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Rural COOPERAUSDA / Rural Development TIVESMay/June 2004 DefendingDefending YourYour TurfTurf Why co-op legislative efforts are so essential SPECIAL SECTION Organizations serving co-ops page 18 COMMENTARY The extended family No man is an island, nor is any scope of these efforts, here are just a the Newsline section of this issue for cooperative. few highlights from the special section: several news items that describe more Regardless of what purposes coop- • National Milk Producers Federation than $500 million in USDA loans and eratives serve, they are all strengthened is strengthening the dairy industry grants recently awarded (or soon to be — and the scope and impact of their through the Cooperatives Working awarded) for rural electric, broadband operations amplified — through a sup- Together (CWT) program, a self- and renewable energy projects. porting network of private sector and help effort to balance milk supply Space didn’t permit us to list every governmental organizations dedicated and demand, and by proposing organization that has played a major to the belief that, through cooperative changes to the dairy price support role in helping cooperatives. On the businesses, there is nothing Americans program that will prevent farm-level agricultural front alone, the American cannot achieve for themselves. prices from dropping below $9.90 Farm Bureau Federation, National More than 120 million people are per hundredweight. Farmers Union and National Grange members of 48,000 cooperatives in • National Council of Farmer have played key roles in helping estab- the United States alone. Worldwide, Cooperatives is striving to improve lish and promote cooperatives. So do cooperatives serve some 730 million co-ops’ access to capital and is sup- numerous other ag commodity boards members. Those are numbers often porting legislation that would elimi- and associations. trumpeted each October during nate the third layer of taxes imposed Likewise, virtually every arm of Cooperative Month. But they should on farmer cooperative dividends. USDA — the Farm Service Agency, be cited in speeches and articles • National Cooperative Business Natural Resources Conservation throughout the year to help commu- Association has organized opposition Service’s RC&D committies and nicate just how far-reaching the co-op to a ruling that threatens to throw Cooperative State Research, Education system of business has become. the balance sheets of thousands of and Extension Service, to name just a Whether it is to process and market co-ops into chaos by reclassifying few — in one way or another impact their crops, to gain access to dependable member equity as debt, and has farmer cooperatives. You can find out and affordable energy and telecommu- launched an initiative to expand the more about these and any other USDA nications services, to secure credit or role of co-ops in creating economic agency or program through the housing, or for nearly any other service opportunity in inner cities. www.usda.gov website. We’ve also or product under the sun, cooperatives • National Rural Electric Cooperative included websites and other contact are delivering every minute of every day Association’s legislative and regulato- information for every organization for their members. This wouldn’t be ry efforts are focusing on controlling included in the special section, and we possible without an infrastructure of costs for consumers, protecting them urge you to find out more about them. supporting organizations that do every- against market power abuse and anti- So, while “user owned, user con- thing from giving their member coop- competitive behavior, and on pre- trolled and user benefited” remains the eratives legislative clout to providing serving the co-op governance struc- mantra of the nation’s family of coop- director training programs and educa- ture of its members. eratives, let’s never forget that we’d be tional materials needed to attract and a pretty dysfunctional family, providing inspire the next generation of co-op We’ve also provided an overview of fewer benefits to fewer people, without leaders and members. how USDA Rural Development is a solid infrastructure of supporting A special section of this issue, which helping to improve the quality of life organizations. begins on page 18, provides an and create jobs in rural America, and overview of some of the major organi- — in particular — the many ways its Dan Campbell zations supporting cooperatives and Cooperatives and Rural Utilities Editor highlights some of their recent accom- Programs help the nation’s farm and plishments. To provide an idea of the utility co-op sectors. Also check out 2 May/June 2004 / Rural Cooperatives Rural May/JuneCOOPERACOOPERA 2004 TIVESTIVESVolume 71 Number 3 FEATURES 4 Defending their turf Growers see co-op’s legislative action as essential to future of nation’s sugar industry Rural COOPERATIVES (1088-8845) is published bimonthly by Rural Business–Cooperative Service, By Dan Campbell U.S. Department of Agriculture, 1400 Independence Ave. SW, Stop 0705, Washington, DC. 20250-0705. p. 4 The Secretary of Agriculture has determined that 9 Co-op born of growers’ frustration with publication of this periodical is necessary in the transaction of public business required by law of processor’s lack of long-term outlook the Department. Periodicals postage paid at Washington, DC. and additional mailing offices. Copies may be obtained from the Superintendent of Documents, Government Printing Office, Washington, 11 USDA co-op development efforts DC, 20402, at $23 per year. Postmaster: send address change to: Rural Cooperatives, USDA/RBS, Stop support commercial farming in Ghana 3255, Wash., DC 20250-3255. By John Dunn Mention in Rural COOPERATIVES of company and brand names does not signify endorsement over p. 11 other companies’ products and services. 14 Election and voting policies Unless otherwise stated, contents of this publication of agricultural cooperatives are not copyrighted and may be reprinted freely. For By Bruce J. Reynolds noncopyrighted articles, mention of source will be appreciated but is not required. The United States Department of Agriculture (USDA) prohibits discrimination in all its programs and 18 Special Section: activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual Organization Serving Cooperatives orientation, and marital or family status. (Not all p. 14 Includes: Accountants for Cooperative Communicators prohibited bases apply to all programs). Persons State Co-op Councils (Pg. 18); Cooperatives (26); Association (35); with disabilities who require alternative means for communication of program information (braille, large CoBank (23); Farm Credit Council(28); Association of Cooperative print, audiotape, etc.) should contact USDA’s TARGET National Council of Farmer Cooperative Finance Corp. (29); Educators (36); Center at (202) 720-2600 (voice and TDD). Cooperatives (24); National Rural Electric ACDI/VOCA (37); To file a complaint of discrimination, write USDA, National Cooperative Business Cooperative Association (30); Credit Union National Director, Office of Civil Rights, Room 326-W, Whitten Association (25); Federation of Southern Association (39); Building, 14th and Independence Avenue, SW, Washington, D.C. 20250-9410, or call (202) 720-5964 National Milk Producers Cooperatives (31); National Telecommunications (voice or TDD). USDA is an equal opportunity Federation (26); Rural Cooperative Development Cooperative Association (40); provider and employer. p. 18 National Association of Centers (32); National Cooperative Bank (41); Ann Veneman, Secretary of Agriculture Housing Cooperatives (26); UW, KSU & NDSU Centers for USDA Rural Development (42). National Society of Cooperatives (34); Gilbert Gonzalez, Acting Under Secretary, USDA Rural Development DEPARTMENTS John Rosso, Administrator, Rural Business- Cooperative Service 2 COMMENTARY Pandor Hadjy, Acting Deputy Administrator, USDA Rural Business-Cooperative Service 45 NEWSLINE Dan Campbell, Editor 48 NEW USDA CO-OP PUBLICATIONS Vision Integrated Marketing/KOTA, Design On the Cover: Have a cooperative-related question? A field of Red River Valley sugarbeets greet the new morning. American Call (202) 720-6483, or Crystal Sugar Co. members increasingly look to the co-op’s legislative office to Fax (202) 720-4641, Information Director, help “defend their turf” in trade talks. Likewise, many of the co-op organiza- This publication was printed with vegetable oil-based ink. tions featured in the special section of this magazine also tackle critical leg- islative issues for their member co-ops. Photo courtesy American Crystal Sugar Co. Rural Cooperatives / May/June 2004 3 Defending their turf Growers see co-op’s legislative action as essential to future of nation’s sugar industry By Dan Campbell, editor America’s beet sugar, is processed and marketed through e-mail: [email protected] producer-owned cooperatives. In the Red River Valley, the nation’s largest sugar co-op, American Crystal Sugar Co., f American farmers weren’t supposed to grow just celebrated its 30th anniversary. sugarbeets, surely there would be no Red River The roots of the co-op go back to 1935, when area growers Valley — quite possibly the world’s most per- began organizing the Red River Valley Sugarbeet Growers I fect garden for cultivating the crop. Not only Association, which ultimately purchased the privately owned do sugarbeets love the black-clay soil of this American
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