Rural COOPERATIVESUSDA / Rural Development March/April 2000 Turning soft wool into hard cash COMMENTARY Borders are no longer barriers for co-ops As we begin this century of increased income. Rural unemployment continues global interaction and communication, to decline, to historically low levels. we recognize the need to work toward However, challenges remain. Even with improving the technological infrastruc- double-digit percentage growth in the ture of rural America. Increasing the amount of jobs, the incomes remain sig- level of agricultural trade with foreign nificantly lower in rural areas relative to nations will do much to improve the urban areas. economic vitality of rural America and In June of 1998, when I hosted the the rural cooperatives which are so vital Second International Conference on to its well-being. Women in Agriculture, more than 1,000 There are several articles in this mag- participants from 50 countries came azine that detail trade programs and together to discuss issues facing women technical assistance efforts between in agriculture and to facilitate the the United States and our international exchange of information. During the partners. Some of these initiatives, such conference, we established that in rural providing many advantages to rural elec- as our effort to create cooperative village communities around the world, we have tric and telephone cooperatives to banks in South Africa, will help those similar challenges, many of which can be receive funding for the purpose of who are disenfranchised by poverty. We addressed by cooperatives. Creating val- putting these new technologies to work are also committed to working with our ue-added cooperatives can do much to for rural residents. We are also working international partners whose future eco- generate additional income for rural to create opportunities with current and nomic development will create market- people, as shown by the cover story in potential trading partners around the ing opportunities for rural Americans. this issue about how rural women in globe. Communities will revitalize USDA Rural Development has bilat- Alaska are earning income by knitting themselves when opportunities exist for eral programs to help countries in this musk ox wool into beautiful garments. entrepreneurial initiatives, small business hemisphere with their agricultural devel- In June of 1999, we successfully expansion and job training — all of opment efforts. We expect to continue brought together leaders from several which offer upward mobility without offering our assistance in a range of dis- countries to create cooperative relation- community members having to move to ciplines, from production techniques, to ships to strengthen our nations’ rural urban areas to find employment. marketing, extension, pest and disease areas and increase the channels of com- In closing, rural economic develop- eradication, and food safety, among oth- munication between rural Latin America ment and poverty alleviation strategies ers. and rural United States. Again, we shared between countries and rural com- In the United States, agricultural found that we share similar concerns, munities will ultimately lead to enriched cooperatives remain a key component of such as overcoming limited technologi- families, empowered communities, and rural economies. While “rural” is more cal alternatives. developed nations. than agriculture, the future success of With President Clinton and Vice our nation’s small farms and their coop- President Gore’s leadership, we are eratives is critically linked to the success working to build partnerships and devel- of economies of rural communities to op a comprehensive approach to closing which they are interconnected. the digital divide and bringing digital Our rural economy has strengthened opportunity to all Americans. Bringing Jill Long Thompson and is growing, but remains fragile and advanced telecommunications technolo- Under Secretary, USDA Rural Development uneven. Rural earnings, after a decade gy to rural America has made significant of decline, are rising at rates similar to impacts on people’s lives. Through our urban rates in some areas, as is per capita various programs, Rural Development is 2 March/April 2000 / Rural Cooperatives Rural March/AprilCOOPERATIVES 2000 Volume 67 Number 2 RURAL COOPERATIVES (1088-8845) is published bimonthly by Rural Business–Cooperative Service, U.S. Department of Agriculture, Washington, DC. FEATURES The Secretary of Agriculture has determined that publication of this periodical is necessary in the transaction of public business required by law of the Department. Periodicals postage paid at 4 Boosting the 3 Bs Washington, DC. Copies may be obtained from the England’s Plunkett Foundation promotes “the furtherance of Superintendent of Documents, Government Printing Office, Washington, DC, 20402, at $3.50 domestic, rural cooperation” $4.38 foreign; or by annual subscription at $15.00 Eliza Banks domestic, $18.75 foreign. Postmaster: send address change to: Rural Cooperatives, USDA/RBS, Stop 3255, Wash., DC 20250-3255. 7 Fingers and needles Mention in RURAL COOPERATIVES of company and Alaskan co-op turns cashmere-soft musk ox wool into hard cash brand names does not signify endorsement over other companies’ products and services. Pamela J. Karg Unless otherwise stated, contents of this publica- tion are not copyrighted and may be reprinted 12 Strength through unity freely. For noncopyrighted articles, mention of Bulgarian honey producers sweeten their future through source will be appreciated but is not required. cooperation The United States Department of Agriculture (USDA) prohibits discrimination in all its programs and James Matson activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all 15 Foreign affairs prohibited bases apply to all programs). Persons USDA Foreign Agricultural Service promotes U.S. agriculture with disabilities who require alternative means for communication of program information (braille, large abroad print, audiotape, etc.) should contact USDA’s TARGET Karl Hampton Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten 18 Going global Building, 14th and Independence Avenue, SW, Export certificates a valuable tool helping co-ops tap overseas Washington, D.C. 20250-9410, or call (202) 720-5964 (voice or TDD). USDA is an equal opportunity markets provider and employer. Alan Borst Dan Glickman, Secretary of Agriculture 23 Why U.S. agriculture should support foreign aid Jill Long Thompson, Under Secretary, Rural Development Perry Letson Dayton J. Watkins, Administrator, Rural Business–Cooperative Service Gladys Rodriguez, Director of Public Affairs DEPARTMENTS Dan Campbell, Managing Editor 2 COMMENTARY USDA Design Center, Design 22 A CLOSER LOOK AT… Have a cooperative-related question? Call (202) 720-6483, or 25 MANAGEMENT TIP Fax (202) 720-4641, Information Director, 27 NEWSLINE This publication was printed with vegetable oil-based ink. On the Cover: Once extinct in Alaska, the musk ox has made a major comeback. A cooperative of Alaskan Eskimo women are transforming its soft wool into high-fashion United States Department of Agriculture accessories and earning much-needed income for their poor, rural communities. Story on Page 7. Photo copyright Musk Ox Farm Rural Cooperatives / March/April 2000 3 Boosting the 3 Bs England’s Plunkett Foundation promotes “The furtherance of rural cooperation” By Eliza Banks ment and agricultural education. After repeated failures, Plunkett established n America, hardly a coop- his first cooperative “creamery” in erative celebration goes by 1891. Three years later, he founded the I when those English crafts- country’s apex organization for the bur- men who formed the geoning number of agricultural coop- Rochdale Equitable Pioneers Society eratives. His diaries, kept in the aren’t feted for their foresight. So it Foundation’s unique cooperative ref- may come as a surprise that there’s erence library, describe the exhaust- often a perceptible lack of enthusi- ing work of organizing co-ops in asm toward cooperatives in the the face of stern opposition from very country credited with their local moneylenders, traders, and creation. other vested interests. But that’s the situation in Still a frequent visitor to Ameri- some sectors of the United King- ca, and now Ireland’s equivalent to dom today. Despite this skepti- the Secretary of Agriculture, Plun- cism, however, for 80 years there kett became a close associate and has been one voice encouraging, confidant of President Theodore cajoling, and supporting coopera- Roosevelt and his apostle of conser- tives and the people who want to vation, Gifford Pinchot, sharing start them. At the Plunkett Founda- ideas on rural development and, in tion, near Oxford in south-central 1910, publishing The Rural Life Prob- England, a team of dedicated cooper- lem of the U.S. ative advocates acts as a driving force “By golly,” Roosevelt is quoted as behind the growth of UK rural cooper- booming to Plunkett, “I wish you were atives and other member-controlled an American and either in the Senate businesses. or my Cabinet!” Plunkett’s American Through its accumulated experi- connections didn’t end there, and he ence, extensive network of consultants, subsequently shared his enthusiasm for and a reference library approaching