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3. 2026 Extension Risk Management Education National Conference

Using Cooperatives as a Risk Management Strategy

Steve Richards

Summary

The South Carolina Center for Cooperative and Enterprise Development (SCCCED) is an initiative by Clemson Extension to create and support cooperatives. Since 2019, SCCCED has started 14 new cooperatives. Examples include produce farmers, grain farmers, flower growers, aquaculture producers, collaborative meat processing, forest landowners, and drone operators. Impacts include improved access to markets, reduced financial risk for new enterprises, decreased human and legal risks for employees and future owners, and reduced administrative burdens.

One of the primary purposes of these new cooperatives is to address market risk through aggregation and marketing, with some also employing value-added processing. The second most common purpose of new cooperatives is to address financial risk through the efficient scaling of enterprises, such as equipment sharing and collectively purchasing inputs to receive a volume discount. Innovative cooperative risk management strategies include reducing administrative burdens (legal risk) through shared record-keeping and compliance, engaging the next generation (human risk) through employee cooperative ownership, and mitigating liability risk and insurance costs in high-risk occupations, such as logging and commercial fishing.

This presentation will provide examples of cooperatives employing risk management strategies, discuss which strategies have been successful, and outline how to approach producers with risk management solutions rooted in collaboration. Program materials will be shared with attendees, including new tools such as the “Cooperative Challenge,” an online anonymous survey used to identify areas of agreement and potential conflict among producers looking to start cooperatives. Finally, resources specifically available for cooperatives, including loans and grants, will be reviewed.

Details

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