In 1902 the Farmers Union was organized. Besides being an educational organization, it became concerned with the problem of marketing and the expense of buying the repairs and other things that were needed to operate their farms.
The idea of cooperative buying and selling was started in a village in Rochdale, England in 1844. A group of weavers pooled some money together and started a store that sold flour, sugar, butter, and oatmeal, at wholesale prices. They set up a guideline for cooperatives, known as the Rochdale Principles, which all true cooperatives follow:
1. Membership is open to all.
2. Each member has one vote no matter how many shares he owns. This is to insure democratic control.
3. Any money earned by the business is given back to the members in the form of savings.
4. A limit on the amount of interest paid on shares of stock- frequently 4%.
5. Trading is on a cash basis.
Following these principles the Farmers Union members proceeded to set up cooperatives in the businesses that they felt would assist them the most. The three main kinds of cooperatives are consumer, marketing, and service.
The marketing cooperative grades, processes, and sells the farm produce at the highest prices that may be obtained. They usually specialize in a single product, such as wheat or other grains, dairy products, and livestock. There are two types of marketing co-ops: Combined or federated type which consists of an association of previously independent cooperatives. The other type is an association which serves an entire region from one central office. Some examples are the G.T.A. elevator and the Farmers Union livestock agency at West Fargo.
Consumer co-ops buy products at wholesale and sell to the customers at retail. Any profits are returned to the 'people who participate. Oil companies, grocery stores in some areas, fertilizer plants are some examples.
Service co-ops provide for other needs, such as insurance, electricity, telephone, credit union for loans for money. All these services may be obtained in Foster County.
The educational aspect of the Farmers Union is carried on through a system of local, county, and state organizations. Information is provided in various aspects of farm living. They also provide information on legislative happenings in state and national levels.
Source: A History of Foster County 1983 Page 112