Building resilient farming communities through cooperative efforts

Do you want to build a stronger farm and give back to the community at the same time? Farm supply cooperatives have been helping producers do just that for well over a hundred years. They offer a time-tested formula for pooling resources, lowering costs, and creating more resilient agricultural communities.

Let's be real. It's tough out there for the independent farmer. Input costs continue to climb. Corporate entities control too much of the supply chain. Small operations struggle to keep up.

But there is a solution. By forming an agriculture supply cooperative and building strong communities, things can become much easier for small farmers. Here’s what you need to know:

• What is an Agricultural Supply Cooperative?
• The Benefits of Being Part of a Cooperative
• How Farm Supply Cooperatives Can Build Stronger Communities
• Finding the Right Cooperative Partnership for Your Farm

What is an Agricultural Supply Cooperative?

A farm or agricultural supply cooperative is a member-owned business designed to serve farmers and their families. Member farmers pool their resources to purchase supplies and services, then share in the resulting profits.

It doesn't get much more straightforward than that.

Farm supply cooperatives put farmers first. Instead of being beholden to external investors and shareholders, the co-op answers directly to its members. Decisions are made democratically. The wealth created by the cooperative is returned to the people who use its services.

That is why agricultural cooperatives continue to be such a vital part of so many farming communities across the country. From seed to fertilizer to feed to equipment… a quality agricultural supply cooperative will provide members what they need at prices they can afford.

Local farm supply co-ops that offer nursery, feed and landscape supply in Hillsborough serve as a prime example of the model at work. These member-owned businesses directly connect farmers with the supplies they need to farm while keeping dollars circulating in local economies.

It's a simple idea, but also a powerful one.

Numbers don't lie. Two million farmers and ranchers are members of over 2,100 cooperatives in the United States according to NCBA CLUSA. Those numbers tell the story of a nationwide network of agricultural producers banding together to create shared value.

The Benefits of Being Part of a Cooperative

Of course, there is more to the story than just cutting costs. Farmers join agricultural supply cooperatives to save money. But the real benefits run much deeper.

Quality Supplies at Better Prices

Farm supply cooperatives leverage their member base's collective buying power to get better prices on the products and services their members need. From animal feed and nutrition products to seeds and fertilizers to equipment and tools to fuel and petroleum products… everything costs less when purchased through a well-run farm supply cooperative.

It's a simple formula. Individual farmers cannot compete with the massive purchasing power of the likes of major corporations. Agricultural cooperatives flip that equation on its head.

Expertise and Knowledge Sharing

Farming is a complex business. Farm supply cooperatives, however, provide a place for decades of member knowledge and expertise to be aggregated and passed on from one generation to the next. New members can tap into the experience of more seasoned members and operators, learning best practices as they get started.

Likewise, more established operations can find new and better ways of doing things.

Veteran farmers and new operations work together for common goals. That's where the knowledge sharing happens.

A More Certain Financial Future

Finally, agricultural supply cooperatives offer a level of economic and financial certainty for every member of the organization. As the co-op prospers, that prosperity is shared through patronage dividends and enhanced services.

The cycle continues itself. Success attracts investment. Investment attracts additional members. Members lead to more investment. It's a virtuous cycle of continual improvement that only cooperative organizations can provide.

How Farm Supply Cooperatives Can Build Stronger Communities

There is, however, one more benefit of farm supply cooperatives worth considering.

Agricultural supply cooperatives don't just help individual farms and ranches. They can also strengthen entire communities at the same time.

Why is this important?

The rural economy is built almost entirely on the backs of agriculture. When farms struggle, whole towns suffer. Farm supply cooperatives help level the playing field, keeping agricultural businesses operating as both profitable and viable entities.

The numbers are staggering. According to AgWeb, almost half of the largest 100 cooperatives in the country (47 to be exact) are agricultural co-ops raking in $187.6 billion dollars in revenue. That's real money flowing through farming communities.

Local Jobs

Agricultural supply cooperatives provide a level of employment that would otherwise not exist in rural communities. Warehouse employees, agronomists, IT staff, truck drivers… these people and their families stay in the communities they serve.

Whereas a faceless corporation might source supplies from wherever is most convenient or cost-effective, a cooperative is connected to its community through its member base.

Supporting Other Local Businesses

Farm supply cooperatives also support all other local businesses. Restaurants, retail, services… when the agricultural economy is thriving, so are these other components of the rural economy.

The effects can be seen throughout the community.

Infrastructure with a Long-Term View

Farm supply cooperatives are generational by design. They build infrastructure, equipment, and services to service their members for many decades to come.

These investments last for generations - sheds, processing equipment, forklifts, delivery trucks, fuel and petro. Even the people. All of it is compounding over time.

Finding the Right Cooperative Partnership for Your Farm

Finding the right fit, however, is the key.

Farm supply cooperatives are not all created equal. Locating the right partnership to suit a given operation is essential.

Some questions to consider when evaluating the fit of a specific agricultural supply cooperative include:

Product and Service Range – Does the cooperative actually provide the products and services the farming operation in question requires? Check for a wide breadth of offerings that can address a variety of agricultural production needs.

Member Governance – How much control do members actually have over the cooperative's decision-making process? Look for strong cooperatives that encourage member participation in governance and strategic planning.

Financial Strength – An efficiently run agricultural supply cooperative will be in sound financial shape with a history of consistently providing value back to its members. Ask about patronage dividends and long-term investment/reinvestment plans.

Location – Geographic location and proximity are important for agricultural supply considerations. The closer the better, ideally. Easy access to the products and services the farm needs saves on transportation costs and emergency supply runs.

Community Reputation – Ask other members. There are no marketing materials like word of mouth from those with first-hand experience.

The best farm and agricultural supply cooperatives will become true partners in their members' success. They evolve with changing needs while remaining steadfast to the founding cooperative principles.

Making It Work

Building stronger farming communities through cooperative means does take work.

Members need to be engaged and active participants in the process. Attend member meetings. Vote on important issues. Provide feedback on the services being provided. The whole cooperative model only works when members show up.

Cooperative leadership needs to remain connected and in touch with member needs. Constant communication keeps the entire organization moving forward on shared priorities and goals.

The community, for its part, needs to understand and appreciate the role cooperatives play in their midst. Supporting local farm supply cooperatives means supporting the entire rural economy in which those co-ops are embedded.

The equation is simple:

• Join a cooperative that meets the needs of the operation
• Participate fully in governance and decision-making
• Support other members and the broader community
• Look to the long-term health of the cooperative 

It's a formula that has worked for generations in farming communities. There is no reason it cannot continue to work today.

The Bottom Line

Farm and agricultural supply cooperatives are one of the great success stories in farming. They empower individual farmers while creating more resilient agricultural communities.

That's what agricultural cooperatives do. They:

Lower costs via collective buying power
Enhance services designed specifically to meet member needs
Strengthen communities through local investment
Share in success through patronage dividends

For farmers interested in creating more resilient farming operations… membership in an agricultural supply cooperative is a seriously undervalued option.

The way forward is laid out before farmers who are looking. Find a quality agricultural supply cooperative. Become an active member. Watch how cooperative effort and action can transform both individual farms/ranches and entire communities.

That is the power of cooperative effort.

Also Read: How an NGO has been revolutionising the lives of 42000 small farmers