HURON (KELO AM) - Like many farmers with deep roots in South Dakota, the Dirty Thirties weren’t kind to David Kayser’s family. His grandpa, Felix Kayser, lost his Emery farm and his grandpa, Art Jarding, had to invest his own money to save the local cooperative he helped establish.
“Those were tough times for agriculture,” says Kayser, 55, who raises corn, soybeans and cattle with his sons near Alexandria.
In the end, both grandpas saw their sacrifices pay off. Felix was able to get a fresh start in 1943 when he purchased a farm near Alexandria and Art saw the local cooperative thrive.
Three generations later, Kayser honors his grandfathers’ legacies, farming Felix’s land and first serving on the board of the local cooperative and now serving on the CHS national board of directors. “Cooperative participation is part of our family’s story. We appreciate the voice cooperatives give farmers,” Kayser says.
He explains that before cooperatives, farmers were at the mercy of the large monopolies which provided inputs and bought commodities when it was to their advantage. “The private companies who purchased grain and sold inputs did not listen to farmers’ needs. By forming cooperatives, farmers gained a voice in how and when their commodities would be sold and inputs delivered.” Kayser says this voice holds value today. It is the reason he continues to purchase 100 percent of his inputs from Farmers Alliance of Mitchell. “The cooperative business structure provides us with a voice on not only the goods and services we receive, but also in the cooperative’s governance,” Kayser says.
Kayser is not alone in his thinking. More than 80,000 South Dakotans are cooperative members whether they belong to an agriculture, electric, banking or telecommunications cooperative, if they are members of a cooperative, their voice is heard, explains Lucas Lentsch, S.D. Secretary of Agriculture.
“It’s about having a local voice that is reflective of the needs of friends and neighbors,” Lentsch says. “Cooperatives unite those with common interests and provide them with access to products or services they need.” Lentsch goes on to say that for many South Dakota communities, the solutions provided by cooperatives continue to drive economic prosperity.
He explains that when private industry didn’t deem rural populations large enough to establish needed infrastructure such as electricity, water, high speed internet and cell service, or services like banking, fuel stations, grain storage and marketing, community members formed cooperatives to fill the need. “Together we are more powerful than alone,” Lentsch says. “Anyone who does not understand the value of cooperatives today needs to sit down with those who fought the battles to provide the services many of us take for granted.”
Member Ownership
Unlike private industry, to become vested or gain ownership, members simply need to do business with their cooperative. “I don’t think there is a farmer alive who doesn’t value ownership,” says Randy Knecht, a Houghton farmer.
“Ownership of the supply chain brings value.” Knecht’s cooperative, Full Circle Ag, is one of many local cooperatives which are members of the national cooperative, CHS, Inc. “CHS is a great logistics company. It provides our local cooperative with ag inputs and fuel in a timely fashion and connects our commodities to the global marketplace.” Because the cooperative business model is member-focused, cooperatives are only successful as long as they are able to meet their member/owners’ needs.
“We have to remain competitive in the marketplace to return value to our customers,” says Jeff Dragseth, General Manager of CBH Cooperative. “As we grow, change and look for new opportunities, our members reap the benefits through much more than patronage.” Dragseth references a recent conversation he had with one of his members.
“This member said patronage doesn’t matter to him. What matters is the fact that he can depend upon his cooperative to invest in the assets he needs on his large farming operation when he needs them whether that is people or equipment.” Since 2010, CBH Cooperative has expanded its service territory to serve members in Montana and Wyoming.
Relevant for the Next Generation
“You can’t beat the cooperative model,” says Doug Sombke, President of South Dakota Farmers Union.
A fourth-generation Conde crop and cattle farmer, Sombke says his cooperative loyalty was inherited from his father and grandfather. His grandpa, Alvin, was a founding member of the Farmers Union Oil Company of Ferney and both men served on the board of directors.
Today, he encourages his three grown sons, who farm with him, to remain actively involved. “I hope I’ve instilled the same level of respect for cooperatives in my sons,” Sombke says. “This can be challenging because they are so far removed from the challenges we faced before cooperatives came to rural South Dakota,” Sombke says.
Educating the next generation of cooperative members has been key to S.D.
Farmers Union youth education curriculum. Each year more than 2,000 South Dakota youth attend district and state camps where they learn about how cooperatives work and the value they bring to their local communities.
“The value captured from cooperatives isn’t always monetary,” adds Kayser, also a member of S.D. Farmers Union. “I look at our local cooperatives as providing employment, fire fighters, emergency responders and other services to rural South Dakota. Really, the cooperative is an extension of my community.” Like Sombke, Kayser encourages his four sons to embrace their local cooperative. “I can only hope I have taught them to value the cooperative system because it has only been in recent years that agriculture has attracted private industry to sell inputs locally,” Kayser said. “And, in bad times, what is there to keep private industry from moving on. My grandfather understood this that’s the reason he invested his own money in sustaining the local co-op.” The value of cooperatives has not been lost on higher education. Lake Area Technical Institute and South Dakota State University are among post secondary programs across the state which offer classes focused on the cooperative business model.
“We feel it is important to expose this business model to young people,” said Barry Dunn, South Dakota Corn Utilization Council Endowed Dean of the SDSU College of Agriculture & Biological Sciences, SDSU Extension Director.
“It is a great model for us to stand on our own and be responsible for our own community today and into the future.”