A Co-op is a business organized by people to
help themselves. The purpose of a Co-op is to serve the needs of their members with products, services, programs,
applied
technology and information, while enhancing their economic well being.
That is
why it is often said that Co-ops are people orientated.
While Co-ops have a lot in common with other
businesses, there are some differences. Profits or earnings are called
savings.
Savings left over each year after the cost of doing business are
returned as a
patronage refund. This refund is returned to the patron based on their
purchases. Some of the patronage refund (20%) is return in cash and the
balance
is returned as capital credit for each active member. The capital
credits are
returned to the members as cash at a later date, depending upon Company
policies and the available funds.
Co-ops operate on a one member, one vote
policy. Every common stockholder has an equal voice in a Cooperative.
Co-ops
are a very democratic part of the free enterprise system.
Our Co-op provides goods and services for its
owners, our customers. Our member-owners elect a Board of Directors to
represent them, over-see the operations, and set policies for our
Co-op. The
Board hires a General Manager who supervises the overall operation of
or Co-op
and the hiring of employees of the Co-op.
Our Co-op is a part of something much larger.
Our Co-op has interest in and shares ownership in Cenex Harvest States,
one of
the nations largest and most efficient supply organizations. This
ownership is
recorded as preferred stock in the Company. As of September 2011, we
have
approximately $3,342,586.00 of preferred stock with Cenex Harvest
States. An
elected Board of Directors similar to the way we are governs Cenex
Harvest
States. Many of them serve on the Board of local Co-ops like ourselves.
Besides supplying us with most of our
products for resale, Cenex Harvest States provides a wide range of
services to
our Co-op. These services include training schools for managers and
employees,
financial services for short and long term financing, public relations
to
enhance the image of our Cooperative, and a marketing staff to work
with our
Co-op to take orders and assist with the growth and development of our
Co-op.