Skip to Content.
Sympa Menu

market-farming - Re: [Market-farming] Growers Associations (Coop.)

market-farming AT lists.ibiblio.org

Subject: Market Farming

List archive

Chronological Thread  
  • From: "Marlin & Christine Burkholder" <burkholders AT glenecofarm.com>
  • To: "'Market Farming'" <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Growers Associations (Coop.)
  • Date: Thu, 10 Mar 2011 16:54:54 -0500

Gary,

This is an interesting article.  Can you tell me more about a “conference bridge”?

How can I learn how to set it up?

When I wrote to this “list” asking what IRS classification farmer’s markets have, I found out that some farmer’s markets have no farmers on the board.  When a nonprofit gets a 501©3 classification, their main function needs to be education.  How does a farmer/vendor fit into that as a board member?  (A 501©5 or a 501©6 classification is more fitting for a producer only market.)

I am glad to read that you are not out there seeking government grants.

Christine Burkholder

 

From: market-farming-bounces AT lists.ibiblio.org [mailto:market-farming-bounces AT lists.ibiblio.org] On Behalf Of Gary Scott
Sent: Thursday, March 10, 2011 7:31 AM
To: market-farming AT lists.ibiblio.org
Subject: Re: [Market-farming] Growers Associations (Coop.)

 


This is a very timely topic. I am one of six farms that has formed a coop. called Firsthand Farmers Cooperative. Other producers were invited to be a part of the effort, however, the founding partners wanted to limit the number of farms so we could manage the development stage. We have read allot about other cooperatives, as well as non-profits that are local distribution hubs. There are successful farmer owned and run operations around the country such as the Good Natured Family Farms in Kansas. The President, Diana Endicott, spoke at the recent VABF Conference, her recommendation was to start out as a cooperative.

 

I think this discussion has hit on an important issue, and that is that many non-profits that were formed to "help the farmer" are run by NON farmers, and are focused on grants and fund raising. They have a great feel good story, and get much press. They ultimately have to broaden their distribution to support the organization they have built. The staff get's bigger and so does the payroll! Ultimately they begin to squeeze the margin as they broaden the box store customer base. 

 

There are all these non-profits out there involved in studies on developing the "local food system" everyone wants to help the farmer distribute, or get grants to "train the farmer". The problem for the producer is the same, unless you sell DIRECT through CSA, farm markets, or direct wholesale the margin get's squeezed!    

 

Firsthand Farmers Cooperative was formed as a cooperative CSA, we have put our own money in to fund it, and have no interest in government or non-profit grants. We have rented a small building in Charlottesville, VA and will distribute to CSA members at that location on Monday, Tuesday, and Thursday. Our goal is to build the CSA model, keep our capitalization low, and grow form there. We have four produce and berry farmers, one milk and cheese producer, mushroom producer, egg producer. We will sell other farms products at retail prices and taking a percentage. Each CSA member is paying an upfront administrative fee to help with the costs. One of the farmers is the manager, and her pay will come directly from CSA fees, shares and other product sales. 

 

It has not been without challenges. We hired an attorney and signed an Agreement to Incorporate. We have also come up with an 2011 Operations Agreement that was flushed out during several meetings. One of the producers' father is a dean at a university, we used him as a facilitator during one of our last meetings. We have also started using a conference bridge for phone meetings, which are recorded. We are trying to minimize travel time and travel costs as oil prices rise.

 

Pick the right partners, agree to a model, go slowly and hire an attorney and a CPA. If it was easy everyone would be doing it!  

 

Gary Scott
--
Gary Scott
Twin Springs Farm
Shipman, VA
twinspringsfarmva AT gmail.com

434-962-9475

Live like you will die tomorrow… farm like you will live forever !

 




Archive powered by MHonArc 2.6.24.

Top of Page