Cooperatives in Nebraska

1. Unit 8 Understanding Cooperatives • Classification • Economic Impact • Cooperative Convergence • Careers Cooperatives in Nebraska The University of Nebraska – Lincoln does not discriminate based on gender, age, disability, race, color, religion, marital status, veteran’s status, national or ethnic origin or sexual orientation.

2. Classification of Cooperatives Marketing Marketing cooperatives engage in a broad range of activities for farmer members including: bargaining, grading, transportation, processing, distribution, research & product development. A marketing cooperative derives at least half its business volume from the sale or processing of farm products. 8.1a

3. Marketing Cooperatives 8.1b

4. Classification of Cooperatives Farm Supply Supply cooperatives provide farmers with production supplies and products. A supply cooperative derives at least half its business volume from the sale of farm inputs. 8.1c

5. Farm Supply Cooperatives United Suppliers 8.1d

6. Classification of Cooperatives Service Service cooperatives provide specialized business services related to agricultural business operations of farmers, ranchers, or cooperatives such as trucking, storing, drying, artificial insemination, financing, electric and telephone services, insurance, and others. 8.1e

7. Service Cooperatives Farm Credit 8.1f

8. Marketing Cooperatives in Nebraska 8.2a

9. Farm Supply Cooperatives in Nebraska 8.2b

10. Total Cooperatives in Nebraska 8.2c

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12. Cash Receipts from Nebraska Based on 2006 USDA statistics, Nebraska marketing cooperatives accounted for 57 percent of the total cash receipts from grain/oilseeds. 2006 Nebraska Agricultural Statistics 8.4a

13. State Comparison of Cooperative Gross Business Volume 8.4b

14. Cooperative Business in a Local Community Economic Impact Short Term • Salaries • Taxes • Utilities • Insurance • Maintenance needs Long Term • Stability • Dependability • Business activity • Social activity • Technology innovation 8.5

15. Cooperative Business in a Local Community Economic Impact Situation: This past year, XYZ cooperative had $150 million in gross sales. The average product margin in the cooperative is 15 percent. Question: What is the economic impact of XYZ cooperative's sales success on the community? Assume: That for every $1 of gross sales, $1.60 is contributed to the local economy. 8.6a

16. Cooperative Business in a Local Economy Economic Impact Answer: 150 million in gross sales X .15 average product margin $22.5 million gross margin $22.5 million gross margin X 1.60 $36 million impact 8.6b

17. Cooperative Business Presence Non-Tangible Community Benefits • Improved Service • Quality of supplies & products • Assured source of supplies • Enhanced business competition • Improved farm management 8.7a

18. Cooperative Business Presence Non-Tangible Community Benefits (cont.) • Legislative support • Local leadership development • Stronger rural communities • Goods & services to nonmembers Tangible Community Benefits • Jobs • Increased efficiency • Economies of scale 8.7b

19. Ag Concentration V. Cooperative Convergence • Converge: to come together and unite in a common interest or focus • Concentrate: gather into one body, mass, or force (power was concentrated into a few hands) 8.8a

20. Ag Concentration V. Cooperative Convergence 2002 2007 125,000 farms produced 75% value of U.S. farm production • 144,000 farms produced 75% value of U.S. farm production 2002 144,000 2007 125,000 8.8b

21. Ag Concentration V. Cooperative Convergence 2002 2007 59% of all agriculture products came from farms with over $1 million in sales • 47% of all agriculture products came from farms with over $1 million in sales 8.8c

22. Benefits of Cooperative Convergence • Competitive with multi-national companies • Provide competitive services and products to members • Allow for sustainability • Keeping services, jobs, and investments that fuel the economy 8.9

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24. XYZ Cooperative Management Organizational Chart General Manager/ President/CEO Petroleum Department Manger Agronomy Manager Convenience Store Manager Human Resources Communications/Information Technology 8.11a Membership Board of Directors Controller & Chief Financial Officer Credit & Marketing Manger Grain Manager & Merchandiser Feed Manager

25. XYZ Cooperative Organizational Chart Feed Department Department Manager Feed Sales Person 8.11b Counter Feed Sales Person Feed Deliver Person Feedmill Superintendent Feedmill Operator

26. XYZ Cooperative Organizational Chart - Grain Department Department Manager & Merchandiser Grain Marketing Clerk Sales Operator Grain Merchandiser & Originator 8.11c

27. Career Opportunities-Marketing & Supply Cooperatives • Tire Department Manager • Chemical Manager • Convenience Store Manager • Scale Operator • Petroleum Sales Person • Feed Delivery Person • Hardware Department Manager • Mechanic • Crop Management Specialist • Feedmill Operator • Grain Bookkeeper • Grain Merchandiser • Accounts Payable Bookkeeper • Propane Sales Person • Sales Bookkeeper • Grain Marketing Clerk • Custom Applicator • Tire Sales & Service • Feedmill Superintendent • Petroleum Station Manager • Feed Sales Person • Vehicle Service Specialist • Computer Feed Sales • Petroleum Station Manager 8.12

28. Business, Marketing • and Management • Chief Financial Officer • Grain Bookkeeper • Grain Marketing • Credit Manager • Accounts Receivable Manager • Marketing Manager • Operations Manager • Environmental and Agricultural Systems • Agronomy Manager • Feed Manager • Farmer • Rancher • Agronomy Sales • Feed Sales • Crop Consultant • Floater Operator Nebraska Cooperative Career Opportunities Essential Knowledge & Skills Academic Foundations Communications Employment and Career Development Ethics and Legal Responsibilities Information Technology Applications Leadership and Teamwork Problem Solving and Critical Thinking Safety, Health, and the Environment Systems Technical Skills • Human Services and Resources • Human Resources Manager • Education Coordinator • Legal Consultant • Training Manager • Safety Director • Communication and • Information • Cooperative Technical Support • Cooperative Advertising • Web Designer • Communication Specialist • Industrial, Manufacturing, and Engineering Systems • Vehicle/Equipment Service Specialist • Petroleum Station Manager • Scale Operator • Transportation • Health Services • Wellness Coordinator • Employee Assistance Program Manager 8.13

29. Nebraska Cooperative Career Opportunities Career Cooperative Chief Financial Officer • Post Secondary • Internships • Ag Conferences • Community College Academic Transfer • B.S. Agribusiness • B.S. Ag Economics • B.S. Economics • M.S. Agribusiness • Master of Business Administration • High School Activities • Agriculture classes • Economics classes • Business classes • FFA Activities • FFA Cooperative Speaking • Farm Management CDE • FBLA • Student government • 4-H • Middle School Activities • Explore career opportunities • Job shadow • 4-H 8.14

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