Employee Incentive Plans in Farmer Cooperatives, 1957

Excerpts from the report: As the first step in its study of employee incentive plans, Farmer Cooperative Service made a comprehensive review of literature covering the use of such plans in various kinds of businesses outside the cooperative field. An effort was made to determine the factors contributing to the success or failure of these plans. Information covered such points as methods, results, management and employee attitudes, special requirements, conditions for success, and pitfalls. A summary of this information was published in 1955 as a general guide to farmer cooperatives interested in adopting some form of employee incentive payment plan. This report is the second phase of the study. It gives basic information on the use, general extent, and types of employee incentive compensation plans reported by farmer cooperatives in 1957. It also provides more complete identification of the various employee incentive compensation plans in use, the specific types of cooperatives using them, and associations which have tried and discontinued incentive plans

Employee Incentive Plans in Industry

Excerpts from the report: Opinions on incentive payment plans for employees, their value, method of making payment, and form the incentive payment should take if made, are literally a dime a dozen. The successful use of incentive plans during recent years by an increasing number of companies has poured fresh oil on the continuing debate as to whether such plans are really worth the expense and trouble involved in installing and administering them. Cooperatives in increasing numbers are finding it necessary to think in terms of some form of employee incentive payment plans because of the definite trend in this direction. Before reaching a decision any organization exploring the field will do well to look beyond the payment of simple bonuses to other forms of incentive plans including the direct sharing of savings either through the establishment of a trust fund payable at retirement or the adoption of a retirement plan, the cost of which may be borne by both the employee and the association. In order to develop more definite suggestions and recommendations for cooperatives interested in incentive plans, the Farmer Cooperative Service has underway a study of various forms of incentive plans currently in use by cooperatives. In connection with this project the author has made a comprehensive review of existing literature on the use of incentive payment plans in various kinds of businesses outside the cooperative field. This review covered most of the types of plans in use today. An effort has been made to determine factors which have contributed to success and failure of the plans. Information covers such points as methods, results, attitudes, special requirements, conditions to success, and pitfalls. A brief summary of this information is presented here to help farmers' cooperatives who may be considering the adoption of some form of employee incentive payment plan

How Adjustable Revolving Fund Capital Plan Works

Excerpts from the report Conclusion: The adjustable capital plan is being used by a few associations. It deserves consideration by other associations in a position to adopt it. One of the primary considerations appears to be a reasonably stabilized position of member capital. In addition, a slowly changing membership and a volume of business not in a declining position are significant considerations. There is no reason, however, why an association now actively increasing its member capital should not ultimately adopt the principle of revolving net balances. The procedure for installing an adjustable capital plan summarized here was worked out for the use of a particular farmer cooperative. The illustration meets the requirements for use of the adjustable capital plan in the following respects: (1) The association has reached a reasonably stable capital position, (2) the membership has changed slowly, (3) the facilities are used near their capacity, (4) the membership is small, which lessens the amount of recordkeeping, and (5) small membership makes explaining and understanding the adjustable capital plan easier

A Financial Profile of Farmer Cooperatives in the United States

Excerpts from the report: The purpose of this study is to provide basic information on the financial structure of farmer cooperatives. The published results will help reduce misunderstanding concerning sources and use of capital by cooperatives. The study covers all marketing, farm supply, and related service cooperatives in the United States. It does not include farmers’ mutual telephone, irrigation, and fire insurance companies, artificial breeding cooperatives, dairy herd improvement organizations, rural electric cooperatives, and credit associations. The report discusses the various means farmer cooperatives use to accumulate funds to meet their capital needs. It summarizes the financial structure of farmer cooperatives. It analyzes amounts and sources of farmer cooperative borrowings, the nature and amount of equity capital, and the methods used for distributing annual margins and savings

Employee Incentive Plans: Case Studies of Five Farmer Cooperatives

Excerpts from the report: In selecting the sample associations for this case study report, a limited number of the associations responding to our mail questionnaire were requested to submit copies of their plans for thorough review. Representative plans from this group were then selected for detailed study, including personal interviews with management and other personnel of the cooperatives involved. This report covers detailed plans of five selected associations. Detailed information covering the complete incentive system of the selected cooperatives is presented in the following sections of this report for each association. Before discussing the individual plans, however, a few general comments regarding method of presentation, the associations, and their incentive programs should be helpful. Each case is presented separately. A general comment preceding the incentive plans of each association provides basic information on the cooperatives themselves. This was considered necessary to give perspective and a setting to make the plans more meaningful

Financial Structure of Regional Farmer Cooperatives

Excerpts from the report: The purpose of this study is to provide basic information on the financial structure of farmer cooperatives. The published results will help reduce misunderstandings concerning use of capital by cooperatives. This study covers all marketing, farm supply, and related service cooperatives in the United States. Farmers' mutual telephone, irrigation, and fire insurance companies, artificial breeding cooperatives, dairy herd improvement organizations, rural electric cooperatives, and credit associations are not included

Number of Full-Time Employees of Farmer Cooperatives

Report Highlights: This report presents 1957 national estimates of full-time employees in 9,827 farmer marketing, farm supply, and related service cooperatives in the United States. This is the first time information of this nature has been provided for farmer cooperatives. The number of full-time employees that cooperatives require in their operations is dependent upon such factors as the nature of the business, seasonal or all-year operations, volume of business, the extent of economic integration, and the number of services or functions performed by them. The 9,827 associations employed a total of 141,000 persons on a full-time basis in 1957, or an average of 14 persons per association. Almost half of the associations had less than 5 full-time employees, and only 4 percent had 50 or more. Less than 2 percent of the associations had 100 or more full-time employees, while 1,000 or more persons were employed full-time by only 0.1 percent of the associations

Management Training Among Farmer Cooperatives

Excerpts from the report: The management job in most farmer cooperatives has become increasingly complex. Thus the need for professional management men with specialized training to handle specialized jobs is more acute. Farmer Cooperative Service undertook a study to get an inventory of just what management training was being offered in farmer cooperatives. It hopes this study will stimulate (1) improvement in management training methods and (2) expansion of training programs to cooperatives where no management training is given. This study covered managers, their key assistants, and boards of directors since they are all involved in policy decisions and management of cooperatives

Financial Structure of Farmer Cooperatives

Excerpts from the report: This report provides detailed financial data for all farmer marketing, supply, and related service cooperatives in the United States that were listed with Farmer Cooperative Service the year the study was made. The purpose of the study was to obtain basic information on the financial structure of these cooperatives and their sources and use of capital, a type of information for which the Service receives continuing requests. The report fulfills the need for an examination and analysis of the financing methods employed by all cooperatives, classified by major function and geographic location. This report discusses the various means farmer cooperatives use to accumulate funds to meet their capital needs. It summarizes the financial structure of farmer cooperatives. It analyzes amounts and sources of farmer cooperative borrowings, the nature and amount of equity capital, and the methods used for distributing annual margins and savings

Directors of Regional Farmer Cooperatives -- Selection, Duties, Qualifications, Performance

Excerpts from the report: The success or failure of farmer cooperatives in the field of business management is linked to three interdependent factors--the quality and competence of directors elected by the membership, the administrative and executive ability of the manager employed by the directors, and the policies formulated jointly by directors and hired management. At the request of regional farmer cooperatives and the American Institute of Cooperation, Farmer Cooperative Service undertook a broad general study to provide basic information on the qualifications, selection, duties, and performance of cooperatives' boards of directors. This is one of three reports based on the general study. This, the second report in the series, describes the broad areas encompassed by directors' duties and responsibilities and sheds light on their experience, training and compensation. It compares the performance ratings managers of cooperatives assigned their boards of directors with the performance ratings individual directors assigned the same boards. And it furnishes criteria for judging the qualifications of individuals for directorships