Homegrown Prosperity: A Rural Cooperative Development Initiative

“Our childcare providers need more support.” “Residents need affordable housing.” “We want to keep jobs in the community.” “There aren’t a lot of places to buy groceries.” These are sentiments I have heard from people across Kansas and Missouri. I have also heard: “We have people who want to work together to solve the problem.” Cooperative businesses are an exciting way for people to come together to solve these shared challenges.

I have been working on the Homegrown Prosperity project over the past few months to bring free education about cooperative business structures to rural Kansans and Missourians and to let people know about the resources available to support new and existing co-ops. 

Co-ops are defined by the International Cooperative Alliance as an “autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise.” Co-ops are democratically operated, made up of members who each get one vote and elect a board to represent their interests and steer the business. Co-ops are organized on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity, and these values are used to inform business decisions and engagement with membership and the community. Thanks to these organizational foundations, co-ops can be a great way for folks in rural communities to work together and solve shared challenges.

Why Co-ops Now?

As we watch the news unfold on our phones and TV screens, it’s easy to be overwhelmed by the state of things. But when we step back and take a breath, we might recognize that we share challenges with our neighbors. Whatever problem you’re trying to solve, it’s likely that someone in your own community has the same issue. In the face of economic uncertainty, consolidation, and income inequality, cooperation improves market access for small businesses.

Not Your Grandparents’ Co-ops

Lots of us remember our parents or grandparents using co-ops, including agricultural co-ops started by farmers unions. Co-ops can be a great option for improving the viability of small farms. But did you know that co-ops can be used in industries besides agriculture? Here are some exciting examples.

Grocery stores: During the natural foods boom of the 1970s, people could pool their time and money to buy specialty foods and sell them as a co-op. This model still works for rural communities to bring grocery stores selling staples or specialty goods to their towns. It can also help improve access to local foods and provide an outlet for farmers and producers to sell their goods.

Electric co-ops: Rural areas were slowly electrified, often years after nearby cities. Electric co-ops were formed when rural residents joined together to bring infrastructure to their homes, schools, farms, and businesses, and they still provide power to members today. Utility co-ops use democratic principles to ensure they are serving customers’ needs.

Childcare and Homeschool: Instead of several small businesses trying to access the same thing, like food, health insurance, or accounting services, childcare providers or homeschool families can form a co-op to improve their purchasing power and decrease the amount of repeated labor. The co-op model can also be used to hire employees and solve other logistical problems, allowing businesses to expand their capacity and care for or educate more children.

Worker-owned business: When a business owner is ready to move on or retire, it can be hard to decide what to do. The business may have dedicated employees and be an important part of community life, and the owner certainly poured a lot of energy into building the business. One solution is transitioning the business to a worker-owned business, which is a type of co-op. Employee-owned stores, restaurants, and farms can be a great way to keep jobs in the community, while still allowing the original owner to move into the next chapter of their lives.

Food hubs: Smaller farms may not have enough produce to fulfill larger orders from schools, restaurants, or institutions. Food hubs allow producers to aggregate produce and sell in higher quantities. This model makes it easy for businesses looking to purchase local food without having to contact several local farms.

Co-ops can be a modern solution that brings people together to pool resources and share risk. These businesses can improve access to needed resources and provide good jobs. When communities work together, we can compete in a challenging economy.

What Can Homegrown Prosperity Offer?

The Homegrown Prosperity project can offer education for rural counties and provide technical assistance to groups considering the co-op model. Education can be an introduction to co-ops and how they work, or it can be tailored to the needs of your group. We also offer co-op readiness assessments, which is an in-depth conversation with me to see where you’re at as you develop your business. After that, we can determine if you’re ready for tailored technical support covered by the Homegrown Prosperity project and match you to a provider. 

I would love to hear more about your community and your business idea! Please email me at kara@kansasfarmersunion.org to chat more.