The importance of the cooperative business model in our nation’s economy, and particularly rural America.
“They pool resources and deliver vital services where they’re needed most, often in rural areas, not exclusively. They’re key partners for the community,” says Rural Business Cooperative Services Deputy Administrator Victoria Collin.
Rural Utility Service Administrator Karl Elmshaueser adds, “They filled the gap when others said that it couldn’t be done or that it wasn’t cost effective. The cooperative banded together, used their resources and funds, and made that happen.”
They are among those celebrating National Cooperative Month this and every October. Now, you may not be familiar with how the cooperative business model works.
“In a lot of cases, a voluntary and open membership. They have a member control where each member has a vote that are typically economic participation by the members,” Elmshaueser said.
Collin added, “In a number of ways. They give rural entrepreneurs the tools to grow businesses and create local jobs.”
Yet Collin says you may recognize some of the brand names from cooperatives that produce items you buy at your local supermarket or retailer.
“Land O’Lakes, for example, if you’re in the butter, dairy section, Ocean Spray, for example, if you’re looking for cranberry juice or cranberries.”
While Elmshaueser says rural communities may know their cooperatives from the essential infrastructure and services they provide.
“Cooperatives provide about 13 percent of the power for all in the United States, covering 56 percent of the landmass and about 42 percent of all transmission lines across America. Co-ops, whether it’s telephone or broadband or cellular service, make sure that rural America is connected.”
The theme of this year’s National Cooperative Month is “Built for This Moment,” designed to emphasize the ability of rural cooperative businesses and services to respond to unmet or undermet needs in the communities they serve.
“In a number of ways, they give rural entrepreneurs the tools to grow businesses and create local jobs,” Collin says.
“That’s really difficult if you’re an electric co-op or any co-op, but specifically on the electric side, how much planning it takes to put other resources online,” Elmshaueser said. “It may take anywhere from four to six years or more, in some cases, to add additional power. So the importance of those co-ops doing that planning so that when we get to ‘Built for This Moment,’ all those activities have gotten them where they are today so they can continue to provide services as demand goes up.”
As Agriculture Secretary Brooke Rawlins noted in her National Cooperative Month proclamation:
“Like our farmers, ranchers, foresters and producers, cooperatives are resilient. Twenty-five percent of agricultural co-ops are more than 100 years old, sustaining communities and economies for generations.”