In 1964, former Minnesota Governor and then U.S. Secretary of Agriculture Orville Freeman proclaimed October National Co-op Month. Since then, the month has served as a time when cooperatives and their members make a special effort to educate the public about their member-owned and member-controlled business form. This year’s theme, “Collaborate, Communicate, Cooperate,” emphasizes how great things happen when people join forces to collaborate and cooperative.
What is a Cooperative?
According to the Cooperative Network, cooperatives are businesses organized by people to provide needed goods and services. In particular, cooperative businesses:
are owned by the people who use their services
provide an economic benefits for their members are democratic organizations, controlled by their members
are autonomous and independent recognize the importance of education about cooperative business and organizational practices
support cooperation among cooperatives, which has resulted in the growing importance of cooperatives in today’s global economy exhibit concern for the communities
There are currently over 29,000 cooperatives in the United States, serving an estimated 100 million members. Worldwide, there are an estimated 750,000 cooperatives that serve over 800 million members. Top cooperatives represent a diverse mix of industries: agriculture, food, hardware, health care, finance, utilities, bottling, recreational equipment, and communications.
Minnesota was one of the first states to enact a law authorizing cooperatives when former Governor Luther Youngdahl signed the first official October Co-op Month proclamation in 1948, at the request of the Minnesota Association of Cooperatives (MAC), now Cooperative Network. The state currently has the largest number of cooperatives in the nation. Types of cooperatives include: grain, farm supply, and fuel, dairy, electric, housing, farm credit services, credit unions, health care, ethanol, food, telecommunications, and sugar.
The History of Cooperatives:
According to the Cooperative Development Foundation, the earliest cooperatives appeared in Europe in the late 18th and 19th centuries during the Industrial Revolution. As people moved from farms into the growing cities, they had to rely on stores to feed their families because they could no longer grow their own food. Working people had very little control over the quality of their food or living conditions. Those with money gained more and more power over those without. Early co-ops were set up as a way to protect the interests of the less powerful members of society – workers, consumers, farmers, and producers.
In the United States, cooperatives of one sort or another have roots going back to colonial times. Like their counterparts in England, these early groups experimented with ways to band together and gain economic clout. One of the earliest co-ops was established in 1752 by Benjamin Franklin and is in operation to this day – the Philadelphia Contributorship for the Insurance of Homes from Loss by Fire. It is the oldest continuing co-op in the United States.
Prairie Roots Food Cooperative:
The Red River Valley is home to dozens of cooperatives, including the Prairie Roots Food Cooperative. Prairie Roots is a food cooperative serving the Red River Valley. According to their website, Prairie Roots is “dedicated to building a healthy community by providing access to natural, organic, and locally produced food.” Their goal is to create positive change in the region by influencing the production, distribution, and enjoyment of food in order to offer members a choice of products and information that promote personal, economic, and environmental health and sustainability.
Tim Mathern is President of Prairie Roots. Originally from rural North Dakota, Mathern has a long history with co-ops. “The local Farmers Union Oil Co-op, Co-op Elevator, and Edgeley Credit Union were major businesses in our little town that my family interacted with,” he said. “My first savings account was opened at the credit union to which I deposited earnings I made from selling ducks at age twelve.” Mathern is a big proponent of cooperatives. “Co-ops not only offer a product to consumers, they also teach people about making decisions in consensus with others,” he explained, adding that because ownership is with the members, operating a co-op is a practice in democracy.
Mathern believes that co-ops appeal to people because they offer a service not available through other private initiatives. “If you care about growing the quality of life in a community and you are willing to be a positive force in serving others,” he said, “join a co-op.” Mathern believes that the Red River Valley has a great need for a full-service food cooperative that sells locally grown organic foods. “I encourage everyone to join the Prairie Roots Food Cooperative.”
Central Minnesota Credit Union:
Central Minnesota Credit Union (CMCU) is a member-owned financial cooperative with locations in sixteen Minnesota cities, including Moorhead. Every member is an owner and earnings are returned through better rates on savings and loans and lower fees. According to their website, CMCU was chartered in 1939 under the philosophy of “people helping people” and “is committed to serving our communities by sponsoring events, volunteering, and contributing to local organizations. In 2012, the cooperative gave back over $190,000 to local community organizations. CMCU offers a variety of services, including checking and savings, auto and mortgage loans, farm and business loans, health savings accounts, and retirement accounts.
Mike Edenborg has been the Moorhead Branch Manager at Central Minnesota Credit Union since July 2012, when CMCU merged with the Moorhead Federal Credit Union. “A credit union co-op has the same products and services as traditional banks,” Edenborg explained, “but members enjoy lower/less fees, lower loan rates, and higher savings.”
Red River Valley Cooperative Power Association:
Halstad’s Red River Valley Co-op has been delivering electric energy to its member-owners since 1939. According to Rich Whitcomb, Member Services Director, the co-op’s goal is to “provide members with the best value for their energy dollar.” Whitcomb believes that it is that goal, and not the quest to increase profit margins, that separates RRV Co-op from traditional organizations, explaining that any profits are returned to the members as capital credits. “In seventy-six years of operation, we have returned over $6 million in capital credits,” he said.
The co-op was originally started by rural townspeople and farmers who were living without electricity. “Nobody wanted to serve them,” Whitcomb explained, “because it wasn’t profitable.” The people got together and formed the co-op, which then secured electricity for the region. “Most people flip on a light switch and don’t think about where it is coming from,” Whitcomb said. “It’s something we all take for granted, but we are only a generation removed from not having it at all.”
Kragness Farmers Elevator:
Kragness Farmers Elevator has been serving the farmers of the Red River Valley for over one hundred years. With locations in Kragness, Dilworth, and Sabin, the cooperative is dedicated to providing farmers with the best possible prices and returning profits to their pockets. “The farmers own the cooperative,” explained Dilworth General Manager Todd Dravland, “and have a say in how things are run,” adding that he believes it is the friendliness of co-ops that make them unique. “Co-ops are a declining image of our landscape,” he said. “Fortunately, Kragness continues to grow and serve farmers’ needs.”
Dravland has spent twenty-three years managing farm elevators. He wholeheartedly believes in the mission of cooperatives and enjoys working for the farmer, not a company. “Farmers can walk in my door and discuss problems or anything,” he said. “You won’t often find that with a private company.”
Collaborate, Communicate, Cooperate:
The essence of cooperatives is the belief that the combined effect of collaboration is great than the sum of the individual parts. This belief was articulated by Arthur Potts Dawson, chef and creator of the People’s Supermarket Cooperative in London, who said, “We are stronger as a group than as an individual.” Those not familiar with the cooperatives located in the Red River Valley would be wise to take advantage of the opportunity to “collaborate, communicate, and cooperate.”
Collaborate, Communicate, Cooperate