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CE1

Cooperative EssentialsIntroduction to Cooperatives

Unit: Cooperative Essentials

Lesson Title: Introduction to Cooperatives

Standards

CRP.04.01. Speak using strategies that ensure clarity, logic, purpose and professionalism in formal and informal settings. ABS.01.03. Devise and apply management skills to organize and run an AFNR business in an efficient, legal and ethical manner. ABS.04.01. Analyze characteristics and planning requirements associated with developing business plans for different types of AFNR businesses.ABS.04.02. Develop production and operational plans for an AFNR business.

CCSS.ELA-Literacy.L.11-12.1 Demonstrate command of the conventions of standard English grammar and usage when writing or speaking. CCSS.ELA-Literacy.L.11-12.2 Demonstrate command of the conventions of standard English capitalization, punctuation, and spelling when writing. CCSS.ELA-Literacy.SL.11-12.1 Initiate and participate effectively in a range of collaborative discussions (one-on-one, in groups, and teacher-led) with diverse partners on grades 11–12 topics, texts, and issues, building on others’ ideas and expressing their own clearly and persuasively.CCSS.ELA-Literacy.SL.11-12.5 Make strategic use of digital media (e.g., textual, graphical, audio, visual, and interactive elements) in presentations to enhance understanding of findings, reasoning, and evidence and to add interest. CCSS.ELA-Literacy.SL.11-12.4 Present information, findings, and supporting evidence, conveying a clear and distinct perspective, such that listeners can follow the line of reasoning, alternative or opposing perspectives are addressed, and the organization, development, substance, and style are appropriate to purpose, audience, and a range of formal and informal tasks. CCSS.ELA-Literacy.W.11-12.2 Write informative/explanatory texts to examine and convey complex ideas, concepts, and information clearly and accurately through the effective selection, organization, and analysis of content.CCSS.ELA-Literacy.SL.11-12.3 Evaluate a speaker’s point of view, reasoning, and use of evidence and rhetoric, assessing the stance, premises, links among ideas, word choice, points of emphasis, and tone used.

Student Learning Objectives

Slide 2 in CE1 Introduction to Cooperatives Lesson ObjectiveAfter completing the lesson on introduction to cooperatives, students will demonstrate their ability to apply the concept in real-world situations by obtaining a minimum score of 80% in a mock MIC Speech Contest.

Enabling ObjectivesAs a result of this lesson, the student will…

1. Define cooperatives and identify their guiding principles.2. Record the early history of cooperatives and describe the future directions of

cooperatives. 3. Explain the three different ways to categorize cooperatives. 4. Describe the benefits and challenges of forming a cooperative and build a cooperative

governance system.

Time: Approximately 120 minutes

List of Resources

International Co-operative Alliance. (2015, January). Co-operative Identity, Values & Principles. Retrieved from http://ica.coop/en/whats-co-op/co-operative-identity-values-principles

Liebrand, C., & Wadsworth, J. (2016, January). Cooperative Statistics 2014. Retrieved from http://www.rd.usda.gov/programs-services/all-programs/cooperative-programs

United States Department of Agriculture Rural Development. (2011, April). Understanding Cooperatives: Cooperative Business Principles. Retrieved from http://www.rd.usda.gov/files/CIR45_2.pdf

Wadsworth, J. J., & Eversull, E. E. (2012, November). Co-Ops 10: An Introduction to Cooperatives. Retrieved from http://www.rd.usda.gov/files/cir55.pdf

List of Tools, Equipment, and Supplies CE1 PowerPoint Presentation CE1 Activity Sheet and Evaluation Packet Note cards or small sheets of paper for review activity Magazines Scissors Tape or Glue Flip Charts

Cooperative Essentials CE1 Introduction to Cooperatives

Markers Poster Board Sticky Notes

Key TermsSlide 3 in CE1 Introduction to Cooperatives

The following terms are presented in this lesson (shown in bold italics): Cooperatives Cooperation Governance Patronage


Interest Approach: Use an interest approach that will prepare the student for the lesson. Teachers often develop approaches for their unique class and student situations. A possible approach is included here.

Slide 4 in CE1 Introduction to CooperativesCooperative Business Structure: Recall the business structures from the Agriculture Management, Economics and Sales Curriculum lesson AP3. Have students reflect on what they learned about the cooperative business structure. Write Cooperative on the white board. Based on what students learned in the previous lesson, ask students to think about the purpose of cooperatives. Guide students to write additional words on the white board to describe cooperatives (e.g., unity, member, community, values, etc.).

Once students are done writing their words on the board, assess their understanding of cooperatives. This will help gage the students’ understanding. If students are not exactly on the right track say, “I see there might still be some confusion about the purpose of cooperatives, so let’s dive deeper to learn more about the importance of this business structure.”

If students have a fundamental understanding, only teach pieces of this lesson as seen fit.


Summary of Content and Teaching StrategiesObjective 1: Define cooperatives and identify their guiding principles.

Teaching Strategies Related Content1. Review the words on the board from the

Interest Approach. From there have students determine the definition of a cooperative. This would also be a good time to utlize the chart created in AP3 to show reiterate comparisons between the different types of business structures.

Slide 5 in CE1 Introduction to Cooperatives

2. Hold an open class discussion. Guide students to name organizations, clubs, or athletic teams that believe in the same cooperative concept to achieve a “common goal.”

3. In order to reach that common goal, cooperatives first have to meet the needs of several groups.


4. Facilitate a discussion about why cooperatives would be formed.


5. Ask students if they realize cooperatives are a part of their daily lives. Write down on a sheet of scratch paper what cooperatives you think you’ve encountered in the last 24 hours.

6. Share students’ list and reveal other items they may have not thought of previously.

Define Cooperatives: A business owned or controlled by the

people that use its services and whose benefits are derived and distributed equitably on the basis of use and ownership.

This is in contract to other legal structures where ownership, control and benefits are based on level of financial investment

An autonomous association of people who voluntarily cooperate for their mutual social, economic, and cultural benefit

Overall, it is based on the concept of cooperation to achieve a “common goal.”

Cooperatives meet many groups’ needs, but typically focus on meeting the needs of one of these groups:

Consumer Needs (electric, credit union, housing, farmers)

Producer Needs (farmers, fisherman) Employee Needs (employment, employee

ownership such as Mondragon) Other Cooperatives Needs (purchasing

shared services for other co-ops)

Reasons for forming cooperatives: Founded to provided a missing service Used to avoid monopoly power Reduce overall risk in a company Achieve economies of scale Perform a combination of input

procurement, service provisions, and product marketing

Daily use of cooperatives: Electricity Cell Phones


7. Show students common examples of cooperatives and see if they recognize them.


8. Solicit ideas regarding cooperatives specific to the state of Missouri. There are many to choose from, but here are a few examples.


9. Have students to visit http://www.mic.coop/mic%20coops.html to learn about more Missouri Cooperatives. Guide them to look at 6 different cooperatives’ websites and write their mission statements or share two interesting facts about the cooperative in CE1.1.

10. When finished, students should share the mission statement for the cooperatives they researched.

11. Share with students that, “in order to uphold their mission statements, cooperatives need to have set standards.” Facilitate a discussion after having students think about an organization, sports team, or another business that has set standards or guidelines to maintain. Ask questions like, “What groups can you think of that have set standards? What are those standards? Why do you think these groups use these

Internet Food Gasoline

You may recognize these cooperatives…: ACE Hardware Store Welch’s Sunkist Ocean Spray Land O’ Lakes Dairy Farmers of America (DFA)

Missouri specific cooperatives…: MFA Oil MFA Incorporated FSC Financial Farmers Cooperative Services, Inc. Farmers Cooperative Elevator Association Show Me Ethanol LLC Show Me Energy Cooperative Mid Missouri Energy, Inc. Ray-Carroll Country Grain Growers, Inc. CoBank Ag Processing Inc. Associated Electric Cooperative Dairy Farmers of America


http://www.mic.coop/mic%20coops.html

guidelines or standards?”

12. If needed, help students relate this to FFA, “In FFA we have a guidelines and standards we need to maintain in order to help the organization move forward and be successful. Without these standards, we may not be the nation’s largest youth organization.”

13. Explain that cooperatives work the same way. They have principles that guide them towards their common goal. Let’s explore these principles.

14. Guide students to write the related content in their Guiding Principles of Cooperatives graphic organizer in CE1.2.

15. Explain that there are three main buckets such as: user-owned, user-benefitted, and user controlled that the 7 principles of cooperatives fall in to.


16. Let’s explore each of these pieces more closely.

Slide 11-14 in CE1 Introduction to Cooperatives

Guiding Principles of Cooperatives:3 Pillar Model

User-Ownedo Cooperative is owned and financed

by those who use the cooperative User-Benefitted

o Cooperative provides and distributes benefits to users based on their use

User-Controlledo Cooperative is controlled by those

who use the cooperative

7 Principle Model Voluntary and Open Membership

Membership is open to anyone without discrimination

Some memberships are closed by design and others accept members as needed

Membership is voluntary Democratic Member Control

Controlled by members who set policies and make decisions for the cooperatives

Representatives are elected to serve the membership

Voting rights are based upon the set-up of the cooperative

One member, One vote Democratic process

Member Economic Participation Members make financial

contribution to cooperative


17. After the conclusion of the principles section and students have completed their graphic organizations, ask students to share two facts about the principles, and what they find most interesting on a scratch piece of paper and wad it up.

18. Once students have their items written on scratch paper, have them make them into a ball. Then, guide students to throw them into the air. Have students pick up the scratch paper ball closest to them and share it with the class.

Surplus allocation is determined by members

Autonomy and Independence Member-controlled Self-controlled All actions of the cooperative are

acted upon on terms that maintain member control and cooperative independence

Education, Training, and Information Members, elected officials,

managers and employees are trained so they can contribute to the cooperative

Educated in order to be able to educate others on the nature of benefits of cooperatives

Cooperation Among Cooperatives Whether local, regional, national or

international, cooperatives work together to serve members and strengthen their cooperative

Concern for Community Work to sustain their local

community through policies approved by members

Community involvement through scholarships, services, and donations

Objective 2: Record the early history of cooperatives and describe the future directions of cooperatives.


Teaching Strategies Related Content

1. To gain a better understanding of cooperatives, have students conduct a web search to discover the history of cooperatives. Have students use CE1.3 to conduct their web search. Share that students can even create a timeline on their activity sheet if they would prefer.

2. To begin their search, have students use the following sources:http://www.mic.coop/index.htmlhttp://www.rd.usda.gov/files/cir55.pdf

3. Answers for discussion can be found in CE1.3 Key.

4. Assign each student one area they researched in CE1.3 and have them summarize key points in an elevator speech format in under 60 seconds to another student

5. Explain that like any other business structure, cooperatives are constantly evolving. Ask students, “Why do you think cooperatives have to continue to evolve?” Solicit responses from the class.

6. Reveal reasons cooperatives are constantly evolving. Write these on computer paper and hang around the room. As the papers are hung, facilitate a more in-depth discussion about the reasons.


7. Cut apart examples in CE1.4 prior to class.

Evolutions and Future Directions of Cooperatives in Missouri…

Reasons cooperatives are constantly evolving

Technology changes: cooperatives can help make new technology more affordable

Industry consolidation: co-ops can create competition in areas where monopolies form

Vertical Integration: offering co-op members new ways to market their products and helping new industries evolve

Meeting Member’s Evolving Needs: Offering a new service to meet changing member needs

Regulations: offering new services due to new regulations


http://www.rd.usda.gov/files/cir55.pdf

http://www.mic.coop/index.html

Once the reasons cooperatives are evolving have been discussed, give each student an example or multiple examples. Have students review the reasons placed around the room, and try to determine under which their example(s) falls. Place their example accordingly.

8. Review students’ placement of the examples and continue the discussion about how cooperatives are evolving.

9. Reference DFA.pdf on curriculum website during this discussion.

Technology changes: cooperatives can help make new technology more affordable

Example 1: An agricultural co-op delivers farmers the most technologically advanced corn, soybeans, gain, sorghum, rice, wheat, and forage seeds

Example 2: A local cooperative invests in precision agriculture technologies

Industry consolidation: co-ops can create competition in areas where monopolies form

Example 1: Forming a telecom co-op in areas where there may be only one provider

Some milk marketing cooperatives began as a result of proprietary markets refusing to buy milk from dairymen at certain times of year or simply paying very low prices.

Vertical Integration: offering co-p members new ways to market their products and helping new industries evolve

Example 1: Open a new market for corn by building and operating corn ethanol plants

Example 2: Land O’ Lakes and DFA manufacture and sell value added products such as cheese, butter and other dairy products rather than only selling milk

Example 3: AGP sells a variety of innovative products from soybeans and the farmers own the soybean processing plants

Specific examples of how DFA has joint investments in a number of other well-known brands

Meeting Member’s Evolving Needs: Offering a new service to meet changing member needs

Example 1: Rural Electric Cooperatives increasing speed of Internet with fiber delivery

Example 2: MFA developing/ selling a new seed variety or chemical to farmers to increase yield

Example 3: DFA has developed a Member


Savings Network with outside service and product suppliers to increase profitability of member farms

Regulations: offering new services due to new regulations

Example 1: Evolvement due to USDA/EPA regulations with GMOs in seed.

For example, to give members access to the latest technologies MFA provides elite genetics through MorCorn and MorSoy brands. As part of this service, the cooperative not only develops varieties with improved traits through the use of licensed GMOs that have U.S. approval, but also monitors foreign market approval to be certain that varieties will be accepted in domestic and foreign markets.

Example 2: Regulations on antibiotics in feed

USDA and FDA have stringent regulations on the use of antibiotics in feed. Through the cooperative, farmers can keep abreast of these complex, changing regulations to be certain their animal production practices meet the guidelines. MFA also works to develop new and alternative products to help the farmers meet these needs.

Objective 3: Identify the three types of cooperatives.

Teaching Strategies Related Content1. Explain that there are three major ways

categorize cooperatives


2. Further explain that while cooperatives can be separated by location, governance system, and services provided they do not

There are different ways to categorize cooperatives…

Cooperative coverage/ location Area/ geography served

Governance system Membership structure

Function or services provided


always fit neatly into one bucket.

3. Refer students back to the Missouri Institute of Cooperatives webpage under the “Cooperatives” tab. As the following topics are discussed, students can begin to determine which cooperatives fall into which categories.

4. Explain that when it comes to cooperative coverage and location, there are either local or regional cooperatives. Reveal the difference between the two.


5. Have students review the list of cooperatives on the webpage and identify three examples of local cooperatives and three examples of regional cooperatives. Record these on CE1.5.

6. Have students share their thoughts and reveal the other examples not mentioned.

7. Share with students that in terms of a governance system, there are three categories – centralized, federated and mixed. Share the difference between the three, have students find examples and record them on CE1.5.


8. Have students complete a pair share to compare answers to this portion of CE1.5.

9. Explain to students that cooperatives have a variety of functions and services they provide.


Cooperative Coverage/ Location Local Cooperatives

Serves a particular community, set of counties, or state

Approximately 40 to 50 local ag cooperatives in Missouri

Another 40 to 50 rural electric or telephone cooperatives

Multifunctional regional cooperatives Serves multiple regions, states, etc. Missouri is served by 12 or more

regional ag and farm credit cooperatives

Governance System Centralized

Single senior management team and one board

Farmers or individual consumers are the direct members of the cooperative

Federated Have other cooperatives as

members Combined

May have farmers as direct members and also have local cooperatives as members

Function or Services Provided Financing Energy Agricultural Input Cooperatives Bargaining Cooperatives Commodity-based Agricultural

Cooperatives New Generation Cooperatives


10. Direct them to this portion of CE1.5 and again have them find examples of each on the MIC webpage. Students may need to go beyond the use of MIC’s webpage (although this should be the first resource) as not all types of cooperatives are represented in the membership.

11. Have students join in triads to share answers.

Urban Cooperatives Purchasing Cooperatives Insurance Cooperatives Telephone Cooperatives

Objective 4: Describe the benefits and challenges of forming a cooperative and build a cooperative governance system.

Teaching Strategies Related Content

1. Ask students, “Based upon what we’ve discovered about cooperatives, what are some of the benefits people might see to forming a cooperative?”


2. Follow up by asking the students, “While there are a number of benefits to forming a cooperative, like any business, there are challenges. What do you think are some challenges that may arise in forming a cooperative?”


3. Unveil the PowerPoint slide and compare with list established during class discussion.


4. Discuss each benefit and challenge.

The benefits and challenges to forming an agricultural cooperative…

Benefits Access to quality services and

supplies Increase clout in marketplace Share in earnings Political action Local economy enhanced and

protected


5. There are commonalities among cooperatives. Let’s discover some of the most recognizable practices.


6. Ask students if anyone knows what a patronage refund is.

7. If students are familiar with the refund system, ask students if any of them have received a patronage refund.


8. Explain that some students may already receive a patronage refund through their SAE projects.

9. Explain to students that cooperatives may also use a limited return on equity capital as a common practice.


10. Cooperatives may also utilize other cooperatives to provide benefits to member-users. For example, members at the local level can own a wholesale grocery store.


Challenges Number of people involved Complexity of decision making Cultural perceptions Costs to buy-in

Common practices in cooperatives…

Patronage refund system Refund to members for doing

business with the cooperative After the fiscal year, a cooperative

computes its earnings on business conducted on a cooperative basis

These earnings are returned to patrons/ members as cash/ equity allocations on the basis of how much business each patron did with the cooperative

Limited return on equity capital Members receive a service not a

monetary return on capital investment

Most cooperatives don’t pay any dividends on member capital

Limiting returns on equity supports the principles of distributing benefits proportional to use

Cooperation among cooperatives Ability to pool personnel and other

assets to provide services and programs on a collaborative lower cost

Permits members of local cooperatives to participate in owning and managing fertilizer plants, food manufacturing facilities, power plants, national financial institutions, wholesale grocery and hardware distributions programs, and more

Ability to form agencies in


11. Divide students into groups. Give each group a position: members, board of directors, officers, committees, and employees. Have each group do research on their selected or given position. Tell the groups to keep their positions secret. The class will play a guess game at the end.

12. To find information for this activity, have students use the following link:http://www.rd.usda.gov/files/cir55.pdf

13. Use the activity sheet in CE1.6 to record their findings and the content in the right-hand column to assist student research as needed.

14. To share what the students learned have them play 20 questions. Have one group stand before the class. Guide the classmates outside of the group to ask questions to guess the group’s role. Students must guess the position in 20 questions or less. Also, students must ask yes or no questions to guess the role, and cannot ask “Are you members?” or another role.

15. Share a prize or incentive with the winning team.

common to negotiate for better prices on the marketing of products through economy of size

Governance, leadership, and operations: Members

Becoming a member A single cooperative can

establish its own membership criteria

Membership is typically based upon payment of nominal fee or the annual dollar amount of business and individual conducts with the cooperative or both

Member rights and responsibilities Adopt and amend the articles

of incorporation and bylaws Elect and remove directors Decided whether to dissolve,

merge or consolidate the cooperative or form a joint venture with other cooperative or non-cooperative firms

Make sure officers, directors and other agents comply with laws applicable to the cooperative and with its articles of incorporation, bylaws and membership contracts.

Members role Patronize the cooperative:

this is a responsibility, and in new generation cooperatives an obligation

Be informed about the cooperative

Be conscientious when


http://www.rd.usda.gov/files/cir55.pdf

selecting and evaluating directors

Provide necessary capital Evaluate performance of

the cooperative Board of Directors

Hire a competent manager, determine the salary, outline the duties and authority of the position and formally review his/ her performance at least annually

Adopt broad, general policies to guide the manager

Develop and adopt long-range business strategies

Require written monthly financial reports and operating statements

Direct the manager to prepare reports before the close of each year

Employ auditor Plan and conduct the annual meeting Determine the patronage refund

allocation and/or per-unit retain level Assure competent legal counsel is

available Keep a complete record of the board’s

actions Officers

President Vice president Secretary Treasurer

Committees May deal with finance, purchasing,

merchandising, and others Studies in its particular field and makes

recommendations Large associations may select an

executive committee to perform general management and oversight duties as authorized by the board

Managers Supervise and coordinate, under board

direction, the business activities of the co-op by managing the people, capital, and physical resources

Hire, train, supervise, and set compensation for employees

Oversee the detailed operations of the cooperative

Furnish information needed for long-


16. Explain to students that financing for a cooperative is critical to cooperative success.

17. There are a number of financing operations for cooperative business structures.


18. A common form of financing for cooperatives is direct investment. With this type of investment, people can buy-in to the cooperative to gain membership and voting rights.

19. Transferable delivery rights are a different way to finance cooperatives. For example, a local farmer has to deliver ‘X’ bushels to a grain elevator to make a profit.

20. Solicit responses recalling the purpose of a patronage fund. Retained margins are very similar to patronage refunds.

21. Retained margins are also known as capital credits in electric and telephone

range planning Represent the cooperative and portray

a positive image to members and community

Encourage membership and active patronage

Communicate developments at the cooperative to members

Employees Need to understand the purpose and

objectives of the cooperative Fully perform duties Understand the relationship to member-

owners Favorably represent the cooperative

Finance for a cooperative: Direct investment

Cash purchases of membership certificates, common and preferred stock or other forms of equity by the members

Provides member right to vote Minor source of equity to a

cooperative Requirement for most cooperatives

Transferable Delivery Rights Deliver or buy a set amount of

product to ensure the cooperative’s volume meets a minimum scale economy.

In new generation cooperative ethanol plants, corn deliveries are needed to ensure they operate the processing plant at full capacity and then the ethanol and byproducts are sold at a profit

Retained Margins Patronage allocated equity Share of the business profits

allocated to an individual member based on patronage

Retained equity Portion is paid to member with


cooperatives

22. Per-unit retains focus on volume or value of business conducted.


23. In contrast, non-patronage income includes all business that is conducted with people that are not members of the cooperative

24. To review this section, ask students to stand up, raise their hands and high-five a peer. When you see that each student has a partner, ask a question for them to discuss. Solicit answers. Then, signal for them to raise their hands and high-five a different partner for the next question. Ask the following questions:

Name two groups involved in the governance system.

Define patronage. How can cooperatives gain

financing? List two benefits of cooperatives. List two challenges to forming a

cooperative. What is the role of the Board of

Directors? What are the members’ roles?

balance being held in the cooperative in member’s name

Overtime this equity is retired or revolved

When a patron does business with the cooperative, the patron receives a financial return for their business

Per-Unit Retains Capital investments based on the

number of physical units handled by the cooperative or on a percentage of sales revenue

Per-unit retains focuses on the volume or value of business done with the cooperative

Non-patronage Income Business conducted with non-

members on a non-cooperative basis

Profits from non-patronage income become permanent equity

Does not need to be retired, refunded, or revolved


Review/SummarySlide 29 in CE1 Introduction to Cooperatives

Today we learned that a lot of the services we use daily are provided by various types of cooperatives at the local, regional, and national level. In today’s business world, cooperatives offer a different dynamic and structure. Cooperatives are owned and controlled by the people that use its services, and whose benefits are distributed equitably on the basis of use and ownership. Overall, it is based on the concept of cooperation to achieve a common goal. To accomplish this common goal, cooperatives must have a structured governance system that is guided by the 3 pillar and 7 principles models.

Review:

Slide 30-31 in CE1 Introduction to CooperativesClassroom Visit Guide: Get the inside scoop and personal perspective from a local cooperative leader. Use our Classroom Visit Guide to create an engaging and educational discussion about the cooperative business structure. This will help your students capture the purpose of cooperatives.

To truly gain an understanding of this type of business structure, direct the students to ask a minimum of three questions to the cooperative leader. To gain five bonus points, have students write down three facts they find the most interesting during the presentation.

Cooperatives Tic Tac Match: Break class into two teams and review the content of this lesson playing Cooperatives Tic Tac Match online.

Cooperative State of Mind: Give students a pile of magazines. Instruct them to select and cut out images or text that relates to cooperatives. Have students create a poster with the images or text they collected. The poster should represent their personal interpretation of the functions of cooperatives.

When all students are finished, have each share their Cooperative State of Mind Poster. Posters could also be viewed in an art gallery-type display where pictures are placed around the room with the artist there to explain his/her work and answer questions. The other students would browse the gallery. Complete this rotation two or three times until all students have displayed their work.

Have a final discussion on the similarities seen in all, or most, cooperative posters.

Exit cards: Students will answer the following questions on a note card or small slip of paper and hand to teacher as they exit:

What did you learn today about the cooperative business structure? What questions do you still have about cooperatives?


ApplicationExtended Activities

Invite a panel of local cooperative leaders to class to discuss their cooperative and how they vary, the pros and cons of cooperatives, why people should become members of a cooperative, etc. Vary the panel in order to get numerous opinions, ideas, and input. Each student should prepare a minimum of five questions for the panel. Student will receive five bonus points for every question they get answered. Students will write a short summary of what they found most interesting during the panel. Contact a local member or employee of a cooperative. Schedule a time to interview the member or employee. Students should ask up to 10 questions and transcribe the interview. Allow students the opportunity to create a video with the cooperative leader they decide to interview. Each student will create a five-minute PowerPoint presentation about the relationship between their SAE and cooperatives. Students need to list at least five strong connections between their project and the cooperative business structure. This can include doing business with a cooperative, similarities between with guiding principles, governance and leadership systems, future directions, etc. Schedule an Agribusiness Tour with your local cooperative for your FFA chapter to learn about their daily operations and services. Ask to speak to representatives of the cooperative throughout the tour. Have representatives share information regarding SAE projects, internships, or scholarships.

Evaluation Missouri Institute of Cooperatives Speech CE1.7

Alternate – Paper-pencil Quiz Evaluation CE1.9

Answers to EvaluationEvaluation CE1.7Answers will vary. Use the grading rubric provided in CE1.8.

Alternate Evaluation CE1.101. D2. D3. B4. C5. D6. Answer should include one of the following definitions:

a. A business owned or controlled by the people that use its services and whose benefits are derived and distributed equitably on the basis of use and ownership.

b. An autonomous association of people who voluntarily cooperate for their mutual social, economic, and cultural benefit.

7. Answers should include three of the following:


a. MFA Oilb. MFA Incorporatedc. FSC Financial d. Farmers Cooperative Services, Inc.e. Farmers Cooperative Elevator Associationf. Show Me Ethanol LLC g. Show Me Energy Cooperative h. Mid Missouri Energy, Inc.i. Ray-Carroll Country Grain Growers, Inc. j. CoBankk. Ag Processing Inc.l. Dairy Farmers of Americam. Other local Missouri cooperatives

8. Answers should include the following:a. User-Ownedb. User-Benefittedc. User-Controlled

9. Answers should include two benefits and two challengesBenefits

a. Access to quality services and suppliesb. Increase clout in marketplacec. Share in earnings d. Political actione. Local economy enhanced and protected

Challenges a. Number of people involved b. Complexity of decision makingc. Cultural perceptions d. Costs to buy-in

10. Answers should include three of the following: a. Founded to provided a missing serviceb. Used to avoid monopoly powerc. Reduce overall risk in a companyd. Achieve economies of scale e. Perform a combination of input procurement, service provisions, and product

marketing


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