• • Jackson County Pilot

With more than 6,500 members, more than 110 employees and annual sales figures and infrastructure-improvement values reaching into the tens of millions of dollars, cooperatives are major players in the economy of Jackson County and the lifestyles of the people who call it home.

And this month, three Jackson County-based cooperatives — FCA Co-op, Federated Rural Electric and Corn Belt Mutual Insurance Co. — mark National Co-op Month, a time, cooperative heads say, to stop and consider just how much co-ops mean to the county and its residents.

“I don’t know if people realize the impact the cooperative has on the community and the county,” said Rick Burud, general manager of Federated Rural Electric. “There are jobs provided, dollars spent locally on infrastructure improvements and a number of members served.”

And the members, according to FCA Co-op General Manager Dennis Hunwardsen, are what matter.

“The mission of FCA is to provide service to its member-owners, first and foremost,” he said, “and preserve patron equity through sound investment of available resources, while maintaining its community responsibilities.”

Sound investment is evident at Federated and FCA, as infrastructure values reach into the tens of millions of dollars. Recent infrastructure improvements at FCA include a new truck dump pit and building and new 500,000-bushel grain bin in Jackson in 2008 and a new central warehouse and bulk soybean seed tanks in Jackson in 2007.

Adding in the Welcome wind turbine, Burud estimates the value of Federated’s current infrastructure at around $35 million itself.

“Federated, as an electric co-op, has a fairly significant infrastructure,” he said. “There’s a lot to have in place and a lot of keep maintained and up-to-date.”

And that local investment, plus the jobs the work creates, plays a major part in the community, Hunwardsen said.

“Concern for the community is a guiding principle of the cooperative business structure,” he said. “While focusing on member needs, FCA works for the sustainable development of communities through policies and programs accepted by the members. I see that as a core principle and one the board of directors and I take very seriously.”

While Corn Belt Mutual Insurance Co., by virtue of its purpose, differs from FCA and Federated in terms of infrastructure needs, Colleen Anderson says her township mutual possesses the same membership-mindedness and concern for community her colleague co-ops do.

“We are member-owned and utilize independent agents located near their customers,” she said. “The local agents know and understand the policyholder needs and provide personal service. We keep the premium dollars in the local economy. We pay taxes, salaries and losses, which helps provide jobs.”

That’s not to say Jackson County-based co-ops do not face challenges. Though township mutuals insure around 80 percent of Minnesota farms, Anderson said, there are plenty out there to get on board. Though Federated Rural Electric owns a wind turbine, the national paradigm shift toward renewable energy presents a world of new issues for electric cooperatives. And though a run of bin-bursting harvests and strong market prices can put FCA in a strong financial position, the farmer-owned co-op is only a hailstorm or market crash away from tougher times.

“These challenges and new problems keep us on our toes,” Burud said. “We have to be able to adapt and change for the good of the co-op and the good of our members.”

Still, Hunwardsen said, the cooperative business structure is a good one and a solid one.

“The cooperative, in my mind, is the best way to do a lot of business and there’s a real benefit to doing business with a cooperative,” he said. “The structure’s longevity is a testament to its worth and value.”

Especially at FCA; the farmer-owned co-op celebrates its 100th year in November.

“It’s been 100 years of member control, local economic impact and community service,” Hunwardsen said, “and I anticipate another century of the same.

“At least.”