Delivering value to members and their communities
By Robin Loehner
Robin Loehner of the Fatima, Mo., FFA chapter took top honors at the Missouri Institute of Cooperatives speech contest this year. Here is what she had to say about cooperatives.
Many years ago, in an oriental village, the elders decided that a mountain needed to be removed to allow for more farming. With no giant earthmoving equipment, the task was left to human hands. Thousands of people in the area participated in the venture and even accepted it as a routine matter of everyday life. Baskets of dirt were handed down from top to bottom in lines as long as 2 miles. At first, it appeared as if nothing was happening. But over a period of time, because of incredible teamwork, the commitment of thousands of people and steady day-by-day involvement, the hill gradually disappeared and nearby low ground rose into a beautiful flat farming area. One basket at a time, the villagers took a liability, a mountain, and created a valuable asset, rich farmland.
Although this was an incredible feat, the principles that allowed these villagers to move a mountain are the same principles that guide cooperatives in this country today.
Cooperatives begin with a group of concerned people who feel strongly about improving their surroundings and then work together to make it happen.
I'm going to discuss three aspects of cooperatives: 1) how cooperatives began; 2) how cooperatives deliver value to members and their communities; and 3) what lies ahead for cooperatives.
First, how did all this get started? Cooperatives in the United States date back to the Mayflower Compact in 1620. But, it wasn't until 1890 that cooperatives got a major boost when Congress passed the Sherman Antitrust Act. This Act allowed farmers to compete collectively in the marketplace.
In time, the agricultural community would prove to be the best at developing strong, viable cooperatives. MFA, Land O'Lakes and Dairy Farmers of America are just a few examples of cooperatives that developed to help farmers market their products and obtain services at fair rates. In 1933, the Farm Credit Act started the Farm Credit System, which became the framework for many cooperatives of today. In the United States, over 100 million people belong to over 45,000 cooperatives.
So how do cooperatives deliver value to members and their communities? The answer is very much like they did over 100 years ago!
Co-ops are designed to serve a specific need. I am reminded of a story of a fisherman who sat out in his boat one day catching fish. He caught several big fish and quickly threw each one of them back. Then he caught a small fish, kept it and paddled back to shore. A stranger who had been watching on the bank just had to ask, "Why did you throw those big fish back and keep this little fish?" The fisherman quickly replied, "I don't need a big fish. I only have a small frying pan."
That's the beauty of a cooperative. A cooperative is built by its members specifically to serve the needs of its members...never too much nor too little.
MFA's mission statement says it "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."
Cooperatives brought vital services like electricity to rural America at a time when rural residents had very little money or material assets. What the people did have, however, was a common need and a common goal; and they had each other. Sounds a lot like the Oriental villagers, doesn't it?
Most cooperatives today operate on several basic principles. The first is voluntary and open membership, which means anyone can join a cooperative by paying a member fee or by using the products or services offered by the cooperative. The second principle is democratic member control, which means each member has an equal voice in the company. A board of directors is elected by the members to set up and carry out company policies.
The third principle is operating at cost. End-of-the-year profits are divided among the cooperative members, who receive a refund in proportion to their use of the cooperative's products and services.
So, what lies ahead for cooperatives? Cooperatives are ever-changing, constantly striving to find new ways to provide better, more efficient and more cost-effective services to their members. Take electric cooperatives, for example.
Today, these co-ops are offering new services like Internet and cable/satellite TV, and something tells me that's only the beginning.
In addition, today we are seeing a whole new breed of cooperative called the "new generation cooperative." Unlike traditional co-ops, membership in these co-ops is restricted to those who own shares in the venture. However, the "one vote per member" principle still applies. The goal of these cooperatives is to allow farmer/members to add value to the products they produce by ensuring a market source. Northeast Missouri Grain Processors, for example, is made up of farmers who grow corn and process it into ethanol, which is then sold to companies like MFA Oil. Missouri Food and Fiber is a co-op made up of farmers who grow specialty crops mainly for export.
I have discussed how cooperatives began, how cooperatives serve members today and what lies ahead. I'd like to close with the story of a woman in a faded gingham dress. She and her husband, who was dressed in a homespun suit, stepped off a train in Boston and walked into the Harvard University president's outer office. The secretary could tell in a moment that these country hicks had no business at Harvard. She quickly told them the president would be busy all day. But the couple waited until she finally disturbed him.
When the president approached them, the woman said, "We had a son who attended Harvard for one year. He was happy here. But about a year ago, he was killed in an accident. My husband and I would like to erect a memorial to him, somewhere on campus."
The president was not touched. "Madam," he said roughly, "we can't put up a statue for every person who attended Harvard and died."
"Oh, no," the woman explained. "We would like to give a building to Harvard."
The president rolled his eyes. He glanced at the homespun suit and the gingham dress.
"A building! Do you have any earthly idea how much a building costs? We have over seven and a half million dollars in buildings at Harvard."
The woman sat silent. The president was pleased. He could get rid of them now.
Then the woman turned to her husband and said quietly, "Is that all it costs to start a University? Why don't we just go start our own?"
And that's exactly what Mr. and Mrs. Leland Stanford did. They went to California and established Stanford University, in honor of their son.
So, what's the message here? Just like Mr. and Mrs. Stanford, members of cooperatives don't let obstacles stand in their way! In fact, co-ops are created to remove the very obstacles they face. No mountain is too big for the cooperative spirit. And, although we don't know what mountain our grandchildren will face, my guess is a cooperative will help them climb it, or they might just decide to move it.
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