How to create agricultural cooperative

How to create agricultural cooperative

Agricultural activity is diverse, difficult and often demands association of efforts of many people. The independent housekeeping connected with preparation of forages, processing of agricultural grounds cultivation of breeding cattle is interfaced to many difficulties. In some cases for increase of overall performance in the village it is expedient to create production or marketing cooperative.

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Define a type of cooperative which you intend to create. Difference between production and consumer cooperative consists that the first form is the commercial organization aimed at receiving profit, and consumer cooperative, being noncommercial structure, aims at decrease in costs of production.

Interrogate interested persons for whom association in cooperative can bring benefits and advantages. It can be the owners of personal farms, farmers, individual rural entrepreneurs living in one district. Find out who from inhabitants has desire to become the member of association. Define initiative group which will assume the solution of organizational issues.

Plan date and a venue of general meeting. Prepare for this meeting drafts of the charter of cooperative and other documents regulating its activity including target programs. Bring information on meeting to all interested persons.

Hold meeting at which consider questions of the adoption of the charter of the organization, and also of a choice of governing bodies of cooperative. Determination of the size and an order of payment of shares has to become one of points of the agenda also. Provide maintaining the protocol of meeting. The protocol has to comprise the decision on creation of cooperative.

Collect and give to registering body a package of the documents necessary for registration of cooperative, including the notarized copy of the charter (foundation agreemtn), the copy of the decision on creation of association of citizens, data on founders, the receipt on payment of the state tax.

After the state registration of cooperative carry out its statement on tax accounting, and also on all other types of accounts; receive codes of Goskomstat, open the bank account. From this point the cooperative has the right to carry out the kinds of activity provided by its charter directed on satisfaction of needs of members of cooperative.

Define needs of cooperative for borrowed funds. It is much simpler to organized structure of consumers to obtain the target credit in bank or the credit union. Find out, whether there is a possibility of receiving target financing through participation in municipal or federal programs of support of agricultural workers. All decisions on third-party financing of activity of cooperative have to be approved by board or general meeting of the organization.