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Center for Rural Affairs, www.cfra.org Strategy #6 A Regional Cooperative A new kind of regional cooperative could be a powerful force for revitalizing family farms and ranches. Such a cooperative could capture high -value "niche" markets for family farmers and ranchers, bargain collec- tively on their behalf, provide technical assistance in meeting quality and production standards, and provide capital for new farmers and ranchers to serve these markets. The Mondragon cooperative in Spain demonstrates the potential of a cooperative to create genuine opportu- nity in a depressed region. l It was established in 1956 by five engineers inspired by the ideas of a Catholic priest about creating a business model responsive to the needs of working people and communities. The co- operative has created 30,000 jobs in 67 enterprises, each owned by its employees in the economically de- pressed Basque region of Spain. Mondragon is a worker -owned industrial cooperative — not a family farmer -owned cooperative. In spite of that difference, it offers some useful insights that can be applied by family farmers and ranchers. Cooperatives can be effective instruments for social change if they have a clear sense of purpose and re- main true to it. Mondragon began with a commitment to building a worker -owned and - controlled company dedicated to the well being of its members and their communities. A new farm cooperative with a commitment to strengthening owner - operated family farms and ranches and their communities could be a powerful force in creating a better rural future. Cooperatives can be engines of development. The Mondragon cooperative works as an umbrella. It spurs formation of new member cooperatives — each with no more than 500 employees — and services them. A regional family farm and ranch cooperative could spur formation of smaller cooperatives, each focused on helping family farmers and ranchers secure a particular market. Equally important, it could assist new family farmers and ranchers by linking them to markets, capital, and technical assistance. Cooperatives can be most effective when they bring together an array of services. Mondragon has its own bank that lends to the cooperative enterprises under its umbrella, runs its own research and development arm, and operates its own university for training cooperative managers. A regional cooperative could be a one -stop shop for family farmers and ranchers to enter premium markets. The Need for a New Cooperative Great opportunity for family farms and ranchers waits in high -value markets — but that opportunity is at risk of being lost. The nationwide Hartman Survey of American consumers found that about half would pay a-premium for food produced in ways they support — particularly food produced in an environmentally responsible manner. Page 17