Sustainable Agriculture

TOGETHER WE PROSPER
Group-Based Businesses Sustaining Agriculture

in the Northeastern U.S.
Introduction
Introduction
What is Sustainable
Agriculture?
Trends in United State The Cooperative Development Institute created this group-based business
s Agriculture resource site to help farmers, agricultural service providers, and
Group-Based Business economic development professionals work together to develop the
and Sustainable Agric products, services, markets and business structures that are needed to
ulture
sustain agriculture in the Northeast.
Challenges
Opportunities Despite the impressive successes enjoyed by many group-owned agricultural

businesses, information about this approach as a strategy for sustaining
Legal Structures agriculture is widely scattered and hard to come by.
for Group-Based
Businesses
This site begins to fill that void by providing access to group-based business
The Business production, distribution and marketing concepts, models and best
Development
Process practices. In so doing we hope to not only strengthen farmer efforts at
collaboration, but equally important to contribute to the development of a
Success Stories strong network of agriculture service providers and business specialists
Resources supportive of their efforts.
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Introduction Introduction (cont.)
What is Sustainable
Agriculture?
Trends in United State And because this site is a work in progress, we encourage you to send
s Agriculture
your suggestions for improving the site, resources to add, links
Group-Based Business
and Sustainable Agric
to make, etc. to the Cooperative Development Institute:
ulture info@cooplife.coop.
Challenges
Please also note that the site is designed as a PowerPoint
Opportunities
Presentation. Please download to share with others and know
Legal Structures that more information and support is available from the
for Group-Based
Businesses Cooperative Development Institute.
The Business
Development http://www.cooplife.coop/sustag/agcoop.ppt
Process
Success Stories
Resources
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What is Sustainable
Agriculture?
Trends in United State Acknowledgements

s Agriculture
Group-Based Business This resource would not be possible without the generous support of the
and Sustainable Agric Northeast Sustainable Agriculture Research and Education Program (NE
ulture SARE - www.uvm.edu/~nesare/) and the many hours of fruitful dialogue
Challenges
and debate amongst the Sustainable Agriculture Advisory Committee for
this project.
Opportunities
Advisory Committee members include:
Legal Structures Roger Allbee, State Executive Director, USDA Farm Service Agency,
for Group-Based Colchester, VT
Businesses Marty Broccoli, Agriculture Economic Development Specialist, Department of
The Business
Agricultural, Resource & Managerial Economics, Cornell Cooperative
Development Extension-Oneida County, Ithaca, NY
Process Richard Burke, Director, Program Support, USDA Rural Development, Amherst,
MA
Success Stories Herb Cole, Jr. Professional Development Coordinator, Northeast SARE, Penn
State Univ., University Park, PA
Resources Mike Dolce, Community & Regional Outreach Specialist, USDA Rural
Development, Rutland, VT (continued)
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What is Sustainable
Agriculture?
Trends in United State Vernon Grubinger, Director, Center for Sustainable Agriculture, UVM
s Agriculture Extension, Brattleboro, VT
Group-Based Business Rick LeVitre, Regional Specialist, UVM Extension, Howe Center Business
and Sustainable Agric Park, Rutland, VT
ulture
Jan van der Heide, Extension Educator, Cornell Cooperative Extension,
Challenges Mexico, NY
Opportunities
Special thanks go to the staff of the Cooperative Development Institute, who
Legal Structures directed and coordinated the development of this online resource:
for Group-Based
Businesses
Cooperative Development Institute staff includes:
The Business Lynn Benander, Co-Director
Development
Process Lynda Brushett, Senior Partner, Sustainable Agriculture and Marketing
Jen Gutshall, Junior Partner and Grants and Projects Coordinator
Success Stories Stacey Cordeiro, Junior Partner, Cooperative Development Specialist
Resources Laurie Broussard, Office Manager (continued)
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What is Sustainable
Agriculture?
Trends in United State Special thanks also goes to the many people who provided valuable feedback
s Agriculture and substantive contributions to the website.
Group-Based Business David Holm, Program Manager, Northeast SARE, Burlington, VT
and Sustainable Agric Herb Cole, Jr. Professional Development Coordinator, Northeast SARE, Penn
ulture
State Univ., University Park, PA
Challenges Gerald Ely, Cooperative Development Specialist, USDA Rural Development,
Opportunities Tunkhannock, PA
Chris Fullerton, Manager, Tuscarora Organic Growers Cooperative, Inc.,
Legal Structures Hustontown, PA
for Group-Based
Businesses Tanya Turner, Cooperative Development Specialist, Keystone Development
Center, PA
The Business Paul Paulsen, General Manager, Vermont Quality Meats Cooperative, North
Development
Process Clarendon, VT
Amy Trubek, Executive Director, Vermont Fresh Network, Montpelier, VT
Success Stories Michael Rozyne, Managing Director, Red Tomato, Canton, MA (continued)
Resources
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What is Sustainable
Agriculture?
Trends in United State Mike Look, Foggy Bottom Wild Blueberry Co-op, East Machias, ME
s Agriculture Faith Lally-Williams, Our Family Farms of Western Massachusetts, Greenfield,
Group-Based Business MA
and Sustainable Agric Ken Marshall, President, Penn's Corner Farm Alliance, Shelocta, PA
ulture
Arthur Eve, Massachusetts Woodlands Cooperative, LLC, North Amherst, MA
Challenges
Opportunities
Legal Structures
for Group-Based
Businesses
The Business
Development
Process
Success Stories
Resources
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Introduction What is Sustainable Agriculture?
What is Sustainable
Agriculture?
Trends in United State Sustainable agriculture is a profitable way of producing high quality food and
s Agriculture fiber that:
ulture Protects and renews the natural environment,
Challenges Builds local economies, and
Opportunities
Enhances the quality of life of farmers and farm workers.
Legal Structures
for Group-Based
Businesses Development and support of group-based businesses is a strategy for
increasing the sustainability of agriculture in the northeast.
The Business
Development
Process
Success Stories
Resources
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Introduction
What is Sustainable Agriculture? (cont.)
What is Sustainable
Agriculture?
Trends in United State As defined by Congress, sustainable agriculture is an integrated system of

s Agriculture plant and animal production practices having a site-specific application
Group-Based Business that will, over the longer term:
ulture
Challenges Satisfy human food and fiber needs.
Opportunities
Enhance environmental quality and the natural resource base upon which
the agricultural economy depends.
Legal Structures Make the most efficient use of nonrenewable resources and on-farm
for Group-Based
Businesses resources and integrate, where appropriate, natural biological cycles and
controls,
The Business Sustain the economic viability of farm operations, and
Development
Process
Enhance the quality of life for farmers and society as a whole.
Success Stories
Resources
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Introduction
What is Sustainable Agriculture? (cont.)
What is Sustainable
Agriculture?
Trends in United State SARE, the Sustainable Agriculture Research and Education Program
s Agriculture (www.SARE.org) defines sustainable agriculture as an agricultural
Group-Based Business production and distribution system that:
ulture Achieves the integration of natural biological cycles and controls,
Challenges Protects and renews soil fertility and the natural resource base,
Opportunities
Optimizes the management and use of on-farm resources,
Reduces the use of nonrenewable resources and purchased production
Legal Structures inputs,
for Group-Based
Businesses
Provides an adequate and dependable farm income,
Promotes opportunity in family farming and farm communities, and
The Business Minimizes adverse impacts on health, safety, wildlife, water quality and
Development
Process the environment.
Success Stories
Resources
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Introduction
Trends in United States Agriculture
What is Sustainable
Agriculture?
Trends in United State Sustainable agriculture is a response to the challenges and opportunities
s Agriculture influencing farm production and marketing systems.
and Sustainable Agric As summarized by The Agricultural Issues Forum,
ulture http://www theagforum.com/, these trends include:
Challenges
Consolidation
Opportunities Consolidation is occurring at all levels of agriculture starting at the farm and
progressing through the supply and demand chains. Numbers of farms,
Legal Structures animal units, and agribusiness entities are declining rapidly, production
for Group-Based
Businesses per unit is increasing and new markets are emerging.
The Business Government & Regulatory Influence
Development These powerful forces are exacting various pressures on all of agriculture
Process
which result in losses to profitability and declining global
Success Stories competitiveness. As these changes occur, there will be on-going
influence by all levels of government and additional regulations and
Resources compliance requirements are certain. This influence will have an impact
on the industry's ability to remain competitive on a global scale.
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Introduction
Trends in United States Agriculture (cont.)
What is Sustainable
Agriculture?
Globalization
Trends in United State Advanced communications, technology, transportation and trade incentives as
s Agriculture well as disincentives have created an environment whereby
Group-Based Business "globalization" is occurring. Locally, our agriculture has an impact on
and Sustainable Agric the world; similarly, the world has an impact on our agriculture.
ulture
Challenges
Niche Markets
Opportunities Market and Consumer demand for specialty products, such as organic and
ethnic foods, is continuing to grow. This demand will be supplied by
Legal Structures
for Group-Based producers who see an opportunity to fulfill a philosophical goal and/or
Businesses profit from a growing segment in the marketplace.
The Business
Development Technology Advances
Process Science and industry will continue to develop tools for all aspects of
Success Stories
agricultural production that will contribute to a more efficient and
competitive agriculture. These advances will also provide tools to trace
Resources agricultural products from the field to the table.
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Introduction
What is Sustainable
Agriculture?
Trends in United State Capital/Finance

s Agriculture
Agriculture will not be exempt from the pressures faced by other
Group-Based Business businesses/industries. As financing opportunities become more
and Sustainable Agric challenging for the production farmer and industry, agriculture will
ulture
utilize precision-like management and intensify capitol. Financial sources
Challenges will continue to increase the minimum business operating standards of
Opportunities agriculture to qualify for capital and encourage competitive rates of
return when compared to non-agricultural businesses.
Legal Structures
for Group-Based
Businesses Animal Welfare
Agriculture continues to make animal welfare advances to enhance confidence,
The Business
Development provide continued access to global and local markets, and to remain
Process competitive. Animal agriculture will continue to ensure that animals are
cared for in a safe, humane and healthy manner.
Success Stories
Resources
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Introduction
What is Sustainable
Agriculture?
Trends in United State Environmental Stewardship

s Agriculture
Agriculture, government and public influence will continue to drive
Group-Based Business environmental stewardship as a top priority for American agriculture.
and Sustainable Agric Agricultural producers are establishing management practices that
ulture
conserve natural resources, not only on their farms but also in their
Challenges watershed. Government support and regulations significantly influence
Opportunities these practices.
Legal Structures
for Group-Based Workforce Development
Businesses Vocational and/or professional training and job incentives are increasingly
more critical in order to attract workers to the Agricultural industry.
The Business
Development Farmers must become highly trained managers or be willing to enlist the
Process services of a management team. Outsourcing of work will become
necessary in many operations.
Success Stories
Resources
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Introduction
What is Sustainable
Agriculture?
Trends in United State Food Safety

s Agriculture
Emphasis on food safety for the public will create new requirements (imposed
Group-Based Business by the industry and the government) for the production phase through the
and Sustainable Agric processing, shipping and sales phase. It is likely that American
ulture
agriculture will soon be expected to abide by a zero-tolerance food safety
Challenges program. This type of program will be implemented both for public
Opportunities health and safety and national security.
Legal Structures
for Group-Based Agricultures Contributions to Energy Production
Businesses Agriculture will have an increasing impact on consuming and generating
energy. New technologies will create opportunities for agriculture to
The Business
Development produce energy at the farm level to help sustain and support community
Process growth.
Success Stories
Resources
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Introduction
What is Sustainable
Agriculture?
Trends in United State Increased Public Influence

s Agriculture
There is an on-going public interest in agriculture that ranges from land
Group-Based Business stewardship, to animal welfare, to food production, to packaging. As the
and Sustainable Agric number of farmers shrink and the number of non-farmers continue to
ulture
grow, those who do not farm will have more time to become educated
Challenges and react to issues. Not only does the public have time on their side, but
Opportunities they also have numbers; therefore, it is inevitable that they will be able to
yield substantial influence. Therefore, the agricultural industry will
Legal Structures continue to become pro-active, educating and working with the public
for Group-Based
Businesses rather than re-active, a response that can create distrust and isolation.
The Business
Development
Process Copyright 2004 by Mike Brubaker
Used with permission
Success Stories
Resources
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Introduction
What is Sustainable
Agriculture? and Sustainable Agriculture
Trends in United State
s Agriculture Why are farmers forming group-based businesses?
Group-Based Business Organizing a group-based business is a strategy for dealing with trends in
ulture
todays agricultural marketplace. Group-based businesses provide a
structure for shared governance , a legal means to shield individuals and
Challenges a framework for managing the investments, cash flows and profits of new
Opportunities
income generating production or market related enterprises.
Legal Structures Farm to consumer direct marketing and the extension of farm enterprises into
for Group-Based value-added processing are emerging strategies for farm diversification
Businesses and economic enhancement. Working together in a group-based
The Business
business, farmers can achieve the scale of expertise, product and
Development financial resources needed to access direct and value-added markets.
Process
Its challenging for an individual farm to develop the expertise required, not
Success Stories only in food or fiber production, but also in value-added processing and
Resources
marketing. Being a part of a group-based business allows farmers to
access appropriate expertise in diverse areas of need.
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Introduction
What is Sustainable
Agriculture? and Sustainable Agriculture (cont.)
s Agriculture Why are farmers forming group-based businesses? (cont.)
Group-Based Business Its also challenging for farmers to come up with the money required to build
ulture
and manage processing facilities and to implement direct marketing
strategies. Being a part of a group-based business allows farmers to pool
Challenges their resources and bring in outside investors and other resources when
Opportunities
needed.
Legal Structures How can group-based agricultural businesses be structured?

for Group-Based
Businesses
There are many approaches to structuring group-based business that can help
The Business farms be more profitable in the Northeast. Group-based businesses can be
Development organized as for-profit corporations, cooperatives, limited liability
Process corporations or non-profits.
Success Stories
For-Profit group-based businesses give farmers a way to pool their capital and
Resources bring in outside capital to process and market farm products. Outside
investors and farmers together own and control the business.
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Introduction
What is Sustainable
Agriculture? and Sustainable Agriculture (cont.)
s Agriculture How can group-based agricultural businesses be structured?
(cont.)
ulture Cooperatives give farmers a way to pool their capital, and bring in limited
Challenges outside investment to process and market their products. Taxes are paid
either at the corporate level or individually when dividends are paid.
Opportunities
For-profit business pay taxes at both levels.
Legal Structures
for Group-Based Small groups of farmers can also process and market their products and enjoy
Businesses
most of the tax benefits of a cooperative without all of the red tape by
The Business forming a Limited Liability Corporation (LLC).
Development
Process
Group-owned Non-profit Corporations can be organized to provide products,
Success Stories services, and other resources at a savings.
Resources
See Legal Structure section for more information.
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Introduction
Challenges
What is Sustainable
Agriculture?

s Agriculture
Group-based businesses are an economic approach to dealing with the
Group-Based Business significant challenges to profitability from:
and Sustainable Agric Depressed commodity prices,
ulture
Escalating operating costs,
Challenges Lack of access to local and regional markets,
Opportunities Lack of management expertise.
Legal Structures However, joining together with other farmers to create businesses that will
for Group-Based
Businesses address these blocks requires a tremendous investment of time, money
and energy, none of which are easily available.
The Business
Development
Process
Success Stories
Resources
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Introduction
Opportunities
What is Sustainable
Agriculture?
Trends in United State What are some of the ways challenges to farm profitability can be
s Agriculture addressed?
and Sustainable Agric To address low commodity prices:
ulture Get market focused
Challenges
Develop a profitable value-added product
Engage in joint efforts to access value-added processing
Opportunities
To address escalating operating costs:
Legal Structures Engage in cooperative purchasing of farm inputs
for Group-Based
Businesses To address lack of access to markets:
The Business
Create a market for a unique product you can produce profitably on-farm or
Development with other farmers
Process Join with other farmers to achieve market clout.
Success Stories To address a lack of management expertise:
Get training or coaching
Resources Join with other farmers to hire management expertise where its needed.
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Introduction
Opportunities (cont.)
What is Sustainable
Agriculture?
Trends in United State Can group-based businesses help farms be more profitable?
s Agriculture
Group-Based Business There are many forms and approaches for group-based businesses that can help
and Sustainable Agric farms be more profitable in the Northeast by processing and marketing
ulture farm products.
Challenges
Opportunities For-Profit Businesses give farmers a way to pool their capital and bring in
outside capital to process and market farm products. Outside investors
Legal Structures and farmers together own and control the business.
for Group-Based
Businesses
Cooperatives give farmers a way to pool their capital, and bring in limited
The Business outside investment to process and market their products. Taxes are paid
Development either at the corporate level or individually when dividends are paid.
Process For-profit business pay taxes at both levels.
Success Stories
Small groups of farmers can also process and market their products and enjoy
Resources most of the tax benefits of a cooperative without all of the red tape by
forming a Limited Liability Corporation (LLC).
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Introduction
What is Sustainable
Agriculture?

s Agriculture
Other people are establishing group-owned Non-profit Corporations that
and Sustainable Agric provide them with products, services, and other resources they need at a
ulture savings.
Challenges
See Legal Structure section for more information.
Opportunities
Legal Structures
for Group-Based
Businesses
What other opportunities exist?
The Business Innovative Education and Marketing Strategies are building consumers
Development
Process who understand the value of local farms and vote with their dollars to
support local farms. (See resources for CSAs and Buy Local
Success Stories Campaigns.)
Resources
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Introduction
What is Sustainable
Agriculture?
Trends in United State New online community technologies give farmers a way to stay more closely
s Agriculture
connected to the businesses they launch, ensuring they stay focused on
Group-Based Business meeting their needs. They also give businesses a way to stay more closely
ulture connected to their customers, conduct market research and build
customer loyalty.
Challenges
Opportunities Established group-owned businesses have learned more about keeping these
businesses farmer-owned and controlled. They are bringing in strong
Legal Structures
for Group-Based managers who understand the importance of building trusting
Businesses relationships with members and the board. Board, member, and
The Business
management development costs are being included as line items in their
Development budgets to ensure these businesses stay truly member-owned and
Process controlled.
Success Stories
Contact the Cooperative Development Institute FMI: info@cooplife.coop
Resources
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Introduction
What is Sustainable
Agriculture?

s Agriculture How can consumers help sustain agriculture in the Northeast?
ulture There is an opportunity for consumer-owned businesses (such as food coops,
Challenges spinning guilds, credit unions, etc.) and farmer-owned businesses to work
together to create vibrant local markets.
Opportunities
Legal Structures Create programs that teach young people to buy and use fresh fruits and
for Group-Based vegetables (such as Farm to School, Ag in the Classroom, 4-H, etc.).
Businesses
The Business Support buy local campaigns that educate people about the importance of
Development voting with their dollars for local products and services.
Process
Success Stories
Resources
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Introduction
Legal Structures for Group-Based Businesses
What is Sustainable
Agriculture?

s Agriculture If you have a business activity that you cannot do alone and that can be done
with others, there are many reasons to form a legal entity to support your
and Sustainable Agric groups work.
ulture
Challenges
Group-based businesses with limited liability shield individuals from personal
liability for the business debts and liabilities. If the business isnt
Opportunities successful, you wont be personally liable for its debts. If a truck
overturns or something you produce makes someone ill, you are not
Legal Structures likely to be personally liable for the losses.
for Group-Based
Businesses
Group-based businesses provide a structure for shared governance. The
The Business Articles of Incorporation and By-laws lay out the structure of how
Development agreements are made, how conflicts are resolved, how profits are shared,
Process and how the business is overseen. While it is costly to put these
Success Stories
agreements together, they provide a clear framework of how group
members can successfully work together.
Resources
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Introduction
Legal Structures for Group-Based Business (cont.)
What is Sustainable
Agriculture?

s Agriculture
and Sustainable Agric Group-based businesses also can provide a corporate structure for legally
ulture managing finances and corporate records. Complying with these
Challenges corporate laws gives members greater access to information about how
money is flowing through the business and how decisions are made.
Opportunities
The Cooperative Development Institute is a resource for farmers in the
Legal Structures Northeast who are interested in forming group-based businesses. Contact
for Group-Based
Businesses them at info@cooplife.coop for assistance .
The Business
Development
Process
Success Stories
Resources
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Introduction
What is Sustainable
Agriculture?

s Agriculture Group-based businesses can operate as unincorporated groups, cooperatives,
LLCs, associations, partnerships, for-profit corporations or non-profits.
and Sustainable Agric There are advantages and disadvantages to each legal structure and the
ulture best structure depends on a detailed assessment of your needs and goals.
The following questions will help with this assessment. After you have
Challenges
answered these questions you will be ready to seek professional
Opportunities assistance.
Legal Structures
for Group-Based Who is the group that would own this new business?
Businesses
A specific kind of farmer from a specific geographic region? Which kind?
The Business From where? How many?
Development
Process
Success Stories What benefits does this group want from the business?
Resources Bulk purchasing of a product or service? Processing? Marketing? Distribution?
Waste management? Access to trained farm workers? Etc.
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Introduction
What is Sustainable
Agriculture?

s Agriculture Sources of Equity (Choose all that apply):
and Sustainable Agric Equity will come from . . .
ulture Investors (corporation)
Challenges
Members (co-op)
Supporters and Grants (non-profit)
Opportunities Owners (corporation, LLC, partnership)
Legal Structures
for Group-Based Profits (Choose all that apply):
Businesses
The Business Profits will . . .

Development Stay in the business and not be distributed (non-profit)
Process Be distributed to investors based on their investment (corporation)
Be distributed to members based on their patronage of the business
Success Stories
(co-op)
Resources
Be distributed to owners of the business (partnership, co-op or LLC)
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Introduction
What is Sustainable
Agriculture?
Trends in United State Tax Status (choose one):

s Agriculture
The business will . . .
Group-Based Business Be tax exempt and keep all profits within the business (non-profit)
and Sustainable Agric Be taxed on corporate profit and investors/members will also be taxed on their
ulture share of the profits (corporation)
Challenges
Distribute all income to members to pay taxes on their own income (partnership
or LLC)
Opportunities Be taxed EITHER on corporate profit OR investors/members will be taxed on
their share of the profits (cooperative)
Legal Structures
for Group-Based
Businesses
Ownership/Control (Check all that apply):
The Board of Directors will be appointed/elected by
The Business Board members (non-profits)
Development Investors (corporations)
Process Members (co-op)
Other organizations/businesses (LLC, co-op)
Success Stories Owners (partnership, LLC, co-op, corporation)
Resources
Other
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Introduction
What is Sustainable
Agriculture?

s Agriculture Types of Revenue (Check all that apply):
and Sustainable Agric Revenue will come from . . .
ulture
Challenges Sale of Products and Services - $/year:______
Program Fees - $/year:______
Opportunities Rental Fees - $/year: ______
Legal Structures Individual Contributions - $/year:______
for Group-Based Foundation Grants - $/year: ______
Businesses
Dues/Membership Fees - $/year:______
The Business Interest Income - $/year: ______
Development Other - $/year:______
Process
Success Stories TOTAL: $/year:_____

Resources
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Introduction
What is Sustainable Talk with a lawyer about which option is best suited for your business.
Agriculture?

s Agriculture Partnership or otherwise unincorporated groups
and Sustainable Agric Definition: Any two or more people who agree to carry on a business as co-
ulture owners for profit
Challenges Advantages: Simple to organize and maintain. Can operate more informally
and flexibly than a corporation, Profits are taxed once.
Opportunities Disadvantages: Partners are personally liable for the business debts and acts of
Legal Structures
all partners
for Group-Based
Businesses
Joint Venture
The Business
Development
Process Definition: Short term partnership
Advantages: See Partnership
Success Stories Disadvantages: See Partnership
Resources
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Introduction
Agriculture?
Trends in United State Limited Partnership

s Agriculture Definition: A Partnership where one or more Partners are the General Partners
and the other partners have limited involvement as investors in the
Group-Based Business business.
ulture Advantages: Limited partners are not liable for more than their investment if
theyre not involved in managing the business. Costly and complex to
Challenges organize and maintain. Profits are taxed once at the partner level.
Opportunities
Disadvantages: General partner is personally liable for the businesss debts
and liabilities, but this can be another legal entity such as a corporation.
Legal Structures
for Group-Based Limited Liability Partnership
Businesses Definition: A Partnership where Partners enjoy corporate-style limited liability
The Business and are only liable for their investment with the tax structure of a
Development partnership.
Process Advantages: Partners are only liable for their investment. Can operate more
informally and flexibly than a corporation. Profits are taxed once at
Success Stories partner level.
Resources
Disadvantages: Limited to specific types of businesses.
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Introduction
Agriculture?
Trends in United State Limited Liability Corporation

s Agriculture Definition: A business structure that provides the limited liability of a
corporation and the tax structure of a partnership.
Group-Based Business Advantages: Fairly simple and inexpensive to organize and maintain. Taxed
ulture once. Can be run by members or managers. Is best suited for fewer than
15 members.
Challenges Disadvantages: Cant market as a cooperative.
Opportunities
Cooperative
Legal Structures Definition: Corporation formed under state or federal laws operating on a
for Group-Based cooperative basis. Its members own and control the business. Profits
Businesses are returned to members in proportion to their use. Members elect a
The Business board. The board hires management to run the company.
Development Advantages: Good public image. Size and strength in the marketplace. Taxed
Process once. Access to co-op funding programs. Member-owned and controlled
with member effort.
Success Stories Disadvantages: Access to capital. Legal and administrative costs. Complex and
Resources
expensive to operate.
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Introduction
Agriculture?
Trends in United State For-Profit C Corporation

s Agriculture Definition: Corporation formed under state laws. Its shareholders elect the
Group-Based Business board. The board hires management to run the company.
and Sustainable Agric Advantages: Access to capital. Business flexibility. Stock can be publicly
ulture traded in certain cases.
Challenges Disadvantages: Run by managers who may or may not be stockholders. Taxed
twice. Complex and expensive to operate.
Opportunities
For-Profit S Corporation
Legal Structures
for Group-Based
Definition: Structured like a C Corporation and taxed as a partnership only
Businesses once.
Advantages: Access to capital. Only taxed once at shareholder level.
The Business Shareholders are only liable for their investment
Development Disadvantages: More complex and more costly than an LLC to organize and
Process maintain. Restricted to 75 members who are all US citizens or permanent
Success Stories resident aliens. Restricted to one class of stock. Taxes are paid by
individual whether profits are distributed or not.
Resources
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Introduction
Agriculture?
Trends in United State Non-Profit Association

s Agriculture Definition: A corporation formed for purposes other than generating a profit
but are not tax-exempt.
Group-Based Business Advantages: Good public image. Access to some government and non-profit
ulture grants. Eligible for non-profit rates.
Disadvantages: Cannot accept tax-deductible charitable contributions. Cannot
Challenges distribute profits to members. Limited to specific non-profit purposes
Opportunities
not in competition with for-profit businesses.
Legal Structures Tax-exempt, Non-Profit Corporation

for Group-Based Definition: A corporation formed for purposes other than generating a profit.
Businesses Restricted to businesses with charitable, educational, religious, literary, or
The Business scientific purposes as defined by the IRS.
Development Advantages: Good public image. Access to government and foundation grants.
Process Eligible for non-profit rates.
Disadvantages: Difficult and costly to obtain tax-exempt status. Cannot
Success Stories distribute profit to members. Narrow scope of business activities.
Resources
Restricted purposes. Limited participation in lobbying activities.
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?
Trends in United State Types of Agricultural Non-profits

s Agriculture
501(c)5 Agriculture Associations - Educational or instructive, the purpose
Group-Based Business being to improve work conditions, products and efficiency.
ulture
501(c)6 Business Leagues - Improvement of business conditions of one or
Challenges more lines of business.
Opportunities
501(c)16 - Cooperative Organization to Finance Crop Operations -
Legal Structures Financing crop operations in conjunction with activities of a marketing or
for Group-Based purchasing association.
Businesses
The Business
521(a) Farmers Cooperative Associations - Cooperative marketing and
Development purchasing for agricultural producers.
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?

s Agriculture
Group-Based Business The Cooperative Development Institute is a resource for farmers in the
and Sustainable Agric Northeast who are interested in forming group-based businesses. To
ulture
contact CDI, email info@cooplife.coop.
Challenges
Opportunities
Legal Structures
for Group-Based
Businesses
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?
Trends in United State Comparison of Different Legal Structures

s Agriculture for Group-Based Agricultural Businesses
and Sustainable Agric Who are the Owners?
ulture
Challenges
Partnership: Partners
Joint Venture: Partners
Opportunities Limited Partnership: Partners
Limited Liability Partnership: Partners
Legal Structures Limited Liability Corporation: Members
for Group-Based Cooperative: Members
Businesses
For Profit C-Corporation: Shareholders
The Business For Profit S-Corporation: Shareholders
Development Non-Profit Associations: Board or Members
Process Tax-Exempt Non-Profit: Board or Members
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?

s Agriculture for Group-based Agricultural Businesses (cont.)
and Sustainable Agric Easy for Members to own and control?
ulture
Challenges
Partnership: Yes
Joint Venture: Yes
Opportunities Limited Partnership: Yes
Limited Liability Partnership: Yes
Legal Structures Limited Liability Corporation: Yes
for Group-Based Cooperative: Yes
Businesses
For Profit C-Corporation: No
The Business For Profit S-Corporation: No
Development Non-Profit Associations: No
Process Tax-Exempt Non Profit: No
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?

and Sustainable Agric Number of Members
ulture
Partnership: Best for 15 or fewer
Challenges
Joint Venture: Best for 15 or fewer
Opportunities Limited Partnership: Best for 15 or fewer
Limited Liability Partnership: Best for 15 or fewer
Legal Structures Limited Liability Corporation: Best for 15 or fewer
for Group-Based Cooperative: Unlimited
Businesses For Profit C-Corporation: Unlimited
The Business For Profit S-Corporation: Unlimited
Development Non-Profit Associations: Unlimited
Process Tax-Exempt Non-Profit: Unlimited
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?

and Sustainable Agric Limited Liability?
ulture
Challenges
Partnership: No
Joint Venture: No
Opportunities Limited Partnership: Yes, for Limited Partners not engaged in management
Businesses
For Profit C-Corporation: Yes
The Business For Profit S-Corporation: Yes
Development Non-Profit Associations: Yes
Process Tax-Exempt Non-Profit: Yes
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?

and Sustainable Agric Taxation of Profits at Corporate and Individual Level?
ulture
Partnership: No
Challenges
Joint Venture: No
Opportunities Limited Partnership: No
Limited Liability Partnership: No
Legal Structures Limited Liability Corporation: No
for Group-Based Cooperative: No
Businesses For Profit C-Corporation: Yes
The Business For Profit S-Corporation: Generally, No
Process Tax-Exempt Non-Profit: No
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?

and Sustainable Agric Expensive to Establish and Maintain?
ulture
Partnership: No
Challenges
Joint Venture: No
Opportunities Limited Partnership: No
Limited Liability Partnership: No
Legal Structures Limited Liability Corporation: Somewhat
Development Non-Profit Associations: Yes
Process Tax-Exempt Non-Profit: Yes
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?

and Sustainable Agric Sources of Capital
ulture
Partnership: From Partners
Challenges
Joint Venture: From Partners
Opportunities Limited Partnership: From Partners
Limited Liability Partnership: From Partners
Legal Structures Limited Liability Corporation: From Partners
for Group-Based Cooperative: From Members
Businesses For Profit C-Corporation: From Stock
The Business For Profit S-Corporation: From Stock
Development Non-Profit Associations: From Members
Process Tax-Exempt Non-Profit: From Members and Grants
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Agriculture?

and Sustainable Agric Profits able to be distributed to members?
ulture
Partnership: Yes
Challenges
Joint Venture: Yes
Opportunities Limited Partnership: Yes
Process Tax-Exempt Non-Profit: No
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
The Business Development Process
What is Sustainable
Agriculture?
Trends in United State Here are the steps a group-based business can go through to ensure they
s Agriculture have a good chance of getting off to the right start:
and Sustainable Agric 1. Engage in strategic planning: Who are the members? What are our needs? What is
ulture our vision? What values are important to us? What will we sell, to whom and how?
Challenges 2. Create founding board to oversee development.
3. Invest dollars for pre-development.
Opportunities 4. Conduct feasibility study to ensure there is enough product to sell to a large enough
market for us to make money.
Legal Structures 5. Incorporate and adopt by-laws.
for Group-Based
Businesses 6. Create a business operations plan that shows how we will successfully launch the
business.
The Business 7. Sign membership agreements.
Development 8. Make equity investment.
Process 9. Raise additional equity and get financing.
10. Hire a manager and staff.
Success Stories
11. Open for business.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
The Business Development Process (cont.)
What is Sustainable
Agriculture?
Trends in United State Activities

s Agriculture
Group-Based Business Stage One: Exploration (3 - 6 months)
ulture
Explore your new business idea.
Challenges 1. Organizational Development: Form an Organizing Committee with people who
represent the businesss potential members and key stakeholders. Identify your
Opportunities
mission and core values.
Legal Structures 2. Business Development: Define your key business concept What products and
for Group-Based services might the business supply that could make a significant economic
Businesses difference in the lives of its members? Create a project development plan and
budget. Secure funds for stage one and begin fundraising for stage two.
The Business 3. Business Planning: Conduct market research to determine the need for your
Development
Process business products and services and complete your feasibility analysis to see if you
have a viable business idea.
Success Stories 4. Member Development: Share information with potential members and key
stakeholders about your business idea.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Outcomes of Stage One

s Agriculture
Group-Based Business At the end of Stage One, youll have
ulture A committed group of people who agree on what they want this business
Challenges
to sell to whom,
Opportunities Market research that shows there is a large enough market and sufficient
product to sell that the business will be financially viable and make a
Legal Structures significant economic contribution to its members,
for Group-Based
Businesses A clear plan and budget for each stage of development,
The Business
Development Funds raised to cover the cost of development for Stage One and some of
Process Stage Two, and
Success Stories Growing interest from potential members and key stakeholders
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
Group-Based Business Stage Two: Business Planning (3 6 months)
ulture
1. Business Planning: Create a business plan and marketing plan that
Challenges
describes how you will launch your business, what it will cost, and where
Opportunities youll get the money.
2. Organizational Development: Set up your founding board, incorporate
Legal Structures
for Group-Based your business, and adopt by-laws that describe how you will work
Businesses together.
3. Member Development: Recruit members and other key stakeholders for
The Business
Development your business.
Process 4. Business Development: Secure development funds for stage two and
three. Raise money (equity) from members and get a loan to launch your
Success Stories
business.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture Outcomes of Stage Two
and Sustainable Agric At the end of Stage Two, youll have
ulture
Challenges
A business plan and marketing plan showing how the business will be
launched,
Opportunities
Legal Structures
Enough members, stakeholders and money to launch your business,
for Group-Based
Businesses A legally incorporated business with a seated board and
The Business
Development Funds raised to cover the costs of development for Stage Two.
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture Activities
and Sustainable Agric Stage Three: Business Launch (2-6 months)
ulture
Challenges 1. Organizational Development: Set up office and hire staff.
2. Business Development: Contract for and market products and services.
Opportunities Pre-sell members and/or customers products and services.
Legal Structures 3. Member Development: Orient new members and key stakeholders to
for Group-Based their roles and responsibilities.
Businesses
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Outcomes of Stage Three

s Agriculture
Group-Based Business At the end of Stage Three, youll have
ulture
Initial products and services ready to offer,
Challenges
Opportunities An office set up and staffed,

Legal Structures Customers signed up for products and services, and
for Group-Based
Businesses
Members and key stakeholders educated about their rights and
The Business responsibilities.
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
Group-Based Business Stage Four: In Business
ulture
Challenges
1. Business Development: Provide products and services in response to
member needs, engage in sales and marketing and ongoing business
Opportunities development.
Legal Structures
for Group-Based 2. Organizational Development: Provide staff and management education
Businesses and engage in strategic planning.
The Business
Development 3. Member Development: Engage in member and board education.
Process
Success Stories
4. Celebration: Take time to acknowledge your accomplishments!
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Outcomes of Stage Four

s Agriculture
Group-Based Business At the end of Stage Four, youll have
ulture
A viable business, up and running, bringing economic benefit to its
Challenges members.
Opportunities
Legal Structures
for Group-Based
Businesses
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Support available from Cooperative Development Institute (CDI):
s Agriculture
To support Stage One, CDI can . . .
ulture 1. Help you put together your Organizing Committee and facilitate a
Challenges meeting where you define your mission and values,
Opportunities 2. Help you define your key business concept, facilitate project planning
sessions, and help you raise funds to support your development project,
Legal Structures
for Group-Based
Businesses 3. Help you do your market research and feasibility analysis or help you
hire a consultant to assist you,
The Business
Development 4. Help you create print resources for potential members informing them
Process about your project and
Success Stories
5. Share lessons learned by other projects and provide sample project plans,
Resources market research, feasibility analysis, and member education materials.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State To support Stage Two, CDI can . . .

s Agriculture
Group-Based Business 1. Help you create your Business Plan and Marketing Plan or hire a
ulture
consultant to assist you,
Challenges
2. Help you train your founding board and create your legal documents and
Opportunities hire a lawyer to review them.
Legal Structures
for Group-Based 3. Help you reach out to potential members and key stakeholders, share
Businesses lessons learned by other projects, and also provide sample business plans,
board policies, and legal documents.
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State To support Stage Three, CDI can . . .

s Agriculture
Group-Based Business 1. Provide start-up accounting, communications, and support staffing,
ulture
2. Provide management, staff, member and board training programs,
Challenges
Opportunities 3. Share lessons learned by other projects in Stage Three, and

Legal Structures
for Group-Based 4. Provide sample marketing materials, member orientation materials, job
Businesses descriptions and personnel handbooks.
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State To support Stage Four, CDI can . . .

s Agriculture
Group-Based Business 1. Provide ongoing support until the business starts earning a profit
ulture
2. Celebrate with you, and help you connect with other group-based
Challenges
businesses.
Opportunities
Legal Structures
for Group-Based
Businesses
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Success Stories
What is Sustainable
Agriculture?
Here is a modest, yet diverse collection of success stories showcasing the variety of ways
Trends in United State groups of farmers, consumers, and others have organized to sustain agriculture in the
s Agriculture northeast. The Cooperative Development Institute is interested in showcasing your
story. If you have a success story to share, email us at info@cooplife.coop. Be sure to
include your contact information and a brief description of your successful group-
based business.
ulture
Challenges Farmers Markets
Opportunities The number of farmers markets in the United States has grown dramatically, increasing 79
percent from 1994 to 2002. According to the 2002 National Farmers Market Directory,
Legal Structures there are over 3,100 farmers markets operating in the United States. This growth clearly
for Group-Based indicates that these markets are meeting the needs of a growing number of farmers with
Businesses small- to medium-size operations.
The Business Who benefits from farmers markets?
Development
Process Small farm operators. Those with less than $250,000 in annual receipts who work and
manage their own operations meet this definition (94 percent of all farms).
Success Stories
Farmers and consumers. Farmers have direct access to markets to supplement farm
Resources income. Consumers have access to locally grown, farm-fresh produce and the
opportunity to personally interact with the farmer who grows the produce.
Cooperative
TOGETHER WE PROSPER
Introduction
Success Stories (cont.)
What is Sustainable
Agriculture?
Trends in United State Farmers Markets (cont.)

s Agriculture
The community. Many urban communities where fresh, nutritious foods
ulture
are scarce gain easy access to food. Farmers markets also help to promote
Challenges nutrition education, wholesome eating habits, and better food preparation,
Opportunities as well as boosting the communitys economy.
Legal Structures 2000 USDA Farmers Market Study Statistics:
for Group-Based
Businesses Farmers markets are an important source of revenue. 19,000 farmers
The Business reported selling their produce only at farmers markets.
Development
Process 82 percent of markets are self-sustaining; market income is sufficient to
pay for all costs associated with the operation of the market (not
Success Stories including grant or in-kind support).
Resources
Information from: http://www.ams.usda.gov/farmersmarkets/facts.htm
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State CSA (Community Supported Agriculture)

s Agriculture
Group-Based Business A CSA consists of a community of individuals who pledge support to a farm
and Sustainable Agric operation so that the farmland becomes, either legally or spiritually, the
ulture communitys farm, with the growers and consumers providing mutual
Challenges support and sharing the risks and benefits of food production. Members
or shareholders of the farm or garden pledge in advance to cover the
Opportunities
anticipated costs of the farm operation and farmers salary. In return, they
Legal Structures receive shares in the farms bounty throughout the growing season, as
for Group-Based well as satisfaction gained from reconnecting to the land. Members also
Businesses
share in risks, including poor harvest due to unfavorable weather or
The Business pests. USDA definition
Development
Process
The first U.S. CSA was founded in Massachusetts in 1985. There are now
Success Stories more than 1,000. This growth clearly indicates that CSAs are meeting the
needs of a growing number of farmers with small- to medium-size
Resources
operations.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
CSA (cont.)
s Agriculture CSAs can be organized in different ways, but they all share several fundamental
principles:
ulture
1. They are formed by one or more farmers and a group of consumers.
Challenges 2. Consumers purchase a share in the CSA. The cost of a share is a portion of
the farmers cost of production plus a living wage.
Opportunities
Legal Structures 3. CSA farmers agree to provide a portion of their farm products to the
for Group-Based consumers who have purchased a share.
Businesses
These agreements give farmers a stable market for their products and a stable
The Business income through lean or abundant seasons. They help consumers
Development understand the joys and challenges of farming and build a relationship
Process
between farmers and consumers. Consumers can get to know who is
Success Stories producing their food and how it is produced, increasing consumer
confidence and loyalty. Consumers can also work on the farm, reducing
Resources the cost of outside farm labor.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Vermont Quality Meats Cooperative
s Agriculture P.O. Box 167
North Clarendon, VT 05759
and Sustainable Agric Phone: 802-747-5950 Fax: 802-747-5994
ulture Paul Paulsen, General Manager, p.h.paulsen@att.net
Challenges
Opportunities
Legal Structures
for Group-Based Recognizing that open markets for quality meats existed in high-end
Businesses restaurants in NY and Boston, a group of meat producers organized a 46
The Business member co-op to market and sell a diverse range of products, including
Development lamb and veal, game birds such as pheasant and quail, eggs, and suckling
Process
pigs directly to the restaurants. For three years, Vermont Quality Meats
Success Stories (VQM) has been producing, transporting and selling whole carcasses
Resources right to a chefs back door, which eliminates the middlemen.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Vermont Quality Meats (cont.)

s Agriculture
Group-Based Business VQM products have received excellent reviews from top chefs in New York
and Sustainable Agric and New England. Their products are grown on small family farms,
ulture
processed at a USDA-inspected slaughterhouse and delivered fresh to
Challenges customers. Their animals are fed primarily on milk and grains. They do
Opportunities not use growth hormones. They serve 80 customers in NY and Boston on
a weekly basis. As a cooperative, VQM can guarantee their customers a
Legal Structures consistent supply of diverse, fresh quality meats that was impossible for
for Group-Based
Businesses individual producers to manage.
The Business For small, part-time producers, joining the cooperative is a way to market their
Development
Process
products at a higher price than theyd get from wholesalers or on the
auction floor. It also gives them access to markets that they wouldnt
Success Stories
have the resources to get into on their own.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Vermont Quality Meats (cont.)

s Agriculture
Group-Based Business A part time farmer cant take the truck to New York to sell one lamb, says
and Sustainable Agric General Manager Paul Paulsen. Chefs are willing to pay higher prices
ulture
because the co-op offers a higher quality product, with better service, and
Challenges sizes that may not be available elsewhere.
Opportunities
One of the challenges of the cooperative has been to convince members to
Legal Structures think in terms of the market. The biggest problem, according to Paulsen,
for Group-Based
Businesses is getting a consistent supply from member/producers - not just to have
the product available, but to have it available exactly when the consumer
The Business
Development wants it. The cooperative has to keep working to make sure its members
Process understand how important this is to the success of the cooperative. Aside
Success Stories from that, the most critical factor for success is the commitment of
members to the idea of the cooperative to make it work.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Vermont Fresh Network

s Agriculture
116 State Street
Group-Based Business Montpelier, VT 05620-2901
and Sustainable Agric Phone: 800-658-8787 or 802-229-4706
ulture
info@vermontfresh.net, www.vermontfresh.net
Challenges Amy Trubek, Executive Director
Opportunities
Legal Structures The Vermont Fresh Network (VFN) builds innovative partnerships among
for Group-Based
Businesses farmers, chefs and consumers to strengthen Vermont's agriculture. A
strong farm economy creates local jobs, provides nutritious food and
The Business preserves the close-knit communities of Vermont. The VFN helps farms
Development
Process and restaurants team up to provide the freshest local food at restaurants.
They have produced a Dining Guide and website to link consumers and
Success Stories
chefs with Vermont farms.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Vermont Fresh Network (cont.)
s Agriculture Annee Hayden Rhoades is the owner of Cooking from the Heart, a restaurant
Group-Based Business in Waitesfield VT that is a member of the Network. She describes her
and Sustainable Agric experience with Vermont Fresh this way: We commit ourselves to
ulture support each others livelihoods in our own community and not ten states
Challenges away. It is a commitment from the chef to buy local regardless of the
cost because that is the right action. Likewise, a farmer commits back to
Opportunities the chef to supply their products regardless of the demand elsewhere. It
is a relationship where both partners take risks! When most of the
Legal Structures strawberry crop is wiped out by rain the chef can count on the farmer to
for Group-Based
Businesses serve them for Fathers Day and the farmer knows the chef will pay the
asking price and not buy from California.
The Business
Development The VFN benefits farmers and food producers because chefs are consistent,
Process knowledgeable and enthusiastic bulk buyers. For farmers, becoming a
Success Stories member of VFN formalizes their partnership with participating chefs and
provides them with a predictable outlet for their product. Partner chefs
Resources are encouraged to acknowledge their farm partners on their menus, so
farmers receive exposure directly to interested consumers.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Vermont Fresh Network (cont.)

s Agriculture
Group-Based Business Annee Hayden Rhoades also describes the community-building aspect of her
ulture
partnership with a local farmer, Dave Hartshorn. Dave works harder
than any other person I know. Seven days a week, rain or shine, he and
Challenges
his helpers are out in the fields. Dave delivers vegetables right to the
Opportunities kitchen doorstep. Knowing he is only three miles down the road is a
blessing. Over the years, our relationship grew from farmer and chef to
Legal Structures
for Group-Based friendship we run into each other socially and most important support
Businesses the other in difficult times, like the flood of 1999. And we celebrate
together at the end of the season.
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Tuscarora Organic Growers Cooperative, Inc.

s Agriculture HCR 71 Box 168-B
Group-Based Business Hustontown, PA 17229
and Sustainable Agric Phone: 814-448-2173 fax: 814-448-2333
ulture info@tog.coop, www.tog.coop
Challenges Chris Fullerton, Manager chris@tog.coop
Opportunities Tuscarora Organic Growers (TOG) is a cooperatively run wholesale distributor
of in season organic produce located in south central Pennsylvania,
Legal Structures serving customers in the Washington, DC area and other parts of the mid-
for Group-Based
Businesses Atlantic region.
The Business TOG took root in 1988 when a group of neighboring organic fruit and
Development vegetable farmers discussed the possibility of joining forces in the
Process marketing of their products. By working together, they could coordinate
Success Stories crop production to complement one another rather than compete. And
they could enjoy economies of scale in shipping and selling. The
Resources cooperative form of business fit the farmers' needs, allowing ownership
and market access to be divided fairly and decisions to be made jointly.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Tuscarora Organic Growers Cooperative (cont.)

s Agriculture
Group-Based Business And through cooperation, the growers were able to serve their customers
and Sustainable Agric better, by providing a diversity of crops and a level of service that no one
ulture grower could provide on his own. In TOG's first season, seven growers
Challenges moved about 1,500 cases of produce to Washington, DC retailers over a
five-month period. Since then, each season has brought steady growth in
Opportunities sales as well as crop diversity, season length and professionalism. In
2003, TOG worked with more than 25 producers to bring over 50,000
Legal Structures
for Group-Based cases of produce from farm to city, offering its customers locally grown,
Businesses certified organic produce all 12 months of the year.
The Business They are legally incorporated as a producer's cooperative, which means that
Development the business is owned by the farmers it serves. Theyre democratically
Process
controlled 100 percent by farmers; they have officers and a Board of
Success Stories Directors who are farmers. Co-op operating expenses are paid out of
regular commissions on sales, and any profits at the end of the year are
Resources distributed according to the growers' wishes.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Red Tomato

s Agriculture 1033 Turnpike St.
Group-Based Business Canton, MA 02021
and Sustainable Agric Phone: 781-575-8911 Fax:781-575-8915
ulture www.redtomato.org
Challenges Michael Rozyne, Managing Director, mrozyne@redtomato.org
Opportunities
Red Tomato is a not-for-profit marketing organization started in 1998 to
Legal Structures reinvent local food systems by reconnecting small-scale ecological
for Group-Based
Businesses family farmers to nearby supermarkets. Red Tomato distributes produce
from 30 family farmers to supermarkets in greater metropolitan Boston.
The Business The organization is expanding into more supermarkets, and exploring
Development new ideas to establish brand recognition.
Process
Success Stories In addition to working with local farmers, Red Tomato has also developed a
very important brokering relationship with the Federation of Southern
Resources Co-operatives (FSC), which includes 35 agricultural cooperatives from
the Black Belt of Georgia, Alabama, Mississippi and South Carolina.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Red Tomato (cont.)

s Agriculture
Group-Based Business The FSC grew out of the civil rights movement. Black farmers saw
and Sustainable Agric cooperatives as a way to get more control of their lives and land; at the
ulture same time, they were denied access to the existing white agricultural
Challenges cooperatives.
Opportunities In 2002, Red Tomato marketed 13 truckloads of seedless watermelons from the
FSC to Stop & Shop in the northeast - an endeavor that realized
Legal Structures
for Group-Based $67,540 in much-needed income for southern minority farmers and
Businesses enabled Red Tomato to market watermelons before local watermelons
were ready. What's more, the Federation was able to market an additional
The Business 130 truckloads of seeded watermelons in the southeast for a total gain of
Development $450,000.
Process
Success Stories Red Tomato has demonstrated that consumers are willing to pay a premium for
better tasting, fresher products grown by a local farm thats using
Resources innovative and safe growing methods.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Red Tomato (cont.)
s Agriculture Says Managing Director Michael Rozyne, Local strawberries are such a short-
Group-Based Business lived treat, and are so notably distinguished from California and Florida
and Sustainable Agric berries on the basis of sweetness, color, and texture, that they jump off
ulture the shelf when identified as locally-grown strawberries. In years past,
Challenges Red Tomato strawberries (from three farms in Massachusetts and
Connecticut) have sold steadily in supermarkets for $4.99 or $3.99/quart,
Opportunities side-by-side California berries that were on sale for $1.99/quart, and even
California organic berries on sale for $2.99/quart.
Legal Structures
for Group-Based
Businesses As a result, produce sold through Red Tomato is more profitable to the grower:
In 2003, Richard Bonanno of Pleasant Valley Gardens (PVG) carefully
The Business tracked his earnings through Red Tomato against sales of lettuce through
Development other channels. On gross sales to Red Tomato of $60,000, PVG earned
Process $10,000 more in net income than had the same product been sold through
Success Stories other channels. However, while the price to the grower has improved,
Red Tomato itself has not yet learned how to recover the costs of their
Resources promotions through sales alone, and still relies on grants for a part of its
income.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Red Tomato (cont.)

s Agriculture
Group-Based Business Rather than a farmer-owned cooperative, Red Tomato chose to organize as an
ulture
employee-driven non-profit, with an entrepreneurial culture and a small,
tightly knit, highly experienced group of employees. This model, they
Challenges
believe, has allowed the business to change and adapt quickly, to take
Opportunities more risks, and to minimize the bureaucracy for the farmers.
Legal Structures
for Group-Based In order to satisfy participating farmers, Red Tomato has found they need to
Businesses pay above-average prices at the same time as providing outlets where
farmers can sell significant additional volume of product. Above-average
The Business
Development prices for small volume are not worth the farmers time and energy after a
Process few years. In addition, Red Tomatos transparent business practices and
their principle of under-promise, over-deliver have become the basis of
Success Stories
trust with participating farmers.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
Foggy Bottom Wild Blueberry Co-op
P.O. Box 569
East Machias, ME 04630
ulture Phone:207-255-4167
Challenges Mike Look, michaellook501@hotmail.com
Opportunities
Foggy Bottom Wild Blueberry Co-op started up a dozen years ago
Legal Structures when nine Maine growers split away from an existing
for Group-Based
Businesses cooperative struggling with a Catch-22 that's trapped many a
The Business
good co-op. An unequal equity situation had developed. Older
Development members were paying taxes on assets they didn't own-with no
Process
guarantee of ever getting back their equity. Meanwhile newer
Success Stories members essentially got a free ride on the co-op's earlier
Resources
investment in a new receiving station. It was a tough situation
and many members drifted away.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Foggy Bottom Wild Blueberry Co-op (cont.)

s Agriculture
But some of them chose to re-group as the Foggy Bottom Co-op,
which now has about 20 farmer members with ten or twelve of
ulture them bringing in berries in any given year. They're located in the
Challenges heart of 'Down East' Maine-Washington County, where fishing
towns close up at 6:00 p.m. and come to life before dawn. It's
Opportunities
one of the lowest income-per-capita areas of Maine, and one of
Legal Structures its loveliest. People here have deep roots: the same names repeat
for Group-Based
Businesses on mailboxes and shop signs.
The Business
Development One of the most common names is Look. Michael Look is an original
Process member and president of the co-op. He explains that even though
Success Stories it was time for them to leave the older group (and clearly it was a
Resources
difficult time for everyone), the new group wasn't disillusioned
with the cooperative model.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture "It gives you moral support, for one thing," he says. Members share
experiences and information to strengthen their individual operations,
and Sustainable Agric which also benefits the co-op. But useful and rewarding as the
ulture networking is, the initial producers incorporated as a cooperative in order
Challenges
to negotiate a better price for their fruit and to lower the cost of their
inputs. These were motivation enough for them to take on running a
Opportunities business together. "You can band together and still do your own thing on
your own land," states Look.
Legal Structures
for Group-Based Here as elsewhere around the Northeast, co-ops are helping producers hang on
Businesses
to the family farm. "If a single grower approaches a processor and tries to
The Business negotiate, he will be paid what is called 'field price'," explains Mike
Development Look, noting that was 32 cents a pound from one processor in 2003. "The
Process co-op will go to the processor and say 'we have a half million to one
Success Stories
million pounds of fruit, what will you pay us?' The standard premium for
such volume is seven cents over field price. To a farmer with a hundred
Resources thousand pounds of berries that's an extra seven thousand dollars in his
pocket."
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
Foggy Bottom expects strong demand for blueberries due to new
information on the high anti-oxidant quantities in the fruit that
ulture make it a cancer preventive as well as its vision-enhancing
Challenges powers (see www.wbana.org). "All the health magazines are
saying 'eat blue'," says Look. They're even considering putting
Opportunities
them in hamburgers in schools to make them healthier for kids.
Legal Structures Blueberries are the hottest commodity on the planet right now."
for Group-Based
Businesses
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State New York Bold LLC

s Agriculture www.newyorkbold.com
Group-Based Business 315.343.5357
and Sustainable Agric judyq@newyorkbold.com
ulture
Challenges New York Bold LLC, the owners of the locally grown onions with attitude,
has the wheels turning for expansion. After an encouraging introduction
Opportunities into the market within New York State, they are increasing the
distribution of the New York Bold brand into more eastern U.S. markets.
Legal Structures In order to facilitate that growth they are contacting other grocery store
for Group-Based
Businesses chains and have been looking into purchasing additional packing and
weighing machines. Their initial plan is to install the new equipment in
The Business one of the member's existing packinghouses, with a goal of securing their
Development own facility within the next few years. New York Bold is now
Process investigating new ways to raise capital in that behalf. And while rolling it
Success Stories out prematurely could be detrimental to the business, their hope if all
continues as planned, is to expand the New York Bold to include growers
Resources from other counties and to make this a truly statewide brand in the future.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State New York Bold LLC (cont.)

s Agriculture
New York Bold is considering franchising the brand to other parts of the state
Group-Based Business and country and are in the process of researching the intricacies involved
ulture
in franchising.
Challenges Other plans for expansion of the New York Bold brand include product
Opportunities
segmentation. They are looking into various forms of onion processing,
as well as the marketing of jumbo size onions and boilers. They believe
Legal Structures that the catchy logo and slogan created for New York Bold has great
for Group-Based potential for multi-level marketing of other Bold onion products. New
Businesses York Bold is also striving to expand their presence within the
The Business
institutional and restaurant trades. They will be packaging the Bold into
Development 50-pound bags of onions to market to these customers. The excellent
Process cooking qualities of these onions lend themselves perfectly to this
channel of distribution.
Success Stories
Resources
These plans are the result of a cooperative effort by local farmers with some
support from local Cornell Cooperative Extension agents.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
Group-Based Business The New York Bold "Onions with Attitude" slogan came about in April 2000.
and Sustainable Agric Onion growers from the 14 farms in Oswego County decided to meet.
ulture The farms, collectively, represent 2,400 acres, producing 90 million
Challenges pounds of onions annually. The farmers recognized the need to create an
identity for the onions after losing business to overseas producers and to
Opportunities the so-called sweet onions. They hired an advertising agency to help
brand and create a marketing campaign. The goal was to educate the
Legal Structures consumer to use New York Bold onions for cooking. The growers formed
for Group-Based
Businesses an LLC, and launched a pilot program designed to test whether their
onions, when packaged, sold and marketed uniquely, could be a success
The Business in the market. And while the end of the test program doesnt complete
Development until May of this year, all signs indicate that consumers will be seeing a
Process lot more of New York Bolds onions with attitude.
Success Stories
With the help of some funding from Operation Oswego County and some state
Resources and federal funding, the growers purchased a Europak pre-packer. It is
one of the first to be used to package onions in the U.S.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
and Sustainable Agric The packaging on the New York Bold bag is bright red and yellow, with a logo
ulture that is distinctive and eye-catching. They also produced and sent displays
Challenges to showcase the brand, and tout the qualities of the New York Bold
onion. In mid-October, onions packaged in 2 pound bags began
Opportunities appearing on the shelves of 94 Tops Friendly Markets across New York
State, and in the five Peter's Markets in Syracuse. Following the
Legal Structures
for Group-Based successful launch of the 2 pound bag, New York Bold has been asked to
Businesses pack onions into 3 pound bags which soon will be delivered into the Tops
Markets in Ohio.
The Business
Development
Process
To increase brand recognition, New York Bold began radio advertising in the
Success Stories Buffalo market, have had appearances on WTVH Channel 5, and have
made great strides in public relations.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Our Family Farms of Western Massachusetts

s Agriculture
Phone: 413-772-2332 Fax: 413-772-8778
Group-Based Business Faith Lally-Williams
and Sustainable Agric Mapledge@crocker.com
ulture
www.ourfamilyfarms.com
Challenges
Opportunities Our Family Farms started in the spring of 1997 as the Pioneer Valley Milk
Marketing Cooperative. Members were local dairy farms in Western
Legal Structures Massachusetts, most of which had been in the same family for
for Group-Based
Businesses generations. There are seven members of the cooperative, with 767 years
of dairy farming experience among them. Our Family Farms is located in
The Business the historic Snows Dairy on School Street in Greenfield, which several
Development
Process of the member farms shipped milk to for processing in the 1950s and
1960s. Today, the plant produces premium Snow's Ice Cream and super
Success Stories
premium Barts Ice Cream.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Our Family Farms of Western Massachusetts (cont.)

s Agriculture
Group-Based Business Our Family Farms has formed a partnership of local farmers, processors,
and Sustainable Agric distributors, retailers and consumers to bring a high quality product to
ulture market - and in the process they are returning dollars back into the
Challenges community and reaching out to their neighbors in a new and exciting
way. Their focus is on traditional way of selling milk from a local farm
Opportunities to a local home.
Legal Structures
for Group-Based Special care is taken in the production of their product: None of the cows
Businesses milked by Our Family Farms are treated with rbST, a synthetic bovine
growth hormone. In fact, since the formation of Pioneer Valley Milk
The Business Marketing Cooperative, none of the members have used rbST. Now all
Development of the farms have gone even further and signed a pledge to guarantee that
Process
they do not and will not use rbST in the future. In addition, Our Family
Success Stories Farms milk is processed and kept separate from all other milk, all the way
from the farm to the store, to guarantee that the milk will meet the high
Resources taste, quality, and freshness standards of its customers.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Penns Corner Farm Alliance

s Agriculture P.O. Box 160
Shelocta, PA 15774
Group-Based Business Phone:724-465-4687 Fax: 724-465-8974
ulture Ken Marshall, President
nextlife@adelphia.net, www.pennscorner.com
Challenges
Opportunities
The Penn's Corner Farm Alliance is a group of 21 farmers in nine counties
Legal Structures surrounding Pittsburgh, which was organized in 1999 to supply fresh
for Group-Based produce to restaurants and grocery stores. They also run several CSAs
Businesses and participate in a Friday Farmers Market.
The Business
Development The idea for the Alliance came out of a 1997 survey by the Pennsylvania
Process Association for Sustainable Agriculture (PASA), which surveyed local
farmers to see if they were interested in promoting their products through
Success Stories a publication, and Pittsburgh-area chefs to learn what local products they
Resources
wanted to purchase.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Penns Corner Farm Alliance (cont.)

s Agriculture
Group-Based Business From the beginning, Penns Corner listened to the needs of area chefs. Bill
and Sustainable Agric Fuller advised the group during their formation and told them, Focus on
ulture the weird stuff. Microsprouts, unusual varieties, edible flowers, odd
Challenges greens like purslane.
Opportunities
By joining the farms together, the co-op is able to provide an abundant supply
Legal Structures as well as a wide variety of products. I tried to teach them what a chef
for Group-Based will pay money for, said Fuller. With greenhouses and other methods the
Businesses
co-op is able to supply many items all year long.
The Business
Development Margie Dagnal is one of the founders of Penns Corner, and adheres to this
Process
view: You have to know your market and ask your customers every
Success Stories week What do you want? I'd like to grow so many different herbs, but I
only have so much space, so I have to concentrate on what the chefs
Resources
really want, she says.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Penns Corner Farm Alliance (cont.)

s Agriculture
Group-Based Business The partnership with area chefs had some crucial elements. In order for chefs
ulture to want to do business with the Alliance, they had to become a year-
Challenges
round supplier. They did this by adding greenhouses, year-round meat
suppliers, and two farmers who grew products during the off-season
Opportunities mushrooms and hydroponic tomatoes.
Legal Structures
for Group-Based Doyle Freeman, another founding member says, It is very difficult for
Businesses marketing managers to go to a chef in the spring and say Hi! Here I am
The Business
again. Dependability is the most important trait when dealing with
Development chefs, they learned. Deliveries must be made on time and exactly where
Process the chefs wanted them. At first, the members rotated delivery duties.
Success Stories
Now there is one driver (with a back up) to make sure it gets done right
every time.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Proud Cow of Rhode Island

s Agriculture
Group-Based Business When a friend asked longtime Coca-Cola International distributor David Clapp
and Sustainable Agric to sit in on a grange meeting with some Rhode Island farmers, no one
ulture
could have guessed where it would lead. Clapp was moved by the plight
Challenges of the states remaining 17 independent dairy farms, many of them 4th
Opportunities generation family businesses. They knew most of what they needed to
know to run a successful milk operation, and they knew they needed to
Legal Structures band together. But after attending several meetings, Clapp also
for Group-Based
Businesses recognized that these independent-minded farmers needed some help
when it came to co-operating a business. I said, You have to come to
The Business meetings not to debate and dispute but to find unanimity, replied Clapp.
Development
Process They asked him to help.
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Proud Cow of Rhode Island (cont.)

s Agriculture
Group-Based Business Some of them thought it was a lot of, you know, MBNA sales stuff at first, but
and Sustainable Agric near the end we just kept getting closer and closer to pay dirt, and they
ulture could see that, commented Clapp. He encouraged them to stop doing
Challenges things like deciding on packaging material or analyzing the dairy
industry, admittedly complex and crisis-ridden, and instead to work
Opportunities together and create a brand.
Legal Structures
for Group-Based It was a piece of luck, hitting on that idea, he says. The farmers needed
Businesses something tangible like that to hang onto. And the brand, the name, the
caricature, Proud Cow of Rhode Island pretty much says it all. It stands
The Business for what these families are up against, the fighting spirit (and the sense of
Development humor) that brought them through.
Process
Success Stories The co-op plans to market milk only in Rhode Island, impressed with the
growing buy local trend in the dairy, egg, and meat markets as well as
Resources fruits and vegetables. They have applied for a value-added USDA Rural
Development grant to build their marketability.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Proud Cow of Rhode Island (cont.)

s Agriculture
Group-Based Business Theyve already registered a trademark, an act Clapp credits with coalescing
ulture
the group. They saw what their collective equity could do and realized
that they owned something together. Attendance at meetings went up. It
Challenges
was one of those moments, when you know its going to be a tough haul
Opportunities but with enough luck and enough strategy, you can do it.
Legal Structures
for Group-Based This success story originally appeared in the Cooperative Life Leader, CDIs
Businesses monthly email newsletter. To read more stories from CLL, visit
http://www.cooplife.co-op/magazine.htm.
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Massachusetts Woodlands Cooperative, LLC

s Agriculture
P.O. Box 9660
Group-Based Business North Amherst, MA 01059-9660
and Sustainable Agric Arthur W. Eve, aeve@comcast.net
ulture
www.masswoodlands.coop
Challenges
Opportunities
The forest of northern hardwoods, white pine and hemlock that blankets much
Legal Structures of the western Massachusetts landscape is in reality a patchwork quilt of
for Group-Based
Businesses non-industrial family plots--about 220,000 of them in all, ranging in size
from several dozen to several hundred acres. In 1999, a group of forest
The Business landowners became convinced that the problem of many small,
Development
Process privately-owned parcels was in fact an opportunity. They recognized that
a cooperative structure could enable them to strengthen their bargaining
Success Stories
power, pool their resources, add value to their forest products, enrich the
Resources local economy, and maintain the regions rural quality of life.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?
Trends in United State Massachusetts Woodlands Cooperative, LLC (cont.)

s Agriculture
Group-Based Business So they took the initiative to learn more about best forestry practices and the
and Sustainable Agric business of selling forest products, cooperatively. Support came from the
ulture
University of Massachusetts, the Massachusetts Department of
Challenges Conservation and Recreation, the Massachusetts Forest Stewardship
Opportunities Program, and the Cooperative Development Institute. The group
surveyed nearly 1,000 of the regions small landowners in order to
Legal Structures develop a list of potential services the co-op might offer. Priority was
for Group-Based
Businesses given to forest and wildlife management, preservation and protection.
They also emphasized gaining access to federal and state programs, and
The Business working with local loggers, sawmills, and manufacturers. In 2001 they
Development
Process incorporated, and since then they have continued to research and learn,
develop their land, and plan their business. Their dedication has paid off.
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
Group-Based Business On January 16th, the Massachusetts Woodlands Cooperative was awarded
and Sustainable Agric $499,523 from the US Department of Agriculture Rural Developments
ulture value-added program to expand niche markets that focus on Forest
Challenges Stewardship Council (FSC) green certified materials and other forest
products. Our support of value-added agricultural ventures is only truly
Opportunities successful when coupled with innovative ideas and initiatives like those
being developed by the Massachusetts Woodlands Cooperative, said the
Legal Structures states USDA Rural Development Director David Tuttle. This grant
for Group-Based
Businesses benefits not just the cooperative, but the environment, the community,
and the local economy.
The Business
Development USDA Rural Development's mission is to deliver programs that support
Process increasing economic opportunity and improve the quality of life of rural
Success Stories residents. As a venture capital entity, it provides equity and technical
assistance to finance and foster growth in homeownership, business
Resources development, and critical community and technology infrastructure.
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
Group-Based Business The co-op will use its grant to develop and implement niche markets for
and Sustainable Agric flooring, timber frame materials, and residual wood products such as bark
ulture
mulch, firewood, and pallet wood. To this end, they have already
Challenges obtained FSC Group Chain-of-Custody certification to monitor the
Opportunities value-added process from the forest on, and theyll establish a network of
producers interested in buying these products. In addition, the co-op will
Legal Structures assess the market potential for using forest-based biomass fuels in
for Group-Based
Businesses southern New England. An expanded database will provide detailed
information on forest material available for harvesting from co-op
The Business members, track the transformation into value added products, organize
Development
Process their business information (inventory, sales, marketing, etc.), and link to
the co-ops website so that members and those who work on members
Success Stories
land can access proprietary information more easily.
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Agriculture?

s Agriculture
Group-Based Business During the three-year grant period, the co-op also proposes to expand
and Sustainable Agric membership from the current 27, who together manage around 3,500
ulture
acres of forest land, to 125 members owning 20,000 forested acres. And
Challenges it will recruit 25 regional artisans, craftspeople and other woodworkers as
Opportunities associate members (who will receive Group FSC Chain-of-Custody
certification as a part of their membership) to create valuable products
Legal Structures from green-certified material harvested from the co-ops forest.
for Group-Based
Businesses
This success story originally appeared in the January 2004 edition of the
The Business Cooperative Life Leader. To read more stories from CDIs email
Development
Process newsletter, visit http://www.cooplife.co-op/magazine.htm.
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Resources
What is Sustainable
Agriculture?
Trends in United State Primary contacts

s Agriculture
Group-Based Business SARE and the Sustainable Agriculture Network- http://www.sare.org/
ulture SARE and SAN have great information available for people interested in
Challenges starting a business in sustainable agriculture. Also check their project
database for information on what other groups are doing.
Opportunities
Legal Structures
Northeast SARE - http://www.uvm.edu/~nesare/
for Group-Based
Businesses Cooperative Development Institute http://www.cooplife.coop/
The Business CDI is the Northeasts Cooperative Development Center providing business
Development
Process
planning, education and training, and many other services to existing and
start-up group-based businesses.
Success Stories
National Agricultural Librarys Alternative Farming Systems Information
Resources
Center, US Department of Agriculture - http://www.nal.usda.gov
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?
Trends in United State Additional Contacts

s Agriculture
Group-Based Business U.S. Department of Agriculture - http://www.usda.gov/
ulture Cornell University Cooperative Extension http://www.cce.cornell.edu/
Challenges
University of Vermont Cooperative Extension http://www.uvm.edu/~uvmext
Opportunities
University of Massachusetts Cooperative Extension -
Legal Structures http://www.umassextension.org/
for Group-Based
Businesses
University of Wisconsin Center for Cooperatives http://www.wisc.edu/uwcc/
The Business
Development University of California Davis Center for Cooperatives
Process http://cooperatives.ucdavis.edu/
Success Stories
National Cooperative Business Association http://www.ncba.coop/
Resources
National Council of Farmer Cooperatives http://www.ncfc.org
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?
Trends in United State Agriculture Related Sites

s Agriculture
Group-Based Business Regional Farm & Food Project - http://www.capital.net/~farmfood/
ulture New England Small Farm Institute http://www.smallfarm.org/ - The
Challenges Growing New Farmers section lists grants, loans, and other sources of
Opportunities
capital available to starting farmers
Legal Structures The New Farm http://www.newfarm.org/ - A farmer-to-farmer exchange

for Group-Based maintained by the Rodale Institute
Businesses
The Business
Northeast Integrated Pest Management - http://northeastipm.org/
Development
Process Pennsylvania Association for Sustainable Agriculture -
http://www.pasafarming.org/
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?
Trends in United State National Agroforestry Center - http://www.unl.edu/nac/

s Agriculture
Robyn van En Center for CSA Resources http://www.csacenter.org/
and Sustainable Agric Includes CSA farms by state
ulture
Challenges
Appropriate Technology Transfer for Rural Areas --
http://www.attra.org/attra-pub/csa.html
Opportunities
Small Farms - www.smallfarms.cornell.edu
Legal Structures
for Group-Based
Businesses Farm Transfer (new farmer, retiring, intra-family,etc.) - www.nyfarmlink.org
The Business Organic farming resources - www.organic.cornell.edu
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?

Center for Integrated Agricultural Systems
s Agriculture http://www.wisc.edu/cias
Group-Based Business Leopold Center for Sustainable Agriculture
ulture http://www.ag.iastate.edu/centers/leopold/
Challenges
Organic Farmers Research Foundation
Opportunities http://www.ofrf.org
Legal Structures Northeast Organic Farmers Association (NOFA)
for Group-Based
Businesses http://www.nofa.org/
The Business Soil and Water Conservation Society
Development
Process http://www.swcs.org/
Success Stories Yahoos list of Sustainable Agriculture sites
http://www.yahoo.com/Science/Agriculture/Sustainable_Agriculture/
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?
Trends in United State Northeast Center for Food Entrepreneurship

s Agriculture http://www.nysaes.cornell.edu/necfe/
and Sustainable Agric Agriculture Network Information Center
ulture http://www.agnic.org
Challenges
ATTRA-Appropriate Technology Transfer for Rural Area
Opportunities
http://www.attra.org
Legal Structures
for Group-Based American Farmland Trust Farmland Information Library
Businesses http://www.farmlandinfo.org
The Business
Development
Alternative Farming Systems Information Center
Process http://www.nal.usda.gov/afsic
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?
Trends in United State Small Livestock - www.sheepgoatmarketing.org

s Agriculture
Women's Agricultural Network http://www.uvm.edu/~wagn/
ulture Cooperative State Research Education and Extension Service -
Challenges
http://www.reeusda.gov/
Opportunities
Legal Structures
for Group-Based
Businesses
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?
Trends in United State Northeast Organic Dairy Producers Alliance (NODPA)

s Agriculture
Group-Based Business NODPA has three resources which may be of interest to you and dairy
ulture farmers in the Northeast:
Challenges
Opportunities
www.organicmilk.org or www.nodpa.com - Resources, calendar of
events, newletters, survey results
Legal Structures
for Group-Based The NODPA newsletter - available at the www site or by mail.
Businesses Contact Lisa McCory, NOFA-VT 848 N.
The Business
Randolph Rd., Randolph, VT 05061 or lmccory@together.net
Development
Process Odairy electronic discussion group. Odairy -
subscribe@yahoogroups.com or contact Bill Casey at bill5308@aol.com
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?

Internet Resources
s Agriculture
How To Direct Market Farm Products on the Internet is available in
Group-Based Business print and on the Internet at www.ams.usda.gov/tmd/MSB/msb/.
and Sustainable Agric For more information or to obtain a copy of the publication, contact :
ulture
Errol Bragg
Challenges USDA AMS TMP MSB
Opportunities
Room 2646 S, Stop 0269
1400 Independence Ave., SW,
Legal Structures Washington, DC 20250
for Group-Based Phone 202-720 8317 Fax 202-690 0031
Businesses Email Errol.Bragg@usda.gov.
The Business
Development
Process Value-added:
At this site you can access information about projects and organizations
Success Stories within New York State, regionally, and nationally:
http://www.cals.cornell.edu/agfoodcommunity/
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
Resources (cont.)
What is Sustainable
Agriculture?
Trends in United State Prospects for the Market for Locally Grown Organic Food in the Northeast US
s Agriculture David S. Conner, Ph. D.
Group-Based Business Department of Applied Economics and Management College of ...
ulture http://aem.cornell.edu/research/researchpdf/rb0212.pdf
Challenges
December 2002 RB 2002-12
Opportunities For a wide range of useful resources on farm management, environmental

Legal Structures issues, (and cooperatives) go to:
for Group-Based www.aem.cornell.edu
Businesses
The Business
Development
Process
Success Stories
Resources
Cooperative
TOGETHER WE PROSPER
Introduction
What is Sustainable
Resources (cont.)
Agriculture?
Trends in United State State Departments of Agriculture in the Northeast

s Agriculture
Connecticut: http://www.ct.gov/doag/
and Sustainable Agric Delaware: http://www.state.de.us/deptagri/
ulture Maine: http://www.state.me.us/agriculture/
Challenges Massachusetts: http://www.state.ma.us/dfa
Opportunities
Maryland: http://www.mda.state.md.us/
New Hampshire: http://agriculture.nh.gov/
Legal Structures New Jersey: http://www.state.nj.us/agriculture/
for Group-Based
Businesses New York: http://www.agmkt.state.ny.us/
The Business
Pennsylvania: http://www.agriculture.state.pa.us/
Development Rhode Island: http://www.state.ri.us/dem/
Process Vermont: http://www.vermontagriculture.com/
Success Stories West Virginia: http://www.wvagriculture.org/
Resources
Cooperative

Sustainable Agriculture

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Sustainable Agriculture

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TOGETHER WE PROSPER

Group-Based Businesses Sustaining Agriculture

Opportunities Despite the impressive successes enjoyed by many group-owned agricultural

Trends in United State Acknowledgements

Trends in United State As defined by Congress, sustainable agriculture is an integrated system of

Trends in United State Capital/Finance

Trends in United State Environmental Stewardship

Trends in United State Food Safety

Trends in United State Increased Public Influence

Legal Structures How can group-based agricultural businesses be structured?

Trends in United State

Trends in United State

Trends in United State

Trends in United State

Trends in United State

Trends in United State

Trends in United State

The Business Profits will . . .

Trends in United State Tax Status (choose one):

Trends in United State

Success Stories TOTAL: $/year:_____

Trends in United State

Trends in United State Limited Partnership

Trends in United State Limited Liability Corporation

Trends in United State For-Profit C Corporation

Trends in United State Non-Profit Association

Legal Structures Tax-exempt, Non-Profit Corporation

Trends in United State Types of Agricultural Non-profits

Trends in United State

Trends in United State Comparison of Different Legal Structures

Trends in United State Comparison of Different Legal Structures

Trends in United State Comparison of Different Legal Structures

Trends in United State Comparison of Different Legal Structures

Trends in United State Comparison of Different Legal Structures

Trends in United State Comparison of Different Legal Structures

Trends in United State Comparison of Different Legal Structures

Trends in United State Comparison of Different Legal Structures

Trends in United State Activities

Trends in United State Outcomes of Stage One

Trends in United State Activities

Trends in United State

Trends in United State

Trends in United State Outcomes of Stage Three

Opportunities An office set up and staffed,

Trends in United State Activities

Trends in United State Outcomes of Stage Four

Trends in United State To support Stage Two, CDI can . . .

Trends in United State To support Stage Three, CDI can . . .

Opportunities 3. Share lessons learned by other projects in Stage Three, and

Trends in United State To support Stage Four, CDI can . . .

Trends in United State Farmers Markets (cont.)

Trends in United State CSA (Community Supported Agriculture)

Trends in United State Vermont Quality Meats (cont.)

Trends in United State Vermont Quality Meats (cont.)

Trends in United State Vermont Fresh Network

Trends in United State Vermont Fresh Network (cont.)

Trends in United State Tuscarora Organic Growers Cooperative, Inc.

Trends in United State Tuscarora Organic Growers Cooperative (cont.)

Trends in United State Red Tomato

Trends in United State Red Tomato (cont.)

Trends in United State Red Tomato (cont.)

Trends in United State

Trends in United State Foggy Bottom Wild Blueberry Co-op (cont.)

Trends in United State Foggy Bottom Wild Blueberry Co-op (cont.)