Ryan Skipper, Chillicothe, Mo., won the statewide public speaking contest sponsored by the Missouri Institute of Cooperatives. Here is his winning speech.

The quarterback steps up to the center. He calls out a quick play change to his team. The center hikes the ball. With 30 seconds left in the game, the quarterback fakes a hand-off to the running back, steps back and begins to look for his receiver. He spots his tight end open down the field. He then steps up into the pocket and throws the ball. The ball is caught and the receiver begins to make his way to the goal line. As he runs down the yard lines, a few of his teammates help the receiver by picking up key blocks along the way. The fans rise to their feet and shout, "five, four, three, two, one, touchdown!" The home team picks up the win! Some fans in the crowd point out that the quarterback or the receiver was the key to that play. However, what many fail to realize is that the key to the game was every player on the team playing as a team. A team is a group of people working together to achieve a goal or obtain a profit for the team, not the individual. The same definition can be said about a cooperative.

A cooperative is a business built by its members for its members.

Becoming a member requires a simple fee or using the products or services offered by the cooperative. A board of directors is elected by the members to voice their opinions and set up company policies. The manager of a cooperative is the head of day-to-day guidelines of the company. Members receive a patronage that is a refund in proportion to their use of the cooperative's products and services. A cooperative's one goal, its way of winning the game, is to provide a community with a needed service or product. This goal is well stated in the MFA mission statement: "MFA Incorporated will always strive to improve the economic position of the farmer/owner by providing a select number of quality products and services on a timely basis." Still, an even more wondrous story than the make up of a cooperative is the history of cooperatives.

Cooperatives in the United States date back to the Mayflower Compact in 1620. However, the first widely cited cooperative was Benjamin Franklin's Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. A major step to help cooperatives was made in 1890 when Congress passed the Sherman Antitrust Act. This act allowed farmers to compete collectively in the market.

The Capper-Volstead Act of 1922 specifically recognized cooperatives, giving them more latitude to organize and operate. In 1933 the Farm Credit System was started with the Farm Credit Act. These cooperatives were run by their own principles and bylaws, which led to many of the cooperatives that we know today. All cooperatives share a common group of tenets: the five basic pillars or principles. Number one is operating at cost. End-of-the-year profits are divided among the members.

The second pillar is the one vote process. This ensures an equal voice in the company, regardless of the member's status.

The third principle is open membership. That means anyone can join a cooperative.

Fourth is a limited return on member-invested capital. Interest is paid for the use of money the members have invested in the cooperative.

The remaining pillar is continuous education. All members are regularly informed of how the company works and the importance of its existence.

In the United States over 100 million people belong to some 47,000 cooperatives. Approximately 4,100 agricultural cooperatives are made up of 3.9 million memberships. However, this impressive number of members has been decreasing since 1970, because of merging companies and economic tightening. In 1994, cooperatives netted almost $2 billion and employed over 175,000 people.

Farm Credit Services is a major player in agriculture today. This cooperative allows a farmer or producer to borrow money, which helps that person to meet their financial goals over a period of time. Since 1933, Farm Credit has been borrower-owned, providing credit to agricultural producers. Since Farm Credit is in competition with commercial banks, it has created healthy competition in maintaining competitive interest rates. This competition has also helped keep lending policies abreast of the changing needs of the American farmer. Because it is the largest agricultural cooperative, economically, agriculture would not be where it is today without Farm Credit Services.

Aside from the far-reaching benefits of Farm Credit Services, cooperatives like Farmers Electric Cooperative (FEC) have provided rural communities with other essential benefits. FEC provides rural areas with the same electrical benefits as their counterparts in more populated, technologically advanced cities. This company has been instrumental in bringing new industries to my hometown. This helps both the cooperative and the customers average the peak usage of electricity to keep energy costs low. Also, FEC has sponsored many social events such as a youth golf tournament and annual meetings.

During the '90s a new type of cooperative--the "new generation" cooperative--has begun to develop. Differing from traditional cooperatives, these companies have restricted membership based on the number of shares held. By purchasing stock in these companies producers are guaranteed a market source for selling or purchasing their products. By belonging to these cooperatives farmers are able to add value to the products they produce and sell. Some of these cooperatives are Golden Triangle Energy Cooperative, Adkins Energy, Golden Oval, and Northeast Missouri Grain Producers.

Here I've defined what a cooperative is, overviewed the history of cooperatives, and explained some of the key cooperative businesses in our community today. On a football team each player is responsible for their own part. Linemen make way for running backs and protect the quarterback. Running backs run the ball safely and securely. Quarterbacks are the leaders of the team. Combining members of cooperatives also makes a team. The cooperative team has yet to fumble since 1620. Cooperatives do make a difference economically in our lives today by delivering value to members and their communities.