2014-15 Illinois Farm Bureau® & Affiliates Cooperative Activities Program Application Due to Illinois Farm Bureau – March 15, 2015 Description of Program The Cooperative Activities Program is a competitive exercise that is offered only to FFA Chapters in Illinois. This program is designed to be included as an integral part of each FFA Chapter’s total program of activities. The chapter Cooperative Activities Program should be developed throughout the year by individual FFA Chapters embracing the actual operation of cooperative practices within the FFA Chapter and its community. Through this program, FFA members and their advisors will learn the value of cooperatives in the American Free Enterprise System and develop an understanding of the cooperative way of doing business. Benefits of the Program Through this program, students are given the opportunity to participate in cooperative buying, selling, and use of credit. They participate in various cooperative functions. Students learn the important role that cooperatives, as a type of business, serve in today's economy. In addition to the knowledge and experience that students gain, chapters, schools, and communities also reap the benefit of a good Cooperative Activities Program. Eligibility All FFA Chapters in Illinois are encouraged to participate in the Cooperative Activities Program. If a chapter is named a section winner for three (3) consecutive years, the chapter will named a “Triple Crown” Winner. Awards Chapters can earn recognition on the chapter, section and state level through the Cooperative Activities Program. Chapter recognition levels include Gold, Silver, Bronze and Triple Crown. Chapters can also earn recognition as the Section Winner and Top 5 Chapter. A trip to Pennsylvania, Maryland, Virginia and Washington, D.C. will also be available to representatives of Section Winners and the Top 5 Chapters. Requirements for these awards are described on Page . Table of Contents Sponsors 1 Award Requirements 9 Evaluation Factors & Scoring 10 Certification Form 2 Special Award 9 11-12 Form I (Eligibility Entry) 3-4 Application Description 10 Form II (Section Entry) Evaluation Procedure 10 Definitions of Category Areas & Examples of Heritage Activities Photo Sample Page 5-8 13 Sponsors The Cooperative Activities Program is a unique program sponsored for FFA Chapters in Illinois by the Illinois Farm Bureau® & Affiliated Companies Youth Education Committee. The Illinois Farm Bureau® is a general farm organization that serves a large part of the agricultural community of the state. Financed by dues from its more than 420,271 members, Illinois Farm Bureau works to improve farm income and farming as a way of life. Since its founding, Farm Bureau in Illinois has developed and expanded markets for farm products and served its members through a wide range of legislative, educational, public relations, and business service programs. GROWMARK is a regional cooperative with annual sales of $6.7 billion (FY 2008 data) providing agriculture-related products, services, and grain marketing in the Midwest, and Ontario, Canada. FS® brand farm supplies and related services are also marketed in the northeastern United States by GROWMARK subsidiaries. Headquartered in Bloomington, IL, GROWMARK strives to bring its members the best possible products complemented by optimal service. GROWMARK’s first predecessor company was established in 1927 when Illinois Farm Bureau members formed local cooperatives to secure a reliable supply of products and services. Its retail brands, including FS Farm Supplies, represent a standard of excellence. The GROWMARK System employs more than 6,000 individuals and serves more than 250,000 farmers through its local member cooperatives and subsidiaries. Additional information is available at www.growmark.com. COUNTRY® Financial helps families, individuals, and businesses protect themselves from the unexpected. The organization offers a full range of insurance and financial products and services, from auto, home and life insurance to retirement and estate planning services, investment management and annuities. The organization started in 1925 when a group of Illinois Agricultural Association members created an organization to provide fire and lightning insurance. A year later, the new company started offering coverage for autos and equipment. Today, COUNTRY® Financial and its alliances serve about 1 million households and businesses and insure more than 1 million vehicles and half a million homes throughout the United States. Prairie Farms Dairy is a marketing cooperative that purchases, processes, and distributes a variety of dairy and food products to retailers and consumers throughout the Midwest. The primary purpose of Prairie Farms Dairy is to increase the profitability of its dairy farmer member patrons and to provide the consumer a high quality dairy product. Currently, Prairie Farms Dairy, its wholly owned companies, and its joint ventures operate 34 plants, one fast food distribution warehouse, and distribution points in 23 states with a sales volume in excess of $2.5 billion dollars. The IAA Credit Union serves the financial needs of the employees of the IAA Family of Companies, the members of the Illinois Farm Bureau®, COUNTRY® Financial policyholders, GROWMARK patrons, as well as family members and retirees of these groups. The credit union is a full-service financial institution that is a benefit of Illinois Farm Bureau membership, and employment with the IAA Family of Companies. IAA Credit Union offers a wide range of products from mortgage loans to checking accounts. IAA Credit Union is a not-for-profit financial cooperative owned by its members. Profits are returned to members in the form of better rates and services. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2014-15 COOPERATIVE APPLICATION 1 Certification Form 2014-15 Illinois Farm Bureau® & Affiliates Cooperative Activities Program Chapter School Section School Address School Phone County Chapter/Advisor E-mail Address Students Enrolled in Agricultural Education Program: Started: , 20 FFA Membership ; Ended: , 20 ; Submitted: Cooperative Board of Directors Age , 20 Year In School Chairperson Secretary Manager Form I Indicate Form(s) being submitted for judging: Form II We hereby certify the claims and information reported on behalf of the chapter are true and accurate. Chapter President Name: Signature: Date: Signature: Date: Signature: Date: Cooperative Activities Committee Chair Name: Chapter Advisor Name: School Administrator Superintendent/Principal Name: Signature: Date: This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2014-15 COOPERATIVE APPLICATION 2 This signed form must accompany the Award Application when submitted! Illinois Farm Bureau® & Affiliates Form I (Eligibility Entry) 2014-15 Cooperative Activities Program Chapter School Section To qualify for an award area, Chapters must answer Yes to 7 out of the 10 questions in Section A, answer Yes to 4 of the 6 questions in Section B, answer Yes to 5 of the 7 questions in Section C, and earn at least 1 point in each of Section D, E and Section F. A. Answer each question by filling in the blanks with either YES or NO. 1. The chapter selected a chairperson, cooperative manager and board of directors (committee) for its Cooperative activities. 2. The Cooperative Activities Program was presented to the members for adoption into the chapter program of activities. 3. The Section President was informed of the chapter’s intent to participate in the program. 4. Speeches, panel discussions, and/or community programs were presented by the chapter relative to the Cooperative Activities program. 5. The chapter utilized the Cooperative Activities Application and/or Internet Web Site (www.youthed.org) to determine program ideas and a plan of action. 6. A Cooperative Activities Program was included in the chapter’s calendar of activities presented to the school administration. 7. The chapter has established and maintains a current file of educational materials on cooperatives, including the posting of the 7 Cooperative Principles in the classroom. 8. The cooperative board/committee reports regularly to the chapter on its activities and financial status. 9. The chapter presented a Cooperative Activities report to their school principal and/or administration. 10. The chapter developed a budget to finance and conduct planned activities. (Outline) Income Expenses B. Chapter members participated in the following activities that include Illinois Farm Bureau® and Cooperative Learning Activities over the past year (12 months). These items may not be reported on Form II. Chapter/Member Participation in 1. Southern Illinois Cooperative Youth Conference 2. County Farm Bureau® & Affiliates – FFA Acquaintance Program 3. Illinois Farm Bureau® (IFB) & Affiliates Youth Conference 4. Illinois Farm Bureau® (IFB) & Affiliates Cooperative Award Tour 5. Attended a local Cooperative Annual Meeting 6. One other Cooperative related learning activity (Co-op site tour, etc-specify): This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2014-15 COOPERATIVE APPLICATION 3 Form I (continued) 2014-15 Chapter Chapter conducted the following activities that included Cooperative Business & Education over the past year. C. Chapter Activities Conducted. If there is multiple parts to the question (a, b, c), you must be able to say yes to all parts in order to put yes for the question. 1. Chapter developed and operated an actual cooperative during the year which includes the following: a. The chapter cooperative has a set of by-laws that have been approved by the members. b. The chapter cooperative followed the 7 cooperative principles. c. The chapter cooperative valuated its success, established a vision and set goals for the future. 2. Chapter sponsored cooperative services to benefit its members which includes the following: a. Chapter provided a cooperative buying activity to offer products to members at a reduced price. b. Chapter provided a cooperative financing program to assist members in securing financing. c. Chapter provided cooperative selling/marketing service to assist members in market their products. 3. Chapter members received in class instruction on cooperatives and their role in the American Free Enterprise system which includes the following: a. Agricultural Education Instructor used the Cooperative Business Curriculum in classroom instruction. b. Chapter members heard from an outside speaker on the operations and structure of a cooperative. c. The chapter conducted educational programs with the Illinois or County Farm Bureau® affiliated cooperatives such as FS, GROWMARK, Prairie Farms, or the IAA Credit Union. d. Chapter members toured a local cooperative to witness the operations and structure of a cooperative. 4. Chapter conducted activities within the school and community to explain how cooperatives are an important part of the American Free Enterprise System which includes the following: 5. Chapter worked in a cooperative manner with other in-school organizations to conduct activities. 6. Chapter worked in a cooperative manner with non-school groups to conduct activities. 7. Chapter publicized the cooperative activities locally. D. How did the chapter and individual members benefit from the Chapter’s Cooperative Activities Program? (5 pts Max.) E. How did the school and community benefit from the Chapter’s Cooperative Activities Program? (5 points Max.) F. Outline the media coverage for your entire Cooperative Program. Be sure to include number of articles submitted, published, radio/television interviews conducted, Public Service Announcements conducted. Make sure to include the Certification Form with your chapter's application. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2014-15 COOPERATIVE APPLICATION 4 Illinois Farm Bureau® & Affiliates Form II (Section Entry) Chapter 2014-15 Cooperative Activities Program School Section How to complete Form II: Type a description of the activity within each area categories. Include within your description the planning that went into the development of the activity, the resources used, the accomplishment through the benefits derived by the chapter, the members and the community. Also include details of the media coverage before, during and after the event. Supportive Information: Supportive materials are limited to photographs only. You may attach no more than twelve (12) photographs on a maximum of 6 pages (two (2) photographs per page). Photographs must include which Form II Activity it relates to under the photograph in addition to a description that cannot exceed the space underneath the photo on the page. A sample photo attachment form is included with this application. The Illinois Farm Bureau® & Affiliates Youth Education Committee reserves the right to retain and use accompanying photographs for publicity. All information must be provided on the official Cooperative Activities Award Application, no substitutions or other supplementary material my be added to this application. Make sure to include the Certification Form with your chapter's application. A. Education, Training and Information (30 points) 1. Describe the classroom instruction members received on the structure & operation of a cooperative business. 2. What other instruction (non-classroom) did members receive on the structure & operation of a cooperative business? 3. What resources were used to instruct members on cooperatives? B. Describe the Chapter’s Cooperative Business (30 points) 1. What research was done to determine the needs of the members/community that needed to be served? 2. Describe the cooperative and what makes this a cooperative business. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 5 Form II (continued) Illinois Farm Bureau® & Affiliates Youth Education Committee (Section Entry) Cooperative Activities Program 2014-15 Chapter 3. What are the goods/services that the cooperative offers its member/owners and the community? C. Voluntary and Open Membership (30 points) 1. Who can become a member/owner of your chapter’s cooperative (qualifications)? 2. How do members go about becoming a member/owner of the cooperative? 3. How many member and non-member owners does the cooperative have? FFA members D. Democratic Member Control 1. non FFA members (30 points) Did your chapter cooperative have a Board of Directors? a. b. If so, how many serve on the board? Who votes to elect the cooperative board of directors and how many votes does each person get? c. How are they elected? d. What are the qualifications to be elected to the Board of Directors? e. Does your Board of Directors have officers, and if so, what officers do they have and what are their individual roles? f. What is the responsibility of your chapter cooperative board of directors? This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 6 Form II (continued) Illinois Farm Bureau® & Affiliates Youth Education Committee (Section Entry) Cooperative Activities Program 2014-15 Chapter 1. (continued) g. How many times a year did the Board of Directors meet this year? h. Does your cooperative have an annual meeting (to review the success/profits/losses of the cooperative)? 1. 2. When was it held? Does the Board of Directors hire/appoint a manager of the cooperative? a. What are the job responsibilities of your chapter cooperative manager? b. Does the cooperative manager hire/select workers to help with the day-to-day operations of the cooperative? 1. If so, list the jobs and duties that these workers are responsible for. E. Member Economic Participation (30 points) 1. How do members become owners of the cooperative? 2. How did the cooperative obtain initial capital for its start-up? 3. What is the value of a single share of your chapter cooperative stock? 4. Are there a maximum number of shares of stock that a member can own? a. 5. $ If so, how many? Explain why or why not? How are the proceeds of the cooperative distributed? This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 7 Form II (continued) Illinois Farm Bureau® & Affiliates Youth Education Committee (Section Entry) Cooperative Activities Program 2014-15 Chapter 6. How does the cooperative buy back the stock of those owner/members that leave the cooperative (graduate)? 7. How many shares of stock are outstanding (number of shares owned by the member/owners at the time of application)? F. Autonomy and Independence (30 points) 1. Is the cooperative board of directors the same as your chapter officers? Explain why or why not. 2. Does the cooperative board of directors operate independently from the FFA Chapter & its officers? Provide examples of how. G. Cooperation among Cooperatives 1. (30 points) How does the chapter cooperative work with outside cooperatives to purchase goods and services it needs for its dayto-day operation or for resale to its member/owners and the community (this does not include education, training or information). H. Concern for Community 1. (30 points) Does the chapter cooperative demonstrate concern for the community independently of the FFA Chapter, sponsoring or conducting activities, or donating goods and services to the community? Provide examples of this. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 8 Award Requirements/Levels Gold, Silver, and Bronze Recognition: Chapters must successfully complete Form I (Yes to 7 out of the 10 questions in Section A, answer Yes to 4 of the 6 questions in Section B, answer Yes to 5 of the 7 questions in Section C, and earn at least 1 point in each of Section D, E and Section F.) and accumulate 25% of the point total for Form II . Certificates signifying the Gold, Silver, and Bronze status will be provided to Chapters. The Gold, Silver, and Bronze point values will be determined by the judging committee. Section & Top 5 Recognition: Chapters must meet the requirements for the “Gold, Silver, and Bronze” recognition above, and accumulate at least 50% of the overall point total from Form II. Plaques will be presented to each Section and Top 5 Chapters at the Illinois FFA Convention. This level of recognition will be used to determine Section Alternates and Substitutes for the tour, and Triple Crown Winners. Triple Crown Recognition: Chapters recognized as a Section Winner for three consecutive years (starting in 2008) will receive "Triple Crown" recognition. A special plaque will be presented to each of these Chapters at the Illinois FFA Convention. Special Award An award bus tour will be provided for representatives of winning FFA Chapters in the Cooperative Activities Program. The award bus tour will be conducted June 21 – June 26, 2015. We strongly suggest that participants not be repeats from previous years. The destinations and tour stops of the Heritage and Cooperative tour will be the same as past tours of Washington, D.C., and Gettysburg, Pennsylvania and it is recommended to send different students on the tour each year. Selection of Tour Participants: It is the responsibility of the FFA Chapter and/or Agricultural Instructor to select the FFA members who will best represent the chapter on the award tour. Consideration should be given to selecting the most deserving FFA members from the chapter. The tour participant would probably be one of the following: A deserving and hardworking member, chairman, or a member of the Cooperative Activities Program Committee in the chapter or a chapter officer. Also, participants need to be aware that they will be sleeping on the tour bus on the travel back to Illinois, and will be doing a great deal of walking. In addition, if the student the chapter selects is unable to go, the chapter is encouraged to name a replacement student to take their spot on the tour. However, replacement students must be of the same gender. NOTICE: If a chapter fails to submit the name(s) of their tour participant by 3:00 p,m. on May 15, 2015, the chapter will forfeit the trip. Any person who participates in the award tour is expected to report back to their chapter the next year about the tour. Award Tour Participants: Participants, eligible for the awards tour, will include one member per section winning chapter plus one additional member may be allowed from the top five winning chapters in the state. One advisor and spouse from both the first and second place chapters will be invited to participate. Section Alternates: Section Alternate Chapters will be selected to fill vacancies created when a section does not have a winning chapter. Alternates will be the second place chapter in the section that meets the Section and Top 5 recognition qualifications, and will fill any vacancy created if the winning chapter does not provide a tour participant by the deadline. Substitutes: Substitutes will fill a vacancy if a section does not have an eligible winning chapter that meets the Section and Top 5 recognition qualifications. The substitute chapters will be selected from the top scoring chapters in the state that would not already be participating in the award tour. Chaperones: Chaperones for the tour will consist of members of the Youth Education Committee and one chapter advisor and spouse from the first and second place chapters. If the first or second place advisors are unable to attend, the third place chapter advisor and spouse will then be invited, etc. If, however, the advisor has participated as a chaperone on this tour, or the Cooperative Award Tour within the previous year, he/she is ineligible to participate. Chaperones will have the responsibility of maintaining order, leading teams, and other duties as assigned by the tour staff. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 9 Application The application consists of a Certification Form, Form I and II. The Certification Form, Form I and II and must be completed satisfactorily to be eligible for awards. The application is available on the Illinois Farm Bureau & Affiliates Youth Education website site (www.youthed.org). On the application, the chapter will be limited to typing information within the space of the box indicated. Within the box, information needs to be typed single-spaced and be 12 point font. If a chapter exceeds the box, points will be deducted from their score. Entries submitted must be on the correct year’s application or authorized computer-generated application. Other entries will be disqualified. No substitutions or other supplementary material, other than specified supplemental photographs and descriptions may be added to this application. Applications must not be submitted in any type of binder or page protectors. Any applications that are submitted in this manner will be penalized points. Binder and page protectors will be discarded and not returned. However, application pages should be stapled together in the upper left-hand corner. A signed Certification Form must be attached with the chapter’s application. ***All submitted applications become property of the Illinois Farm Bureau® and will not be returned back to chapters*** Evaluation Procedure The process of evaluating chapter applications will consist of the following steps. The chapter must mail the applications to the Illinois Farm Bureau, Attn: Donna Gallivan, 1701 Towanda Avenue, Bloomington, IL 61701, postmarked by the March 15 due date. The chapter must also e-mail a copy of their application to Donna Gallivan at dgallivan@ilfb.org prior to March 15. Applications received late will not be evaluated. A subcommittee of the Youth Education Committee will evaluate each application using uniform criteria in early April. Evaluation Factors and Scoring Judges will be using several criteria when scoring applications. Neatness, spelling, and grammar are factors that will be used in evaluating the entire application. The evaluation of Form I will be based on a chapter’s ability to answer Yes to the questions in Section A, B, & C earning points in Section D, E, & F. The evaluation of Form II comes from your chapter cooperative meeting the basic structure of a cooperative business, meeting the 7 cooperative principles, and meeting the needs of its member/owners. Education, Training, and Information – What education and training did the cooperative members, elected board members, manager, and employees receive so that they can contribute effectively to the development of the chapter cooperative? (30 points) Describe the Chapter’s Cooperative Business – What was the need of the chapter cooperative? What services/products did it offer its members/owners? Does the chapter cooperative meet the criteria of a cooperative business? (30 points) Voluntary and Open Membership – Was the cooperative open to all chapter members able to use their services and willing to accept the responsibilities of membership, without gender, racial, social, political, or religious discrimination? (30 points) Democratic Member Control – Was the chapter cooperative controlled in a democratic manner by the member/owners? Did the members participate in setting the policies and making decisions? Are the elected representatives (the board members) accountable to the members? Do cooperative members have equal voting rights? (30 points) Member Economic Participation – Did the members contribute equity to, and democratically control, the capital of their cooperative? Did the members receive stock in return for the equity investment? Did the members use the cooperative products and services? Did the members share in the profits based on their use of the cooperative’s products and services? (30 points) Autonomy and Independence – Did the cooperative operate autonomously from the FFA Chapter? Did it have its own elected board of directors that were responsible to the member/owners of the cooperative business? (30 points) Cooperation among Cooperatives – Did the cooperative strengthen itself and increase its efficiencies by working with other cooperatives? (30 points) Concern for Community – Did the chapter cooperative work to improve and enhance the local community through policies approved by the member/owners? What impact did the cooperative’s actions have on the community? (30 points) SPECIAL NOTE: Points can be deducted from the chapter’s section/state total score if they do not comply with the rules governing the application and the program (e.g., support photographs, inappropriate support items, lacking appropriate signatures, type size, exceeding narrative space limits, etc. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 10 Definitions of Category Areas & Examples of Cooperative Activities for Form II Helpful Hint: In writing your activity descriptions, read the category definitions closely, and explain how your activity relates to and meets the specific category criteria. Since cooperatives are an integral part of agriculture and the free enterprise system, the text “Understanding Your Cooperatives” has been distributed to each Agriculture Education Department. Additional materials will be distributed from time to time. Additional Cooperative Educational material may be downloaded from the USDA (www.usda.gov), or from the Youth Education Program (www.youthed.org) Education, Training, and Information: Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperative. Chapter members received classroom instruction from the Cooperative Curriculum to understand how a cooperative works. The 7 Cooperative Principles are taught in Ag Sales & Marketing class. The class is required to write about how the chapter cooperative meets the standards of the 7 Principles. USDA pamphlets, "Is a Co-Op in Your Picture", "How to Start a Cooperative", "What Co-Op Members Do" were used in the classroom instruction. Representatives from GROWMARK, Prairie Farms Dairy, Farm Credit Services, Electric Cooperative, or others spoke to class on their business operations. Manager of local FS Company presented a unit of instruction on cooperatives. Class studied the constitution and bylaws of an existing cooperative. Chapter arranged for tour of local FS facility or cooperative. Describe the Chapter’s Cooperative Business: This area deals with the general description, goods/services, purpose of the cooperative, and the needs that the cooperative fills for its member owners. Chapter developed a greenhouse cooperative where members buy shares, elect a board of directors, work on growing products, and earn dividends when products are sold. Each member pays a $5 membership fee into the chapter cooperative & dividends are given based on member’s purchase of goods/services provided by the cooperative. Chapter buys seed with money from stock sales, then mixes, bags, and sells birdseed. Each member buys a share and is paid dividends from the chapter cooperative that provides diverse agriculture serves to members ranging from services as livestock shows for the local fair and selling agriculture products in the community. Provide a snack cooperative to provide discounted, healthy alternative snacks for students an adults to purchase. Cooperative members pay $5 to belong to a construction cooperative where members are encouraged to be workers to earn wage for building projects. Cooperative receives money for creating and selling products. After paying expenses, the money is divided between members. Voluntary and Open Membership: Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, racial, social. political, or religious discrimination. Chapter members are offered the opportunity to become a member owner of the cooperative. Each member pays $10 dues for each share in September. After shares are purchased, the board of directors and cooperative membership is established. Only dues paying FFA members can purchase shares in the cooperative. Cooperative shares cost $5.00 each and are paid for when a student joins FFA. Every member is allowed to purchase up to three shares. Members of the chapter cooperative must be FFA members, but FFA members are not required to become a member of the cooperative, but many do because of the financial and educational benefit. Emphasis on joining the cooperative as a way to pay for FFA dues is promoted to FFA members. Democratic Member Control: Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives accountable to the membership. Cooperative members have equal voting rights (one member, one vote). Cooperative member owners annually elect their board of directors. Cooperative member must fulfill their duties as leaders and workers and if not, they may be impeached. Cooperative members voted on the cooperative's mission and goals. Members running for the board of directors complete a resume and gave a speech during the shareholders meeting. The cooperative holds an annual meeting to review the success/failure of the cooperative. A financial and board actions report is presented to the member owners for approval. Member owners annually review the structure of the cooperative and make any changes during their annual meeting. The cooperative board hires a cooperative manager to run the day-to-day operations of the cooperative. The cooperative manager oversees all cooperative operations throughout the year. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 11 Definitions of Category Areas & Examples of Cooperative Activities for Form II Member Economic Participation: Members contribute equitably to, and democratically control, the capital of a their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at last would be indivisible; benefit members in proportion to their transactions which the cooperative; and supporting other activities approved by the membership. Members financially invest in the cooperative and are issued stock. Member owners use the product/services of the cooperative, and receive patronage refunds from the profits of the cooperative, based on the amount that they used the cooperative. A cap on shares is set to prevent a monopoly of power from being created. After each season/quarter, the money is divided out to members. At the end of the quarter, the board of directors and officers meet to review the cooperative's financials and decide what the payout to members will be. Students became cooperative members by paying $4.00 and receiving a share and vote in the cooperative. Cooperative members receive additional benefits and discounts at FFA related activities. Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including the FFA Chapter, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy. Cooperative board members are not the same as the FFA Chapter officers. Cooperative board members are elected independently of the FFA officers. Each member has the opportunity to be a member of the cooperative and apply for the board of directors. The cooperative board meets separately from the FFA monthly meetings in order to accomplish more cooperative related business. The cooperative establishes its own bank account separate from the Chapter FFA bank account. The cooperative president gives a report on the cooperative at the monthly FFA meetings. Chapter provided initial start up funding for the cooperative, but the FFA chapter does not control the decisions of the cooperative. The funding is treated as a loan or grant. Cooperation among Cooperatives: Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, and international structures. Chapter cooperative markets its products or members products through another local cooperative. Chapter cooperative buys products from a local cooperative at a reduced price to share the savings to its member owners. The chapter/Ag Business class researches area companies or cooperatives that provide the products to sell. Concern for Community: Cooperatives work for the sustainable development of their communities through policies approved by their members. The chapter cooperative used part of proceeds to purchase food the FFA Chapter's Harvest for All Food Drive. The chapter cooperative provided free flowers for local nursing homes. The chapter cooperative provided a college scholarship for an outstanding senior. The chapter cooperative provided products as door prizes for annual FFA Banquet, FFA Alumni fundraiser, or other school functions. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 12 Cooperative Activities Photo Sample Page Picture 1 Form II Activity__________ The FFA members participating in the 2010 Heritage and Cooperative Award Tour visited the National Archives while in Washington, D.C. Picture 2 Form II Activity__________ The FFA members participating in the 2010 Heritage and Cooperative Award Tour visited the Capitol Hill while in Washington, D.C. This program is sponsored by the Illinois Farm Bureau®, GROWMARK, Inc., COUNTRY® Financial, Prairie Farms Dairy, & the IAA Credit Union. 2013-14 COOPERATIVE APPLICATION 13