Equitable Sharing Concept and Business StructureFor Cooperative Alliance, based on the plan instituted by Light of Life Society in Yelm, Washington
Introduction:
Competitive farms owned by different entities may view a tenable allied relationship as difficult to implement and manage. Providing for equitable translation and distribution of wealth shared between member farms is difficult to visualize at first glance; however, with thorough foresight this goal is not only possible but also practical.
Many real obstacles relative to cooperative farms present themselves: different crops cultivated, profit relative to time of crop availability, production of the same crops on different farms, outgoing cost, incoming revenue, shared worker and customer base, distribution, legal issues, etc.
There are no existing business templates directing how farm cooperatives should be organized for best results. Each is custom built to best meet the needs of the member farms and the community that supports them. Impeccable intentions, and willingness to commit along with enthusiasm by the relevant parties help ensure that the practical becomes possible. As will be demonstrated, the express benefits to be derived from, and the means to create and manage such alliance provide impetus to overcome those above-listed obstacles.
Some potential benefits of a Cooperative farm alliance can include:
- Sell-out of most produce grown by cooperative member farms
- Maximize soil and fertilizer usage while enhancing production capabilities
- Maximize produce variety and availability to customers
- Easily managed, consolidated customer base
- Improved product and service quality
- Obtain market access or broaden market opportunities
- No price competitions (means higher profit margins)
- Ability to collectively market produce (customers desire one-stop-shop solutions)
- Ability to grow larger plantings (simplifies crop care such as spraying, fertilizing, and planting)
- Ability to purchase fertilizers, seeds, fuel, containers and other farm supplies in less expensive larger quantities (reduces individual farm input cost)
- Ability to share a more dedicated workforce
- Ability to rent and profit from already owned equipment and expertise
- Ability to co-process excess produce into derivative products (canning, restaurant, etc.)
- Ability to distribute overlapped/over planted crops to customer base (Main Store, CSA)
- Ability to generate higher cash flow (inter-farm equipment and labor rentals)
- Minimize collective workload relative to seed, fertilizer, and supply orders (handled by Coordinator)
- Minimize workload relative to servicing customers (increases productive farm time)
- Accumulative expertise is leveraged in agricultural practices and market management
- Source of local employment and income
- Isolated farms (ability to save much of our own seed without worry of seed stock contamination – lowers seed cost and increases crop productivity and viability of seed stock as genetics acclimate to local growing conditions – creates ability to sell wider variety of seed packages to local gardeners)