l a r u R

CCUSDA /OORural DeOOvelopmePPnt EE RRAATTNoIIvemVVber / DeEEcembeSS r 2010

Co-ops promote on-farm meat processing Page 4 Commentary When co-op principles collide

By Adam Schwartz members articulate the principles that collide. One board member has the view that the co-op exists to serve its Editor’s note: Adam Schwartz is the vice president of public affairs members and seeks to create policies that set it forth on that and member services at the National Cooperative Business autonomous path — member first, member last, member Association in Washington, D.C. He has served co-ops in a variety always. After all, that is why the co-op was created. This of roles for the past 18 years. He welcomes comments on the issues member advocates taking the lower bid because it is more raised here, or other co-op topics, and can be reached at: cost-effective. The board’s fiduciary responsibility to the aschwartz@ncba.coop, or (202) 383-5456. For a more detailed members should trump other priorities, this director says. discussion of the co-op principles, visit: www.ncba.coop/ncba/about- The other board member advocates that buying from co-ops/co-op-principles. another co-op should take precedence. This board member seeks to create a more cooperative economy and believes that ne of the great strengths of the cooperative the best way to accomplish that goal is for co-ops to practice movement is that no matter what sector we the sixth principle — cooperation among cooperatives — and serve — from a rural co-op serving farm thus it should be a priority to do business with other co-ops, communities to an urban co-op in even if it sometimes “costs” the co-op a little more money to metropolitan areas — all cooperatives share the same seven do so. guiding principles: How should a cooperative resolve such a conflict? Ideally, for guidance, cooperatives will have in place 1. Voluntary and open membership; policies to allow staff or management to act in accordance 2. Democratic member control; with the seven principles. If the issue is truly one of strategic 3. Member economic participation; importance, the board — as a reflection of the membership 4. Autonomy and independence; — should decide. On rare occasions, the board may need to 5. Education, training and information; take the issue to the membership, especially if it involves a 6. Cooperation among cooperatives; true change in the nature of the co-op requiring an 7. Concern for community. amendment to the bylaws. There is a growing acceptance of using a “triple bottom When we are faced with an ethical dilemma, defined as a line” when determining the course of action taken by choice between two appropriate paths, cooperative members, cooperatives. This involves the standard bottom line of management and boards can consult and reflect on our revenues and expenses. But two additional and equally principles to give us guidance as to the “right thing” to do. important measures are also considered: the impact the But, what do we do when principles come into conflict business is having on the community and on the with each other or offer conflicting advice? What principle environment. This is a true measuring stick to ascertain the offers advice in such a case? full impact of a business. One of the great benefits of cooperatives is that they are By following the sixth principle, cooperatives can improve autonomous and independent (the fourth co-op principle). their portion of the economy and ensure the financial well- One of the great challenges that co-ops face is also that each being of cooperative businesses across the country. Currently, co-op is autonomous and independent. cooperatives contribute about $650 billion annually to the Consider the case of a co-op wrestling over the question U.S. economy (according to a study published by the USDA of where to source a particular service. Two vendors have bid and the University of Wisconsin Center for Cooperatives), an on the project. Both vendors have demonstrated the quality impressive figure, but just a small percentage of the overall of their service. One vendor (not a co-op) has offered a better economy. price than did the other vendor, which is a cooperative. By working together and by making the commitment to When the board meets to discuss the bids, two board continued on page 37

2 November/December 2010 / Rural Cooperatives Features

Volume 77, Number 6 November/December 2010

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.4 p. 8 p. 20 periodical is necessary in the transaction of public business required by law of the Department. Periodicals postage paid at Washington, DC. and additional mailing offices. Copies may be obtained from the 04 Going Mobile Superintendent of Documents, Co-ops operate traveling slaughter units to help grow local foods movement Government Printing Office, Washington, DC, 20402, at $23 per year. Postmaster: By Stephen Thompson send address change to: Rural Cooperatives, USDA/RBS, Stop 3255, Wash., DC 20250-3255. 08 Illinois Green Pastures Fiber Cooperative Co-op connects craft makers with locally produced fiber Mention in Rural Cooperatives of company and brand names does not By Anne Todd signify endorsement over other companies’ products and services. 12 “Not just a job, but a future” Unless otherwise stated, articles in this Goal of Evergreen family of worker co-ops is to help struggling neighborhoods prosper publication are not copyrighted and may be reprinted freely. Any opinions express- By Dan Campbell ed are those of the writers, and do not necessarily reflect those of USDA or its employees. 20 Cooperative Food Hubs Food hubs fill the ‘missing middle,’ helping small producers tap local markets The U.S. Department of Agriculture (USDA) prohibits discrimination in all its By Alan Borst programs and activities on the basis of race, color, national origin, age, disabili- ty, and where applicable, sex, marital 24 Why the asset-building movement matters for rural co-op status, familial status, parental status, members religion, sexual orientation, genetic information, political beliefs, reprisal, or By Heather McCulloch because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited 26 Fifth Season Cooperative bases apply to all programs.) Persons Having progressed from conception to incorporation, fledgling Wisconsin co-op faces crucial with disabilities who require alternative questions means for communication of program information (Braille, large print, audiotape, By Courtney Berner etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). 30 Co-op Month celebrated at USDA To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice), or (202) 720-6382 (TDD). USDA is an equal opportunity provider Departments and employer. 2 COMMENTARY 11 LEGAL CORNER 17 MANAGEMENT TIP 18 UTILITY CO-OP CONNECTION 32 NEWSLINE Tom Vilsack, Secretary of Agriculture 40 2010 ARTICLE INDEX Dallas Tonsager, Under Secretary, USDA Rural Development Dan Campbell, Editor ON THE COVER: On-farm processing for beef and poultry Stephen Hall / KOTA, Design producers is an option in areas served by mobile slaughtering units, Have a cooperative-related question? many of them operated by producer cooperatives. This better Call (202) 720-6483, or email: allows producers to market to local food markets, resulting in [email protected] substantially higher prices for some. This publication was printed with vegetable oil-based ink.

Rural Cooperatives / November/December 2010 3 By Stephen Thompson restaurateurs and retailers. Grass-fed or much as it is converting their live Assistant Editor organically raised beef and free-range animals into a product that can take poultry are seen by some consumers as advantage of it. imes are tough for both more flavorful and healthier than A promising answer to this question T small livestock and conventionally raised equivalents. The is the mobile slaughterhouse — a poultry producers. The local food movement encourages slaughter facility mounted on a trailer consolidation of the consumers to buy their foods from that comes to the farmer. Its advantages meat industry has nearby producers wherever possible. are many, including low capital costs, resulted in the closing of hundreds of The U.S. Department of Agriculture convenience, low processing costs and slaughter and packing plants, and some (USDA) is supporting this movement the marketing advantage of being able of the ones still in operation often don’t with its Know Your Farmer, Know Your to say that your animals are slaughtered cater to small, specialty or niche Food initiative, which promotes on your own property. Mobile slaughter producers. Many of these packers farmers’ markets and other outlets for units also don’t attract the same kind of require high minimum head counts for locally grown foods. concern that brick-and-mortar facilities slaughter, and they’re often too far away The issue, then, for many small arouse among neighbors — the “not-in- to make trucking of relatively small producers, is not finding the market so my-backyard” problem. shipments of animals to them economically feasible. In addition, high Opportunity for co-ops feed and other costs aren’t matched by As a result, mobile slaughter units the prices producers get for their live have become a growing movement animals. across the United States. A number of At the same time, interest in buying small service cooperatives have been set from specialty meat producers is up to take advantage of the new growing among consumers, technology. Going Mobile Co-ops operate traveling slaughter units to help grow local foods movement

4 November/December 2010 / Rural Cooperatives “We get about a 50-percent net gain over marketing live cattle.”

The seed of the movement was HACCP seeks to work with food However, Dunlop says that such a unit planted in the late 1990s at Broken processors to develop appropriate plans could easily repay its purchase costs in a Arrow Ranch in Texas, a hunting for facilities that meet sanitary rules and few years. establishment where customers pay to other requirements. The new protocol Cutting and wrapping services are hunt exotic animals, such as African is a more flexible regulatory approach provided by the co-op in a brick-and- antelope. The ranch developed a that allows for innovation and unique mortar facility which can also produce slaughtering trailer to process the circumstances. sausages. However, marketing is carcasses. When finished in 2002, the mobile handled individually by member- Not long afterwards, a group of slaughter unit was installed in a 32-foot producers. The cooperative has six livestock producers in northwest goose-neck trailer, at a cost of $150,000. employees, including two butchers who Washington was looking for a way to Financing was provided by private handle slaughtering, and three meat start producing meat for local markets. donations and grants from various cutters. Dunlop has stayed on as a They found the answer in Broken agencies, including a $50,000 Rural member of the board of directors. Arrow’s trailer. Business Opportunity Grant provided The slaughtering is done on the The group went to a local nonprofit by USDA Rural Development. The unit producer’s property, usually in an open organization, the Lopez Community is owned by the Trust, which leases it to field. The trailer carries a supply of Land Trust, which focuses on the cooperative. Dunlop estimates that potable water for the slaughter process sustainable rural development, for help. the trailer alone would today cost and for cleanup. If it’s done often in one The Lopez Trust in turn hired Bruce $195,000, plus another $15,000 to location, the producer may also have to Dunlop, a sheep farmer and former $20,000 for small equipment. provide a concrete drainage pad with a chemical engineer, to develop a sump for runoff. slaughter trailer. Island Grown Farmers Facility meets all regulations If done only occasionally on a farm Cooperative was formed to administer The mobile facility is fully compliant or ranch, the operation can be carried the slaughter, cutting and packing with federal regulations, and all of its out directly on the grass. The animal is services. The initial membership fee was products are USDA inspected. A small killed on the ground and allowed to $600. office space is provided for the bleed out. It’s then winched into the The initiative was made possible by inspector. The facility can slaughter up trailer, cleaned, dressed and hung in a new U.S. Food and Drug to 10 head of cattle per day, at a cost to refrigerated compartment in the trailer. Administration regulations under the the farmer of $105 per animal. Up to 40 At the end of the day, the carcasses can rubric of Hazard Analysis & Critical sheep or 24 pigs can be handled daily, at be transported to the cooperative’s Control Points (HACCP). Instead of prices of $37 and $53 each, respectively. packing facility or the farmers can make establishing rigid requirements, as with Labor accounts for 70 percent of their own arrangements. previous approaches to regulation, operating costs. Because the unit was Offal and hides are taken away with financed with grants and donations, the truck; any other waste is composted. there is no loan or investment to be Dunlop says composting works well. repaid; the fees need only cover “It kills the pathogens, it’s overhead, labor and similar costs. inexpensive and there’s little odor,” he

Black Angus cattle are one of the more popular beef breeds in the United States. Inset photo: Mobile processing units such as this, which travel to farms and ranches, were inspired by a rig developed in Texas in the 1990s to process wild game.

Rural Cooperatives / November/December 2010 5 notes. Except where production volume meaning that the nearest processing Grown design, but larger. Built on a 45- requires a sump, the blood and water go facility was hundreds of miles away in foot semi-trailer, it has bigger storage directly on the ground. Overall, he says, Oregon. facilities and the ability to process more operations have little environmental With the big population centers of animals at a time. impact, especially since the location of Seattle and Takoma nearby, a market The Puget Sound co-op works a the trailer can be changed with each for locally grown meats was assured — little differently than the Island Grown visit. if the meat carried USDA inspection co-op. Instead of making appointments While making the mobile stamps. Island Grown’s approach to slaughter at each customer’s farm, slaughterhouse possible, the HACCP seemed like the answer. the slaughter unit operates at three approval process presented its own The first exploratory meeting, in venues on a weekly, or semi-weekly, hurdles, Dunlop says. “It was a shift February 2008, drew 80 local schedule. Producers transport their from approving everything ahead of producers, and with the help of the animals to the most convenient time to evaluating things as it went Washington State Small Business location. Members can purchase a along.” Assistance Center at Green River special class of stock to have priority in The process requires a written plan, Community College, a business plan scheduling. Two of the locations are on which is then evaluated for problems was put together and the idea pitched members’ property; the third is and modified. In the case of the new to the Pierce Conservation District provided at no cost by a local slaughter unit, equipment and board of directors, which approved landowner. procedures had to be tried out by $200,000 in funds to build the trailer in The cooperative doesn’t offer cutting slaughtering a few animals at a time, June 2008. and wrapping services. Those are making changes until both the co-op The cooperative itself was set up that provided by private packing facilities in and the inspectors were comfortable November, and in June 2009 the mobile nearby Rochester and Bremerton. with the process. processing unit was delivered. Puget Schermerhorn says the cooperative Dunlop says that things were Sound’s unit is based on the Island has the capacity for about 140 new complicated by the fact that inspectors were just learning the new procedures when the co-op sought approval. But, he says that they were open to new Assistance for new mobile slaughter efforts ideas and willing to work with the cooperative to reach a satisfactory Interest in mobile slaughter units is growing across the country. At least nine conclusion. “Someone doing it now can poultry units and a similar number of red meat slaughter trailers are now build on our experience,” he says. operating in various states. Seminars on the subject attract crowds. A recent “They wouldn’t have to go through all session held jointly by the Colorado and Wyoming state agriculture departments that.” drew 150 people from states as far away as New York, Ohio and California. There are hurdles to overcome in starting a mobile unit, including regulatory Puget Sound co-op and permitting issues and financing. But much of the pioneering work has boosts local sales already been done. Producers interested in starting such an operation can call Not far away, another group of upon a range of information and assistance resources. Washington livestock producers took The Niche Meat Processor Assistance Network website, advantage of Island Grown’s pioneering www.nichemeatprocessing.org, offers a wealth of information on regulations, work to establish their own processing design and construction, management, financing and other issues. The site cooperative. Puget Sound Meat offers links to a number of “webinars,” including one led by Island Grown’s Producers Cooperative has been Bruce Dunlop, on the various issues. It also offers a spreadsheet feasibility operating for just over a year, with a calculator put together by Kathleen Painter, an analyst at the University of roll of 60 voting members in nine Idaho. contiguous counties, and another 30 The Food Safety and Inspection Service offers a “Mobile Slaughter associate members. Compliance Guide” on its website for both red meat and poultry operations, and Perry Schermerhorn, president of has declared its interest in promoting small processors. the co-op, says the idea for the USDA Rural Development offers a number of financial programs that may be cooperative occurred to Cheryl helpful, and has extensive educational materials to help producers learn about Ouellete, a local hog farmer looking for starting a cooperative. It can also offer technical assistance. To learn more, ways to add value to her product. visit: www.rurdev.usda.gov, or call your USDA Rural Development office and ask Selling butchered meat instead of live to talk to a business and co-op programs specialist: 1-800-670-6553. hogs seemed the natural solution. But the local slaughterhouse had closed,

6 November/December 2010 / Rural Cooperatives members; the slaughter unit currently operates at about 25 percent of capacity. Members each market their own products. Some retail their products directly at farmers’ markets and similar venues. This sales strategy, Schermerhorn says, offers the highest margins: 50 to 100 percent. Other producers have contracts to provide high-quality meats to restaurants, local food stores and even to food co-ops. They typically garner markups of 10 to 30 percent. Overall, Schermerhorn says, “We get about a 50-percent net gain over marketing live cattle.”

Montana co-op focuses on poultry Growers of four-legged livestock aren’t the only producers who can use mobile slaughter units. The Montana Poultry Growers Cooperative built on the experience of Island Grown, with appropriate modifications. With the help of Farms for Families, a nonprofit that promotes locally grown foods, and Instead of making on-farm visits, some mobile processing rigs make weekly or semi-weekly other organizations, including USDA rounds of centrally located sites, where producers meet them with their livestock. USDA photo Rural Development’s Cooperative Services, the co-op developed a mobile slaughter unit for poultry. Jan Tusick, the president of the cooperative, recalls that the project had to customers; they are not allowed to The cooperative also offers training its own snags and problems — most sell to resellers, such as grocery stores. in slaughtering in accordance with involving licensing. The effort faced a snag, however, government requirements. Meanwhile, Processing poultry is simpler than because Montana state law didn’t the cooperative is pursuing ways of slaughtering sheep and cattle, and can recognize mobile slaughterhouses. developing the market for locally raised be done fairly easily by the grower with Grow Montana, a pro-local-food poultry, including customer education the proper equipment, obviating the lobbying group, successfully petitioned and developing heritage breeds. need for employees to do the the Montana state legislature to pass a slaughtering. Also, USDA inspection law in 2005 allowing inspection by the North Carolina co-op isn’t necessary under two USDA Food state. After the state Department of promotes sustainable farming Safety and Inspection Service (FSIS) Livestock promulgated regulations in Meanwhile, across the country in exemptions: one for producers who accordance with the new law, the effort North Carolina, different problems process 1,000 birds or less each year, was ready to go ahead. have resulted in another approach to and another for those who process up It took several years to develop the slaughtering poultry. NC Choices is a to 20,000 birds annually — provided mobile facility, but finally, in June 2010, nonprofit initiative of the Center for that certain requirements are met, it was approved and ready to go. It Environmental Farming Systems, itself including proper sanitary practices. consists of a small truck and trailer, with a program of several North Carolina The cooperative chose to operate the trailer containing the slaughter universities and the state’s department under the 1,000-bird exemption, which facilities and the truck having chilling of agriculture. Its purpose is to promote is slightly less rigorous. Under that rule, and storage capabilities. The unit “sustainable” local meat production, producers must own and raise their travels around the state to producer- and it provides networking and birds and must process them on their members, who call the cooperative to technical assistance to develop markets own property. They must sell directly reserve its use. continued on page 38

Rural Cooperatives / November/December 2010 7 Illinois Green Pastures Fiber Cooperative Co-op connects craft makers with locally produced fiber

By Anne Todd, Contributing Editor members take part in can range from small events, where only about 30 people attend, to huge shows that attract atasha Lehrer and her mother, Donna, of Big crowds of 30,000. The Lehrers advise members on pricing N Rock, Ill., are sheep producers who are and other ways to showcase their wares, depending on the deeply passionate about shepherding and type of event. fiber arts, including spinning and knitting. Of the co-op, Donna Lehrer says: “I did not want to be a Both daughter and mother had a desire to middleman. We wanted to offer a place where co-op raise the visibility of, and expand opportunities for, their members could sell and we could educate people on the fellow fiber producers in Illinois. So, in July 2006, Natasha, wonderful Illinois fiber available.” then only 19 years old, wrote and submitted a grant In addition to being founding members of the Green application to USDA Rural Development in hopes of Pastures Co-op, Natasha and Donna own and operate obtaining funds to help start the Illinois Green Pastures Fiber Esther’s Place, http://www.esthersplacefibers.com, a Cooperative to market and promote Illinois animal-fiber community-oriented fibers arts studio in Big Rock. Esther’s products. Place offers classes in knitting, spinning, weaving, dyeing, The following September, the co-op was awarded a felting and other fiber-related arts. It also boasts a large $180,000 Small Minority Producer Grant (now known as the selection of fibers and yarns for sale, all of which are locally Small, Socially Disadvantaged Producer Grant Program) – grown, and offers a selection of craft-making supplies and the first such grant ever made by USDA Rural Development notions. Natasha also applied for grant assistance through in Illinois. The grant helped launch the co-op, funding its USDA Rural Development in 2005 on behalf of Esther’s advertising, educational programs and development of its Place, and was awarded a Value-Added Producer Grant of website: http://www.illinoisgreenpastures.org. $24,125, which helped launch the business. Donna served as the president of the Green Pastures The Lehrer family has a flock of Cheviot sheep, a long- board of directors during the inaugural year of the co-op, and wool breed that produces dense fleece that is ideal for felting. Natasha was on the board in the early years. More recently, Like the Lehrers, most members of the Green Pastures co-op they have chosen to step back and let others take the lead in harvest fiber primarily from various breeds of sheep, but managing the co-op. However, they continue to serve as there are also Illinois fiber producers that raise angora consultants to the members, both on the best uses and rabbits, llamas and alpacas. characteristics of the various fibers and on ways to market The raw wool sells for as low as 16 cents per pound, with that fiber. white merino wool earning about 65 cents per pound. However, finished clothing, accessories or artwork created Marketing events: from 30 to 30,000 from the raw product can sell for up to $30 per pound, and The fiber shows that the Lehrers and other co-op spinning the softest fleece into yarn can yield up to $60 to

8 November/December 2010 / Rural Cooperatives The Illinois Green Pastures Fiber Cooperative (IGPFC) sells its members’ home- grown wool products at marketing events of all types and sizes. Here, Sandy Schrader (left) and Kathy McClure prepare to meet customers during the Fiber in the Park fair at Sandwich, Ill. Photo courtesy IGPFC.

Co-op Q&A

$65 per pound (minus the cost of shearing and processing). Editor’s note: Contributing Editor Anne Todd recently interviewed Jane Zeien, president of the board of the Unaware of value-added potential Illinois Green Pastures Fiber Cooperative, and Judy Prior to the launch of the co-op, most Illinois sheep Maierhofer, board member, to learn more about the co- producers were not aware of the value-added potential of op’s operations and mission. their raw wool that could be achieved just by spinning it into yarn. Because raw, sheared wool nets only $1.20 per pound, Question: Green Pastures just had its fourth very few Illinois shepherds attached any particular value to it, anniversary this past July. How has the co-op grown and especially considering the cost of shearing and processing. In changed since the group first had the idea of developing fact, about a third of the shepherds in the state would just the fiber marketing co-op? shear the wool and burn it. Jane Zeien: “The co-op started with a few members But the Lehrers and other members of the Green Pastures within a close geographical area. It has grown to include co-op are working slowly and steadily to educate producers members across the state, more than doubling the about the value of spinning the raw fiber into yarn, and also number of members, to 30.” about the benefits of tapping into the fibers arts business, which is growing. Question: What steps has Green Pastures taken to “Shepherding is hard work, but it’s rewarding, says increase marketing of members’ products? Natasha Lehrer. “I’m proud that the Green Pastures co-op is Jane Zeien: “Many new marketing avenues have been helping Illinois wool producers, more and more, to connect started. More fiber shows have been added to the to the broader world of the fiber arts.” I schedule, increasing the direct contact with fiber artists

Rural Cooperatives / November/December 2010 9 “For our cooperative, the communications committee is even more important than a membership committee.”

who are looking for quality products. An additional retail a passion for you and other shepherds. What makes you stick outlet has been added to increase exposure in a different with it? region of the state.” Judy Maierhofer: “It is a lot of work, but if you love doing it, it’s not really work. And I love the sheep. Plus, sheep are Question: What has been the biggest challenge facing the lower maintenance than other livestock, like horses or cattle. co-op? And the biggest obstacle overcome? They can handle it if I get home late.” Jane Zeien: “The biggest challenge for Green Pastures continues to be marketing. Increasing awareness of the Question: Tell us about how you got started and the breed of wonderful fiber products the co-op members produce is a sheep you work with. major goal of the co-op. Another challenge is to attract more Judy Maierhofer: “I’ve been a shepherd for almost 30 years. members to join the co-op, increasing the variety of fiber that I got started with Navajo Churros in 1989, when I agreed to can be offered.” help foster a few Churros that were originally part of a flock in New Mexico. There was a terrible drought at the time, Question: Any new marketing efforts planned? and shepherds there were looking for farmers who could Jane Zeien: “The co-op was represented at the Bishop Hill rescue the sheep, which were dying. A rescue program was Fiber Guild’s 30th annual Spin-In on Oct. 16 in Kewannee, set up between New Mexico, Arizona and Illinois. I have Ill. The Spin-In is for spinners and knitters. It was a day about 25 Navajo Churros now. filled with fiber workshops, and there were also opportunities “Navajo Churros are known for having coarse fiber that is for us to showcase the co-op, our products and to network used for rugs. But this isn’t really accurate. The boys have a with artisans and other fiber producers.” type of mane that is coarse, but the body hair is fine. Also, there is a lot of color variation in their wool. All the colors Question: Where do you see Green Pastures going in the you see in human hair, you will also see in Navajo Churros.” future? What do you hope to achieve with the co-op in the future? Question: In what ways do you participate with the co-op? Jane Zeien: “Members of the co-op are passionate about Judy Maierhofer: “In addition to being on the board, I help their animals and the fiber they produce. We will continue to keep everyone aware of all the fiber festivals and shows that provide top-quality fiber to the fiber industry. The co-op run from April through October.” provides members with a way to preserve the lifestyle they love and help preserve rural America. As the demand for fiber Question: How does the co-op communicate with members? increases, there will be more of a demand for the animals, Judy Maierhofer: “The co-op sends out its newsletter over thus increasing American agriculture.” the Internet, and we are also working on a monthly “FYI” to alert members about upcoming shows and sales. The co-op Question: How far back with Green Pastures do you go, and also sends out monthly checks to members from the proceeds what do you like best about belonging to the co-op? of product sales at the events. For our cooperative, the Judy Maierhofer: “I’ve been with the co-op for about four communications committee is even more important than a years. I joined right after the first 12 founding members membership committee.” joined. I’ve worked with fiber arts my whole life. My grandmother taught me how to spin as a child. And I’ve been Question: What would you like to see the Green Pastures shepherding for almost 30 years now. What I like best about co-op take on in the future? the co-op is that it gets us all talking about outlets for our Judy Maierhofer: “I’d like to see us get our products into products and connects us to shop owners and artists so that more shops and give members more outlets for their we can sell our product.” products and sales. I’d also like us to get more into the Chicago art market, because fiber arts are hot in the fine arts Question: Being a shepherd is demanding, but it seems to be right now.” I

10 November/December 2010 / Rural Cooperatives Legal Corner Financial and legal aspects of succession planning for family-owned businesses

By Stephanie M. Smith, business. Such a valuation “blood is thicker than water,” a Senior Legal Advisor encompasses tangible assets such as concerted effort must then be made USDA Rural Development real estate and buildings, machinery to identify and train the appropriate Cooperative Programs and equipment, as well as intangibles family members to be the successors such as employee loyalty, to manage the business. s discussed in a prior manufacturing processes, customer You may also have to consider non- A Legal Corner article base and business reputation, patents family members as successors if they about business on products and new technologies. A prove to be the key people to ensuring succession planning business valuation is also a way to the sustainability of the business. In (“succession planning,” predict your company’s future. Using some cases, short-term successors are hereafter), succession planning is key to your firm’s historical and financial appointed while long-term successors protecting your company, your family records and your judgment as owner, complete the necessary training. and your employees against monetary work with your valuation firm to Overall, the relative strengths and burden that could leave your business in calculate whether your business will weaknesses of the family members must financial and legal ruins. For example, if grow or decline, future inflation rates be carefully considered in determining you plan to turn over your business to and anticipated costs and expenses of the management restructuring that your children, you have to think about running the operation. must take place. the heavy gift taxes they will face. If you • Ownership and control — A family- • Tax Planning — The cash-flow die, your heirs can suffer an equally owned business is often held and consequences of succession planning prohibitive estate tax. controlled by husband, wife (or both), are crucial to success. This is an area This is a huge issue for many rural or a number of siblings. Other, non- where the team approach of communities, and it can have related family, closely held businesses often professionals can really bring value to impacts on members of farmer have a more complicated system of the process. In the area of estate and cooperatives. In addition to their farms, ownership and control. Along with gift taxes, questions need to be raised many co-op members also have related ownership comes control over regarding lifetime transfers or businesses (such as custom harvesting or compensation, benefits, hiring/firing, transfers at death. crop application services, etc.) that may management and short- and long- ° Should there be “carry over” basis operate as family businesses. term business goals. (gifting) or “stepped up” basis If you want to sell your business to • Management Succession — A (transfers at death)? What will be the employees, either an employee stock family business must be viewed in death tax cost to transfer the business option program or a worker cooperative terms of the way in which and how will finances be arranged to can be organized. (see the January- management decisions are made for meet the obligations? In the area of February 2009 issue of Rural non-family businesses. Non-family income tax planning, what will the Cooperatives for more on this topic). businesses make decisions according capital gains be if the entity is sold to Lastly, you may decide to sell your firm to performance of their employees outside parties? Are there ways that to a chain or a local competitor. So, and reward them accordingly. Those this gain can be deferred or where does a business owner start? who are unproductive are terminated. eliminated, perhaps with charitable tax However, a family-owned business planning? What income will the Critical issues to consider usually makes decisions based upon retiring owners need, and what • Valuation — No matter who inherits the value of family members as income levels will successors expect in your business, it is critical that you people, regardless of whether their get an accurate valuation of your performance is satisfactory or not. If continued on page 39

Rural Cooperatives / November/December 2010 11 “Not just a job, but a future” Goal of Evergreen family of worker co-ops is to help struggling neighborhoods prosper

By Dan Campbell, editor neighborhoods that surround the Howard, director of The Democracy University Circle area — the cultural Collaborative, told attendees at the leveland Rocks! — center of the city — have not shared in 2010 ACE (Association of Cooperative C according to the theme this revival. Educators) Institute in Cleveland last song of the long- These neighborhoods are home to summer. “So the question has been: running Drew Carey about 43,000 people, who suffer from How do we break down this barrier and TV comedy show. But an unemployment rate near 40 percent. create opportunity for the people of the not all of its neighborhoods rock The median annual income is less than surrounding neighborhoods?” equally, at least when it comes to jobs $18,500. Vacant lots, deteriorated and economic opportunity. buildings, water shut-offs and Laundry and solar The business district of downtown foreclosure signs are common here. co-ops launched Cleveland has undergone a dramatic This contrasts sharply with A key part of the answer, Cleveland revival in the past 15 years or so, with University Circle, which has a vibrant is hoping, is a network of worker- popular new attractions such as the core of major health, cultural and owned cooperatives. The first two of Rock and Roll Hall of Fame, the East educational institutions, as well as some these co-ops were launched in October 4th Street food and entertainment major international businesses that of 2009. The Evergreen Laundry district and new downtown stadiums together employ tens of thousands of Cooperative is serving several large and an arena for its professional sports people in good-paying jobs. health-care institutions in the teams helping to lay to rest those put- “But University Circle has been University Circle area, while Ohio downs about the city being “the mistake radically disconnected from the poor Cooperative Solar is installing solar on the lake.” Yet the poor neighborhoods surrounding it,” Ted panels on the roofs of large institutions

12 November/December 2010 / Rural Cooperatives Facing page: Worker-owners of the Ohio Solar Cooperative (OSC) have installed solar collector panels on the roofs of some of Cleveland’s largest government buildings and hospitals. Photo courtesy OSC. Below: Medrick Addison (right) is a worker-supervisor who helps keep operations running smoothly at the Evergreen Laundry Cooperative. Bottom: The skyline of downtown Cleveland has undergone an economic revival in recent years, unlike some of its nearby neighborhoods. USDA photos by Dan Campbell. and businesses. large, diverse network of worker co-ops that provide more Many of the worker-owners of these co-ops are people than 100,000 good jobs, according to James Anderson of the who in the past have had to struggle to find any kind of Ohio Employee Ownership Center (OEOC), which helped decent job, including some who have had to overcome spearhead the launch of the Evergreen project. He and records of incarceration and substance abuse. For them, just Howard provided the ACE conference attendees with an to find a steady job in their depressed neighborhoods is an overview of how it was done. accomplishment, let alone a job in which they are part owners and can accumulate equity. For them, these new co- Planting seeds In December 2006, The Democracy Collaborative — a research and policy center based at the University of Maryland that focuses on community wealth-building strategies — held a community-wealth roundtable in Cleveland to explore innovative ways to help break the cycle of poverty in the Greater University Circle area. It attracted 45 participants who represented a broad array of thinking and talents, including university faculty members, community development experts, leaders of Employee Stock Ownership Plans, chamber of commerce leaders and the CEO of a hospital, among others. As a result of this meeting, the Cleveland Foundation — the region’s largest philanthropy — asked Howard and his colleagues to help develop a new economic inclusion plan for the Greater University Circle area — one that would offer a different approach from the failed efforts of the past. “We were lucky to have the Ohio Employee Ownership Center (OEOC) just down the road and access to low-cost capital, the lack of which is the biggest restraint on the spread of the co-op movement,” Howard said. He recalled a conversation with the leader of an economic Empowerment Zone that had been created years earlier to direct more financial resources into the Greater University Circle area. Despite the expenditure of some $34 million in these neighborhoods under that effort, “there was virtually nothing left behind afterward. It just didn’t stick — it did not make a difference.” ops offer a second chance, not just for a job, but a future. The consensus was to instead try attacking the problem Next year, a third Evergreen cooperative, Green City with a business development strategy. “We wanted to create Growers Cooperative, plans to break ground on one of the for-profit businesses, owned both by workers from the nation’s largest urban food production greenhouses. The community and the institutions that are their customers,” Neighborhood Voice, a free, student-operated online and Howard said. These worker-owned businesses would pay print publication, is also part of the Evergreen family of living wages and offer the opportunity for wealth building cooperatives. It will publish monthly, reaching about 100,000 through the accumulation of equity in the businesses. residents and employees in the Greater University Circle. “We wanted to root capital in the community so that it Ultimately, the hope is that there will be dozens of would not get up and leave. Worker-owners of a business are worker-owned co-ops operating under the Evergreen not going to offshore their own jobs,” Howard said. umbrella in Cleveland, transforming and lifting the economy To help refine the strategy, 120 people were interviewed in much the same way that the worker-owned cooperatives over the ensuing six months – most of them leaders of large have done in the Mondragon region of northern Spain. institutions and businesses of the University Circle area who There, the Basque people began 50 years ago with one small were eyed as the primary customers of the new co-ops. “It worker co-op and a handful of jobs. Today, it encompasses a was determined that there was a huge economic opportunity

Rural Cooperatives / November/December 2010 13 to source business locally. Evergreen laundry co-op. Of that, about $2.5 co-ops; it houses the CEOs, human emerged from this,” Howard said. million was for equipment, $1.5 million resources and finance offices. to refurbish the building and most of Institutional buying power the balance was to cover the early Community on board key to strategy operating losses. The business plan calls As the laundry co-op neared opening When looking for someone to for the co-op to break even within 18 day “there was a lot of excitement in organize and launch the first Evergreen months, and it has been running ahead the neighborhood about it,” said business, Howard recalled that the late of schedule. The building is leased from Medrick Addison, a worker-supervisor John Logue, founder of OEOC said: with the laundry who was one of the “This project cannot be allowed to fail, first two employees hired. “There was so we must have Jim Anderson on also some negative feedback at first; but board.” This was a tribute to the once people understood what we were business acumen and organizational doing, they got behind us.” savvy of Anderson, who formerly led The desperate need for good jobs in the Republic Storage system in Canton, the area was underscored by the co-op Ohio, and had a long professional receiving about 500 applications for the career working with employee-owned first dozen jobs. “We pay a significantly firms. higher wage” than for comparable jobs, Evergreen does the majority of its business Anderson served as the CEO of the Addison noted. Evergreen also provides with large health-care institutions in the Evergreen Cooperative Laundry for the University Circle area. its worker-owners with a no-cost health first year of the effort, but turned over package. the leadership role in August to a The laundry currently employs about management team of co-op members, Enterprise Cleveland, a local nonprofit, 25 people, but hopes to expand to 35 in keeping with a goal that the co-op and the co-op has first right of refusal if workers in the near future. Plans call should provide a career ladder that there is a sale of the property. for 50 workers to be co-op members by allows employees to climb into senior The first $750,000 raised for the the time it reaches its “mature” level of management. Evergreen project came in the form of a operation, when it will be cleaning 10 The strategy from the start has been long-term, 1-percent interest loan from million pounds of laundry annually. to focus on tapping the purchasing the Cleveland Foundation. That money Each new employee goes through a powers of the large institutions of was then used to leverage the rest of the six-month trial period, after which the University Circle. These “anchor $5.7 million. Next on board was the other members vote on whether to institutions” purchase goods and city of Cleveland, which provided a $1.5 accept them into the co-op. “You have services worth about $3 billion annually million loan from its Housing and to prove yourself to your fellow (exclusive of payroll and construction). Urban Development 108 funds. workers, because you are essentially Yet, virtually none of their purchases “This gave the project legitimate choosing to go into business with were being made in the area. Buying legs, so we could go to other lending them,” Addison said. Once a worker locally was not a significant part of their institutions,” Anderson recalled. “Those becomes a co-op member, he or she institutional business model. So there investments created credibility for us.” qualifies for a $2-an-hour bonus and for was a huge untapped potential for them The co-op then got more funds from benefits. to do more business locally. two commercial banks and qualified for When the business becomes A parallel focus of this effort has a $250,000 loan from the Common- profitable, 10 percent of profits will go been to launch “green” businesses that wealth Revolving Loan Fund (which back to the Evergreen Development operate in an environmentally benign had been established by the Ohio Fund to help start other co-ops; 80 manner. Evergreen Cooperative Employee Ownership Center at Kent percent of the rest of the profits are to Laundry, Anderson says, “is the State University). A New Markets Tax be distributed among the members, of greenest laundry in northeast Ohio, Credit allocation from US Bank was which 20 percent is to be paid in cash. probably in the entire state.” Heat and also negotiated. Members have to invest $3,000 for a water used in the operation is recycled, The Evergreen Cooperative share of co-op ownership, but they can harsh chemicals are kept to a minimum Development Fund was created as the pay that off at 50 cents per hour, and the operation is housed in a LEED financing entity for the family of co- deducted from their pay increase. As (Leadership in Energy and Environ- ops. The plan calls for this fund to the company earns profits, earnings will mental Design) silver building — an grow from $5 million at present to be placed annually in worker capital internationally recognized “green about $50 million. Evergreen Business accounts. The goal is to generate up to building” certification system. Services is the corporate entity that $65,000 in co-op equity for a worker It took $5.7 million to launch the supplies “back office” services to all the who stays on the job eight years. This

14 November/December 2010 / Rural Cooperatives money belongs to the worker, and when they leave the company or retire, Solar co-op will double they take it with them. New co-op business ideas are being Ohio’s PV-energy output developed, including: a worker-owned co-op that would refurbish houses in As of the summer of 2010, there were only two megawatts of installed the neighborhoods; recycling solar power in Ohio. With just the orders it already has on its books, that total companies; and a business to turn will be expanded by an additional three megawatts by 2012, thanks to the hospital medical waste into energy. work of just one business: Ohio Cooperative Solar (OCS), a member of the “We want to keep the money Evergreen family of worker-owned co-ops. circulating locally — to stop it leaking OCS owns and/or installs photovoltaic (PV) solar panels on large out of northeast Ohio,” Anderson said. institutional, government and commercial buildings. Customers of the co-op to date include Cleveland Clinic, University Hospitals, Case Western Reserve Keeping customers satisfied University, the city of Cleveland and the Cleveland Housing Network. The future success of the co-op rests The co-op offers two types of contracts. It can sell and install the PV with keeping customers satisfied — equipment to a building owner, who then is responsible for arranging tax especially the large health-care institutions that account for most of its business. Whenever the co-op receives any kind of quality-control complaint, Addison personally visits the customer to find out what happened and ensure that the problem is addressed. “If there is a problem for a customer, we do not let it fester — we get it fixed,” he said. One seat on the board of directors of the laundry is reserved for a customer. The other directors include two co-op members and two more appointed by the Evergreen Cooperative Corporation, the co-op credits and working with its utility company and securing insurance coverage network’s “holding company.” No and maintenance service. Or the co-op will maintain ownership of the PV lenders sit on the board, and the bylaws equipment and take care of all the related arrangements. It then sells the have been set up to ensure that the co- electricity via a power-purchase agreement. These typically involve a 15-year op is never demutualized. equipment lease arrangement. Many people in the area have been The co-op has about 25 worker-owners at this time, but hopes to expand through various job-training programs to 75 to 100 at maturity. The rules of membership, equity accumulation and in the past, only to find there were no most other bylaws are basically the same for the solar cop-op as the laundry jobs for them when they completed the co-op. training. So this project sounded much A solar panel array that can generate 100 killowatts of electricity costs more attractive: a good job from day $500,000, installed. Proper installation is critical, so panels must be attached one. Training is still part of the picture, to the roof in a manner that stands up to high winds and winter conditions, but it involves much more than simply and should avoid placements subject to shadowing. how to do the work. When the weather doesn’t permit solar panel installations, workers keep Worker training, provided by the busy doing home weatherization work. This program uses federal government Ohio Employee Ownership Center, assistance to help low-income and handicapped homeowners acquire new includes personal financial literacy or repaired furnaces, hot-water heaters, wall/attic insulation and weather classes. Once that study is completed, stripping/caulking for doors. There are 38 million qualified households the training shifts into basic worker co- nationwide, notes co-op CEO Stephen J Kiel. op issues, such as knowing when a The average low-income household spends about 17 percent of its income worker-owner needs to “wear the on energy, according to the co-op. After a home is weatherized, the average owner hat vs. the worker hat.” Training household saves $350 in energy savings in just the first year. I also includes business financial literacy. In all, it is about a one-year program,

Rural Cooperatives / November/December 2010 15 with classes held every other week. ops such as these depends upon work for.” An Evergreen co-op member Calling the Evergreen effort both building a culture of ownership, says responded: “That’s the difference; we exciting and daunting, Anderson said Howard. Thus, he takes heart from a don’t work ‘for’ this business, we own it that while it is worth celebrating key brief exchange heard after a group from and we work for ourselves.” accomplishments to date, “it is way too Pittsburgh — including two union Editor’s note: To view a video about early to celebrate” this effort as an representatives from a laundry there — Evergreen and learn more about this ultimate success story. “We have miles recently toured Evergreen. One of the economic development strategy, visit: to go.” union representatives said: “This www.community-wealth.org.” I Ultimately, the success of worker co- laundry is sure superior to the one we

Urban farming strides forward with new greenhouse cooperative

If things go according to plan, Cleveland residents will horticultural science and has been working in the field for 20 soon be eating a lot more home-grown lettuce, herbs and years, is the project director (she will become the initial CEO spinach. As in about 5 million heads of lettuce and 300,000 once the co-op is in operation). She says the greenhouse pounds of herbs annually, grown in one of the economically operation will be a good fit for Cleveland, which is considered depressed neighborhoods surrounding the University Circle to be a national leader in the promotion of local food area. consumption and production. The newest addition to the Evergreen family of worker- Initial plans are to market the co-op’s produce to the food- owned co-ops is Green City Growers Cooperative, which service industry, area grocery stores and some of the major plans to break ground this March on a five-acre hydroponic (meaning the crop is grown without soil) greenhouse operation, on 11-acres that will be one of the nation’s largest urban food production greenhouses. The co-op hopes to be growing its first crop by November 2011. In addition to the greenhouse, the $18 million project will include a 16,000-square-foot packing house. The greenhouse will have four separate climate zones, giving it the capacity to change its crop mix, depending on customer demand. The project will include a 1.5 megawatt wind turbine that will provide about 40 percent of the operation’s annual power needs. Rainwater will be reclaimed from the roof, and dual layers of energy curtains on the roof and sidewalls will reduce its energy needs. Crops have been chosen that can be grown in colder temperatures than other hydroponic greenhouse vegetables, again lowering the energy demand. Hydroponic lettuces are grown in greenhouses without As with the other Evergreen co-ops, the underlying goal of the use of soil. this business is job creation and wealth-building opportunity for the co-op members, but it will achieve this by providing institutions in the University Circle area. The co-op will have healthy, locally-produced food for city dwellers. 35 to 40 worker-owners, who will be hired from University Circle neighborhoods. Longer shelf-life Some of the initial funds for the project came from a HUD The co-op will grow varieties of specialty lettuce, not grant and loan package, which targets the remediation of iceberg lettuce, and thus will not compete with area farmers. brownfield sites. When interviewed in late October, Donnell The crops grown by the co-op will instead reduce the amount noted the final pieces of the financing picture were falling of lettuce typically trucked in from 2,000 miles away. Not only into place. If commercial-scale urban farming and food will that reduce the carbon footprint of the food consumed, production continue to be a trend, Donnell recommends but it will provide local buyers with produce that has an extra modifications be made to USDA programs so that the USDA seven days of shelf life. can offer the same help to urban farmers as it does to rural Mary Donnell, who holds an MBA and a master’s degree in farmers. I

16 November/December 2010 / Rural Cooperatives Management Tip The most important thing I have learned about running a co-op

Editor’s note: Larry Swalheim is Making Landmark a leader retiring at the end of this year as CEO of Landmark Services Cooperative in In the past two decades under Wisconsin. Since being named CEO in Larry Swalheim’s leadership, 1991, Swalheim helped Landmark grow Landmark has been a leader in from a one-location cooperative to one of the many areas, including: largest co-ops in Wisconsin. He guided • Marketing grain to U.S. and world Landmark through several strategic markets with Wisconsin’s only partnerships and mergers that boosted the 100-car rail terminal; co-op’s annual sales from $25 million to • Expanding Landmark locations more than $300 million. The co-op provides from 1 to 16, and the number of agronomy, energy, animal nutrition, grain, employees from 80 to nearly 400. retail and transportation products and • Creating a team of 16 animal services to more than 15,000 members in a nutritionists who provide Larry Swalheim helped increase Landmark territory that ranges from east-central technical services and risk Cooperative’s sales from $25 million to $300 Wisconsin to northern Illinois. management support to some of million during his tenure as CEO. Several other recently retired (or about the region’s largest dairies; to retire) co-op leaders have also been asked • Implementing state-of-the-art precision agriculture technology and creating to comment on what important lesson(s) its own producer input financing company, Verity Resources. they learned about running a co-op. Their • Being awarded two National Environmental Respect Awards for its agronomy responses will appear in future issues. Other locations, two CHS/Cenex Star Energy Awards for energy sales and leaders of co-ops, large or small, are also management, and earning several Land O’Lakes Quality Awards for dairy feed welcome to submit their thoughts on this production. question. Just send an e-mail to: Swalheim has also been actively involved in cooperative education and [email protected]. community outreach while serving as CEO. In recent years, he has traveled to the Ukraine and Moldova (both former Soviet republics) and to the Philippines By Larry Swalheim as part of the United States Agency for International Development, which teaches cooperative leadership and principles to under-served rural areas have had the privilege around the globe. I of being a part of the In addition, he currently serves as the president of the National Co-op 401K leadership team at Plan (a retirement program designed to enhance the long-term financial Landmark Service security of co-op employees nationally), chairs the University of Wisconsin Cooperative for nearly Center for Cooperatives Advisory Committee, is a director for Wisconsin 24 years. During that time, I have had Community Bank and was recently appointed as a member of Thrive, an the opportunity to learn from our economic development enterprise for the eight-county Madison region. board, our employees and our members “Without Larry’s guidance, we could not provide the wide variety of on the importance of communication, products and services at competitive prices to our patrons that we do today,” collaboration and commitment in says John Blaska, Landmark’s board president. creating a sustainable, successful An avid world traveler who recently completed a trip to Antarctica, cooperative business. Swalheim says he feels that this is the right time for him to step back. “Now is Communication is the cornerstone the time. Landmark is financially strong, with the best management team we on which a cooperative stands. To be a have ever had. This leaves me with the feeling that the momentum of this successful leader in this unique business company will keep moving forward at full speed.”

continued on page 38

Rural Cooperatives / November/December 2010 17 Utility Co-op Connection Cooperatives delivering broadband to rural Missouri communities

Ralls Electric Cooperative received $19 million in American Recovery and Reinvestment Act funds from USDA to expand broadband service in its rural Missouri service territory. Photo courtesy Ralls Electric Cooperative

By Anne Mayberry (Recovery Act) funding. These funds — such as libraries, schools, public Public Affairs will help the Ralls co-op build more safety and community centers — to USDA Rural Development than 1,200 miles of high-speed fiber provide services to thousands of optic cable to 5,000 homes, businesses, Americans.” In addition to expanding uring the next year, public safety facilities and community educational, health and businesses D hundreds of projects to entities in rural northeast Missouri. The services for the area, the project is deliver broadband to work, part of a five-year initiative expected to create 35 to 40 new jobs in rural areas will break launched by Missouri Governor Jay the short term and has the potential to ground nationwide in Nixon, is expected to expand broadband create more than 1,300 jobs in the an effort to provide rural consumers accessibility to more than 90 percent of future. with the technology necessary to the state’s total population, up from the compete in today’s economy. Ralls current 79.7 percent. Leveling the playing field County Electric Cooperative in Agriculture Secretary Tom Vilsack Ralls County Electric Cooperative Missouri is among the utility co-ops noted that these broadband projects Manager Dan Strode understands the striving to bring broadband service to offer rural residents access to the tools magnitude of the change that high- its members. they need to attract new businesses, speed Internet access can deliver. It received a $19.1 million award as jobs, health care and educational “Broadband has so many applications part of the U.S. Department of opportunities. “Bringing broadband to for homes, schools and businesses that Agriculture’s $2.5 billion in American rural America provides a gateway for will help bring the future to this Recovery and Reinvestment Act businesses and key anchor institutions community. Ralls was the last county in

18 November/December 2010 / Rural Cooperatives Missouri to have a public library. It will Strode says. “Automated meter reading “A variety of businesses and take years to stock that with the books and other services that require two-way organizations expressed an interest in and publications found in urban communication with consumers are in working with the cooperatives for libraries. Internet access will help level our plans. This broadband project will broadband access,” Hart says. The that playing field and open this county allow us to continue to become more seventh cooperative principal, he notes, up to the world, bringing us sophisticated and offer more is concern for community. “The tremendous opportunities.” applications to make more efficient use cooperation between the communities Broadband service can also play a big of electricity. This is how broadband and cooperatives is what helped provide part in rural health care and education. will create jobs. The need for those the ‘middle mile’ broadband service that “We can deliver telemedicine service skilled in technology, for example, will today makes broadband connectivity from urban areas, and residents will grow. Some of the uses for our possible in many of these areas,” Hart have access to more health care economic development funds — says. information,” Strode says. “We cannot incubator start-ups — have not yet been Broadband service is also not new to afford to hire foreign language teachers. invented.” Ralls County Electric Co-op. Strode But with the Internet, schools can visit recalls that in 2005, the co-op offered foreign countries and learn about other Studies show impact wireless service to members. “We had parts of the world. We will be able to of broadband eight power locations, but could only provide [home and business] security Strode’s ideas are supported by reach one out of every four who services for our residents. To see a studies that indicate investment in rural requested service.” The region’s terrain movie, we now have to drive 18 miles. broadband boosts economic growth, — rocky bluffs and dense forests — Broadband will change all of that.” promotes new businesses and increases limited the signal. “Seven kilobytes was According to analysis released by the the growth of existing firms. For typical. This project will deliver 10 National Economic Council last year, example, USDA’s Economic Research megabytes, up and down,” he says. overall Recovery Act investments in Service notes that “rural counties with broadband are expected to create tens broadband Internet service in 2000 had Better service, better economy of thousands of jobs in the near term greater subsequent employment and Increased bandwidth is critical to the and will expand economic development income growth than similar rural co-op’s operations. and job opportunities in communities counties without service.” “We are using broadband for that would otherwise not benefit from Construction of Ralls County’s new distance learning,” Hart says. “Each the knowledge-based economy. broadband network began in March month, we deliver our electric safety Recovery Act broadband projects 2010 and is scheduled to be completed training program over the Internet. help reduce the cost of private by May 2013. The first customers are The transition has reduced statewide investment, attract Internet service expected to have broadband access travel among the cooperative’s main providers to new areas, improve digital during the first portion of 2011. “We offices and district offices. literacy among students and workers have already had a community currently “It’s exciting to see how this and create new opportunities in not in the planned service territory ask technology, which is rapidly evolving, employment, education, health care and to be included in future build-out,” will help us deliver better services to business. Strode says. “We want to make sure our our members,” Hart says. Strode is optimistic that in addition business assumptions are realistic before Strode explains that cooperatives to the increased services that broadband we expand. And we are sharing our work for the people in their access routinely delivers, Ralls County non-proprietary information as this communities and are in business to may benefit from additional economic project rolls out. We want to provide a provide a vital service. development. “Our plan is to use 10 model to show other counties how they For example, a $10 million percent of the net cash flow for might duplicate this.” investment in an urban area might economic development. We want to Providing telecommunications generate a 25-percent return, he notes. ensure that along with this service, we service is not entirely new to Missouri “That same investment in rural areas will grow businesses in our area.” electric cooperative utilities. Barry might provide a 6-percent return. And Broadband, Strode notes, allows Hart, executive vice president and CEO the returns we do make go to those who people to work from their homes and of the Association of Missouri own us: our communities. We do not expands access to a variety of markets Cooperatives, explains that nearly 15 have the same profit motive, and that and services. years ago, the large electric cooperatives can make or break a lot of companies. “The smart grid — which right now that handle generation and transmission Because we’re small and rural, being a is still a concept — will require larger made the decision to install fiber to co-op makes a difference.” I capacity for data and more speed,” help ensure communications reliability.

Rural Cooperatives / November/December 2010 19 Cooperative Food Hubs Food hubs fill the ‘missing middle ,’ helping small producers tap local markets

By Alan Borst Agricultural Economist Cooperative Programs USDA Rural Development

food hub is a facility that is central to producers and has a business A management structure that facilitates the aggregation, storage, processing, distribution or marketing of locally or regionally produced food products. Food hubs differ from decentralized markets, where producers and consumers are directly linked — as occurs at farmers’ markets, community supported agriculture (CSA ) associations, produce stands or any other direct sales arrangements by individual farmers. A food hub functions as an intermediary that — by pooling producers and consumers — adds value to the marketing of produce and facilitates the development of a local food supply chain. Food hubs serve as aggregation points through which smaller producers can collectively market to larger buyers that they would otherwise not have access to. Food hubs, for example, can purchase sufficient liability insurance to enter institutional food markets. These facilities provide storage and logistics services for both buyers and sellers. The development of food hubs has been driven by idea that there is a “missing middle” in

20 November/December 2010 / Rural Cooperatives Bob Raymond of Village Creek Farm (facing page) grows salad-mix crops in a hoophouse in Lansing, Iowa. Below: Glen Elsbernd of G It’s Fresh farm in Ridgeway, Iowa, uses a vintage tractor and cultivator to control weeds without chemicals. Both are members of the GROWN Locally Cooperative, which was started in northeastern Iowa in 2000 to increase access to the institutional food market for small farms. Photos courtesy GROWN Locally Cooperative

local food infrastructure in most regions across the country. Food hubs identify and capitalize upon such gaps by developing and operating the needed infrastructure. Consumers have become increasingly concerned about the sources of their food, with a sizeable market niche having developed for locally produced foods. Smaller producers have been searching for market outlets that provide better returns for their produce. The cooperative model of business is one way through which such aggregation has been organized by both producers and consumers. Cooperatively organized food hubs can be distinguished from other business models, such as hubs organized by an individual grower, the government or an intermediary, such as retailers. A 2008 study from Cardiff University in the United Kingdom analyzed producer cooperative food hubs. It concluded that cooperatives are likely to be established as mechanisms to enable profit generation from the activities of member-owners, rather than through the food hub identity.

Rural Cooperatives / November/December 2010 21 A potential strength of co-op food www.cias.wisc.edu/wp- coordinate pre-season planning, pricing hubs, the university study found, is that content/uploads/2010/01/grown_locally and distribution. This allows growers to they are able to draw upon the expertise .pdf . This co-op was started in 2000 by focus on production. and resources of their membership. Co- a group of small growers in The University of Wisconsin ops also promote collaboration and northeastern Iowa with the goal of Extension report concluded that understanding of each member’s skills reducing competition between farms cooperative food hubs need to develop and business attributes in ways that may and increasing their access to or hire skilled management: “The co-op lead to greater resilience. This depends institutional markets through product model offers a horizontal leadership upon the sharing of priorities among aggregation and co-branding. There are structure. Without clear responsibilities cooperative members. Producer- now 22 members. and delegation, however, this model can cooperative hubs are able to specialize The cooperative is now focused on result in disorganization, leadership in marketing while allowing their the institutional market. Its institutional imbalance and fatigue.” The charge has membership to focus on food clients prefer to receive as few deliveries been made that cooperative food hubs production. as possible. Therefore, the co-op has can suffer from the model of management by consensus. Producer cooperative food hubs Because their farms are small-scale An example of a mature producer operations, many of GROWN cooperative food hub is the New North Locally’s members cannot afford the Florida Marketing Cooperative certification and infrastructure (NNFC), which was established by a necessary to formally complete group of African-American farmers in certifications needed by their 1995. Their goal was to provide institutional buyers. As a result, marketing services to their membership, GROWN Locally plans to adopt a helping them to collectively sell post-harvest handling program for produce to markets such as local school some of its members that may involve Members of New North Florida Marketing districts, and — ultimately — to third-party certification. Cooperative sell their produce to area increase the volume of produce. school districts. GROWN Locally has found that After six years of operations, the co- pre-season production planning has op had greatly expanded sales to 15 helped its membership to better meet school districts in Florida, Georgia, market demand. GROWN Locally’s Alabama and Mississippi. It currently been aggregating products for these members plan production ahead of the provides food for about 200,000 customers. growing season, based on customer students. GROWN Locally is exploring the demand. Prices are then set to reflect NNFC has adapted to meet the development of a processed-vegetable the membership’s costs of production. needs of its membership and its product line for the cooperative’s customer base. Since 2002, the institutional clientele. The co-op has Consumer cooperative cooperative has functioned as a recently partnered with an entrepreneur food hubs coalition that promotes networking who plans to convert a restaurant into a In 2008, Marina Michahelles functions by facilitating connections licensed processing facility and CSA completed a thesis (at the University of between farmers and schools. NNFC packing and distribution hub. Vermont) in which she studied the role has established a niche market and has of consumer cooperatives as local food been able to negotiate a price that is fair Bringing in professional hubs in the Northeast. Interviews were to the school district and profitable for management conducted with co-op managers and its membership. As part of its marketing Over time, GROWN Locally workers on the question of barriers to and promotion, the cooperative discovered that it was more cost local food sourcing. Among the findings developed posters showing the life cycle effective to hire a professional manager were that: of a crop – from planting to harvesting. than to rely on volunteer members, • Interest in local food has been Another example of a producer interns or inexperienced staff to oversee growing in the last few years; cooperative food hub is GROWN its administrative tasks. In 2008, the • The relatively high cost of local Locally, which is described in a cooperative hired a full-time products is not an issue when co-op University of Wisconsin Extension coordinator with a background in customers understand where the publication, available online at: business management and marketing to discrepancies come from;

22 November/December 2010 / Rural Cooperatives The Wedge is one of the largest single food store co-ops in the nation, with $30 million in retail and $12 million in wholesale receipts last year. Photo courtesy The Wedge

• Sometimes access to local food has owned cooperative food hub is the 36- distributions in the country. been a problem in the off-season, but year-old Wedge in Minneapolis. In 2007, the Wedge purchased one the demand is year around; According to the Minneapolis Star- of its long-standing grower suppliers. • Consumer co-ops have had to Tribune , the Wedge is one of the largest The farm is currently in full production compete with farmer’s markets, CSA single-store natural foods cooperatives under the supervision of an experienced farming associations and farm stands, in the United States, with $30 million manager. It is now the Wedge’s primary as well as natural food grocers and in retail sales in its last fiscal year, and supplier of organic produce. The farm larger food retail outlets, such as another $12 million in wholesale also serves as an organic farming Whole Foods; markets. education site. • There is a lack of cooperation among It has been consistently profitable Both farmers and consumers have consumer co-ops and between co-ops since the late 1980s. The Wedge has used the cooperative model of business and other organizations that has done particularly well this year, successfully to organize food hubs to limited their effectiveness as food refunding 80 percent of its member- expand market opportunities for smaller hubs. generated profits. The grocery co-op’s agricultural producers, create rural jobs annual patronage refund to its members and increase local food sales. I The Wedge hitting stride has hit $1 million for the first time, An example of a mature consumer- marking one of the largest such

Rural Cooperatives / November/December 2010 23 Why the asset-building movement

By Heather McCulloch, loss or other income disruption. The Principal/Asset Building Strategies economic crisis has only made matters worse as it has pushed millions of middle class ver the course of the last 20 families into income and asset poverty. O years, a national “asset- building” movement has History of asset-building movement grown rapidly in The asset-building movement started in communities across the the mid-1990s with a national demonstration Editor’s note: United States. The movement is focused on project focused on one strategy: Individual Heather McCulloch is the building the financial security of working Development Accounts (IDAs). These are founder and principal of Asset families through a broad range of practical matched savings accounts that enable low- Building Strategies, a strategies and public policies that enable low- income individuals to save for a home, consulting firm in California and moderate-income individuals to save, business or post-secondary education. The that advances policies and invest and preserve financial assets. demonstration showed that low-income strategies to support low- To date, rural co-ops and other shared- families would save if given appropriate wealth families to build ownership strategies haven’t been part of this incentives, similar to those offered to financial assets. She is a co- national dialogue because the movement has wealthier families through the tax code. The author of the report been largely focused on individual ownership. success of IDAs laid the foundation for a “Expanding Asset Building This article offers readers an introduction to broader asset-building movement that has Opportunities Through asset-building policy and practice with a focus advanced a range of practical strategies and Shared Ownership” and has on why it’s relevant to rural cooperatives. It public policies to support low- and moderate- authored numerous other also makes a case for why co-op leaders income families to access financial education publications on trends and should engage with asset-building leaders to and services, save, invest and preserve emerging opportunities identify and advance common policy and financial assets. relevant to asset-building practical goals. Over time, the movement has grown to practitioners, funders and include an array of stakeholders, including: advocates. For more What are assets and why local, state and national nonprofits; elected information, go to: do they matter? officials and public agencies; foundations; www.AssetBuildingStrategies. There’s been a growing national dialogue financial institutions and their regulators, and com. The following article is about the importance of financial assets — even the Federal Reserve. The growth of the based on remarks she made at cash savings, stocks and bonds, as well as movement has been fuelled by several factors, the most recent ACE home, business and real estate equity — in including: (Association of Cooperative building the financial security of low- and • Increasing understanding of the importance Educators) conference, in moderate-income working families. While of financial assets in enabling families to Cleveland, Ohio. income is critical to enabling families to get move to long-term economic security; by day-to-day, assets enable them to weather • Concern about the wealth gap, which, financial crises, invest in their children and before the recession, was greater than at any their community, plan for a secure retirement time since before the Great Depression; and pass resources on to future generations. • And the fact that, today, the issues of Even before the recent recession, however, concern to the asset-building movement — U.S. families were experiencing financial education, accessible and unprecedented levels of financial insecurity. affordable financial products, home and Nearly one in four households was “asset business ownership, access to health poor,” meaning they had insufficient assets to insurance, foreclosure prevention and survive, even at the poverty level, for more retirement security — are all of major than three months if they experienced a job concern to most working families.

24 November/December 2010 / Rural Cooperatives matters for rural co-op members

Building bridges between Where do we go from here? asset building and shared ownership If we agree that the asset-building movement has much to With more than $3 trillion in assets under their control, learn about the wealth-building potential of rural the nation’s 29,000 cooperatives — including rural and urban cooperatives, and that the rural cooperative movement has cooperatives as well as credit unions — play a significant role much to gain from engaging with the asset-building in building the wealth of member farmers, ranchers and movement, the next question to ask is: Where do we go from fishers and co-op workers. For the most part, however, here? they’ve been off of the radar screen of the asset-building For starters, rural co-op leaders could quickly get up to movement. speed on asset-building policy, practice, research, trends and Now is the time to make the connection between the funding sources by exploring the following resources: shared-ownership and asset-building movements in a way • Asset Funders Network (www.assetfunders.org); that benefits all stakeholders. Reaching out to, and educating, • Center for Social Development at Washington University asset-building supporters about the wealth-building value of (www.csd.wustl.edu); rural cooperatives could bring new attention, skills and • CFED (www.cfed.org); resources to rural communities. • Democracy Collaborative/Community Wealth Building Rural co-op members could benefit from learning about Program (www.community-wealth.org); — and connecting to — a range of asset-building strategies • Institute on Assets and Social Policy at Brandeis that would strengthen the financial security of member (www.iasp.brandeis.edu); families and workers. Furthermore, building members’ • New America Foundation/Asset Building Program individual assets should help to strengthen the long-term (www.assetbuilding.org). sustainability of cooperatives, making it less likely they would be susceptible to demutualization proposals. In addition, rural co-op leaders could explore other ways At the same time, the asset-building movement would to make the connection to asset-building practitioners, benefit from the participation of these cooperative members advocates and funders. For example, asset-building coalitions and their workers, who represent an important new are now operating in more than 40 states, and an increasing constituency from rural areas. number of county and regional coalitions are emerging. One national asset-building funder has been working to These coalitions are advancing a broad range of policies and make the connection between the movements. In 2008, the practices that support low-wealth families to build financial Annie E. Casey Foundation published a framing paper and assets. They offer opportunities for rural cooperative leaders convened national leaders of the asset-building and various to network with new partners and leverage resources. shared-ownership movements — including rural co-op National asset-building intermediaries also offer unique supporters — to help them determine how to build bridges opportunities. CFED, one of the nation’s leading national between the movements in a way that would help them to asset-building intermediaries, recently launched its identify and advance common goals (Editor’s note: the author “Innovators-in-Residence” program, which offers a $50,000 has consulted with the Annie E. Casey Foundation on this stipend and technical support to individuals with new ideas effort since 2008). about how to take strong asset-building strategies to scale. In 2009, the Foundation supported two national working New America Foundation, another national intermediary, groups — one focused on shared home ownership, the other hosts a blog that includes guest postings about ways to on shared business ownership — to encourage collaboration expand the national dialogue about asset-building policies, in the areas of public policy, practice, research and practice, trends and opportunities. information sharing. This year, the foundation has been Rural cooperative development may not be a new idea, but supporting efforts to educate people involved in asset it is a powerful wealth-building strategy that deserves the building about the wealth-building potential of shared attention of the asset-building field. Now is an opportune ownership strategies through media outreach, webinars and time for rural cooperative leaders to make their voices heard. presentations at workshops and conferences. I

Rural Cooperatives / November/December 2010 25 Fifth Season Cooperative

Having progressed from conception to incorporation, fledgling Wisconsin co-op faces crucial questions

By Courtney Berner, variety of ecosystems including grassland, forest, University of Wisconsin Center for Cooperatives prairie and wetlands. [email protected] “This striking topography, however, makes agriculture in this region particularly Editor’s note: The Fifth Season Cooperative is a challenging. The hills make for a breathtaking newly launched, multi-stakeholder cooperative in landscape, but they also limit the amount of Viroqua, Wis., that provides the infrastructure and productive land on farms. Farms in the Kickapoo coordination needed to help rebuild the region’s food Watershed are smaller than farms in the rest of system. This case study follows the co-op’s development the state. In Vernon County, for instance, the from the initial idea to the signing of the articles of average farm size is 177 acres, compared to the incorporation in August 2010. state average of 228 acres,” according to a food assessment study of the area. he Fifth Season Cooperative is Despite these challenges, agriculture has long T in the center of Wisconsin’s been the dominant industry in the region, which Driftless geological area, which has enjoyed a rich variety of farmers and includes parts of Wisconsin, agricultural traditions over the years, from the Iowa, Minnesota and Illinois. Norwegian immigrants in the 1800s to the This region was never glaciated, and thus has Amish families who settled more recently. striking topography consisting of forested hills, Despite the region’s wealth of agricultural steep valleys and clear streams, as well as a resources (Vernon County alone has more than

26 November/December 2010 / Rural Cooperatives Co-op members sign the articles of incorporation (facing page) for the new Fifth Season Cooperative in southwest Wisconsin. Its mission is to encourage the development of a sustainable local food system. Photos courtesy Fifth Season Cooperative

200 organic farms), concerns have grown in recent years identify projects, policies and partnerships to meet the regarding its community food security. The Food aforementioned goals of a sustainable food system. Security Learning Center defines community food security as “a food system in which all community Farmland in the residents are able to obtain a safe, culturally appropriate, Driftless Region nutritionally sound diet through an economically and Following the completion of the Vernon County environmentally sustainable food system that promotes Community Food Assessment, economist Ken Meter of community self ‐reliance and social justice.” the Crossroads Resource Center completed a rural While southwest Wisconsin produces large quantities economic assessment of southwest Wisconsin, based on of high-quality food, much of that food leaves the region the results of the food assessment, and reported the for larger cities, including Madison, Milwaukee, Chicago results to the communities in the region. Meter’s data, and the Twin Cities. In 2007, the Valley Stewardship coupled with the findings of the FFI Community Food Network (VSN) launched a Food and Farm Initiative Assessment, revealed several important food system facts: (FFI) in response to these concerns regarding local food • Southwest Wisconsin is home to a great number of security in southwest Wisconsin. The mission of FFI is small- to medium-scale farms that have the capacity to to encourage the development of a sustainable, equitable produce high-quality foods. local food system by: • There is a multimillion-dollar local food market • Engaging and educating a broad network of county waiting to be further developed, as indicated by the residents; $208 million that consumers here spend annually • Improving access to healthy, local foods for all buying food from outside the region. members of the community, especially the low ‐income • Producers in southwest Wisconsin lack access to the population; structured coordination and processing, marketing and • Strengthening the economic viability of regional distribution infrastructure necessary to increase agriculture; and producer capacity. • Addressing market barriers for local producers. • Southwest Wisconsin boasts strong nonprofit, As part of the FFI, VSN conducted an 18 ‐month producer, business and institutional partners that are community food assessment of Vernon County to better committed to improving the local food system. understand the county’s food assets, opportunities and The findings of these studies led the Vernon needs and to identify the best strategies for improving Economic Development Association (VEDA) to apply food security. In Vernon County, the community food for a 2009 Buy Local Buy Wisconsin Grant (BLBW) that assessment served as a foundation for stakeholders to would support the infrastructure, coordination and

Rural Cooperatives / November/December 2010 27 education necessary to strengthen • Cooperative experts from the region Rasikas, general manager of the producer capacity and increase encouraged VEDA to use a Viroqua Food Co-op; Marilyn Volden, consumption of local food in SW cooperative model and offered their director of Food and Nutrition Wisconsin. They decided that a multi- advice and support. Programs for Viroqua Public Schools; stakeholder cooperative is the best Brian Wickert, owner of EZ Farms, and business model to meet the region’s Co-op start up Cecil Wright, director of Sustainable needs for four key reasons: VEDA was awarded the BLBW Giving at Organic Valley. • They could model the cooperative grant in 2010 and action was immedi- This group met often and dealt with after the Producers & Buyers Co-op ately taken to make the vision a reality. the minute details of putting together a in Chippewa Valley, which had Executive Director Sue Noble formed cooperative organization. One of the already proven to be a viable model. two committees to begin the formal most difficult tasks this group • VEDA began discussions months planning process: a slush group and a undertook was articulating and building before that included buyers and steering committee. consensus around the various producers. Having laid the The slush group was comprised of documents that defined the cooperative: groundwork for a model that brought the mission statement, vision statement,

MEMBERSHIP CLASSES

PRODUCERS PRODUCER GROUPS PROCESSORS DISTRIBUTORS WORKERS BUYERS Growers in the Agricultural Businesses from Businesses from Employees who Institutions and region who sell businesses in the the region that the region that are members of retail operations in product through region that sell provide value- transport product the cooperative the region that the cooperative product through added products to for the cooperative and contribute to regularly purchase the cooperative be sold through its success through product from the the cooperative their labor cooperative

FIFTH SEASON COOPERATIVE • Aggregate, store, process, and distribute produce from member farmers • Provide coordination and infrastructure to connect the region’s growers and institutions • Match supply and demand needs for all members • Provide training and support to members • Develop consistent packaging, delivery, and invoicing to buyers • Develop marketing and educational materials for consumer education • Governed by a seven-member board of directors and guided by the seven cooperative principles

BENEFITS TO MEMBERS BENEFITS TO THE REGION • One member, one vote • Support for small- to medium-scale farms • Fair prices for all • More robust regional food system • Transparent flow of information • Greater access to fresh, local foods • Product quality and consistency • Increased tax base and job creation • Matching supply and demand • Marketing & income opportunities for local businesses • Education and training opportunities • Local investment opportunities • Equitable distribution of economic returns • The cooperative commitment to community • Access to new markets and buying opportunities

everyone to the same table, they had key players who were highly invested in and bylaws. confidence that a cooperative would the project and had relevant expertise. Sue Noble also formed a larger work. The group included Margaret Bau, a steering committee that met about once • Organic Valley, the nation’s largest cooperative development specialist with a month. The purpose of these organic food cooperative, offered to USDA Rural Development; Sue Noble, meetings was to inform the larger donate $10,000 as a cash match to the VEDA executive director; Nicole group of the progress being made and BLBW grant. Penick, Buy Local coordinator; Jan to make decisions regarding the actions

28 November/December 2010 / Rural Cooperatives and proposals of the Slush Group. Most of the attendees of these meetings were either potential co-op members or were Shuttered factory to see new life as food hub somehow invested in rebuilding the regional food system. Wisconsin Governor Jim Doyle on Sept. 30 announced a $2 million Once the key organizational and Economic Development Administration award to the Vernon Economic legal documents were in order, the next Development Association (VEDA) and the City of Viroqua for a food processing major task was recruiting members for and distribution center in Viroqua. The grant will help VEDA turn a 100,000- the interim board of directors. An square-foot former factory into a regional hub for food processing, storage and organization’s first board is vital to its distribution. success, so Noble spent a lot of time In addition to providing much-needed storage for regional farmers, the making sure the first board included building will also include rental space for local food businesses and a home key stakeholders from each member for the newly incorporated Fifth Season Cooperative. class. An advisory council was also “This facility is a tremendous resource to the agricultural industry in our formed to help the board navigate the region. It provides the aggregation, processing and distribution infrastructure process of starting a new cooperative. to help small producers increase their market opportunities and business Noble emphasized that keeping capacity,” Susan Noble, executive director of VEDA said. “We’re creating jobs, Rasikas and Wright as key advisers in increasing the tax base and engaging our own local entrepreneurs to grow the this process was essential. Along with economy.” I Bau, they have offered invaluable guidance on budgeting, vision There is currently one employee, joining the co-op is a good investment? development and cooperative Nicole Penick, who is serving as the Pricing — Determining prices that governance. Noble noted that the most project coordinator. The membership each member considers fair will be a difficult challenge throughout the classes represent the key players in the critical challenge for the interim board. process was keeping the vision alive. food system at the local level, thereby As a multi-stakeholder cooperative that “It was critical that people continued putting the entire supply chain at one includes every level of the supply chain, to be excited and feel ownership over table. The motivations behind this how will Fifth Season set prices with the project even though they didn’t organizational structure are to keep which all members are satisfied? attend every meeting,” she says. local dollars circulating in the Raising Capita l — The Vernon “Facilitation of the process was key.” community and to develop long-term Economic Development Association relationships between growers and was awarded $40,000 over two years to Co-op structure buyers that lead to fair pricing and fair start a cooperative; however, the grant The Fifth Season Cooperative’s treatment of all members of the supply does not cover all of Fifth Season’s multi-stakeholder organization is a chain. expenses for the first two years. As the unique business structure in the United co ‐op is in the start-up phase and States. The cooperative has six member Moving forward working toward building membership classes that span the entire supply chain. The Fifth Season Cooperative is at and revenue, it needs additional capital The list includes producers, producer an important junction. The co-op has to fund operations and capital groups, processors, distributors, buyers, filed its articles of incorporation and is expenditures. How will this cooperative and workers. now an official entity. There is an be financed? How does the co-op build Producers are growers in the region interim board of directors in place that equity? who sell produce, meat or dairy. is leading the way until the formal Organic vs. conventional — There Processors are businesses from the board is elected at the first annual are more than 220 organic farms in region that make value-added products. meeting. This interim board has a lot of Vernon County alone as well as many Producer groups are agricultural decisions to make that greatly influence conventional growers in the region. businesses in the region that aggregate Fifth Seasons’ operations, objectives, Should the cooperative be exclusively and sell produce, meat or dairy. and success. There are four questions organic or should it sell both Distributors are businesses from the that the interim board will have to conventional and organic products? region that transport agricultural resolve: The answers to these related questions products. Buyers may include Membership — In order to be have ripple effects as they affect pricing, institutions and retail operations in the successful and fulfill its mission, Fifth membership, marketing, and the overall region that purchase product from the Season needs to recruit diverse classes functioning of the organization. I co ‐op. Workers may become members of members. What is the motivation for and contribute to the success of the someone to join Fifth Season? How cooperative through their labor. does Fifth Season make the case that

Rural Cooperatives / November/December 2010 29 Co-op leaders and USDA officials gathered in the courtyard at USDA headquarters in Washington, D.C., in October for a special Co-op Month salute. Below, Rural Utilities Service Administrator Jonathan Adelstein addresses the gathering, as did (facing page) Under Secretary for Rural Development Dallas Tonsager and Rural Business-Cooperative Service Administrator Judy Canales. USDA photos by Bob Nichols

Co-op Month celebrated at USDA

o-op Month was support and build local economies and biomass energy co-op is taking wood C celebrated at USDA strengthen our nation.” and crop waste and turning it into fuel headquarters in Featured speakers included Dr. Brent pellets. Madeline Schultz, of the Iowa Washington, D.C., in Heuth, from the University of Co-op Extension Service, provided an early October with a Wisconsin Center for Cooperatives, overview of a new website program and reception attended by who provided a snapshot of the nation’s (www.eXtension.org.) designed to about 100 co-op leaders and cooperative sector, which includes spread understanding of the cooperative government officials, during which a 29,000 cooperatives that have a $650 model of business. special Co-op Month proclamation, billion annual impact on the U.S. Under Secretary for Rural signed by Agriculture Secretary Tom economy. Gary Stooksbury, CEO of Development Dallas Tonsager and Vilsack (see sidebar), was released. Aiken Electric cooperative, spoke on Canales also met with a smaller group President Barack Obama also sent a behalf of the South Carolina Power of co-op leaders to better focus the special message saluting cooperatives, Team/Palmetto Economic attention of USDA on key issues facing read by Rural Business-Cooperative Development Corporation, which is a cooperatives. Tonsager stressed USDA’s Programs Administrator Judy Canales. consortium of utility co-ops that are commitment to: President Obama’s letter said: pooling their efforts to attract new • Developing local food systems; “When Americans work together for a business to the state and to create jobs. • Expanding broadband service; common purpose, we can change lives Rick Beckler, director of hospitality • Developing renewable energy of others in sustainable ways. at Sacred Heart Hospital of Eau Claire, resources; Thousands of cooperatives across our Wis., told the story of the Producers • Support for the Great Outdoors country work towards this fundamental and Buyers Cooperative, which is initiative; goal, delivering goods and services that helping small farmers tap the local food • Maintenance of the ecosystem. impact countless individuals and market with contracts to supply Some of the issues raised by communities. As you celebrate this homegrown foods to area health care cooperative leaders included: successful, diverse business model facilities. Steve Flick, board president of • The need to address the future during National Cooperative Month, I Missouri’s Show Me Energy electricity requirements of rural hope you take pride in your work to Cooperative, described how this America;

30 November/December 2010 / Rural Cooperatives Office of the Secretary Washington, D.C. NATIONAL COOPERATIVE MONTH October 2010 By the Secretary of Agriculture of the United States of America

A PROCLAMATION

WHEREAS the Nation’s 29,000 cooperatives have an impact of more than $650 billion annually on the U.S. economy and are operated for the benefit of their members, rather than outside investors, in the spirit of member ownership and member control; and

WHEREAS cooperatives are a highly flexible, self-help business model that enable producers and consumers to engage in activities as diverse as processing and marketing crops and obtaining farm supplies; developing renewable energy projects, food stores and childcare centers; and providing credit and financial services, insurance, electricity and telecommunications services to their member owners; and

WHEREAS cooperatives own more than $3 trillion in assets and employ more than 850,000 people, and are especially effective at helping to add value to the goods and services produced in rural America, helping to keep more dollars “at home”; and • The need to attract new, young talent into the cooperative academic WHEREAS one of the key guiding principles of the cooperative movement is community; service to community, and thus cooperatives operate in a manner that • Further educating and providing strengthens the communities in which their members live and work; and technical assistance to co-ops on how to sell “brand identities” of their WHEREAS the U.S. Department of Agriculture supports the Nation's products; agricultural and utility cooperatives with financial programs, educational • Creating a rural/urban linkage for the materials, statistical information, research, technical, and development development of advanced food assistance; systems; • Providing advice to cooperatives on NOW, THEREFORE, in recognition of the vital role cooperatives play in the how they can work in urban areas to Nation’s economy and the impact they have on improving economic develop agriculture centers (within the opportunity and the quality of life in rural America, I, Thomas J. Vilsack, confines of statutory regulations). Secretary of the United States Department of Agriculture, do hereby proclaim Andrew Jermolowicz, USDA’s acting October 2010 as National Cooperative Month. I encourage people everywhere deputy administrator for Cooperative to learn more about cooperatives and celebrate their accomplishments with Programs, provided in-depth appropriate ceremonies and activities. information about the Value-Added Producer Grant program and the IN WITNESS WHEREOF, I have hereunto set my hand this 5th day of October expansion of the program to include 2010, the two-hundred thirty-fifth year of the Independence of the United local farming initiatives. He indicated States of America. that there has been an upsurge in applications. Available funding for the THOMAS J. VILSACK program was greatly expanded this year. Secretary I

Rural Cooperatives / November/December 2010 31 Newsline Co-op developments, coast to coast

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

USDA announces development assistance. The Center In other DFA news, members, funding for co-ops focuses the vast majority of its efforts management and staff took a break Agriculture Under Secretary for on the most distressed rural areas of the from an annual training conference in Rural Development Dallas Tonsager in state. The group helps minority farmers September to help launch the October announced support to help establish financially sound businesses. development of two community gardens rural cooperatives expand economic The California Center for in the Ninth Ward of New Orleans. activity in their communities. Tonsager Cooperative Development will receive a made the announcement on behalf of $225,000 grant to develop new Agriculture Secretary Tom Vilsack cooperatives, promote community- during a speech in Washington marking supported agriculture, strengthen the October as National Cooperative marketing of small farm production, Month. and develop systems to link growers “President Obama and Secretary with regional consumers. The Center Vilsack have recognized the importance also plans to improve the economic The activity was coordinated and of America’s rural cooperatives during condition of local farmers by helping managed by HandsOn New Orleans Cooperative Month. Rural cooperatives them form cooperatives to enhance through a partnership with NOLA not only provide thousands of jobs, they their marketplace position. Green Roots, a greenspace development invigorate local communities and For a full list of the fund recipients, organization. businesses,” Tonsager said. “The grants visit the newsroom at: www.rurdev. “With the help of 250 volunteers, we I am announcing today will help these usda.gov. were able to transform two lots into recipients continue their work. Their community gardens in the matter of a success underscores the importance of DFA issues $26 million few hours,” said Kertrina Watson the cooperative system as a successful in patronage Lewis, executive director for HandsOn business model.” Dairy Farmers of America (DFA) has New Orleans. The community gardens The funding is being provided allocated $26.4 million in 2009 will supply Ninth Ward residents with a through USDA’s Rural Cooperative patronage earnings to its members, with variety of fresh herbs, fruits and Development Grant (RCDG) program. $7.6 million distributed in cash and the vegetables, as well as serve as a positive Tonsager highlighted several balance allocated to members’ equity social hub. cooperative projects and acknowledged accounts. The amount of patronage a the efforts of co-op officials from across member receives each year is based on Vilsack announces renewable the country. One of the cooperatives, the amount of member milk marketed energy initiatives Farm to Table, plans to use a $142,000 through the cooperative. This As part of the Obama grant to improve economic conditions allocation equals 7 cents per Administration's effort to promote in rural New Mexico. It will collaborate hundredweight of milk marketed in production of fuel from renewable with New Mexico’s oldest member- 2009. sources, create jobs and mitigate the owned cooperative — La Montanita — In keeping with DFA’s base capital effects of climate change, Agriculture on a best-practices curriculum for food plan, members who have achieved the Secretary Tom Vilsack announced a system cooperative development, and established base capital level will receive series of measures in a speech at the on a new loan investment initiative for 100 percent of their share of earnings in National Press Club in Washington, food systems businesses. cash. Those who have not will receive a D.C. “Domestic production of The Mississippi Association of portion of their earnings in cash, with renewable energy, including biofuels, is Cooperatives will use its grant funds to the balance added to their capital a national imperative and that’s why provide small and minority farmers with accounts. USDA is working to assist in

32 November/December 2010 / Rural Cooperatives 2011 Co-op Hall of Fame grow non-traditional and organic crops to meet new and growing markets. Their work in El Salvador and Nicaragua inductees named was done through Stanley’s capacity as country director in the National Cooperative Business Association’s (NCBA) Five outstanding cooperative leaders are being inducted international program operation, known internationally as into the Cooperative Hall of Fame. The 2011 inductees CLUSA. Now working with the World Council of Credit include: agri-business leader Noel Estenson; international Unions (WOCCU) they are helping to establish rural credit cooperative developers Gloria and Stanley Kuehn; former unions, first in Kenya and now in Ethiopia. congressman and credit union leader Daniel A. Mica; and • Daniel A. Mica — Mica’s 14-year tenure (1996-2010) as civil rights leader and cooperative developer Shirley Sherrod. president and CEO of the Credit Union National Association These cooperative leaders will be (CUNA) represented a period of significant recognized at the annual Cooperative Hall accomplishment for the credit union of Fame dinner and induction ceremony movement. This former member of at the National Press Club in Washington, Congress led a proactive legal defense D.C., May 4. In addition to the event, a and legislative/regulatory agenda that public forum will be held in conjunction won landmark battles for credit unions with the dinner on the afternoon of May and made CUNA into one of the most 4, also at the National Press Club. The respected trade associations in forum will feature current and future Hall Washington, D.C. In addition to putting of Fame inductees in moderated panel programs in place that raised the discussions about the role of C OOPERATIVE movement’s political stature in cooperatives in the U.S. and world H ALL OF FAME Washington and strengthened its economies. grassroots networks, Mica is also a savvy “The roster of the Cooperative Hall of communicator who is credited with Fame tells the story of the U.S. cooperative community boosting the credit union’s visibility in the national media, through the lives and accomplishments of extraordinary leading to greater consumer awareness and increased individuals. Induction to the Hall of Fame is reserved for membership growth. those who have made genuinely heroic contributions to the • Shirley Sherrod — A veteran of the civil rights movement, cooperative community,” says Gasper Kovach, Jr., board Sherrod found a way to achieve economic justice and rural chair of the Cooperative Development Foundation (CDF), land ownership for small and lower income farmers through which administers the Hall of Fame. Kovach pointed out that collective farming and cooperative development. As co- only 147 individuals have been inducted since the Hall of founder of a 6,000-acre, black-owned cooperative and land Fame was established in 1974. trust that was forced into foreclosure, she was a party to Those selected for induction in 2011 include: the recently successful class action lawsuit against USDA • Noel Estenson — A visionary leader, Estenson saw the for discriminatory lending practices. After the foreclosure, value of new business structures, including joint ventures she joined the Georgia field staff of the Federation of and mergers, as a means of creating operating efficiencies Southern Cooperatives/Land Assistance Fund, where she that built stronger cooperative organizations. In the early spent the next three decades helping small farmers, 1980s, he was responsible for a ground-breaking joint developing rural cooperatives and building economically venture between Cenex and Land O’Lakes that eliminated viable rural communities. In July 2009, she was appointed duplication in both cooperatives’ agricultural supply and as the USDA Rural Development Georgia state director by energy operations. Later, as CEO of Cenex, he joined forces the Obama Administration, serving in the position until July with Harvest States Cooperative. The resulting merger 2010. created CHS Inc., the largest cooperative in the United The Cooperative Hall of Fame gallery is on display in NCBA’s States, which markets domestically and internationally. offices in Washington, D.C.; it also can be visited on the Web Estenson served as CEO of CHS until his retirement in 2000. at: www.heroes.coop. For dinner attendance or sponsorship • Gloria & Stanley Kuehn — Working as a family team of information, contact CDF at (703) 302-8097 or cooperative developers, the Kuehns have over 25 years of [email protected]. experience working internationally with small farmers to

Rural Cooperatives / November/December 2010 33 developing a biofuels industry in every The facilities convert the materials into [economic] climates,” says Charles E. corner of the nation,” Vilsack said. “By heat, power, biobased products or Snyder, president and CEO of NCB. producing more biofuels in America, we advanced biofuels. “As a bank created and focused on will create jobs, combat global The Secretary also announced jointly providing financing to the cooperative warming, replace our dependence on with the Federal Aviation community, we’re proud to have been foreign oil and build a stronger Administration (FAA) a five-year instrumental in the expansion of these foundation for the 21st century agreement to develop aviation fuel from businesses over the past 30 years.” economy.” forest and crop residues and other The top two revenue producers (and Vilsack announced several measures, “green” feedstocks in order to decrease their 2009 revenue) for each of the including the publication of a final rule dependence on foreign oil and stabilize business sectors tracked by the NCB to implement the Biomass Crop aviation fuel costs. Co-op 100 were: Assistance Program (BCAP). Under the Information about state contacts for BCAP final rule, USDA will resume USDA energy programs is available at: making payments to eligible producers. www.usda.gov/documents/USDA_Bioe The program had operated as a pilot, nergy_Resources.xlsx. pending publication of the final rule. Authorized in the Food, Conservation AMPI returning and Energy Act of 2008, BCAP is $12.9 million to owners designed to ensure that a sufficiently The dairy farmer-owners of large base of new, non-food, non-feed Associated Milk Producers Inc. (AMPI) biomass crops is established in will share $12.9 million this year as a anticipation of future demand for result of the cooperative’s consistent renewable energy consumption. earnings. The cash will be paid to I Agriculture: The BCAP final regulation reflects individuals based on the amount of milk • CHS Inc., Saint Paul, Minn., $25.7 policies developed as a result of more they marketed through AMPI. billion; CHS maintained its first place than 24,000 comments received on Members who are age 65 and retired position as the nation’s largest co-op previous Federal Register notices and a from dairying can receive their for all sectors; proposed rule, and knowledge gained cooperative equity through an • Land O’Lakes Inc., Saint Paul, Minn., by implementing a portion of the accelerated, five-year distribution. $10.4 billion; program in 2009. “Once again, AMPI is delivering on I Grocery: BCAP uses a dual approach to its mission of maximizing the return on • Wakefern, Elizabeth, N.J., $9.3 support the production of renewable milk marketed and equity invested for billion; energy. First, BCAP provides assistance its dairy farmer-owners,” said AMPI • Associated Wholesale Grocers, for the establishment and production of President and CEO Ed Welch. “These Kansas City, Kan., $7 billion; eligible renewable biomass crops within payments are one more way AMPI’s I Hardware & Lumber: specified project areas. Producers who farmer-owners should measure their • ACE Hardware, Oakbrook, Ill., $3.5 enter into BCAP contracts may receive dairy marketing cooperative’s billion; payments of up to 75 percent of the performance.” • Do It Best Corp., Fort Wayne, Ind., cost of establishing eligible perennial $2.4 billion; crops. Further, they can receive Revenue for NCB Co-op 100 I Finance: payments for up to five years for annual tops $175 billion • Agribank, FSB, Saint Paul, Minn., or non-woody perennial crops and up The nation’s 100 largest cooperatives — $3.8 billion; to 15 years for woody perennial crops. including co-ops from all business • Navy Federal Credit Union, USDA’s Farm Service Agency (FSA) is sectors — had revenue of $175.6 billion Merrifield, Va., $2.9 billion; accepting project area proposals and, for 2009, according to NCB (formerly I Health Care: after project area proposals have been National Cooperative Bank). The NCB • HealthPartners, Inc., South approved, eligible producers may Co-op 100 debuted in 1991, when the Bloomington, Minn., $3.3 billion; participate by enrolling at their FSA revenue for the top 100 co-ops was • Group Health Cooperative, Seattle, county office. $81.4 billion. Wash., $3 billion; In addition, BCAP also assists “The dollar amount, even though I Energy & Communications: agricultural and forest landowners and slightly lower than last year, highlights • National Cable Television operators by providing matching the benefits of a cooperative’s adaptable Cooperative Inc., Lenexa, Kan., $1.9 payments for the transportation of structure, ultimately enabling these billion; certain eligible materials that are sold to organizations to prosper and serve their • Basin Electric Power Cooperative, qualified biomass conversion facilities. members even in the most difficult of Bismarck, N.D., $1.4 billion.

34 November/December 2010 / Rural Cooperatives Cooperatives and their members between where a food originates and shelves from competing national and often fair better in challenging times the consumer — are becoming private-label brands.” than investor-owned firms, due to their increasingly relevant to consumers. The new logo maintains the adaptable structure and governing body, “Reducing food miles benefits both the traditional red lettering for the according to NCB. Since cooperatives environment and local economies; company name, and a gold "Farmer are controlled by their members, the consumer support for locally produced Owned" banner above the logo builds individuals who use and benefit from products has doubled in the past five on brand strength. A farm scene the goods and services provided, the years,” the co-op said in announcing reinforces the farmer-owned brand cooperative can more readily readjust to the program. messaging. market conditions than many of its In an effort to raise consumer Prairie Farms timed an integrated investor-backed counterparts, it notes. awareness of the company’s local, advertising campaign with the release of The entire NCB Co-op 100 report is farmer-owned heritage, Prairie Farms the updated packaging. The messaging available under the publications section says it updated its logo and packaging includes a new tag line: “Farm fresh at: www.ncb.coop. to identify its products as coming from quality, from our family to yours,” as local, farmer-owned dairy producers. well as lifestyle imagery of farm Prairie Farms launches “The new direction emphasizes the families. ‘Farmer-Owned’ campaign values of our farm families and our Prairie Farms has also introduced Prairie Farms, owned by a commitment to being good citizens in two new flavors of 16-ounce sour cream cooperative of more than 700 dairy the community,” says Ed Mullins, CEO dips: Jalapeño Fiesta and Bacon farm families, has introduced the of Prairie Farms Dairy. “The packaging Cheddar. The packaging for these “Farmer Owned” campaign at a time artwork has a distinctive personality and products reflects the “Farmer-Owned” when food miles — the distance will clearly stand out on retailers' campaign.

Audrey Malan varied audiences, including government officials, about the impact of cooperatives in rural America. among ACE honorees Other ACE award winners included: Audrey Malan — a cooperative — The Ohio Employee Ownership Center (OEOC), received the developer with more than 20 years ACE Contribution Award to recognize its work in organizing experience working with start-up and tours and speakers for the ACE Institute, and for sharing its established producer, consumer and experience creating the groundbreaking Evergreen worker cooperatives and related organizations — is the 2010 Cooperative business model for worker-owner co-ops (also recipient of the Association of Cooperative Educators (ACE) see page 12); Outstanding Contribution to Cooperative Education and — Jen Heneberry of the Ontario Cooperative Association, a Training Award. She received the honor during the ACE 2010 co-op development manager who has used many media to Institute in Cleveland, Ohio. reach different target audiences, earned the William Hlushko Malan served as executive director of CooperationWorks!, Award for Young Cooperative Educators (for those under age a national organization of cooperative development centers 36). and practitioners, from the early 2000s to late 2007. She — Bob Cohen, CEO of the Braintree Business Development remains involved with co-ops as a developer, trainer and Center — a nonprofit serving business start-ups and consultant based in Dayton, Wyo. emerging companies in North Central Ohio — as well as She was instrumental in the development of “The Art & program coordinator of the new Cooperative Development Science of Developing a New Cooperative Business” program Center at Kent State University, received the Reginald J. for co-op developers in Canada and the United States. She Cressman ACE Award for his work to educate employees and continues as the program marketer and as an instructor. She help to create new worker-owner cooperatives. is also co-author of two publications that have contributed to More information on the 2010 ACE Institute (in English, successful co-op development and education: “Steps to French and Spanish) is posted on: www.2010ACEInstitute.com. Starting a Marketing Cooperative” and “Steps to Starting a ACE links educators, researchers, cooperative members and Worker Cooperative.” Both were published by the University cooperative developers across cooperative sectors and of California Center for Cooperatives. national borders to enhance cooperative development, “Audrey is dedicated to social change through the strengthen cooperatives, promote professionalism and cooperative model,” says ACE Executive Director Bill Patrie. improve public understanding. He also commended her for leadership in communicating to

Rural Cooperatives / November/December 2010 35 NMPF animal care program of on-farm data in a private database, as Ocean Spray, Disney alliance accepting farm signup well as to pay for third-party will promote Craisins The National Dairy FARM (Farmers verification of the program. While Ocean Spray has announced a Assuring Responsible Management) support for the development of partnership with Walt Disney Parks and program, created by the National Milk educational training materials has been Resorts that will bring the Ocean Spray Producers Federation (NMPF), is now available from the national dairy check- cranberry to a number of retail points accepting enrollment in the Animal off, such funding sources cannot be at Disney parks. Disney will now offer Care Program. This is a voluntary, drawn upon for third-party verification, Craisins dried cranberries at various nationwide program designed to bring according to NMPF. retail locations, including theme parks, consistency and uniformity to animal “Producers can participate cruise ships, meeting rooms and hotels. care through education, on-farm independently or through their The product will also be used in new evaluations and objective third-party cooperative or processor. Producers signature salads and cranberry muffins verification. who are affiliated with a cooperative or and sold at fruit cart stands and kiosks The second phase of the proprietary processor should contact inside the theme parks. implementation process has now been their representative to see if their milk The companies are also joining launched, which includes the start of marketing organization is participating together to launch a special, co-branded on-farm evaluations for participating in the program or to encourage them to version of Craisins packaging featuring producers. A participation fee is a join in,” said Betsy Flores, NMPF Chip ‘n Dale, Disney’s cartoon shared responsibility for all participants director of regulatory affairs. chipmunks, that will be used on Ocean of the National Dairy FARM Animal Participation information can be found Spray products sold on Disney Care Program to fund the enrollment at www.nationaldairyfarm.com. properties.

Nebraska’s Open Harvest co-op celebrates 35 years Claude and Prudence Coccodrilli remember packaging cheese, nut butters, and dried fruit in the tiny basement of the original Open Harvest in Lincoln, Neb. “We affectionately referred to it as ‘the hole,’” Claude recalls, with a laugh. The couple has been members of the co-op since they moved to Lincoln from Philadelphia in 1980. Back then, the natural foods grocery occupied a 500-square-foot space at 27th and Randolph Streets. Rent was $50 a month. The place ran on nearly 50 hours of volunteer work a day. “It was a The Open Harvest natural foods cooperative in Lincoln, Neb., is celebrating its 35th labor of love,” says Claude. anniversary. Photo courtesy Open Harvest This summer, Open Harvest celebrated 35 years of business. A carries one of the largest selections of Foods Sale. Local farmers and vendors veteran of the co-op movement that natural and organic food, produce, showcased their goods and did in-store sprouted in the 1960s, it is one of the meats and supplements in Lincoln. demos later in the month. Shoppers oldest natural foods co-ops in the The store expanded to nearly 10,000 could register to win a free bag of country. Everyone is welcome to shop at square feet at its South Street Plaza groceries and other prizes. Nostalgia Open Harvest, which boasts 3,300 location in 2009. This “green” renovation buffs watched a continuous PowerPoint members, employs 70 people, and project used local firms to do the work. slideshow of the early days at the carries the products of 80 local farmers Nearly 90 members loaned more than Randolph Street store, the 1990 grand and suppliers. The co-op generates $4 $200,000 to supplement the Union Bank opening at South Street and the Grand million in annual sales. During the past loan that financed the expansion. Expansion Opening last October. 35 years, more than 10,000 people have Open Harvest kicked off anniversary Open Harvest got its start in 1971 in a been co-op members. The grocery festivities July 13 with a store-wide Local garage when a dozen or so households

36 November/December 2010 / Rural Cooperatives June 12, 2011, and the Epcot named CEO. International Food & Wine Festival in Eastland succeeds Chairman Ben fall 2011. Third-, fourth- and fifth- Lamensdorf, who had held the post generation cranberry growers will travel since 2003. The board has selected with 2,000 pounds of fresh cranberries Meredith Allen as the new president from rural areas around the country to and CEO. Allen had been serving as share their passion and personal executive vice president of Staplcotn farming histories while recreating the and Stapldiscount. Allen joined wonders of the harvest for families Staplcotn in 1985 as the head of the visiting the parks. domestic sales department., where he was responsible for directing all Eastland now chair, marketing activities in domestic and Allen new CEO at Staplcotn foreign markets, as well as developing “Ocean Spray is proud to form one After 24 years in the post, Woods E. new markets. of the largest partnerships of its kind in Eastland has retired as president and Founded in 1921, Staplcotn, in our history, with such a world class CEO of Staple Cotton Cooperative Greenwood, Miss., is the oldest cotton organization as Disney, that shares our Association (Staplcotn) and Staple marketing cooperative in the United wholesome, good-for-you focus,” said Cotton Discount Corporation States. It currently has more than Randy Papadellis, CEO of Ocean Spray. (Stapldiscount). He will, however, 13,000 farm accounts in an 11-state The company will build cranberry bog remain in the co-op’s leadership, area in the mid-South and Southeast, as displays during Disney’s California assuming the board chairmanship, the well as a warehousing operation with 14 Food & Wine Festival, held April 29 to same position he had held before being locations in four states. I

Commentary started a buying club to purchase bulk couldn’t pigeonhole our Open Harvest continued from page 2 and natural foods. They called their experience because it’s had a ripple venture “People’s Food Co-op.” effect in so many aspects of our lives.” buy from other cooperatives, we could (“Starseed Food Conspiracy” was also The co-op board and staff are increase that percentage significantly. considered as a name.) Three years working on a 25-year strategic plan, and Doing so would have profound later, the name was changed to “Our a new crop of young, energetic economic and social benefits for Store” and the location moved to the managers are up and coming. General cooperatives, their members and the basement of Trinity Methodist Church. Manager Jim Nelson, who steered the communities they serve. The co-op then had about 250 members. co-op through its expansion process, is As the best business model for In 1975, the co-op was renamed Open retiring at year’s end. Merchandising economic and social progress, Harvest and moved to 27th & Randolph. Manager Kelsi Swanson, 28, who has cooperatives are ideally suited to be KZUM Community Radio began been with the co-op for close to four well served by the triple bottom line broadcasting from the basement in 1978. years, will step up as new general measurement of finances, community Co-op membership grew by the manager. Swanson’s parents are and environmental impact. The absence hundreds. By the late 1980s the store longtime co-op members. In fact, Kelsi’s of outside shareholders with voting was bursting at the seams. mother, Terri Swanson, remembers rights allows cooperatives to focus on In 1990, Open Harvest moved to its stopping by the co-op when she was the members and community. current location at 1618 South Street, pregnant with Kelsi and new to town. When the character Gordon Gecko with 5,000 square feet of space (the rent She quickly befriended Margot, who was uttered the infamous line “Greed is was $4,000 per month). Staff and cashiering at the time, and became a good” in the 1984 film Wall Street , we members hauled everything over in their member and volunteer at the co-op. Kelsi knew in our hearts and minds that this pickups and cars. says that it is now a family joke that she was not right (ironically, as I write this, But Open Harvest has been much worked at the co-op before she was a sequel to this film was recently more than a grocery store to the even born. released). We who work for co-ops are Coccodrillis. “It’s not only our lifeline for “I like the fact that over the years fortunate to work in a business model food and nutrition and vitamins and we’ve been able to accomplish what that promotes economic fairness, supplements, but we’ve met people none of us could have done alone,” because the owners are the people through Open Harvest who have become Conrad reflects. “It’s definitely been a using the goods and services. We need lifelong friends,” says Claude. “For us, group effort. A labor of love.” I to look no further than our seven it’s been a lifetime experience. We principles to give us the guidance we need. I

Rural Cooperatives / November/December 2010 37 Going Mobile upgrade their operations because there processing facility, using USDA Rural continued from page 7 was no market. But without decent Development funding. “The difference processing available, farmers had no is the enormous amount of time and incentive to expand their production. effort you have to go through to get it for locally grown pasture-raised meats. Trailer-mounted facilities seemed the inspected,” he says. Casey McKissick is the coordinator ideal solution. “North Carolina uses In the meantime, McKissick is of NC Choices and a small poultry federal meat-processing guidelines,” he talking to anyone who’s interested in farmer in Old Fort, in the western part says. “And FSIS exempts the slaughter setting up a mobile facility, and his of the state near Asheville. His of up to 20,000 birds at a time, if minimal design has been already been inspiration was to use mobile proper sanitary guidelines are met.” He copied by other farmers. slaughterhouses as a temporary measure says the North Carolina authorities “If I had my druthers, there’d be to help develop the market for locally point out that there has never been a about 10 or 15 of these things around grown meats. “Around here,” he says, complaint about the sanitary quality of the state,” he says. “People from nearby “the small farmer is getting demand for farm-processed meat and poultry in the states, including Georgia, Florida, and his poultry. People want to see where state. Tennessee, have shown interest, too. their meat comes from. But taking your McKissick’s approach was minimalist But they say their state laws don’t birds to a modern slaughterhouse compared to the Montana Poultry permit such an approach.” means a round-trip of four and half Growers Cooperative. Under the McKissick thinks a similar approach hours. That’ll just kill your profit.” auspices of a local 14-member to red meat production would be more Some small local red meat processors marketing cooperative called Foothills complicated. “Slaughtering on the farm, are willing to work with small farmers, Family Farms, he obtained a grant of in a no-stress situation, that’d be good but none processed poultry. In any case, $5,000 to construct an open-air poultry for marketing,” he says. “But because of McKissick says, “they’re ‘mom and pop’ slaughter facility on a farm trailer, using the prevalence of red meat cut-and- operations that haven’t progressed from non-commercial equipment. Members wrap facilities in North Carolina, the the 1940s. They need to get up to and other farmers can rent the trailer real opportunity for us is in exempt speed. If they don’t, the farmers won’t for $45 a day. poultry units.” come back.” Farmers processed about $30,000 He, like many small meat producers, Thus, McKissick found himself worth of meat the first year,” he says. is hoping mobile slaughter trailers may dealing with a chicken-and-egg “And it took off from there.” be a way out of the livestock price situation: existing small processing A local nonprofit is working to squeeze. I facilities didn’t have the incentive to construct a federally inspected poultry-

Management Tip environment where honest feedback is allowed us to achieve the success we continued from page 17 encouraged and acted upon. That have seen over the past several decades. honest feedback is where the spirit of As an agricultural cooperative, we collaboration at Landmark is born. By have made a commitment to the long- environment, you must engage in listening to the individual voices of our term profitability of both our business active, transparent communication with cooperative, we use that collaborative and that of our growers. This your board, your employees and, knowledge to build a better business commitment to the “big picture” is ultimately, your membership. model. reflected in our mission statement and Our board meets once each year for Each person that is a part of in the values that each member of our a strategic planning session to create a Landmark — whether he or she is in a leadership team uses to make decisions game plan for the future of Landmark. leadership position, an employee or a regarding the future of our cooperative. In addition, we have developed a GO producer — has a viewpoint that is In addition, our members have made (Growth and Opportunity) Committee, valuable in making Landmark both a commitment to the success of the made up of key members of our profitable and focused on meeting the cooperative by supporting us with their management team, that meets year needs of its members. Listening to the business and loyalty. This three-way round to discover and develop new collective voices of all of our people street of communication, collaboration business opportunities. allows us to be a more dynamic and commitment keeps our board, our We try to ensure that the voices company that is better able to find and staff and our membership fully engaged from the entire Landmark team are implement innovative solutions to the with each other and allows us to stay in heard throughout the strategic planning issues our producers face. This ability unison in the ever-changing and ever- process, so that we create an to “stay ahead of the game” is what has expanding agriculture industry. I

38 November/December 2010 / Rural Cooperatives Legal Corner sell their stock, sufficient provisions control over supposedly “gifted” assets. continued from page 11 should be made so remaining Thus, if the FLP is not correctly shareholders have enough cash for the designed or administered, or if buy-out. ownership of the interests is not their new roles? In a cooperative, the bylaws would properly protected, asset protection ° These questions should be dictate the agreed-upon transfer terms goals may be jeopardized. answered by competent legal and and requirements for its members to accounting professionals who work determine how, and to whom, Get help, take action! with estate and tax planning issues. cooperative shares are to be transferred Keep in mind that many issues arise upon the death of a member. when a family-owned business embarks • Put it in writing — With a family- upon its possible succession. These What will be the owned business, the family dynamic include: cannot be understated. If you have • Lifetime sale: Should the business be "death-tax" cost to children, the issue of who gets what sold during the owner’s lifetime? transfer the business...? and who runs the business is a major • Continuance after death: Should the issue to address. If you do not have business be continued after the your wishes in writing, they may be owner’s death? disregarded. Various family members • Ownership of business: Who will own Legal framework may have an incorrect interpretation the business after the succession of Once the financial issues as discussed of what is supposed to happen with the business? above are taken into consideration, it the business. If you have not indicated • Control of business: Who will control must be determined how you will the plan in writing, it will likely end the business after the change of transfer your farm or other family up being argued in court, with a judge ownership? business to the next generation. The trying to figure it out. The final • Treatment of children: Will the structure of your company will be a decision may not reflect your desire. owner’s children be treated equally in factor in determining your choice of the In order to incorporate the terms of the distribution of the owner’s estate transfer method. your transfer, you may arrange for the either before death or after death? • The Transfer — If you are a sole transfer via a family limited • Treatment of owner: What provisions proprietor and want to keep your partnership (FLP). will be made for the present owner company in the family, you need to • Family Limited Partnership — after transfer of the business? think about federal estate and gift Many estate advisors say the best way Before making a final decision, taxes. Or, if you plan to sell your to protect your assets while having consult legal and financial advisors who company to a family member so you income tax flexibility is to form an are aware of the complexity and can retire, you need to make FLP. An FLP allows you to transfer sensitivity in business succession provisions through insurance policies your financial and investment real planning. They should be able to work to help your successor finance the estate into the partnership in return as a team with your estate planner to purchase as well as pay for the for 2 percent general partner interests determine the estate tax and other ensuing taxes. and 98 percent limited partner transfer costs, need for liquidity, buy- If you are in a partnership, you need interests. You would then begin the sell funding requirements, FLP to ask yourself whether the percentage process of making gifts of the limited parameters and the likelihood of sale of of the business would automatically partnership units to your children or the business to outside parties. transfer to your spouse or offspring trusts for their benefit. But because However, the skills of your advisors upon your death or, as part of the you retain the 2 percent general or the importance to your family of partnership agreement, is your partner partnership interest, you are in business succession planning are supposed to buy out your shares. If you control. meaningless unless you take action. The have chosen the latter arrangement, you By this arrangement, gift and estate most important aspect of business need to take out enough life insurance taxes may be reduced, which may succession planning is for the owners to to provide your partner with adequate produce favorable tax results. However, become convinced that they need to funds to pay for the purchase. the Internal Revenue Service and the take positive steps to avoid having their In a closely held corporation, courts are creating fairly specific rules family business disappear due to a lack stockholders may stipulate that, upon for businesses to follow to avoid any of planning. Do not let that happen to their death, their shares will unforeseen tax consequences. The your family business — design a automatically transfer to their surviving problems usually arise over the issue of succession plan that will successfully spouse or children. However, if the whether the creator of the FLP has move your business from one shareholder’s heirs subsequently want to retained an impermissible level of generation to the next! I

Rural Cooperatives / November/December 2010 39 2010 Article Index Information appearing in Rural Cooperatives magazine during calendar year 2010 has been indexed to help you find past articles. Articles are indexed by issue and page. Back issues can be found online at: www.rurdev.usda.gov/rbs/pub/openmag.htm. To order a free hard copy, e-mail: [email protected], or call (202) 720-8381.

TITLE FEATURE S ...... ISSUE—PAGE AFC sees 4-H, FFA as key to future of ag ...... May/June 16 Ag competition workshop schedule ...... May/June 9 Ag co-op sales and income second highest on record ...... Sept./Oct. 4 An American Farmer in Afghanistan Equity Livestock co-op member says volunteer stint challenging, but also rewarding ...... July/Aug. 34 Assistance for new mobile slaughter efforts ...... Nov./Dec. 6 Better Beginnings FarmStart offers a helping hand to new farmers and ag co-ops ...... March/April 8 Biofuel Prometheus Like its namesake, Promethean Biofuels hopes to better mankind with new energy source ...... Sept./Oct. 36 Blue Diamond: 100-year time capsule ...... May/June 6 California Center for Cooperative Development ...... Sept./Oct. 30 California experiencing surge in food co-ops ...... Sept./Oct. 30 Campbell County Beef Association ...... Sept./Oct. 18 Canadian farmers see benefits of local farm machinery co-ops ...... Sept./Oct. 12 CCA honors go to Krisle, Brooks, Dumont ...... July/Aug. 27 CCA Winners: Why we compete ...... July/Aug. 18 Celebrating the greatest public-private partnership ...... May/June 17 Cellulosic biofuel development must balance need to maintain soil quality ...... March/April 19 Chipping In Austrian co-ops play role in making nation a leader in wood biomass energy production ...... Sept./Oct. 6 Cool. Funny. Sweet! America Crystal designer-tees wow members & judges ...... July/Aug. 24 Co-op builds community around food ...... Sept./Oct. 34 Co-op Month celebrated at USDA ...... Nov./Dec. 30 Cooperative Development Institute ...... Sept./Oct. 24 Cooperative Food Hubs Food hubs fill the ‘missing middle,’ helping small producers tap local markets ...... Nov./Dec. 20 Co-ops Can Thrive In Uncertain Times Farmer Co-op Conference sees opportunity for co-ops that adapt to structural changes ...... Jan./Feb. 18 Communications plays a major role in co-op’s success ...... May/June 8 Community Wind Maine island community lowering energy costs with wind-power project ...... March/April 20 Controlling Counterparty Risk How country elevators can protect against the downside ...... March/April 24 Cowiche Growers: dedicated to producing quality fruit and spreading co-op concepts ...... Sept./Oct. 15 Dairy co-op survey reveals financial performance trends ...... Jan./Feb. 22 Despite market challenges, AGP enjoys strong earnings ...... May/June 38 Dillard built stronger MMPA, able to adapt to market trends ...... May/June 36 Doing it right: TFC Communications ...... July/Aug. 22 Everything under the Nebraska sun ...... Sept./Oct. 22 Examples of state co-op council activities: ...... Jan./Feb. 31 eXtending Co-op Knowledge Extension Service website to include co-op education area . . . Sept./Oct. 35 Fifth Season Cooperative

40 November/December 2010 / Rural Cooperatives Having progressed from conception to incorporation, Regional Network Boosts Competitiveness fledgling co-op faces questions ...... Nov./Dec. 26 Diverse interests in Minnesota come together to tap 50 Years at the Top new business opportunities, markets ...... March/April 26 Founded to salvage blemished fruit, Tree Top today is Rural Capital Network: small team, big results ...... March/April 27 industry leader for apple products ...... July/Aug. 14 Rural Electric and Telecommunications Development Center . . . Sept./Oct. 20 Filling the Gap Shuttered factory to see new life as food hub ...... Nov./Dec. 29 At 25, Arthur Capper Co-op Center a major force for co-op Solar co-op will double Ohio’s PV-energy output ...... Nov./Dec. 15 education ...... May/June 10 Something’s new at Iowa’s NEW Co-op ...... July/Aug. 31 Flour Power State cooperative councils adapting to help members in NW wheat growers find success with eco-marketing turbulent times ...... Jan./Feb. 28 strategy ...... Jan./Feb. 12 Students and co-op leaders reap lasting benefits from program . . . May/June 13 Food for Thought Sustaining Their Industry Winning print ad helps horse owners realize that economy Sugar growers are example of how co-ops can help and quality can ride together ...... July/Aug. 26 producers strengthen their position ...... July/Aug. 4 Functional types of dairy cooperatives ...... Jan./Feb. 24 Taking Root Galarneau new MMPA leader ...... May/June 36 Co-op Month special section ...... Sept./Oct. 14 Get Ready Tree Top Milestones ...... July/Aug. 16 Co-op Month is coming — what outreach effort will your The Little Co-op That Could co-op make? ...... July/Aug. 10 Vermont food co-op overcomes initial skepticism to win Going Mobile hearts (and wallets) of city ...... March/April 12 Co-ops operate traveling slaughter units to help grow local Time to Upgrade Your Communications? ...... July/Aug. 28 foods movement ...... Nov./Dec. 4 2011 Co-op Hall of Fame inductees named ...... Nov./Dec. 33 A Green Miracle Uniquely Cooperative: Equity Redemption Co-op playing key role as Iraq rebuilds farm sector ...... Jan./Feb. 4 Survey tracks trends in how co-ops redeem member equity ...... May/June 30 Grow Food, Grow Hope United Nations declares 2012 International Year of Local food, new skills sprout in Ohio community gardens . . . . July/Aug. 36 Cooperatives ...... March/April 31 Heat by the Bushel United’s new communicator also a ‘logo cop’ ...... July/Aug. 29 New co-ops supplying members with corn for Urban farming strides forward with new greenhouse home-heating fuel ...... May/June 27 cooperative ...... Nov./Dec. 16 Horizons-themed report a winner for Aurora ...... July/Aug. 23 Urban revitalization, beautification are goals of Urban Illinois Green Pastures Fiber Cooperative Roots co-op ...... July/Aug. 40 Co-op connects craft makers with locally produced fiber . . . . . Nov./Dec. 8 Value Added Agriculture Development Center ...... Sept./Oct. 27 Indiana Cooperative Development Center ...... Sept./Oct. 19 What Cooperatives Do Iraqi women learn poultry production from USDA advisor ...... Jan./Feb. 7 Market access, countervailing power and yardstick roles Justice, USDA set workshop dates ...... Jan./Feb. 35 enhance economic efficiency ...... March/April 4 Kentucky Center for Agriculture & Rural Development ...... Sept./Oct. 17 Why the asset-building movement matters for rural co-op Key messages for Co-op Month ...... July/Aug. 12 members ...... Nov./Dec. 24 Keystone Development Center ...... Sept./Oct. 28 La Coop federee: a strong network for farmers and consumers . . . Sept./Oct. 12 MAGAZINE DEPARTMENTS La Montanita Food Co-op ...... Sept./Oct. 33 CO-OP DEVELOPMENT ACTION Laughery Village Co-op meeting need for local food ...... Sept./Oct. 19 AREC strives to help struggling poultry producers ...... March/April 28 A Legacy of Cooperation & Innovation High Plains Food helps consumers gain access to Blue Diamond: 100th anniversary as co-op that made local/regional foods ...... May/June 32 U.S. world leader for almonds ...... May/June 4 University course promotes co-op development to Look Who’s Minding the Store meet community needs ...... Jan./Feb. 16 Student-run supply co-ops short-lived, but the concepts they teach live on ...... Sept./Oct. 13 COMMENTARY Making Hay with ‘Bailout’ Communications: the critical link ...... July/Aug. 2 ‘Cooperative America’ theme inspires TFC’s Publication Co-op business model well suited for next-generation of the Year winner ...... July/Aug. 21 biofuel development ...... March/April 2 Making Landmark a leader ...... Nov./Dec. 17 Co-op movement gaining momentum ...... Sept./Oct. 2 Merger creates Farm Credit East ...... March/April 10 Co-op role in rural development ...... Jan./Feb. 2 MidAtlantic Food Cooperative ...... Sept./Oct. 29 USDA: committed to co-ops ...... May/June 2 Milling co-op crucial to Maine’s organic dairy farms ...... Sept./Oct. 25 When co-op principles collide ...... Nov./Dec. 2 Montana Cooperative Development Center ...... Sept./Oct. 26 Nebraska Cooperative Development Center ...... Sept./Oct. 21 LEGAL CORNER “Not just a job, but a future” Capper-Volstead Q&A ...... May/June 9 Goal of Evergreen family of worker co-ops is to help Co-ops faced numerous challenges in 2009 ...... Jan./Feb. 11 struggling neighborhoods prosper ...... Nov./Dec. 12 Financial and legal aspects of succession planning for Ohio Cooperative Development Center ...... Sept./Oct. 31 family-owned businesses ...... Nov./Dec. 11 $122 billion in ’08 sales sets record for Top 100 ...... May/June 24 Succession planning for family-owned businesses is critical Organic dairy market also hurt by low prices ...... Jan./Feb. 15 for rural America ...... July/Aug. 9 Organic farmers increasingly turn to co-op business model ...... May/June 34 Out of Darkness MANAGEMENT TIP Against industry opposition, REA helped ‘wire’ farms, The most important thing I learned about running a co-op . . . . . Nov./Dec. 17 rural areas at remarkable rate ...... May/June 18 Paradise Home Care Co-op meets critical need ...... Sept./Oct. 16 NEWSLINE (Co-op Developments coast to coast) People’s Gardens sprouting nationwide ...... July/Aug. 39 Flint Energies supports methane gas project ...... Jan./Feb. 32 Project Pathway Agri-Mark sends $2 million to struggling dairy farmers 4-H sees science, technology as crucial to building Almond shipments jump 23 percent competitive workforce ...... May/June 14 Spearman appointed to FCA board Purchasing cooperative provides savings for members ...... Sept./Oct. 32 Dairy leader Tom Camerlo dies Reality Check Korten to address ACE conference Year-to-year comparison failed to tell story, so CHS $564 million for advanced bio-refineries annual report provides perspective ...... July/Aug. 18 DotCoop announces Global Award winners CHS crafts long-term direction

Rural Cooperatives / November/December 2010 41 NCBA theme: Transforming the Economy with Co-ops How to get attendance at meetings ...... Jan./Feb. 42 New leadership program for co-op executives Pendleton Grain: co-op in motion ...... March/April 38 Riceland sets sales record Saving an industry: plant closure leads Michigan growers to Justice, USDA set workshop dates form turkey co-op ...... May/June 46 U.S. Dutch co-ops enter world trade markets ...... March/April 38 Charles Ling named USDA Economist of the Year ...... March/April 30 Vertical integration is key for Moroni Feed Company ...... Jan./Feb. 42 LO’L reports record net earnings CooperationWorks! slates spring training UTILITY CO-OP CONNECTION USDA helping Dakota co-op expand broadband service Cooperatives delivering broadband to rural Missouri CoBank reports record earnings, issues $269 million in patronage communities ...... Nov./Dec. 18 USDA, Navy sign renewable energy agreement Electricity service transformed rural America ...... March/April 11 Michigan Milk leader Jack Barnes dies EJ Water Co-op provides vital service in rural Illinois ...... Jan./Feb. 26 Blue Diamond CEO to retire at end of ‘10 NRCO helping rural electrics pursue renewable energy ...... Sept./Oct. 10 Simmons to lead Oregon bargaining association Morris Foundation receives $10,000 rural leadership grant SUBJECTS NCFC: Workshops focus should include how co-ops level playing field for producers Anniversaries Bob Dylan grants co-op song use Celebrating the greatest public-private partnership ...... May/June 17 NMPF: USDA decision on bottlers levels playing field for dairy farmers 50 Years at the Top Founded to salvage blemished fruit, Tree Top today is SDWG launches $66 million project ...... May/June 37 industry leader for apple products ...... July/Aug. 14 Southern States reports sales of $1.8 billion A Legacy of Cooperation & Innovation Ag co-ops have billion-dollar impact in Texas, study finds Blue Diamond: 100th anniversary as co-op that made Farm Credit net income tops $2.8 billion in 2009 U.S. world leader for almonds ...... May/June 4 Robert Beasley remembered Out of Darkness USDA grants promote rural development Against industry opposition, REA helped ‘wire’ farms, Local co-ops approve mergers rural areas at remarkable rate ...... May/June 18 Mooney new chairman of DFA UVEC celebrates wind-power project Bargaining Strong sales for Agri-Mark boost member returns Sustaining Their Industry USDA expands support for broadband Sugar growers are example of how co-ops can help producers strengthen their position ...... July/Aug. 4 Three co-ops form fertilizer venture ...... July/Aug. 42 CountryMark acquires assets of Core Minerals Beginning Farmers Evergreen FS takes over Towanda Grain Better Beginnings Johnson to retire from CHS FarmStart offers a helping hand to new farmers and Heartland Co-op to buy four Iowa elevators ag co-ops ...... March/April 8 NCFC files Capper-Volstead-related court brief GROWMARK CEO Davisson to retire Communications David Cramer saluted CCA honors go to Krisle, Brooks, Dumont ...... July/Aug. 27 MoArk reaches settlement in egg lawsuit Communications plays a major role in co-op’s success ...... May/June 8 Swiss Valley upgrades one plant, sells another Communications: the critical link ...... July/Aug. 2 Michigan cheese makers unite Cool. Funny. Sweet! Broadband projects to create jobs, opportunity America Crystal designer-tees wow members & judges ...... July/Aug. 24 Kansas co-ops offer help after elevator collapse Doing it right: TFC Communications ...... July/Aug. 22 Examples of state co-op council activities: ...... Jan./Feb. 31 Northwest Dairy merges with Country Classic Dairies ...... Sept./Oct. 38 Food for Thought Co-op community mourns passing of Rod Nilsestuen Winning print ad helps horse owners realize that Growmark reports sales of $6 billion economy and quality can ride together ...... July/Aug. 26 Florida Farm Credit associations pursue merger Get Ready Farm Credit launches new website Co-op Month is coming — what outreach effort will Biofuels not a major food price factor your co-op make? ...... July/Aug. 10 Jansen to lead Blue Diamond Horizons-themed report a winner for Aurora ...... July/Aug. 23 Swiss Valley acquires Faribault Dairy, forms cheese venture Making Hay with ‘Bailout’ Farmers market numbers soar ‘Cooperative America’ theme inspires TFC’s Farmer Co-op Conference in Colorado, Dec. 6-7 Publication of the Year winner ...... July/Aug. 21 Co-op testimony stressed need for trade programs Reality Check Year-to-year comparison failed to tell story, so USDA announces funding for co-ops ...... Nov./Dec. 32 CHS annual report provides perspective ...... July/Aug. 18 Audrey Malan among ACE honorees Something’s new at Iowa’s NEW Co-op ...... July/Aug. 31 DFA issues $26 million in patronage State cooperative councils adapting to help members Vilsack announces renewable energy initiatives in turbulent times ...... Jan./Feb. 28 Revenue for NCB Co-op 100 tops $175 billion United’s new communicator also a ‘logo cop’ ...... July/Aug. 29 AMPI returning $12.9 million to owners Prairie Farms launches ‘Farmer-Owned’ campaign Community NMPF animal care program accepting farm signup Community Wind Ocean Spray, Disney alliance will promote Craisins Maine island community lowering energy costs with Eastland now chair, Allen new CEO at Staplcotn wind-power project ...... March/April 20 Nebraska’s Open Harvest co-op celebrates 35 years The Little Co-op That Could Vermont food co-op overcomes initial skepticism to win PAGE FROM THE PAST hearts (and wallets) of city ...... March/April 12 Concentraton in world markets ...... March/April 39 University course promotes co-op development to meet Consolidations, technology, politics to impact co-op community needs ...... Jan./Feb. 16 financial institutions ...... Jan./Feb. 43 Farmers Exchange grows steadily over 30 years ...... May/June 46 Fingers and Needles ...... March/April 39

42 November/December 2010 / Rural Cooperatives Conferences Regional Network Boosts Competitiveness Cellulosic biofuel development must balance need to Diverse interests in Minnesota come together to tap maintain soil quality ...... March/April 19 new business opportunities, markets ...... March/April 26 Co-ops Can Thrive in Uncertain Times Farmer Co-op Conference sees opportunity for co-ps Dairy that adapt to structural changes ...... Jan./Feb. 18 Dairy co-op survey reveals financial performance trends ...... Jan./Feb. 22 Tour helps co-op concepts come alive for future Dillard built stronger MMPA, able to adapt to market trends . . . . May/June 36 cooperative leaders ...... March/April 16 Functional types of dairy cooperatives ...... Jan./Feb. 24 Galarneau new MMPA leader ...... May/June 36 Co-op Centers Organic dairy market also hurt by low prices ...... Jan./Feb. 15 Filling the Gap At 25, Arthur Capper Co-op Center a major force for Directors/Governance co-op education ...... May/June 10 Aligning member interests and democratic control ...... Jan./Feb. 8

Co-op Development Education An American Farmer in Afghanistan AFC sees 4-H, FFA as key to future of ag ...... May/June 16 Equity Livestock co-op member says volunteer stint Audrey Malan among ACE honorees ...... Nov./Dec. 35 challenging, but also rewarding ...... July/Aug. 34 Co-op Month celebrated at USDA ...... Nov./Dec. 30 AREC strives to help struggling poultry producers ...... March/April 28 Examples of state co-op council activities: ...... Jan./Feb. 31 California Center for Cooperative Development ...... Sept./Oct. 30 eXtending Co-op Knowledge Cooperative Development Institute ...... Sept./Oct. 24 Extension Service website to include co-op education area . . . Sept./Oct. 35 Everything under the Nebraska sun ...... Sept./Oct. 22 Filling the Gap Fifth Season Cooperative At 25, Arthur Capper Co-op Center a major force for Having progressed from conception to incorporation, co-op education ...... May/June 10 fledgling co-op faces questions ...... Nov./Dec. 26 Get Ready High Plains Food helps consumers gain access to Co-op Month is coming – what outreach effort will your local/regional foods ...... May/June 32 co-op make? ...... July/Aug. 10 Indiana Cooperative Development Center ...... Sept./Oct. 19 Key messages for Co-op Month ...... July/Aug. 12 Kentucky Center for Agriculture & Rural Development ...... Sept./Oct. 17 Look Who’s Minding the Store Keystone Development Center ...... Sept./Oct. 28 Student-run supply co-ops short-lived, but the concepts MidAtlantic Food Cooperative ...... Sept./Oct. 29 they teach live on ...... Sept./Oct. 13 Montana Cooperative Development Center ...... Sept./Oct. 26 Project Pathway Nebraska Cooperative Development Center ...... Sept./Oct. 21 4-H sees science, technology as crucial to building “Not just a job, but a future” competitive workforce ...... May/June 14 Goal of Evergreen family of worker co-ops is to help State cooperative councils adapting to help members in struggling neighborhoods prosper ...... Nov./Dec. 12 turbulent times ...... Jan./Feb. 28 Ohio Cooperative Development Center ...... Sept./Oct. 31 Students and co-op leaders reap lasting benefits from program . . . May/June 13 Rural Electric and Telecommunications Tour helps co-op concepts ‘come alive’ for future Development Center ...... Sept./Oct. 20 cooperative leaders ...... March/April 16 Taking Root What Cooperatives Do Co-op Month special section ...... Sept./Oct. 14 Market access, countervailing power and yardstick The Little Co-op That Could roles enhance economic efficiency ...... March/April 4 Vermont food co-op overcomes initial skepticism to win hearts (and wallets) of city ...... March/April 12 Environment University course promotes co-op development to meet Chipping In community needs ...... Jan./Feb. 16 Austrian co-ops play role in making nation a leader in Value Added Agriculture Development Center ...... Sept./Oct. 27 wood biomass energy production ...... Sept./Oct. 6 Flour Power Co-op Month NW wheat growers find success with eco-marketing strategy . . Jan./Feb. 12 Co-op Month celebrated at USDA ...... Nov./Dec. 30 “Not just a job, but a future” Get Ready Goal of Evergreen family of worker co-ops is to Co-op Month is coming – what outreach effort will your help struggling neighborhoods prosper ...... Nov./Dec. 12 co-op make? ...... July/Aug. 10 Solar co-op will double Ohio’s PV-energy output ...... Nov./Dec. 15 Key messages for Co-op Month ...... July/Aug. 12 Urban farming strides forward with new greenhouse cooperative . Nov./Dec. 16

Co-op Principles/Advantages/Impact Farm Supply and Services Cooperative Food Hubs Ag co-op sales and income second highest on record ...... Sept./Oct. 4 Food hubs fill the ‘missing middle,’ helping small Canadian farmers see benefits of local farm machinery co-ops . . . Sept./Oct. 12 producers tap local markets ...... Nov./Dec. 20 Making Landmark a leader ...... Nov./Dec. 17 Uniquely Cooperative: Equity Redemption $122 billion in ’08 sales sets record for Top 100 ...... May/June 24 Survey tracks trends in how co-ops redeem member equity . . . May/June 30 Something’s new at Iowa’s NEW Co-op ...... July/Aug. 31 What Cooperatives Do The most important thing I learned about running a co-op . . . . . Nov./Dec. 17 Market access, countervailing power and yardstick roles United’s new communicator also a ‘logo cop’ ...... July/Aug. 29 enhance economic efficiency ...... March/April 4 Finance/Tax/Legal Crafts Controlling Counterparty Risk Illinois Green Pastures Fiber Cooperative How country elevators can protect against the downside . . . March/April 24 Co-op connects craft makers with locally produced fiber . . . . . Nov./Dec. 8 Heat by the Bushel New co-ops supplying members with corn for Credit home-heating fuel ...... May/June 27 A ‘Green Miracle’ ...... Jan./Feb. 4 “Not just a job, but a future” Better Beginnings Goal of Evergreen family of worker co-ops is to FarmStart offers a helping hand to new farmers and ag help struggling neighborhoods prosper ...... Nov./Dec. 12 co-ops ...... March/April 8 Regional Network Boosts Competitiveness Merger creates Farm Credit East ...... March/April 10 Diverse interests in Minnesota come together to tap new business opportunities, markets ...... March/April 26

Rural Cooperatives / November/December 2010 43 Uniquely Cooperative: Equity Redemption Livestock & Poultry Survey tracks trends in how co-ops redeem member equity . . . May/June 30 AREC strives to help struggling poultry producers ...... March/April 28 Why the asset-building movement matters for co-op members . . . Nov./Dec. 24 Assistance for new mobile slaughter efforts ...... Nov./Dec. 6 Campbell County Beef Association ...... Sept./Oct. 18 Food Co-ops Going Mobile California experiencing surge in food co-ops ...... Sept./Oct. 30 Co-ops operate traveling slaughter units to help grow Co-op builds community around food ...... Sept./Oct. 34 local foods movement ...... Nov./Dec. 4 La Montanita Food Co-op ...... Sept./Oct. 33 Illinois Green Pastures Fiber Cooperative MidAtlantic Food Cooperative ...... Sept./Oct. 29 Co-op connects craft makers with locally produced fiber . . . . . Nov./Dec. 8 The Little Co-op That Could Iraqi women learn poultry production from USDA advisor ...... Jan./Feb. 7 Vermont food co-op overcomes initial skepticism to win hearts (and wallets) of city ...... March/April 12 Management Dillard built stronger MMPA, able to adapt to market trends . . . . May/June 36 Foreign Co-ops Galarneau new MMPA leader ...... May/June 36 Aligning member interests and democratic control ...... Jan./Feb. 8 Making Landmark a leader ...... Nov./Dec. 17 An American Farmer in Afghanistan The most important thing I learned about running a co-op . . . . . Nov./Dec. 17 Equity Livestock co-op member says volunteer stint Why the asset-building movement matters for co-op members . . . Nov./Dec. 24 challenging, but also rewarding ...... July/Aug. 34 Canadian farmers see benefits of local farm machinery co-ops . . . Sept./Oct. 12 Marketing Chipping In Ag co-op sales and income second highest on record ...... Sept./Oct. 4 Austrian co-ops play role in making nation a leader in Controlling Counterparty Risk wood biomass energy production ...... Sept./Oct. 6 How country elevators can protect against the downside . . . March/April 24 A Green Miracle Cooperative Food Hubs Co-op playing key role as Iraq rebuilds farm sector ...... Jan./Feb. 4 Food hubs fill the ‘missing middle,’ helping small Iraqi women learn poultry production from USDA advisor ...... Jan./Feb. 7 producers tap local markets ...... Nov./Dec. 20 La Coop federee: a strong network for farmers and consumers . . . Sept./Oct. 12 Co-ops Can Thrive in Uncertain Times Farmer Co-op Conference sees opportunity for co-ps Forestry that adapt to structural changes ...... Jan./Feb. 18 Chipping In Dairy co-op survey reveals financial performance trends ...... Jan./Feb. 22 Austrian co-ops play role in making nation a leader in Fifth Season Cooperative wood biomass energy production ...... Sept./Oct. 6 Having progressed from conception to incorporation, fledgling co-op faces questions ...... Nov./Dec. 26 Fruits, Nuts, Vegetables 50 Years at the Top Cowiche Growers: dedicated to producing quality Founded to salvage blemished fruit, Tree Top today is fruit and spreading co-op concepts ...... Sept./Oct. 15 industry leader for apple products ...... July/Aug. 14 50 Years at the Top Flour Power Founded to salvage blemished fruit, Tree Top today NW wheat growers find success with eco-marketing strategy . . Jan./Feb. 12 is industry leader for apple products ...... July/Aug. 14 Going Mobile A Legacy of Cooperation & Innovation Co-ops operate traveling slaughter units to help grow Blue Diamond: 100th anniversary as co-op that made local foods movement ...... Nov./Dec. 4 U.S. world leader for almonds ...... May/June 4 A Legacy of Cooperation & Innovation Blue Diamond: 100th anniversary as co-op that made U.S. Gardens/Garden Supply world leader for almonds ...... May/June 4 Grow Food, Grow Hope Making Landmark a leader ...... Nov./Dec. 17 Local food, new skills sprout in Ohio community gardens . . . . July/Aug. 36 $122 billion in ’08 sales sets record for Top 100 ...... May/June 24 People’s Gardens sprouting nationwide ...... July/Aug. 39 Organic farmers increasingly turn to cooperative business model . May/June 34 Urban revitalization, beautification are goals of Urban Sustaining Their Industry Roots co-op ...... July/Aug. 40 Sugar growers are example of how co-ops can help producers strengthen their position ...... July/Aug. 4 Grain Milling co-op crucial to Maine’s organic dairy farms ...... Sept./Oct. 25 Mergers Something’s new at Iowa’s NEW Co-op ...... July/Aug. 31 Merger creates Farm Credit East ...... March/April 10 United’s new communicator also a ‘logo cop’ ...... July/Aug. 29 Purchasing Co-ops Health & Home Services Purchasing cooperative provides savings for members ...... Sept./Oct. 32 Paradise Home Care Co-op meets critical need ...... Sept./Oct. 16 Renewable Energy Housing Biofuel Prometheus University promotes co-op development to meet needs ...... Jan./Feb. 16 Like its namesake, Promethean Biofuels hopes to better mankind with new energy source ...... Sept./Oct. 36 Legal/Legislative Cellulosic biofuel development must balance need to Capper-Volstead Q&A ...... May/June 9 maintain soil quality ...... March/April 19 Celebrating the greatest public-private partnership ...... May/June 17 Chipping In Communications plays a major role in co-op’s success ...... May/June 8 Austrian co-ops play role in making nation a leader in Electricity service transformed rural America ...... March/April 11 wood biomass energy production ...... Sept./Oct. 6 Examples of state co-op council activities: ...... Jan./Feb. 31 Community Wind Financial and legal aspects of succession planning for Maine island community lowering energy costs with family-owned businesses ...... Nov./Dec. 11 wind-power project ...... March/April 20 Justice, USDA set workshop dates ...... Jan./Feb. 35 Co-op business model well suited for next-generation Out of Darkness biofuel development ...... March/April 2 Against industry opposition, REA helped ‘wire’ farms, Co-ops Can Thrive In Uncertain Times rural areas at remarkable rate ...... May/June 18 Farmer Co-op Conference sees opportunity for co-ps State cooperative councils adapting to help members in that adapt to structural changes ...... Jan./Feb. 18 turbulent times ...... Jan./Feb. 28 Heat by the Bushel Succession planning for family-owned businesses is critical New co-ops supplying members with corn for for rural America ...... July/Aug. 9 home-heating fuel ...... May/June 27

44 November/December 2010 / Rural Cooperatives NRCO helping rural electrics pursue renewable energy ...... Sept./Oct. 10 Worker-owned co-ops Chipping In State Co-op Councils Austrian co-ops play role in making nation a leader in Examples of state co-op council activities ...... Jan./Feb. 31 wood biomass energy production ...... Sept./Oct. 6 State councils adapting to help members in turbulent times ...... Jan./Feb. 28 “Not just a job, but a future” State and regional cooperative councils in the U.S...... Jan./Feb.30 Goal of Evergreen family of worker co-ops is to help struggling neighborhoods prosper ...... Nov./Dec. 12 Statistics Solar co-op will double Ohio’s PV-energy output ...... Nov./Dec. 15 Ag co-op sales and income second highest on record ...... Sept./Oct. 4 Urban farming strides forward with new greenhouse cooperative . Nov./Dec. 16 Dairy co-op survey reveals financial performance trends ...... Jan./Feb. 22 $122 billion in ’08 sales sets record for Top 100 ...... May/June 24 AUTHORS Allen, Gray Sugar A Legacy of Cooperation & Innovation Sustaining Their Industry Blue Diamond: 100th anniversary as co-op that made Sugar growers are example of how co-ops can help U.S. world leader for almonds ...... May/June 4 producers strengthen their position ...... July/Aug. 4 Bagley, Scott Sustainable/Local/Organic Chipping In Cooperative Food Hubs Austrian co-ops play role in making nation a leader in Food hubs fill the ‘missing middle,’ helping small wood biomass energy production ...... Sept./Oct. 6 producers tap local markets ...... Nov./Dec. 20 Fifth Season Cooperative Barrett, Seleise Having progressed from conception to incorporation, Filling the Gap fledgling co-op faces questions ...... Nov./Dec. 26 At 25, Arthur Capper Co-op Center a major force Grow Food, Grow Hope for co-op education ...... May/June 10 Local food, new skills sprout in Ohio community gardens ...... July/Aug. 36 High Plains Food helps consumers gain access to local/regional Berner, Courtney foods ...... May/June 32 Fifth Season Cooperative Laughery Village Co-op meeting need for local food ...... Sept./Oct. 19 Having progressed from conception to incorporation, Milling co-op crucial to Maine’s organic dairy farms ...... Sept./Oct. 25 fledgling co-op faces questions ...... Nov./Dec. 26 Organic dairy market also hurt by low prices ...... Jan./Feb. 15 Organic farmers increasingly turn to co-op business model ...... May/June 34 Borst, Alan Shuttered factory to see new life as food hub ...... Nov./Dec. 29 Community Wind Maine island community lowering energy costs with Technology wind-power project ...... March/April 20 Biofuel Prometheus Cooperative Food Hubs Like its namesake, Promethean Biofuels hopes to better Food hubs fill the ‘missing middle,’ helping small mankind with new energy source ...... Sept./Oct. 36 producers tap local markets ...... Nov./Dec. 20 Cooperatives delivering broadband to rural Missouri Organic farmers increasingly turn to co-op business model ...... May/June 34 communities ...... Nov./Dec. 18 Heat by the Bushel Campbell, Dan New co-ops supplying members with corn for home-heating Communications: the critical link ...... July/Aug. 2 fuel ...... May/June 27 “Not just a job, but a future” Project Pathway Goal of Evergreen family of worker co-ops is to help 4-H sees science, technology as crucial to building struggling neighborhoods prosper ...... Nov./Dec. 12 competitive workforce ...... May/June 14 The Little Co-op That Could Vermont food co-op overcomes initial skepticism to Utility Co-ops win hearts (and wallets) of city ...... March/April 12 Celebrating the greatest public-private partnership ...... May/June 17 Urban farming strides forward with new greenhouse co-op ...... Nov./Dec. 16 Cooperatives delivering broadband to rural Missouri communities ...... Nov./Dec. 18 Canales, Judy Electricity service transformed rural America ...... March/April 11 Co-op role in rural development ...... Jan./Feb. 2 EJ Water Co-op provides vital service in rural Illinois ...... Jan./Feb. 26 Out of Darkness Chesnick, David Against industry opposition, REA helped ‘wire’ farms, $122 billion in ’08 sales sets record for Top 100 ...... May/June 24 rural areas at remarkable rate ...... May/June 18 Clamp, Christina Value Added University course promotes co-op development to meet needs . . . . Jan./Feb. 16 A Legacy of Cooperation & Innovation Blue Diamond: 100th anniversary as co-op that made English, Glenn U.S. world leader for almonds ...... May/June 4 Celebrating the greatest public-private partnership ...... May/June 17 Cooperative Food Hubs Food hubs fill the ‘missing middle,’ helping small producers tap local Erickson, Jim markets ...... Nov./Dec. 20 Project Pathway 50 Years at the Top 4-H sees science, technology as crucial to building Founded to salvage blemished fruit, Tree Top today is competitive workforce ...... May/June 14 industry leader for apple products ...... July/Aug. 14 Flour Power Eversull, E. Eldon NW wheat growers find success with eco-marketing strategy . . Jan./Feb. 12 Uniquely Cooperative: Equity Redemption Going Mobile Survey tracks trends in how co-ops redeem member equity . . . May/June 30 Co-ops operate traveling slaughter units to help grow local foods movement ...... Nov./Dec. 4 Goheen, Alicia Illinois Green Pastures Fiber Cooperative Filling the Gap Co-op connects craft makers with locally produced fiber . . . . . Nov./Dec. 8 At 25, Arthur Capper Co-op Center a major force for co-op education ...... May/June 10

Rural Cooperatives / November/December 2010 45 Habenstreit, Linda C. Roemer, George A Green Miracle An American Farmer in Afghanistan Co-op playing key role as Iraq rebuilds farm sector ...... Jan./Feb. 4 Equity Livestock co-op member says volunteer stint is challenging, but also rewarding ...... July/Aug. 34 Harris, Peter Aligning member interests and democratic control ...... Jan./Feb. 8 Schwartz, Adam When co-op principles collide ...... Nov./Dec. 2 Holcombe, Gloria Filling the Gap Siemon, George L. At 25, Arthur Capper Co-op Center a major force for Organic dairy market also hurt by low prices ...... Jan./Feb. 15 co-op education ...... May/June 10 Smith, Stephanie M. Lebel, Colette Capper-Volstead Q&A ...... May/June 9 Canadian farmers see benefits of local farm machinery co-ops . . . Sept./Oct. 12 Co-ops faced numerous challenges in 2009 ...... Jan./Feb. 11 Financial and legal aspects of succession planning Liebrand, Carolyn for family-owned businesses ...... Nov./Dec. 11 Dairy co-op survey reveals financial performance trends ...... Jan./Feb. 22 Succession planning for family-owned businesses is critical for rural America ...... July/Aug. 9 Ling, K. Charles What Cooperatives Do Spicer, Lynette Market access, countervailing power and yardstick eXtending Co-op Knowledge roles enhance economic efficiency ...... March/April 4 Extension Service website to include co-op education area ...... Sept./Oct. 35 Mayberry, Anne Cooperatives delivering broadband to rural Missouri Swalheim, Larry communities ...... Nov./Dec. 18 The most important thing I have learned about running a co-op . Nov./Dec. 17 Electricity service transformed rural America ...... March/April 11 EJ Water Co-op provides vital service in rural Illinois ...... Jan./Feb. 26 Thompson, Stephen Out of Darkness Better Beginnings Against industry opposition, REA helped ‘wire’ farms, FarmStart offers a helping hand to new farmers rural areas at remarkable rate ...... May/June 18 and ag co-ops ...... March/April 8 NRCO helping rural electrics pursue renewable energy ...... Sept./Oct. 10 Biofuel Prometheus Like its namesake, Promethean Biofuels hopes McCulloch, Heather to better mankind with new energy source ...... Sept./Oct. 36 Why the asset-building movement matters for rural Cellulosic biofuel development must balance need co-op members ...... Nov./Dec. 24 to maintain soil quality ...... March/April 19 Flour Power Mikkelson, Susann NW wheat growers find success with High Plains Food helps consumers gain access to eco-marketing strategy ...... Jan./Feb. 12 local/regional foods ...... May/June 32 Going Mobile Co-ops operate traveling slaughter units to Miller, Maria help grow local foods movement ...... Nov./Dec. 4 Tour helps co-op concepts ‘come alive’ for future Heat by the Bushel cooperative leaders ...... March/April 16 New co-ops supplying members with corn for home-heating fuel ...... May/June 27 Miracle, Sharon 50 Years at the Top Todd, Anne Founded to salvage blemished fruit, Tree Top today Co-op Q&A (with Illinois Green Pastures Co-op) ...... Nov./Dec. 9 is industry leader for apple products ...... July/Aug. 14 Grow Food, Grow Hope Local food, new skills sprout in Ohio community gardens . . . . July/Aug. 36 Narduzzo, Paul Illinois Green Pastures Fiber Cooperative Controlling Counterparty Risk Co-op connects craft makers with locally produced fiber . . . . . Nov./Dec. 8 How country elevators can protect against Regional Network Boosts Competitiveness the downside ...... March/April 24 Diverse interests in Minnesota come together to tap new business opportunities, markets ...... March/April 26 Parker, Bob Chipping In Tonsager, Dallas Austrian co-ops play role in making nation a Co-op business model well suited for next-generation leader in wood biomass energy production ...... Sept./Oct. 6 biofuel development ...... March/April 2 Co-op Movement Gaining Momentum ...... Sept./Oct. 2 Pike, Sarah M. AREC strives to help struggling poultry producers ...... March/April 28 Vilsack, Tom USDA: Committed to Co-ops ...... May/June 2 Pitman, Lynn Co-ops Can Thrive in Uncertain Times Wadsworth, James Farmer Co-op Conference sees opportunity for State cooperative councils adapting to help co-ps that adapt to structural changes ...... Jan./Feb. 18 members in turbulent times ...... Jan./Feb. 28

Reynolds, Bruce Sustaining Their Industry Sugar growers an example of how co-ops can help producers strengthen their position ...... July/Aug. 4

46 November/December 2010 / Rural Cooperatives

United States Department of Agriculture Washington, DC 20250 Periodicals Postage Paid U.S. Department of Agriculture OFFICIAL BUSINESS

Penalty for private use, $300

NOTICE: K Check here to stop receiving this publication and mail this sheet to the address below. K NEW ADDRESS. Send mailing label on this page and changes to:

USDA/Rural Business—Cooperative Service Stop 0705 Washington, D. C. 20250-3255

48 November/December 2010 / Rural Cooperatives