What Is A Cooperative?
A cooperative is a business owned and controlled by the people who
use its services. User-owned cooperatives process and market
products, purchase production supplies or consumer goods, provide
housing and credit, build and operate rural utilities, and provide
other services needed by rural residents. By working together for
their mutual benefit in cooperatives, rural residents are often able
to reduce costs, obtain services that might otherwise be
unavailable, and achieve greater returns for their products.
Cooperatives, both rural and urban, have been part of the American
economy for more than 100 years. By one estimate, nearly one-third
of the population belongs to some type of cooperative. Application
of the cooperative business structure in rural economics is
virtually limitless.
How Does the Rural Development Help Rural Cooperatives?
The Cooperative Services (CS) program of Rural Development (RD) helps rural
residents form new cooperative businesses and improve the operations
of existing cooperatives. To accomplish this, CS
provides technical assistance, conducts cooperative-related
research, and produces information products to promote the public's
understanding of cooperatives.
For most of the past century, RD's cooperative assistance has been
concentrated on agricultural cooperatives. While agricultural
marketing and supply cooperatives remain a primary focus of the United
States Department of Agriculture's (USDA)
efforts, RD can provide assistance to all types of
rural cooperatives or similarly organized businesses.
In Virginia, the RD CS specialists
are assisted by the Southern States Cooperative Foundation and the
Virginia Foundation for Agriculture Innovation and Rural
Sustainability in providing these services. Further information on
the cooperative development centers can be found on the website
links below or by contacting the Virginia State Office staff.
Cooperative Development Assistance
CS provides a wide range of assistance for
people interested in forming new cooperatives. This help can range
from an initial feasibility study to the creation and implementation
of a business plan. CS staff includes cooperative development
specialists who do everything from identifying potential cooperative
functions to developing bylaws. They also provide training for
cooperative directors.
CS strives to provide a realistic view of what it will take to make
a new cooperative succeed. Staff members may also work in
conjunction with cooperative development specialists located at many
of USDA's RD State Offices around the Nation.
Recent examples of rural cooperatives CS has helped form include a
cooperative for rural women who produce handcrafted gift items, a
vegetable growers' cooperative which provides increased market
access for its members, and a sea divers' cooperative which harvests
and processes sea urchins for export to Asia.
Technical Assistance
CS provides technical assistance to existing cooperatives facing
specific problems or challenges. Technical assistance could include
helping a cooperative develop a strategic marketing plan to cope
with new competitive forces, helping a cooperative make a crucial decision
whether to merge or form a joint venture with other cooperatives, or
in finding a way to turn the raw products of cooperative members
into value-added products. These matters are often life-and-death
issues not only for a cooperative, but for the rural communities in
which they operate.
CS can help improve a cooperative's business structure and operating
efficiency. This work often involves analyzing operations,
assessing the economic feasibility of new facilities, or adding new
products or services. Studies cover the full range of decisions
facing cooperative business enterprises. Technical assistance is
largely designed to benefit a specific cooperative business or
group. However, the results often provide business strategy for all
cooperatives.
Research
CS conducts research to provide a knowledge base necessary to
support cooperatives dealing with changing markets and business
trends. Studies include financial, structural, managerial, policy,
member governance, legal, and social issues, as well as various
other economic activities of cooperatives.
Education and Information
The Cooperative Marketing Act of 1926 mandates that USDA "...promote
the knowledge of cooperative principles and practices and cooperate
in promoting such knowledge with educational and marketing agencies,
cooperative associations, and others." To meet this goal, CS
provides a wide range of cooperative training programs and
educational materials.
CS maintains a storehouse of information about cooperatives, which
it makes available to the public through more than 150 research
reports, educational publications, and videos which cover all
aspects of cooperative operations. A monthly magazine, Farmer
Cooperatives, reports significant achievement by cooperatives,
thoughts of cooperative leaders, and highlights of agency research,
technical assistance, and educational activities.
History and Statistics
Cooperative statistics are collected to detect growth trends and
changes in structure and operations. Data help identify and support
research and technical assistance activities. This information is
used extensively by legislative and executive branches of government
in formulating agricultural and cooperative-related policy.
How We Work?
One CS specialist or team may tackle a project. Most CS staff
members are agricultural economists who have specialized in
cooperative issues, including: cooperative business organization,
cooperative law, finance, marketing, purchasing, international
trade, strategic planning, member relations, and education.
Staff members use various databases, conduct surveys by mail and
telephone, and conduct on-site interviews. To reach an objective, CS may provide
assistance directly or serve as a catalyst in bringing together the
best available resources. CS works closely with specialists with
other State and Federal agencies, cooperatives, and other public and
private institutions.
Cooperative Services
(CS)
Links
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