added Producer Grants awarded to farmer OCDC names Hazen executive director cooperatives ...... March/April 29 NMPF supports USDA school meal standards Use of joint ventures by ag co-ops on rise ...... Sept./Oct. 37 Wisconsin co-ops announce merger plan Vilsack: Farm exports creating jobs ...... July/Aug. 40 IDEA to help African dairy co-ops When it comes to local food, co-ops are on the map ...... May/June 8 Mark Ventry to lead Ontario Co-op Assoc.

38 November/December 2012 / Rural Cooperatives Organic Valley reports record sales year ...... May/June 40 Spawning a solution Survey: Americans rate consumer co-ops highly Farmers, Indian tribes, environmentalists form co-op to Blue Diamond begins plant construction restore Washington salmon run ...... May/June 4 Banner sales year for sugar co-op; Contreras succeeds Wedgworth Jacobs to fill key co-op role at Iowa State Broadband AMPI reports $2 billion in sales Telephone co-ops build broadband, create rural jobs ...... Jan./Feb. 36 USDA rural-sociologist receives honor Gabriel new chief economist at FCA Communications CCA salutes those who excel at telling the co-op story ...... July/Aug. 32 FAO opens co-op office ...... July/Aug. 37 DFA building Nevada dairy plant Community Support Land O’Lakes, Eggland’s Best announce egg joint venture Carolina water co-op plays key role in driving economic Beef co-op leader Doc Hatfield dies development ...... July/Aug. 28 NFU releases free co-op curriculum CoBank program will help co-ops build stronger communities ...... July/Aug. 27 Ocean Spray building new plant in Pennsylvania Georgia electric co-op supports equine therapy program, Accelerate Genetics saluted for export success other community causes ...... May/June 20 Oregon grain co-ops purchase Cargill terminal Feit to lead United Cranberry Co-op Conferences Montana food co-op being organized Can co-ops help drive global recovery? Dairy: a $14.7 billion Michigan industry Quebec City to host international co-op conferences ...... July/Aug. 31 Snokist assets go to PCP, Del Monte CCA salutes those who excel at telling the co-op story ...... July/Aug. 32 Changing course Land O’Lakes acquires Kozy Shack ...... Sept./Oct. 44 Milk producers tackle dairy policy, other key issues Co-op conference to explore global market trends, innovation at annual meeting ...... Jan./Feb. 16 Linn Co-op to get boost with E15 sales Continental movement: worker co-ops join forces in Quebec ...... Jan./Feb. 28 Robert Hawk new CEO at blueberry co-op Co-ops respond to consolidation, global volatility ...... March/April 36 MFA expands operations in Kansas Keeping the ‘open’ sign on USDA loans to help co-ops deploy smart grid technology Canadian conference promotes employee ownership Farm Credit supports Gardening for Greenbacks as alternative to business closures ...... Jan./Feb. 27 Book says co-ops best way to re-charge U.S. economy Midwest co-op centers share strategies at regional roundtable ...... July/Aug. 35 Minn-Dak expanding sugar plant Eric Erba new strategy officer at California Dairies Co-op Development USDA issues expanded farmers market directory ‘Because we’re all in this together’ CHS, Mountain View Co-op building warehouse Sandhills Farm to Table Co-op’s goal: ‘Meeting local food USDA helping Minn. co-op build feed mill needs with local food’ ...... Jan./Feb. 4 Hispanic, women farmers may seek compensation Business owner benefited from LEDC ...... March/April 14 Central Kentucky Growers helps members transition from Beall named NCBA president ...... Nov./Dec. 31 tobacco to vegetables ...... Sept./Oct. 29 Accelerated Genetics launches international subsidiary Colorado launches health insurance co-op ...... Sept./Oct. 25 Adelstein saluted for work as RUS administrator Creating a roadmap for food hub development ...... July/Aug. 18 PCCA pays net margins despite drought Disasters spur co-op formations AGP expanding operations at Dawson plant Louisiana co-op association helps fishermen, farmers California dairy co-op leader Brain Pacheco honored by UC recover following hurricanes and oil spill ...... July/Aug. 4 Chelan Fruit Co-op acquires Orondo Fruit Co. Feed mill seen as key to success of Amish dairy farms ...... Sept./Oct. 32 CoBank announces board election results From workers to owners Co-op Hall of Fame winners announced LEDC helps Latino immigrants launch wide variety of Land O’Lakes helps fight hunger businesses in Minnesota ...... March/April 10 NMPF revitalizing REAL Seal Gearing Up the Co-op Economy Washington meat co-op formed Co-op Month Special Section ...... Sept./Oct. 20 Swiss Valley Farms sells Platteville facility Flying High Key to success for turkey producers is their willingness UTILITY CO-OP CONNECTION to put co-op first ...... Nov./Dec. 4 Carolina water co-op plays key role in driving economic Iowa State students team with co-ops to develop new development ...... July/Aug. 28 businesses ...... Sept./Oct. 27 Co-ops view energy efficiency, conservation as top priorities ...... Nov./Dec. 12 Iowan shares skills with African farmers ...... March/April 30 Surging oil industry sparks economy, but also creates Jersey shellfish co-op well situated for growth ...... Sept./Oct. 35 challenges for co-op ...... May/June 24 Land O’Lakes’ nutrition program helps thousands in Pakistan ...... Nov./Dec. 14 Telephone co-ops build broadband, create rural jobs ...... Jan./Feb. 36 Laying groundwork key to successful launch ...... Jan./Feb. 6 Virginia co-op’s biomass project creating jobs, along Learning from co-op closure with renewable energy ...... March/April 15 Dissolution of Producers & Buyers Co-op holds lessons for others pursuing institutional market ...... Jan./Feb. 10 SUBJECTS Midwest co-op centers share strategies at regional roundtable ...... July/Aug. 35 Montana’s small-scale poultry growers struggle to find Aquaculture/Fishery economic way to process, market birds ...... Sept./Oct. 23 Disasters spur co-op formations Nebraska town striving to recover from loss of grocery store ...... Sept./Oct. 34 Louisiana co-op association helps fishermen, farmers New life for a lifeline recover following hurricanes and oil spill ...... July/Aug. 4 Cooperative effort in Iowa keeps trains on the tracks ...... July/Aug. 8 Federal Catch Share programs involving harvest cooperatives ...... Nov./Dec. 22 New processing facility should improve outlook for fishing co-op ...... July/Aug. 7 Jersey shellfish co-op well situated for growth ...... Sept./Oct. 35 Northwest co-ops forge new links for local foods ...... Sept./Oct. 21 New processing facility should improve outlook for fishing co-op ...... July/Aug. 7 Organic federation seen as a strategy for family farm survival, Preserving Common Ground regional competitiveness ...... Jan./Feb. 20 Co-ops play key role in preserving shared grazing and Public garden latest addition at resident-owned community fishing resources ...... Nov./Dec. 18 in Maine ...... Sept./Oct. 31

Rural Cooperatives / November/December 2012 39 Spawning a solution Keep the co-op candle burning! Farmers, Indian tribes, environmentalists form co-op 2012 International Year of Co-ops perfect time to gear-up to restore Washington salmon run ...... May/June 4 co-op education ...... May/June 38 Surging oil industry sparks economy, but also creates Study raises important questions about co-op education efforts ...... Jan./Feb. 25 challenges for co-op ...... May/June 24 ‘The pillar of my home’ Employee-Owned Co-ops Coffee co-ops brew better quality of life for Ethiopian Continental movement: worker co-ops join forces in Quebec ...... Jan./Feb. 28 farm families ...... Sept./Oct. 40 Keeping the ‘open’ sign on USDA co-op funds leveraged to create resident-owned Canadian conference promotes employee ownership communities ...... May/June 28 as alternative to business closures ...... Jan./Feb. 27 USDA program helps expand ag production in Malawi ...... Nov./Dec. 15 When it comes to local food, co-ops are on the map ...... May/June 8 Environment/Energy Co-ops view energy efficiency, conservation as top priorities ...... Nov./Dec. 12 Co-op Principles/Advantages/Impact Making the case for democratic governance of the commons ...... Nov./Dec. 23 Brian Henehan Mine tailing sites tested for growing miscanthus grass for biofuel ....Nov./Dec. 30 Senior Extension Associate, Cornell University ...... July/Aug. 12 Preserving Common Ground Can co-ops help drive global recovery? Co-ops play key role in preserving shared grazing and Quebec City to host international co-op conferences ...... July/Aug. 31 fishing resources ...... Nov./Dec. 18 C-FARE meeting shows progress made in co-op goals, values ...... July/Aug. 24 Spawning a solution The Many Faces of Cooperatives ...... Nov./Dec. 24 Farmers, Indian tribes, environmentalists form co-op to restore Washington salmon run ...... May/June 4 Co-op Statistics Virginia co-op’s biomass project creating jobs, along with Dairy co-ops in the 21st century: the first decade ...... March/April 32 renewable energy ...... March/April 15 Farm co-ops set sales, income records Number of full-time jobs up 1,800 ...... Sept./Oct. 4 Farm Credit Largest 100 ag co-ops post near-record sales, margins ...... March/April 16 She’s taking care of business Minnesota home to largest number of ag co-ops; Iowa Montana producer Mary Fritz paves a trail for women tops for business volume...... Nov./Dec. 10 leaders in Farm Credit System ...... March/April 4 NCB Co-op 100 shows revenue near $194 billion ...... Jan./Feb. 39 Some like it hot Top 100 ag co-ops eclipse previous sales record by $18 billion ...... Sept./Oct. 8 Mary Alice Garay continues family tradition of growing and processing chile peppers ...... March/April 7 Cotton Comparative performance reports help co-ops learn from peers ...... July/Aug. 17 Farm Supply and Services Co-op oil mills play vital role in sustaining cottonseed value ...... July/Aug. 14 Co-Alliance LLP Partnership delivers returns for members of five co-ops ...... May/June 36 Dairy Co-op rail facility boosts feed security ...... Nov./Dec. 7 A Taste of Gold Farm co-ops set sales, income records Co-ops’ world-class cheeses help U.S. dominate Number of full-time jobs up 1,800 ...... Sept./Oct. 4 international competition ...... May/June 16 Iowa State students team with co-ops to develop new Capital Ideas businesses ...... Sept./Oct. 27 Lessons offered by dairy co-ops shed light on important Largest 100 ag co-ops post near-record sales, margins ...... March/April 16 equity capital issues ...... May/June 30 Minnesota home to largest number of ag co-ops; Iowa Changing course tops for business volume ...... Nov./Dec. 10 Milk producers tackle dairy policy, other key issues at Sevier Farmers Co-op annual meeting ...... Jan./Feb. 16 Renovated Tennessee supply co-op attracts 3,000 Dairy co-ops in the 21st century: the first decade ...... March/April 32 to ‘reopening’ event ...... Jan./Feb. 30 Feed mill seen as key to success of Amish dairy farms ...... Sept./Oct. 32 Top 100 ag co-ops eclipse previous sales record by The Many Faces of Cooperatives ...... Nov./Dec. 24 $18 billion ...... Sept./Oct. 8 Richard Cotta: a life devoted to dairy and co-ops ...... Jan./Feb. 19 Use of joint ventures by ag co-ops on rise ...... Sept./Oct. 37 The Nature of Cooperatives Roles in economizing transaction cost is a new dimension Farmers Markets for understanding value of co-ops ...... Jan./Feb. 32 Nebraska town striving to recover from loss of grocery store ...... Sept./Oct. 34

Directors/Governance Finance Co-op leaders confer with White House officials ...... July/Aug. 22 Capital Ideas She’s taking care of business Lessons offered by dairy co-ops shed light on important Montana producer Mary Fritz paves a trail for women equity capital issues ...... May/June 30 leaders in Farm Credit System ...... March/April 4 Co-ops respond to consolidation, global volatility ...... March/April 36 Some like it hot Equity financing issues ...... May/June 31 Mary Alice Garay continues family tradition of growing and Flying High processing chile peppers ...... March/April 7 Key to success for turkey producers is their willingness The Nature of Cooperatives to put co-op first ...... Nov./Dec. 4 Roles in economizing transaction cost is a new dimension for understanding value of co-ops ...... Jan./Feb. 32 Food Co-ops Gearing Up the Co-op Economy Disaster Recovery Co-op Month Special Section ...... Sept./Oct. 20 Co-op safety director offers aid in tornado-ravaged communities ...... Jan./Feb. 9 Nebraska town striving to recover from loss of grocery store ...... Sept./Oct. 34 Disasters spur co-op formations Northwest co-ops forge new links for local foods ...... Sept./Oct. 21 Louisiana co-op association helps fishermen, farmers recover following hurricanes and oil spill ...... July/Aug. 4 Foreign Co-ops Iowan shares skills with African farmers ...... March/April 30 Education Land O’Lakes’ nutrition program helps thousands in Pakistan ...... Nov./Dec. 14 Brian Henehan “The pillar of my home” Senior Extension Associate, Cornell University ...... July/Aug. 12 Coffee co-ops brew better quality of life for Ethiopian farm families ...... Sept./Oct. 40

40 November/December 2012 / Rural Cooperatives USDA program helps expand ag production in Malawi ...... Nov./Dec. 15 Creating a roadmap for food hub development ...... July/Aug. 18 Farm co-ops set sales, income records Grains/Oilseeds Number of full-time jobs up 1,800 ...... Sept./Oct. 4 Co-Alliance LLP Largest 100 ag co-ops post near-record sales, margins ...... March/April 16 Partnership delivers returns for members of five co-ops ...... May/June 36 Minnesota home to largest number of ag co-ops; Iowa Comparative performance reports help co-ops learn from peers ...... July/Aug. 17 tops for business volume ...... Nov./Dec. 10 Co-op rail facility boosts feed security ...... Nov./Dec. 7 The Many Faces of Cooperatives ...... Nov./Dec. 24 Feed mill seen as key to success of Amish dairy farms ...... Sept./Oct. 32 Top 100 ag co-ops eclipse previous sales record by $18 billion ...... Sept./Oct. 8 Iowa State students team with co-ops to develop new World Wide Web goes local businesses ...... Sept./Oct. 27 How the Oklahoma Food Cooperatives uses the Internet New life for a lifeline to bring farmers, consumers together ...... May/June 12 Cooperative effort in Iowa keeps trains on the tracks ...... July/Aug. 8 Use of joint ventures by ag co-ops on rise ...... Sept./Oct. 37 Minority/Women Business owner benefited from LEDC ...... March/April 14 Health & Home Services Disasters spur co-op formations Colorado launches health insurance co-op ...... Sept./Oct. 25 Louisiana co-op association helps fishermen, farmers recover following hurricanes and oil spill ...... July/Aug. 4 Housing From workers to owners Public garden latest addition at resident-owned community LEDC helps Latino immigrants launch wide variety of in Maine ...... Sept./Oct. 31 businesses in Minnesota ...... March/April 10 USDA co-op funds leveraged to create resident-owned Hispanic, women farmers may seek compensation ...... July/Aug. 39 communities ...... May/June 28 She’s taking care of business Montana producer Mary Fritz paves a trail for women Joint Ventures leaders in Farm Credit System ...... March/April 4 Co-Alliance LLP Some like it hot Partnership delivers returns for members of five co-ops ...... May/June 36 Mary Alice Garay continues family tradition of growing Use of joint ventures by ag co-ops on rise ...... Sept./Oct. 37 and processing chile peppers ...... March/April 7

Legal/Legislative Specialty Crops Capper-Volstead protection and co-op supply management ...... Nov./Dec. 16 Some like it hot Colorado launches health insurance co-op ...... Sept./Oct. 25 Mary Alice Garay continues family tradition of growing Legislative, regulatory, court actions in 2012 impact and processing chile peppers ...... March/April 7 cooperatives ...... Jan./Feb. 15 Thoughtful succession planning keeps families farming for Sustainable/Local/Organic generations ...... Sept./Oct. 18 ‘Because we’re all in this together’ Sandhills Farm to Table Co-op’s goal: ‘Meeting local food Livestock & Poultry needs with local food’ ...... Jan./Feb. 4 Co-op rail facility boosts feed security ...... Nov./Dec. 7 Central Kentucky Growers helps members transition from Flying High tobacco to vegetables ...... Sept./Oct. 29 Key to success for turkey producers is their willingness Creating a roadmap for food hub development ...... July/Aug. 18 to put co-op first ...... Nov./Dec. 4 Gearing Up the Co-op Economy Making the case for democratic governance of the commons ...... Nov./Dec. 23 Co-op Month Special Section ...... Sept./Oct. 20 Montana’s small-scale poultry growers struggle to find economic Laying groundwork key to successful launch ...... Jan./Feb. 6 way to process, market birds ...... Sept./Oct. 23 Learning from co-op closure New contract was a cooperative effort ...... Nov./Dec. 5 Dissolution of Producers & Buyers Co-op holds lessons Preserving Common Ground for others pursuing institutional market ...... Jan./Feb. 10 Co-ops play key role in preserving shared grazing and Northwest co-ops forge new links for local foods ...... Sept./Oct. 21 fishing resources ...... Nov./Dec. 18 Organic federation seen as a strategy for family farm survival, regional competitiveness ...... Jan./Feb. 20 Management Public garden latest addition at resident-owned community Capital Ideas in Maine ...... Sept./Oct. 31 Lessons offered by dairy co-ops shed light on important When it comes to local food, co-ops are on the map ...... May/June 8 equity capital issues ...... May/June 30 World Wide Web goes local Comparative performance reports help co-ops learn from peers ...... July/Aug. 17 How the Oklahoma Food Cooperatives uses the Internet Learning from co-op closure to bring farmers, consumers together ...... May/June 12 Dissolution of Producers & Buyers Co-op holds lessons for others pursuing institutional market ...... Jan./Feb. 10 Technology Richard Cotta: a life devoted to dairy and co-ops ...... Jan./Feb. 19 Virginia co-op’s biomass project creating jobs, along with Surging oil industry sparks economy, but also creates renewable energy ...... March/April 15 challenges for co-op ...... May/June 24 World Wide Web goes local Thoughtful succession planning keeps families farming How the Oklahoma Food Cooperatives uses the Internet for generations ...... Sept./Oct. 18 to bring farmers, consumers together ...... May/June 12 Top 100 ag co-ops eclipse previous sales record by $18 billion ...... Sept./Oct. 8 Transportation Marketing Co-op rail facility boosts feed security ...... Nov./Dec. 7 A Taste of Gold How a REDLG works ...... July/Aug. 11 Co-ops’ world-class cheeses help U.S. dominate New life for a lifeline international competition ...... May/June 16 Cooperative effort in Iowa keeps trains on the tracks ...... July/Aug. 8 ‘Because we’re all in this together’ Sandhills Farm to Table Co-op’s goal: ‘Meeting local 2012 International Year of Co-ops food needs with local food’ ...... Jan./Feb. 4 Keep the co-op candle burning! Co-Alliance LLP 2012 International Year of Co-ops perfect time to Partnership delivers returns for members of five co-ops ...... May/June 36 gear-up co-op education ...... May/June 38 Co-ops of all types benefit from USDA’s value-added grants ...... March/April 26 Co-ops respond to consolidation, global volatility ...... March/April 36

Rural Cooperatives / November/December 2012 41 Urban Co-ops Cummings, Carly Flint Energies turns 75 ...... May/June 43 Iowa State students team with co-ops to develop From workers to owners new businesses ...... Sept./Oct. 27 LEDC helps Latino immigrants launch wide variety of businesses in Minnesota ...... March/April 10 Diamond, Adam World Wide Web goes local Utility Co-ops How the Oklahoma Food Cooperatives uses the Internet Carolina water co-op plays key role in driving economic to bring farmers, consumers together ...... May/June 12 development ...... July/Aug. 28 Co-ops view energy efficiency, conservation as top priorities ...... Nov./Dec. 12 Eversull, Eldon E. Flint Energies turns 75 ...... May/June 43 Minnesota home to largest number of ag co-ops; Iowa tops Georgia electric co-op supporters equine therapy program, for business volume ...... Nov./Dec. 10 other community causes ...... May/June 20 Surging oil industry sparks economy, but also creates Egerstrom, Lee challenges for co-op ...... May/June 24 What Main Streets have over Wall Street ...... July/Aug. 2 Telephone co-ops build broadband, create rural jobs ...... Jan./Feb. 36 Virginia co-op’s biomass project creating jobs, along with Gray, Thomas W. renewable energy ...... March/April 15 Organic federation seen as a strategy for family farm survival, regional competitiveness ...... Jan./Feb. 20 Value Added Co-op oil mills play vital role in sustaining cottonseed value ...... July/Aug. 14 Hogeland, Julie Co-ops of all types benefit from USDA’s value-added grants ...... March/April 26 C-FARE meeting shows progress made in co-op goals, values ...... July/Aug. 24 Flying High Key to success for turkey producers is their willingness Jones, Karen to put co-op first ...... Nov./Dec. 4 Co-op safety director offers aid in tornado-ravaged communities ...... Jan./Feb. 9

AUTHORS Keeton, Kara Central Kentucky Growers helps members transition from Ali, Sarah tobacco to vegetables ...... Sept./Oct. 29 Land O’Lakes’ nutrition program helps thousands in Pakistan ...... Nov./Dec. 14 Largest 100 ag co-ops post near-record sales, margins ...... March/April 16 Liebrand, Carolyn Top 100 ag co-ops eclipse previous sales record by $18 billion ...... Sept./Oct. 8 Changing course Milk producers tackle dairy policy, other key issues Bau, Margaret M. at annual meeting ...... Jan./Feb. 16 Learning from co-op closure Dairy co-ops in the 21st century: the first decade ...... March/April 32 Dissolution of Producers & Buyers Co-op holds lessons for others pursuing institutional market ...... Jan./Feb. 10 Ling, K. Charles Capital Ideas Bergstrom, Amanda Lynne Lessons offered by dairy co-ops shed light on important Nebraska town striving to recover from loss of grocery store ...... Sept./Oct. 34 equity capital issues ...... May/June 30 The Many Faces of Cooperatives ...... Nov./Dec. 24 Borst, Alan D. The Nature of Cooperatives Capper-Volstead protection and co-op supply management ...... Nov./Dec. 16 Roles in economizing transaction cost is a new dimension Preserving Common Ground for understanding value of co-ops ...... Jan./Feb. 32 Co-ops play key role in preserving shared grazing and fishing resources ...... Nov./Dec. 18 Livingston, Jane Can co-ops help drive global recovery? Campbell, Dan Quebec City to host international co-op conferences ...... July/Aug. 31 Co-op rail facility boosts feed security ...... Nov./Dec. 7 If only Abe could see us now! ...... May/June 2 Mann, Laurel Flying High Co-Alliance LLP Key to success for turkey producers is their willingness Partnership delivers returns for members of five co-ops ...... May/June 36 to put co-op first ...... Nov./Dec. 4 “How can a bunch of farmers do it?”...... Nov./Dec. 2 Matson, James New contract was a cooperative effort ...... Nov.Dec. 5 ‘Because we’re all in this together’ She’s taking care of business Sandhills Farm to Table Co-op’s goal: ‘Meeting local food Montana producer Mary Fritz paves a trail for women needs with local food’ ...... Jan./Feb. 4 leaders in Farm Credit System ...... March/April 4 Creating a roadmap for food hub development ...... July/Aug. 18 Some like it hot Mary Alice Garay continues family tradition of growing Mayberry, Anne and processing chile peppers ...... March/April 7 Carolina water co-op plays key role in driving economic A Taste of Gold development ...... July/Aug. 28 Co-ops’ world-class cheeses help U.S. dominate Co-ops view energy efficiency, conservation as top priorities ...... Nov./Dec. 12 international competition ...... May/June 16 Telephone co-ops build broadband, create rural jobs ...... Jan./Feb. 36 Virginia co-op’s biomass project creating jobs, along Canales, Judith with renewable energy ...... March/April 15 Co-ops: Don’t overlook Rural Development financial programs ...... Jan./Feb. 2 Merrigan, Kathleen A. Chesnick, David Local food is a cooperative venture ...... March/April 2 Largest 100 ag co-ops post near-record sales, margins ...... March/April 16 When it comes to local food, co-ops are on the map ...... May/June 8 Top 100 ag co-ops eclipse previous sales record by $18 billion ...... Sept./Oct. 8 Pike, Sarah Cook, Chris USDA co-op funds leveraged to create resident-owned Creating a roadmap for food hub development ...... July/Aug. 18 communities ...... May/June 28

42 November/December 2012 / Rural Cooperatives IT’SIT’SIT’S HERE!HERE!HERE! The new 2011 Cooperative Statistics Report is now available.

Look for it online at: http://www.rurdev.usda.gov/BCP_Coop_LibraryOfPubs.htm Or get your free hard copies by e-mailing [email protected], calling (202)720-8381, or writing: USDA Co-op Info, Stop 0705, 1400 Independence Ave., SW, Washington, DC 20250

Pickler, Alice Midwest co-op centers share strategies at regional roundtable ...... July/Aug. 35 Thompson, Stephen Co-ops of all types benefit from USDA’s value-added grants ...... March/April 26 Pitman, Lynn New life for a lifeline Co-ops respond to consolidation, global volatility ...... March/April 36 Cooperative effort in Iowa keeps trains on the tracks ...... July/Aug. 8 Spawning a solution Rafferty, Meredith Farmers, Indian tribes, environmentalists form co-op to Northwest co-ops forge new links for local foods ...... Sept./Oct. 21 restore Washington salmon run ...... May/June 4

Reynolds, Bruce Todd, Anne Co-op oil mills play vital role in sustaining cottonseed value ...... July/Aug. 14 Disasters spur co-op formations Keeping the ‘open’ sign on Louisiana co-op association helps fishermen, farmers Canadian conference promotes employee ownership recover following hurricanes and oil spill ...... July/Aug. 4 as alternative to business closures ...... Jan./Feb. 27 From workers to owners Making the case for democratic governance of the commons ...... Nov./Dec. 23 LEDC helps Latino immigrants launch wide variety of Preserving Common Ground businesses in Minnesota ...... March/April 10 Co-ops play key role in preserving shared grazing and fishing resources ...... Nov./Dec. 18 Tranovich, Anja Use of joint ventures by ag co-ops on rise ...... Sept./Oct. 37 “The pillar of my home” Coffee co-ops brew better quality of life for Ethiopian Schepp, Angela farm families ...... Sept./Oct. 40 Surging oil industry sparks economy, but also creates challenges for co-op ...... May/June 24 Trocha, Debbie Feed mill seen as key to success of Amish dairy farms ...... Sept./Oct. 32 Smith, Cathy Jersey shellfish co-op well situated for growth ...... Sept./Oct. 35 Villines, Chris Sevier Farmers Co-op Smith, Stephanie M. Renovated Tennessee supply co-op attracts 3,000 to Legislative, regulatory, court actions in 2012 impact cooperatives .....Jan./Feb. 15 ‘reopening’ event ...... Jan./Feb. 30

Stevenson, Bill Wadsworth, James Colorado launches health insurance co-op ...... Sept./Oct. 25 Keep the co-op candle burning! 2012 International Year of Co-ops perfect time to gear-up Sullins, Martha co-op education ...... May/June 38 Creating a roadmap for food hub development ...... July/Aug. 18 Study raises important questions about co-op education efforts ...... Jan./Feb. 25

Sutton, Karl Zenk, Andrew Montana’s small-scale poultry growers struggle to find Thoughtful succession planning keeps families farming economic way to process, market birds ...... Sept./Oct. 23 for generations ...... Sept./Oct. 18

Thayer, Jeremiah ‘Because we’re all in this together’ Sandhills Farm to Table Co-op’s goal: ‘Meeting local food needs with local food’ ...... Jan./Feb. 4

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44 November/December 2012 / Rural Cooperatives