Cooperative complexity is a strength

October is National Cooperative Month. It’s a good time to think about this business model that has served generations of farmers and rural communities. And for me, after one year at MFA, it’s an opportunity to reflect on learning about our cooperative and its direction. 

Anyone with a significant tenure in co-ops understands the fundamentals. Members own the business. The organization’s purpose is to create value for its member-owners. Those principles are woven into the DNA of every successful cooperative. After my first year at MFA, I see that DNA hard at work. I also see the complexity required for a company the size of MFA to deliver on its mission. It’s a system built on a rich heritage and an evolution of service to farmers who are diverse by the nature of their operations and the state’s geography.

Understanding that complexity was one of my top priorities. I spent my first months here traveling widely to meet our employees and see our operations. It was time-intensive, yes, but it deepened my appreciation for the true diversity of your operations and MFA’s role in them. 

From those travels, I found the complexity of the region and the cooperative to be one of MFA’s strengths. From the Bootheel in the southeast to the Loess Hills of the northwest to the Flint Hills of Kansas, there isn’t one area that defines MFA’s trade territory. And, for MFA, that means we must continually evaluate how we can better serve our member-owners. MFA’s focus for growth, while under one strategic umbrella, needs to be granular enough to distinctly support the places where we do business—at a regional and district level, each bringing its unique set of needs.

The first step in that process, every time, is helping our members become more profitable at the farm gate. Every decision we make should support that goal and answer the question: How can MFA help members improve profitability and long-term sustainability?

That responsibility shows up in different ways. From inside, it means that MFA needs to manage its financial resources and employee talent in ways that ultimately support our customers. From the members’ view, it means participating, not just in cooperative commerce, but in roles that inform the organization—from serving on advisory committees and boards to helping us forecast what your operation will need for the coming year.

That’s all complicated by agriculture’s current economic headwinds. Today’s margins require discipline and strategic thinking. But we have to keep in mind that the organization not only has to weather the current challenges, it must also shape an MFA that delivers value to members for the long run. In that sense, capital investment becomes a measure of growth. Yet, for a cooperative as large as MFA, allocating capital expenditures is a balancing act—especially in today’s market. Not every community will see a new facility or major project, but we take a long-term approach to investing in the system as a whole.

Some strategic investments are not as visible as others but do a heavy lift to improve logistics, efficiency and service capabilities. In fact, not every opportunity for growth requires capital. Some of our greatest opportunities are cultural. They come from strengthening relationships that improve service to meet today’s producers where they are.

Agriculture remains highly competitive, and we intend to use every asset available to help members succeed. Our goal isn’t to be just another supplier. We intend to deliver value that reflects your ownership—the cooperative way. 

If you'd like to respond, comment or talk about cooperatives, email viewpoint@mfa-inc.com.