7 Ways Agricultural Cooperative Societies are Formed

7 Ways Agricultural Cooperative Societies are Formed are explained one after the other in this article and we hope you find it informative.

Ways Agricultural Cooperative Societies are Formed

How Agricultural Cooperative Societies are Formed
How Agricultural Cooperative Societies are Formed – Photo Source: https://onehencampaignproject.org

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Agricultural cooperative societies are formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming and irrigation.

7 Ways Agricultural Cooperative Societies are Formed:

1. Pro-cooperative society

A convincing need or a few farmer leaders can spark off the idea of forming a cooperative society. Usually, these leaders have an economic need or desire a service they believe a cooperative society can produce.

They also know others who have similar interests. These leaders can be farmers with big farms, input suppliers, growers, agricultural produce marketers, and farm processors among others.

Leaders begin by discussing their idea at one or more small group meetings with other prospective members. If the group supports the idea, the next step is to seek the advice of a resource person familiar with a cooperative society.

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2. Exploratory meeting

An exploratory meeting is conducted with potential members. These potential members are invited to a general meeting to discuss the specific agenda of the meeting which may include:

  1. What is the need for the formation of a cooperative society?
  2. possible solutions to problems
  3. General risk, capital equity, and financial requirements.
  4. Various Forms of member-user commitment needed
  5. Questions and answers from potential members.

3. Steering Committee Member

The steering committee is the first member of the group. They must have a keen interest in the organization and be well-respected within the community.

Their first duties too are to select officers from the committee, establish a deadline for completing a business analysis, set a target date for surveying potential members, and organize periodic progress meetings.

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4. Member-user survey

Formal survey techniques are best used for estimating potential membership. The survey questionnaire is drafted by experts and is reviewed by the steering committee.

The committee analyses the survey prepares a report and presents it to the whole house. The results and implications are then discussed at a meeting with everyone surveyed.

Survey results should reveal how potential members identify their economic needs and the degree of interest in the cooperative society to fulfill that needs.

5. Conduct feasibility analysis

The steering committee develops basic operating assumptions. Together, they consider facilities needed, operating costs, and financial requirements. However, some important parts of the feasibility analysis are market analysis, organization, technical analysis, and financial analysis.

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Once the organization is viable then society is good to go. When most of the specific operational plans have been determined, the steering committee is instructed to arrange for incorporation and carry out the business plan.

6. Drafting articles of incorporation and by-laws

Incorporation gives a cooperative society a distinct legal backing. Members generally are not personally liable for the debts of an incorporated organization beyond the amount of their investment. The articles indicate the nature of the cooperative business.

The articles should specify broad operating authority when incorporating, even though services may be limited at the beginning.

These articles usually contain the name of the cooperative society, the principal place of business, purposes, and powers of the association, the proposed duration of the association, and members of the incorporation.

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7. Membership drive

A new cooperative society must have enough members to start operations and justify its existence.

Finally in implementing the business plan, once the bye-law has been adopted, the board of directors will approve the various resolutions designed to make the cooperative an operational business and ready to serve members.

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