Missouri Alternatives Center's Bimonthly Electronic Newsletter 1-800-433-3704 "AG OPPORTUNITIES" Nov-Dec 1997 (Vol 8 No 3) * Small Farms * New Family Farms * Agricultural Alternatives Cooperative Marketing Opportunities (by Loyd Wilson, Cooperative Marketing Specialist, Missouri Department of Agriculture) Small farm owners across the nation have a long history of using alternatives to sustain their operations. Growing specialized commodities and using unique production methods often creates specific marketing challenges. One of the first ways farmers learned to deal with these marketing problems was by forming a cooperative. Since the 1920's, the cooperative corporation has been a legally recognized form of business structure. Today there are more than 4,000 cooperatives in the United States that provide member-owners with needs such as marketing, purchasing, financing, housing, child care, insurance and utility services. What is a Cooperative? A cooperative is a business owned and controlled by the people that use it. The primary difference between a cooperative and other business forms is that a co-op operates to benefit the member-owners rather than earn profits for investors. Three basic principles distinguish cooperatives from investor owned firms. 1) The members or users own the business and provide needed financing. Financing a co-op can be done in many different ways. 2) The members or users control the operation of the business. Control is usually in the form of a board of directors elected by the members. Often board recommendations must be approved by the members. 3) The members or users benefit from the cooperative. Benefits may be cost savings from purchasing supplies in volume quantities, access to markets or services otherwise not available, and refunds of profits based on the members usage of the co-op. Who Starts a Cooperative? Traditionally, cooperatives were formed as a defensive reaction to a market failure. A co-op may be a good way to obtain bargaining power when marketing or purchasing. By selling or buying larger quantities, a co-op acts to offset market power advantages held by some firms. Therefore, a cooperative could be started by any group with a common economic problem. For example, rural electric cooperatives were formed as a solution to a problem that affected many people. The process of starting a new co-op is usually led by farmers that are active in other areas like civic and church groups in the community. The process of starting a new co-op is complex. Many organizational meetings are needed just to determine interest levels. Community leaders, attorneys, financial advisors, and business specialists may all be involved, but the basic needs of the future member-users are what drives the process. A group with a common bond and a strong commitment can successfully form a cooperative. Changes in Cooperative Structure In recent years all farm related businesses, including co-ops, have had to adapt to changes in economic conditions. Declining government price supports, globalization of the economy, and vertical integration have increased competition and lowered both gross and net margins. To survive, business managers have had to switch from a defensive strategy to a more offensive approach. The "new generation" cooperative has emerged as a business form that preserves many aspects of the traditional cooperative, but also addresses the special problems created by today's economy. New Generation cooperatives are formed when a group of producers become owners of a value-added business enterprise. In other words, the producers own a processing facility to add value to their own products. In essence, the producer increases his share of the consumer's dollar by becoming his own middle man. For example, Dakota Growers Pasta Company, a typical new generation cooperative, is a group of farmers that manufacture pasta from their own wheat. Some aspects of new generation co-ops are very different from traditional co-ops. The primary difference is initial producer equity. New generation cooperatives require a large investment from each producer to raise capital for facilities. It is common for a producer to invest $12-15,000 to become a member. The investment provides capital for the co-op, but it also gives the farmer delivery rights and obligations to deliver product to the plant. These delivery rights, sometimes called shares, can be in the form of bushels, tons, or any other appropriate unit. Another significant difference is the limited membership of the new generation co-op. When enough delivery rights are sold to reach plant capacity, membership is closed. If a producer wishes to become a member of an existing new generation cooperative, he must purchase delivery rights from a current member. This feature allows a producer to decide for himself when to take equity out of the co-op. In the traditional cooperative, retained equity is revolved back to the farmer as directed by the board. Future of Cooperatives Despite the differences between the two cooperative forms, both still employ the basic principles of cooperation. They are user owned, user controlled, and provide a benefit to the user. They also share another characteristic in that each must be adaptable and well managed to survive. To compete in today's marketplace, a cooperative manager must think like the manager of an investor owned firm, while still providing the benefits of a cooperative. Traditional cooperatives that have been in operation for decades are beginning to hire well-trained managers and pay them accordingly. Many are restructuring the patronage refund process to attract and retain membership. These changes are just some of the ways cooperatives are adjusting to changing economic conditions. Both traditional and new generation cooperatives continue to be a strong part of agriculture. The many changes taking place now will ensure that cooperatives are also part of the future of agriculture. Resources Loyd Wilson, Cooperative Marketing Specialist, MO Dept of Agriculture, PO Box 630, Jefferson City, MO 65102, 573-751-4339 Kristi Livingston, Coordinator, MO Institute of Cooperatives, Univ of MO, 200 Mumford Hall, 573-882-0140 In the News The 2nd Annual Great Plains Vegetable Conference will be on Jan 9-10, 1998. It will be held at MO Western Univ in St Joseph, MO. This meeting is for vegetable growers in MO, KS, NE, and IA. The target audience will be farm market growers, market gardeners, and commercial vegetable growers. The growers associations and extension vegetable specialists of the four states are cooperating on tests and trials that will have practical value to the growers of the region. This year the program will have concurrent sessions on sweet corn, tomato, melon, and greenhouse production. Several sessions will be devoted to marketing. Topics such as herbs, organic vegetable production, and pesticides will also be discussed. Many of the speakers will be producers who are associated with the topics they are explaining. Professors from the four state universities will also present topics. There will be about 35 vendors available to provide information about seeds, irrigation, horticulture equipment, chemicals and other topics.Preregistration is $20.00 For more information contact Keith Hawxby, Horticulture Specialist, 4125 Mitchell Ave, St Joseph, MO 64507, 816-279-1691. The University of Missouri and Lincoln University are jointly co-hosting a statewide conference for people interested in sustainable agriculture entitled, "Sustaining People Through Agriculture." The conference will be Thursday, March 5 through Saturday, March 7, 1998 at the Memorial Union, MU Campus, Columbia, MO. Early Registration is $12.50/day or $30.00 for all three days. Lunches are included. On-site registration will be $17.50/day or $40.00 for all three days. A Build Your Own Exotic Banquet with foods from local growers will highlight Friday evening. The banquet is priced separately at $12.00. Child care will be available for $7.50/child/day (preregistration required). The purpose of the conference is to: 1) Demonstrate a wide diversity of successful approaches to sustaining people through agriculture in Missouri - profitable, environmentally sound, socially responsible alternatives,2) Facilitate Networking among various groups of people: farmers, organizations, universityfaculty, general public, 3) To share information from publicly funded Sustainable Agriculture Research and Education programs. The conference is designed to address interests and needs of farmers, general public, farm organizations, private/nonprofit organizations, public agencies, extension field faculty, campus faculty and others. For more information contact Debi Kelly, 628 Clark Hall, Columbia, MO 65211, 573-882-1905 or 800-433-3704 (MO only). Mite feces area a dead give-away that honey bee hives are infested with a parasite that's causing devastating damage in some areas of the US. Now, with a simple new field test developed by ARS, beekeepers can quickly determine if their hives are infested with varroa mites. Then they can act quickly to control them. Current tests for varroa mites are time-consuming and expensive, and may require pesticides. But ARS researchers found that even very low infestations of this pest can readily be detected by the brilliant white specks of its feces. Varroa mites suck blood from immature bees, mainly those in the last pre-adult stage. During a 10 to 12 day feeding period, female adult mites and offspring defecate on the horizontal brood cell wall just above each developing bee. The white feces can easily be seen if a brood comb is removed and inverted under bright sunlight. For more information contact Carl Hayden, Bee Research Lab, Tucson, AZ, 520-670-6481. (Quarterly Report, July to Sept 1997) Appropriate Technology Transfer for Rural Areas program (ATTRA) invites you to join in celebrating its 10th Anniversary by visiting its new Web site at http://www.attra.org. Giving pecan orchards a different landscape architecture by hedge-type pruning rejuvenates the trees and could increase profits. Four years of research indicate that hedged orchards and research plots avoid several disadvantages of traditional orchards. In the latter, large trees make poor use of space and light, and age-related physiology changes in the trees reduce overall yield. But hedge-style pruning can provide more uniform yields of high quality nuts. The small, pruned trees tolerate more feeding by many types of leaf-feeding insects without economic loss and require less insecticide use. They also exhibit higher photosynthetic rates than large trees. While there are many hedging options, indications are that orchards should probably be hedged on all four sides of the canopy on 1 or 4 year cycles. Canopies of individual trees should be about 20' wide and 30' tall with 30' between tree rows. For more information contact Bruce Wood, Southeastern Fruit and Tree Nut Research Lab, 912-956-6421, a031cbyron@attmail.com (Quarterly Report, July to Sept 1997) Adding oil or spice to broiler chicks' feed can help stave off intestinal parasites that cause avian coccidiosis. Coccidiosis is caused by Eimeria parasites. These parasites infect the upper,middle or lower parts of a chicken's intestines. The parasites cause intestinal lesions that hinder the bird's ability to absorb feed nutrients, severely stunting the bird's growth. Producers spend more than $100 million annually to overcome the problem by adding anticoccidial drugs to starter feeds. But growing consumer demand for drug-free poultry and Eimeria's building drug resistance have spurred the search for alternatives. ARS researchers test fed groups of day old chicks a 4 week diet of corn or soybean feed that consisted of 2 to 10 percent oil from menhaden fish, flaxseed or linseed. Birds with a 10 percent linseed oil diet had 64 percent fewer lesions from E. tenella, which attacks the sac-like portions of the small intestine called the cecum. Scientists suspect the oil triggers a biochemical response called oxidative stress that helps kill E. tenella. They also tested feeds containing curcumin. It is an antioxidant in a popular spice, turmeric. A 1 percent turmeric diet resulted in 58 percent fewer lesions from E. maxima in the middle intestine. For more information contact Patricia Allen, 301-504-8772. Parasite Biology and Epidemiology Lab, Beltsville, MD, pallen@ggpl.arsusda.gov (Quarterly Report, July to Sept 1997) Fathead minnow baitfish raised in ponds adjacent to channel catfish ponds will eat zooplankton that thrive on catfish waste. Growers simply circulate the water between the two ponds to put this environmentally friendly waste disposal system into action. ARS scientists found that the two pond system increases catfish production while reducing minnow production costs. Accumulated fish waste and uneaten feed now frequently limit farm raised channel catfish production. That's because as the waste and feed decay, the decaying process uses up oxygen in the pond, creating an unhealthy environment for the fish. Circulation helps increase oxygen levels in the water. Also, the wastewater pumped into the minnow pond provides nutrients to enrich the zooplankton on which minnows feed. This saves about $20 per pound acre instead of using fertilizer to accomplish the same thing. For more information contact Gerald Ludwig, National Aquaculture Research Center, Stuttgart, AR, 870-673-4483. (Quarterly Report, July to Sept 1997) Good news for catfish farmers: Copper sulfate, known to cut algae growth in ponds and protect fish against external parasites, won't leave unwanted copper in the fish's flesh. In a 4 year lab study for the US Food and Drug Administration, ARS scientists found edible fish flesh contained no extra copper after ponds were treated with copper sulfate. The research also showed that copper concentrations in fish liver returned to normal levels within 8 weeks. Fish farmers lose an estimated $25 million a year to external diseases in catfish. Copper sulfate has been approved by the US EPA as a herbicide to fight algae. But FDA has not yet approved it to control pathogens and parasites. FDA has deferred enforcement of regulations to restrict use of copper sulfate in aquaculture pending further studies on matters such as its potential to help or harm fish. Contact Billy Griffin, National Aquaculture Research Center, Stuttgart, AR, 870-673-4483. (Quarterly Report, July to Sept 1997) In Print *Steel in the Field: A Farmer's Guide to Weed Control Tools* $18.00. Describes in detail 37 tools and 17 accessories, includes supplier contacts, tool price ranges, resource lists, clear illustrations and farmer narratives about integrating the tools into sustainable cropping systems. Addresses the four main concerns that farmers have about mechanical weed control: cost, effectiveness, dependability and soil impact. AND *Source Book of Sustainable Agriculture*$12.00. Lists 559 resource materials covering the vast breadth of agriculture, from how to market sustainably grown vegetables to locating the latest sustainable research findings on the World Wide Web. Covers print, electronic and video resources and contact information to order them. Both available from Sustainable Agriculture Publications, Hills Bldg, Univ of VT, Burlington, VT 05405-0082, 802-656-0471, msimpson@zoo.uvm.edu. *Free-Range Poultry Production, Processing and Marketing* $44.00. Guidebook describes innovative way to raise poultry on range and market meat and eggs. Method differs from model used by Salatin in that chickens are not confined in pens, but range about 100 feet from their portable houses. Developed by producer with six years of free-range poultry experience, with the help of a SARE grant. Back Forty Books, 26328 Locust Grove Rd, Creola, OH 45622. *Making World Agriculture More Sustainable* $30.00. Edited by J. Patrick Madden and Scott G. Chaplowe. World Sustainable Agriculture Association embarked upon a project to highlight notable organizations promoting sustainable agriculture throughout the world. The 650-pages contain more than 60 organization profiles, ranging from international NGOs to grassroots organizations, and describes their efforts to make agriculture more sustainable. Concludes with a directory of 141 organizations whose work supports the cause of sustainable agriculture, a Glossary of key terms, and a detailed Subject Index. WSAA Publications, 8554 Melrose Ave, West Hollywood, CA 90069, 310-657-7202, email: WSAA@compuserve.com. *What's In A Name: Eco-Labeling In The Global Food System* $7.50. Presented by Elizabeth Barham, Dept of Rural Sociology, Cornell Univ, at the Joint Meetings of Agriculture, Food, and Human Values Society and the Association for the Study of Food and Society. Examines emerging clashes between corporations and eco-labeling proponents as reflective of a larger struggle to moderate the effects of global market liberalization on consumers, producers and environment. Copies available free via e-mail by contacting meb6@cornell.edu. Available from Elizabeth Barham, 133 Warren Hall, Cornell Univ, Ithaca, NY 14853. *Midwest Biological Control News* $12/yr hard copy, free on-line. Monthly newsletter dedicated to providing information on the use of beneficial organisms for controlling insect and mite pests of the farm, garden, and home. Web page has many links to other biological control sites. Dept of Entomology, Univ of WI, Madison, WI 53706, 608-262-9914, smahr@entomology.wisc.edu, http://www.wisc.edu/entomology/mbcn/mbcn.html. *IPMnet NEWS* free electronic Integrated Pest Management information source focused on economic, environmentally-attuned approaches to managing weeds, plant diseases, insects, nematodes, and vertebrate pests. Designed to provide balanced, worldwide "news-you-can-use" to those concerned with IPM development, research, implementation, adoption, policy, and impact. http://ipmwww.ncsu.edu/cicp/IPMnet_NEWS/news.html *Emerging Markets for Family Farms: Opportunities to Prosper Through Social and Environmental Responsibility* $7.00. Report describes strategies for farmers to market high-value products. Center for Rural Affairs, PO Box 406, Walthill, NE 68067-0406, 402-846-5428. *Watershed Currents* Free via e-mail. Contains news, events and resources about watershed organizing. Send questions to mmuller@iatp.org. Send e-mail to majordomo@igc.apc.org. In body of message type subscribe water-net. *Small Farm Digest* Free. Merger of former Small Scale Agriculture Today and Small and Part Time Farms. Quarterly newsletter for small farm managers with updates on farm related trends and developments, reviews of recent publications, and announcements of upcoming events. (If you were on the mailing list for the Small Scale Agriculture Today or Small and Part Time Farms, you will automatically get a copy.) Small Farm Digest, USDA-CSREES, Stop 2220, Washington, DC 20250, llewis@reeusda.gov. *SMALLFARM-MG* listserve. Identifies small farm contacts, farmers, and others in the public and private sectors who are interested in strengthening the capacity of small and mid-size farmers to improve their income levels through a systems approach to addressing the needs of the small farm community. To subscribe, send msg to: majordomo@reeusda.gov. Leave subject blank. In body type: subscribe smallfarm-mg. *Agricultural Production and Nutrition Conference Proceedings* $18.00. Collection of 21 papers from international conference. Explores all facets of how nutritional value of food is affected by the way it was produced. Covers biological and chemical aspects of nutrition and food quality, as well as consumers' perceptions, marketing channels, and economic considerations. Several papers discuss implications for national and international food and nutrition strategies. Agriculture & Nutrition Conference, School of Nutrition Science and Policy, Tufts Univ, Medford, MA 02155, Wlockeretz@infonet.tufts.edu. *1997 National Organic Directory* $50.95. Annually updated "yellow pages" of the organic industry. Includes 1,000+ listings of farmers, wholesalers, farm suppliers, support businesses, certification groups and resource groups. Community Alliance with Family Farmers, PO Box 363, Davis, CA 95617, 1-800-852-3832, nod@caff.org, http://www.caff.org. *Labels: Linking Consumers and Producers* Free. Monthly electronic newsletter from the Institute for Agriculture and Trade Policy (IATP). Provides news, events and resources related to the labeling of products for environmental, social and regional sustainability. Send e-mail to: majordomo@igc.apc.org. Leave subject blank. In body type: subscribe label-news. Also available, along with IATP news bulletins, http://www.sustain.org/bulletins. *Shrubs and Vines of Missouri* MO Dept of Conservation, PO Box 180, Jefferson City, MO 65102, 573-751-4115, $11.00. *Maximizing Shareholder Retention In Southeastern CSAs* Deborah J. Kane and Luanne Lohr. $8.00. Deborah Kane, 2703 NE 11th, Portland, OR 97212. *Dynamic Farmers' Marketing: A Guide to Successfully Selling Your Farmers' Market Products* $14.95 + $2.50 shipping. Bittersweet Farmstead, PO Box 52, Middlebrook, VA 24459, 540-886-8477, e-mail ish-bittersweet@juno.com. *Suppliers of Beneficial Organisms in North America* Lists 130 organisms available from 142 suppliers. Free from the CA Dept of Pesticide Regulation, Environmental Monitoring and Pest Management Branch, Attn.: Beneficial Organisms, 1020 N St, Rm 161, Sacramento, CA 95814-5624, 916-324-4100. *Sustainable Farming Systems: A Guide to the Transition, 1997* $6.50. Describes transition to sustainable agriculture by 12 CA farmers. Examines challenges and opportunities in social, economic and agricultural aspects of this transition, including soil, water and pest management. Provides brief descriptions of how farmers have made transition to sustainable practices, emphasizing general information rather than crop-specific guidelines. AND *Community Food Systems: Sustaining Farms and People in the Emerging Economy.*$10.00. Gail Feenstra, David Campbell and David Chaney, eds. Presents conference proceedings from 1996 conference on making the food system more sustainable. Papers given by speakers and workshop notes address community food systems, urban agriculture, farmers roles in community and community food security. Describes range of urban and rural projects that address issues related to sustainable food system throughout California. Includes list of conference participants. Both available from Sustainable Agriculture Research and Education Program, One Shields Ave, Univ of CA, Davis, CA 95616-8716, 916-752-7556. *The Green Food Shopper: An Activist's Guide to Changing the Food System* Mothers and Others for a Livable Planet. Gives overview of Mothers and Others Shoppers' Campaign, and explains how individuals can support transition to a sustainable food system. Provides "Activist Shopper's Tool Kit," including information about benefits of organic agriculture and health effects of pesticides; tips for convincing local supermarkets to provide better food choices; and suggestions for convincing consumers to support sustainable agriculture. Includes directory of resources related to sustainable food system and organic agriculture. 175 pp. $15 + $3 shipping. Mothers and Others, 40 West 20th St, New York, NY 10011-4211, 212-242-0010. Calendar of Events Dec 4-6 Blueprint for Eco-Farming, 1997 Acres USA Conference, St Louis, MO, call 800-355-5313. Dec 5-6 Value Added Agriculture for Producers Conference, Osage Beach, MO. Contact Matt Nichols, 816-665-9866. Dec 7-10 Midwest Fish and Wildlife Conference, Milwaukee, WI. Contact Gerald Bartelt, 608-221-6344. Dec 9 IL/IA Fruit & Vegetable Growers Conference, Moline, IL. Contact Bill Whiteside, 815-748-5200. Dec 14-16 MO Governor's Conference on Agriculture, Tan-Tar-A. Contact Rosalie Bealer, 573-751-3376. Jan 8-10 Illinois Specialty Growers Convention and Trade Show, St Charles, IL. Contact Lowell Lenschow, 309-557-2107. Jan 9-10 Great Plains Vegetable Conference, St Joseph, MO. Contact Keith Hawxby, 816-279-1691. Jan 9-10 17th Annual Oklahoma Horticulture Industries Show, Tulsa, OK. Contact Lara Ervin, 918-647-9123. Jan 15-16 21st Annual KRES Farm Show, Kirksville, MO. Jan 18-20 Midwest Grape and Wine Conference, Tan-Tar-A. Contact Jim Anderson, 573-751-6807. Jan 19-22 MO Landscape & Nursery Assn Nuts & Bolts Shortcourse, Kansas City, MO. Contact Sara Woody Bibens, 816-369-3115. Jan 20-21 National Conservation Tillage Cotton and Rice Conference, Little Rock, AR. Call 800-489-6997. Jan 23-24 MO Assn of Fairs & Festivals Convention, Columbia, MO. Call 573-874-1815. Jan 22-24 Sixth Annual National No-Tillage Conference, Indianapolis, IN. Contact Alice Musser, 800-645-8455. Jan 22-25 Southern Sustainable Agriculture Working Group 7th Annual Conference and Trade Show, Memphis, TN. Contact Jean Mills, 205-333-8504. Jan 27-28 Mid-America Fruit Conference, Kansas City, MO. Contact Michele Warmund,573-882-9632. Jan 28-Feb 1 Herb Business Winter Getaway Conference, San Antonio, TX. Call 717-393-3295. Jan 30-31 17th Annual Organic Conference, Guelph, Ontario, Canada. Contact Tomas Nimmo, 705-444-0923. Feb 10-12 Managing Manure in Harmony with the Environment and the Society, WNC Manure Management Conference, Ames, Iowa. Contact Bob Ball, 573-876-0900. Feb 25-28 North American Deer Farmers Assn Annual Conference, Ponte Vedra Beach, FL. Call 301-459-7708. Feb 26-28 North American Farmers Direct Marketing Assn Conference, Victoria, British Columbia. Contact Vance Corum, 360-693-5500. Feb 26-28 North American Strawberry Growers Assn Conference, Victoria, British Columbia. March 5-6 MO Aquaculture Annual Conference, Springfield, MO. Contact Chuck Hicks, 573-526-6666. March 5-6 National SARE Conference - Building on a Decade of Sustainable Agriculture Research & Education: Sharing Experiences to Improve Our Agriculture, Austin, TX. March 5-7 Sustaining People Through Agriculture Conference, Columbia, MO. Contact Debi Kelly, 800-433-2704 (MO only) or 573-882-1905. March 13-15 MO Association of Meat Processors Convention and Trade Show, Jefferson City, MO. Contact Ronnie Alewel, 816-827-0005. March 15-21 National Agriculture Week March 19-21 International Fresh-Cut Produce Association Annual Conference and Expo, Nashville, TN. Contact Sue Christian, 703-299-6282. "University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam-era veteran in employment or programs."