The what-how-why of Community Supported Agriculture (CSA)

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Estimates show that approximately 1 billion people[1] are today taking part in a cooperative system. May some of us be using our voices to shape our cooperative or, on the contrary, not actually aware that their are part of one , “the 1 member = 1 voice” system is, in fact, far from being reserved to the political left and second generation hippies. Indeed, more often that not, our banks or insurance providers are based on cooperative structures which have, for more efficiency, relegated the power of the cooperators to smaller groups of cooperators, organised as representatives (often being payed back for their involvement with bonuses and higher salarie). By browsing through various large scale cooperatives, we can in fact identify hierarchical structures (which the cooperative model primarily aims to shield from) which highly remind us of top-down corporative organisations, with one distinct variation: there is no selling of goods or services to “customers” by rather to “cooperators”. The difference seems only to be linguistic.

If the democratic model of the cooperative seems to have been fully assimilated and adapted to neo-liberalism, the original principles of the co-op however play an increasingly capital role in the development of new grass-root, local and independent food-farming movements (aiming to break away from multinationals and globalised industry giant) by striving to create structures able to give an equal voice to the farmer and the consumer.

Gathering sources from various cooperative farms, the press, internet comments, wannabe CSA[2] representative ‘Urgenci’, to a UN funded census, this article aims to encompass as broad information on these new structures as possible, as well as to give tips on how to build or find a nearby co-op.

The principles of the cooperative system

Though most cooperatives adapt their organisational structures to meet their own specific needs, the coop system is fundamentally based on 7 founding notions: the Rochdale Principles. Originally wrote in England in 1844 by the 28 founders of an early worker co-operative food store[3], this set of principles paved the way to our contemporary cooperative movement. (click on reference for more detailed principle)

Up to date version:

  1. Co-operative societies must have an open and voluntary membership.[4]"
  2. Co-operative societies must have democratic member control: one member, one vote.[5]
  3. Members contribute equitably to, and democratically control, the capital of their co-operative.[6]
  4. Co-operative societies must be autonomous and independent.[7]
  5. Co-operatives provide education for their members and the general public about the nature and benefits of co-operation
  6. Collaboration with other cooperatives.[8]
  7. Concern for community.[9]

Original version

  1. Open membership.
  2. Democratic control (one person, one vote).
  3. Distribution of surplus in proportion to trade.
  4. Payment of limited interest on capital.
  5. Political and religious neutrality.
  6. Cash trading (no credit extended).
  7. Promotion of education.

What types of cooperative structures?

When investigating cooperative structures integrating eaters and farmers, 2 types of systems can be highlighted:

  • Food cooperative/cooperative supermarket
  • Community supported agriculture (CSA)

Food cooperative/cooperative supermarket:

A food cooperative is directly owned by both its employees and its members. People who shop at the cooperative typically pay a yearly nominal fee and share the work (accounting, selling, merchandising, cleaning) fairly throughout the year. In general, membership is open to any community member, with stores adopting official policies of nondiscrimination. Often distributing food items from a range of local farms and organic products dealers, these structures are more often found in cities and urban environments, where access to farms is limited.

Community supported agriculture (CSA):

Community Supported Agriculture (otherwise known as crop sharing) is a partnership between a farm and consumers where the risks and rewards of farming are shared. Often, CSAs allow the consumer to subscribe to the harvest of a certain farm or group of farms. CSA is a solidarity contract, based on a financial commitment from consumers, who pay all of their consumption in advance over a defined period. This system therefore operates on the principle of consumer confidence and responsibility.

These two programs often work in concert in rural areas, and are associated with each other by consumers.

What problems does CSA seek to address?[10]

  • The control of our food systems by large corporations
  • Unpredictable (often very low) incomes of farmers who must compete in a volatile global market
  • Loss of population in rural areas
  • Loss of diversity in high streets, genetic material of seeds and farm animals, diet and culture
  • Environmental costs of transporting food
  • Damage to biodiversity caused by large scale ‘efficient’ non resilient farming
  • Lack of access to organic and local food by low income households
  • Lack of trust and understanding between consumers and farmers
  • Depression in rural areas and high suicide rates amongst isolated failing farmers

Benefits of CSA[10]

For local communities:

  • Consumers benefit from receiving fresh food from a known source
  • A local economy enhanced by higher employment, more local processing, local consumption and a re-circulation of money through ‘local spend’
  • Education of the community
  • Having an influence over the local landscape and encouraging more sustainable farming

For farmers:

  • A more secure income which improves business planning and time to concentrate on farming
  • A higher and fairer return for their products by selling direct to the public
  • An increased involvement in the local community; the opportunity to respond directly to consumers’ needs
  • Receive help with labour and planning initiatives for the future (i.e. involving the community during harvesting)
  • Insurance that they will not go bankrupt if the harvest is poor (due to disease or bad weather)
  • The insurance that they they will be able to sell their harvest, and a reasonable price rather than to depend on the global market.
  • Sometimes receive employment benefits (which they do not receive by being considered entrepreneurs). Consumers can provide sick pay / work on the farm when the farmer is on holiday / employ farmer to grow food for fair wage
  • Access to capital, credit, or to handle damage to costly tools with the help of the shared capital community. This allows farmers to not directly rely on credit (banks rarely give access to low-interest loans to farms, which are considered risky business)

Resiliency of the cooperative model[11]

Cooperative businesses have lower failure rates than traditional corporations and small businesses, after the first year of startup, and after 5 years in business. About 10% of cooperatives fail after the first year while 60 to 80% of traditional businesses fail after the first year. After 5 years, 90% of cooperatives are still in business, while only 3 to 5% of traditional businesses are still operating after 5 years. This is often because of the many people involved in starting a cooperative and the high level of community support for cooperatives.

CSA: common types of organisational structures

Community/consumer-driven:

Consumers participate in or may even run the scheme working closely with the farmer who produces what they want.

Farmer led:

A farmer sets up, organises and maintains a CSA. The farmer might also recruit subscribers. The members financially subscribe, with little other involvement.

Shareholder/subscriber:

Local residents set up a CSA and hire a farmer to grow crops. Shareholders/subscribers control most of the management.

Farmer cooperative:

Farmer-driven CSA where two or more farms cooperate to supply its members with a greater variety of produce. This model allows individual farms to specialise in the most appropriate farming for that holding (larger farms may concentrate on field scale production, smaller farms on specialist crops and upland farms on rearing livestock).








Notes

  1. 2012 estimate. https://www.un.org/esa/socdev/documents/2014/coopsegm/grace.pdf
  2. Community Supported Agriculture
  3. This store gave the members of the Rochdale Society of Equitable Pioneers access to goods they would otherwise not have access to, now being left unemployed as a result of the mechanisation of work
  4. “Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
  5. The producer/consumer tandem: is based on direct per-son-to-person contact and trust, with no intermediaries or hierarchy.
  6. At least part of that capital is usually the common property of the co-operative.”
  7. If they enter into agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.
  8. Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.
  9. Co-operatives work for the sustainable development of their communities through policies approved by their members.
  10. 10.0 10.1 Notes from the ‘European Handbook on Community Supported Agriculture Sharing Experiences’. Note: The document has been funded by, among other, the European Commission’s program for life-long learning
  11. American study: <i<World Council of Credit Unions study in Williams 2007 https://geo.coop/sites/default/files/0213-benefits-and-impacts-of-cooperatives.pdf/ Note: Percentages may not be precise nor well referenced but depicts the global resiliency of the coop system