Starting a California cannabis cooperative is no easy task, but the benefits are worth it. As a group of Mendocino cannabis farms, my co-op has seen tremendous value from the contributions of our members. Agriculture cooperatives are imperative for many small farmers to stay in business, so let's take a look at what goes into the cooperative model and how you can get the most out of it. 

Creating the cooperative. 

As I mentioned in the first part of this series, the members of my co-op (Hive Mendocino) met while volunteering for a Mendocino County cannabis alliance. We established a model we all agreed on and decided to do it for ourselves. This process is unique to all co-ops, but generally, the following developmental steps are taken. 

Brainstorming:

1. After you have found your group of farmers, your co-op's mission and values are ready to be created. Your mission and values will largely depend on your goals as a group. 

2. Create a timeline for developing your cooperative. This activity will be a group effort, and establishing expectations ahead of time will lead you to greater success. 

3. Take a look at what potential obstacles you might face and how you will handle it. Changes in regulations, crop contamination, marketing strategies, and operating costs are some areas worth considering. 

4. Contemplate what opportunities you will create together. How much product do you anticipate to produce as a whole, what farming techniques will you execute, and what value will each member of the team bring to the table? 

Paperwork:

1. You will need to draft the articles of incorporation and bylaws for your cooperative. Seeking legal advice here can be very advantageous. While you can refine your bylaws as you move forward, creating at least a basic version is necessary for these beginning stages. 

2. Create a business plan. A business plan will keep everyone on the same page during co-op development and operation. Put together all the great ideas and research you and your team have done thus far. Your business plan will act as a reference guide moving forward for not only your current members but also for new members down the road. 

Financing:

1. How much will you invest in your farm and the co-op as a whole? Running into money issues half-way through the cultivation season is a recipe for disaster, and as a member of a cooperative, your failure will affect everyone. Make sure your financing is secure before moving forward. 

Methods of professional communication with your members.

Effective communication with your members will make or break the success of your co-op. While we all know it's essential to communicate, making collective decisions as a group will have its challenges.

1. Meet regularly. Set up your meetings ahead of time and on a schedule so everyone can prepare. Create an agenda for that meeting and stick to it. When there are many voices involved, it can be easy to get off-topic. When those off-agenda items arise, record them down for discussion in the next meeting. For efficient communication and decision making, it's necessary to stick to the task at hand. 

2. Be transparent and clear. During every co-op meeting, everyone should be open and respectful to new ideas. Feedback is vital! It's how your team grows and evolves. When everyone feels comfortable speaking their minds, it allows for ideas to flow organically, questions to be asked without hesitation, and a feeling of inclusion when making group decisions. 

3. Online collaboration. We work at different locations, and they aren't always that close together. Using online tools (such as google sheets or email) is a great way to get the little stuff communicated, even if it's just to ensure discussion of the topic during the next meeting.

4. Develop problem-solving procedures. When disagreements or concerns occur, have a plan in place for how you will solve them. Will you use principled negotiation techniques? What will be the timeline for handling these issues? What documentation will take place? 

5. Build team spirit. Take the time to be social with your members. Get to know their families, interests, and history. The Harvard Business Review says," Social time turns out to be deeply critical to team performance, often accounting for more than 50% of positive changes in communication patterns."

6. Show appreciation — a simple yet critical aspect of effective communication. Ensuring everyone feels appreciated for their contributions is the glue that will hold your team together.  

Challenges you may face.

There are challenges when working with a group of people. There are a lot of minds involved, and they are all different. Typically, there is a one-member-one-vote rule when forming a co-op, giving everyone equal say in group decisions. Be prepared to carve out extra time for this, because while many minds are better than one, the opportunity for a difference in belief increases. This obstacle of having to revisit the conversation until reaching a consensus adds time to the decision-making process. 

In conclusion.

Every co-op is different. While something may work for one group, it may not work for the other. It is wise to take the time to research your municipality's rules and regulations to ensure you operate legally. When you've found your tribe, be patient with this formation project. There will be road bumps, curves, and hills along the way, but the drive is worth it. 

If you're interested in learning more about Giving Tree Farms, send us a message! If you want more information on the product that Hive Mendocino Co-op produces, please fill out a wholesale form, and we will reach out to you A.S.A.P.