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b <br />Strategies to Revitalize Rural America <br />About two - thirds of participants in a Better Homes and Gardens consumer panel said they would pay a pre- <br />mium for pork raised on a small farm, on an environmentally responsible farm, or humanely. Others will pay <br />a premium for antibiotic -free meat or products with unique flavor or other special attributes. <br />But family farmers and ranchers who want to enter special markets with premium prices — sometimes called <br />niche markets — often find it very difficult. They frequently must develop their own marketing channels from <br />scratch and must also develop new production methods. Those just starting have to line up capital. It's much <br />harder than walking into the office of a corporate integrator and signing up as a contract producer. <br />A cooperative could make it more feasible for family farmers to enter high -value markets and, in the process, <br />capture this opportunity for them. If family farms and ranches don't capture it quickly, it may be lost to cor- <br />porate farms. They have taken note of organic, natural, and other niche markets and responded. <br />Corporate farms are attractive suppliers to food companies wanting to put natural and other specialty prod- <br />ucts on supermarket shelves. It is cheaper and easier to go to one large corporate supplier for raw farm prod- <br />ucts than to find hundreds or thousands of small farmers who can certify that they meet quality and produc- <br />tion standards and provide a steady and adequate supply when it's needed. <br />But a cooperative that markets for many family farmers and ranchers would have those advantages and more. <br />Like a large corporate farm, a family farm cooperative could offer food companies a guaranteed and steady <br />supply of farm products that meet niche market standards in one stop. <br />That would make it far easier for food companies to develop products to serve niche markets, encourage <br />more of them to enter, and in turn create more opportunities for family farmers to sell in these markets. <br />Securing raw farm products from a family farm cooperative would give food companies an added advantage <br />with consumers who want to vote for what they believe in with their food dollars. They could say their food <br />was raised on a small family farm — something many consumers would like to support. <br />For example, there could be a significant market advantage for a cooperative selling high - quality meat, certi- <br />fied as raised on small family farms and ranches without hormones or feed antibiotics, and meeting objective <br />standards for stewardship of the environment and humane treatment of animals. <br />The cooperative with the ability to provide a steady supply of products offering that market edge would be <br />able to secure a significant premium for its members. <br />What Services Should Such a Cooperative Provide? <br />A cooperative could help family farmers and ranches secure premium markets without raising large amounts <br />of capital to build or purchase processing facilities or even a brand name. The key would be offering a core <br />set of strategic services. <br />First, the cooperative would need to provide marketing and collective bargaining services. It would be <br />the vehicle for family farmers and ranchers to collectively market products that meet specific standards — for <br />Page 18 <br />