cooperatives: who are they? what are they? why are they important to my farming operation?

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  1. 1. Cooperatives:Whatarethey? Wherearethey?Whocares? WomenManagingtheFarmConference Manhattan,KS February5th,2015 BrianC.Briggeman AssociateProfessorand DirectoroftheArthurCapperCooperativeCenter
  2. 2. ArthurCapperCooperativeCenter Ourpurposeistodetermine,developanddeliverresearch andeducationforthecooperativecommunity. Cooperative Scholarships Cooperative Research CooperativeEducation Programs And,somuchmore www.accc.ksu.edu
  3. 3. Whatisacooperative? Atypeofcorporation.Abusiness! Acooperativeisabusinessowned and democraticallycontrolled bythepeoplewhouse itsservicesandwhosebenefits arederivedand distributedequitablyonthebasisofuse.
  4. 4. Coop 1. MaximizeMember Benefits 2. Userscanownand control 3. Patronage 4. ROI(highorlow?) Cooperativevs.InvestorOwnedFirm(IOF) IOF 1. MaximizeProfitor ShareholderWealth 2. Userstypicallydont ownandcontrol 3. Dividend 4. ROI(highorlow?)
  5. 5. CoopSpeak Patrons Members
  6. 6. Roles 1. Customer 2. Patron 3. Owners 4. Control Function 1. Profitgeneration 2. Profitdistribution (patronage) 3. Investment(stock) 4. Vote UniqueAdvantagesbutalsosomeUniqueChallenges Cooperativemembersare
  7. 7. CooperativePrinciples
  8. 8. Benefits are derived and distributed on the basis of use. Principle#1:Userbenefit
  9. 9. Distributionofprofits calledpatronage Betterprices Accesstomarkets Accesstoservices Cooperativesprovidebenefitsthrough
  10. 10. The users of the co-op own it. Principle#2:Userowner
  11. 11. Membersareactivebecausetheyprovidethe fundsforlabor,materialsandinvestment. Bybeingactive,membershopetogetmore benefitsbecausetheybothpatronize andinvest inthecoopbusiness. Cooperativemembersareactiveowners
  12. 12. The users of the co-op democratically control it. Principle#3:Usercontrol
  13. 13. Byworkingtogether,activemembersexchange informationtoenhancebenefits. Somemembersaremoreactivebecausethey serveontheboardofdirectors. StrategicdirectionofthecoopandCEOssupervisor Cooperativemembersareactiveincontrol
  14. 14. Value propositionof cooperatives
  15. 15. Threebroadcategoriesofthevalueproposition. 1. Thecoopisanextensionofthefarm 2. InvestmentinruralAmerica 3. ThePowerofPatronage
  16. 16. Thecoopisanextensionofthefarmupanddown thesupplychain. Input Producer Retailer Output Producer (Farmer) Elevator Processor EndUser Coop Coop Whatdofarmersgain?
  17. 17. Cooperativesprovidealargeinvestmentinrural America.
  18. 18. ThePowerofPatronage Patronageisan investment.Thatis,a growergetsequityinan agribusinessjustbydoing businesswiththecoop.
  19. 19. CooperativesareaprominentpartoftheU.S. economy,especiallyinruralAmerica 3principlesdefinecooperatives Userbenefit Userowner Usercontrol Cooperativesareveryimportantagribusinesses! Benefittoactivemembers AninvestmentinruralAmerica Cooperativesareimportanttoagriculture
  20. 20. Thankyou. WomenManagingtheFarmConference Manhattan,KS February5th,2015 BrianC.Briggeman AssociateProfessorand DirectoroftheArthurCapperCooperativeCenter

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