University of Wisconsin. College of Agriculture. Dept. of Agricultural Economics / Cooperation principles and practices: the application of cooperation to the assembling, processing and marketing of farm products, to the purchase of farm supplies and consumers' goods and to credit and insurance
XV. How to organize a cooperative, pp. 118-123 PDF (1.6 MB)
XV. HOW TO ORGANIZE A COOPERATIVE A PREIM[NARY survey of a prospective cooperative A area by a trained personnel is important before plans have been too definitely crystallized. The organization committee will assume the responsibil- ity of critically reviewing preliminary work, devising and approving plans, determining course of action and directing activities. The temporary becomes the permanent organization when it is incorporated, when by-laws are adopted, a direc- torate is elected, and members are notified of the steps taken. If it is anticipated that a need for a federal loan may be imperative, associations should conform to legally specified standards of organization and operation. The by-laws constitute the additional legislation. Generalizations derived from economic and sociological studies indicate that voluntary action in organizing and di- recting cooperatives is much preferred to legal coercion. EVERY CARE should be taken to start cooperative undertakings under favorable conditions. Those interested in doing this should not fail to recognize a need for cooperative services. Often a real need for cooperative action may exist, but many of the people in the community might be either in- different or not aware of the fact. It is generally wise procedure for those sponsoring organizations to make a preliminary survey of the area before plans have been crystallized too definitely. Such surveys may be directed by a trained personnel from educational institutions, federal bureaus, re- search foundations or in some instances by local talent already seasoned by the experience of managing and directing cooperatives. A general survey for a proposed farm marketing association should include an appraisal of: 1. The services and facilities made available by existing institutions. 2. The extent of the area and the intensity of production of the com- modity to be marketed. S. Custom as a factor influencing farm operations and methods of hand- ling farm-products prior to their delivery for sale. 11I .
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