Cooperative education: whose responsibility is it? - Commentary - Brief Article - Column

Rural Cooperatives, Jan-Feb, 2002 by Randall Torgerson

Major discussions are now taking place about what national organizations will take responsibility for education about cooperative principles, practices and methods of operation. Should there be a responsibility at the national level at all? In the article on page 8, Professor Brett Fairbairn, director of the Center for Study on Cooperatives at the University of Saskatchewan, makes a strong case that whether cooperatives succeed or fail in the new century depends to a large extent upon cooperative educational efforts.

In the formative days of many of today's cooperatives, Dr. Edwin G. Nourse and Aaron Sapiro supported vigorous education efforts. Out of this effort the American Institute of Cooperation (AIC) was formed in 1925 as a "floating university," attended annually by hundreds of cooperative leaders. Nurturing the cooperative idea was achieved through the sharing of experiences. Advisors active in farm organizations, extension, university and government agencies were also active participants.

The annual educational conference initially lasted up to 2 weeks, but was later shortened to 3-5 days. Programs were targeted to youth, young farm couples, adult cooperative members and educational professionals. Educational credits could be earned through certification of the program as a recognized professional educational offering. The floating university charter ended in 1991, when the AIC was dissolved. Responsibility for the educational program was then assumed by the Education Division of the National Council of Farmer Cooperatives (NCFC).

Examples of the need for constant education about the cooperative method of doing business are not hard to find. A number of high profile cooperatives have failed when they hired outside management that had no fundamental comprehension of the user-owned nature of cooperative businesses. Similarly, in recent Farm Bill debate, an environmental working group leveled criticism at regional cooperatives for receiving "government payments" which the cooperatives, it turn, passed on to their producer-members. These critics lacked fundamental recognition of the service role cooperatives play in delivering farm program payments to members through USDA's Cooperative Marketing Association (CMA) program (see article on p. 24).

Or consider efforts by some cooperatives to use outside sources of capital to finance expansion, thereby lessening member ownership and effectively leading cooperatives down the path to takeovers by outside, non-producers or conversion of cooperatives into investor-owned firms. One observer even recently pondered whether some regional cooperatives really think of themselves as cooperatives now.

Finally, consider action last month by a state farm organization to encourage legislation for redemption of a member's capital if a cooperative was perceived by the member as competing with him or her. Each of these examples attest to challenges to the underlying principles and practices of cooperation that require careful review and exchange of knowledge in an active educational setting.

Fundamental cooperative education must extend far beyond existing cooperatives. Increasing recognition of the vital roles cooperatives play in rural development, urban revitalization and all parts of the American economy requires that every person understand the basics of cooperatives.

A decade ago, a national cooperative educational task force--jointly sponsored by USDA and NCFC--set out an expansive, badly needed vision for cooperative education. It said that "every individual in the United States should have enough knowledge about the cooperative form of business enterprise to know its general distinguishing characteristics, assess its appropriateness to meet economic and social needs, and recognize cooperatives' purposes and benefits." Only if cooperative education strives to reach this vision can all cooperatives of every kind reach their true potential. And only then can benefits derived from cooperatives be gained by individuals and businesses throughout every part of the economy. This should be a national educational mission.

Education about cooperatives is critical to the long-term survival of producer- and user-owned businesses as instruments of change and effective representation of members' interests. The focus should not be preserving institutions for the sake of institutions, but rather how co-ops can produce more member benefits. Education about cooperatives is a fundamental process undergirding their future success. The question is whether this is recognized and how committed leadership is to enhancing programs that accomplish it.

Randall Torgerson, Deputy Administrator Rural Business-Cooperative Service