Non Technical Summary
The South/Central Rural Cooperative Center (SCRCC or "the Center"), operated by the University of Texas Rio Grande Valley, serves agricultural and rural businesses throughout a 4-State Service Area that includes Texas, New Mexico, Oklahoma, and Louisiana.This multi-state cooperative development project builds on two decades of effective technical assistance to farmers, ranchers, and rural communities. As the only rural-serving co-op development center in the 4-State Service Area, SCRCC is strategically positioned to generate high-quality employment opportunities and enhance the success of agricultural operations. The project targets 17 Persistent Poverty Priority Counties to efficiently deliver trainings, consultations, and resources where they will have the highest impact. Experienced staff and regional partners will collaborate to build robust and sustainable economies, catalyzing the start-up, expansion, and operational improvement of rural cooperatives and mutually-owned businesses.Proposed FY25 SCRCC services align directly with key priorities identified by the NOFA within the multi-region service area. SCRCC's work plan will result in new cooperative and business formations and spur rural job creation throughout the 4-State Service Area:Activity 1: Develop New Co-ops and Rural Businesses--Engage communities to undertake cooperative formation through innovative training and assistance techniquesActivity 2: Improve Financial Sustainability for Rural Co-op Groups--Expand the capacity, skills, and knowledge within co-ops to improve business resiliency and sustainabilityActivity 3: Grow Skilled Workforce Through Employee Ownership--Develop employees' management, financial, and leadership skills to expand opportunities for long-term local ownership of successful rural businesses.

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
602	6210	2090	80%
502	6210	2090	20%

Knowledge Area
602 - Business Management, Finance, and Taxation; 502 - New and Improved Food Products;

Subject Of Investigation
6210 - Farmer cooperatives;

Field Of Science
2090 - Statistics, econometrics, and biometrics;

Goals / Objectives
The major goals of this project as described in the project proposal and outlined in 7 CFR 4384 F are:1. The Center will effectively serve rural areas in the United States as defined in 7 CFR 4284.503.2. The primary objective of the Center will be to improve economic conditions and facilitate the creation of jobs in rural areas through the development of new rural cooperatives, value added processing, and rural businesses.3. The proposed activities of the Center will contribute to the improvement of economic conditions in the 4-State Service Area. Through training and technical assistance activities, the Center will advance USDA's rural workforce development initiatives in persistent poverty counties. In accordance with EO 14278 and America's Talent Strategy, the Center will assist businesses in training, hiring, and retaining a skilled workforce.4. The Center, in carrying out its activities, will seek, where appropriate, the advice, participation, expertise and assistance of representatives of business, industry, educational institutions, the Federal government, and State and local governments.5. The Center will take all practicable steps to develop continuing sources of financial support, particularly from sources in the private sector. In the past three years, the Center has received private funding support from the Kellogg Foundation, Democracy at Work Institute, and the Texas Center for Local Food. The Center is proactively developing alternative funding sources that reduce reliance on federal, state, and local grants including fee-for-service models, and private funds from organizations including Project Equity, the Cooperative Development Foundation, and the Nathan Cummings Foundation.

Project Methods
SCRCC will meet the goals of the project by leveraging highly experienced staff and independent co-op development experts throughout the 4-State Service Area to build robust and sustainable rural economies in communities--focusing on Persistent Poverty Priority Counties--by assisting with the start-up, expansion, and operational improvement of rural businesses, cooperatives, and Mutually Owned Businesses (MOBs).This project methodology includes outreach, training, consultation, and work product that support the emergence and success of cooperative business ventures. The work plan for FY 2025 consists of three primary activities, described below, and will be achieved through 15 specific tasks. These activities employ evidence-based strategies as well as new cooperative approaches to achieve successful outcomes for farmers, ranchers, and the rural workforce in Texas, Oklahoma, New Mexico, and Louisiana.Activity 1: Develop Regional Cooperative Economic Development Pipelines--The Center will deliver outreach, training, and technical assistance that builds awareness of the cooperative model and provides needed support to emerging co-op groups. Center staff will engage with contract collaborators, regional partners, and co-op leaders to build a comprehensive strategic approach that generates new coops and rural businesses in the 4-State Service Area. The Center will work closely with contract collaborators to provide trainings and consultations on co-op concepts, skills, and the start-up process. As a result of these trainings, contract collaborators will spearhead regional farmer co-op task forces to build support networks and investigate regional opportunities and barriers to farmer co-op development. The Center will leverage its in-house video and technology team as well as the national partnership with Ajani Group to develop video and other digital resources that support efficient access to co-op knowledge and skills. Center staff will collaborate with local, regional, and national partners to provide both in-person and digital trainings and consultations that facilitate cooperative activity for groups new to the co-op model.Specific tasks associated with this activity include:1.1. Develop 1 multi-region strategic plan with local leaders1.2. Present 15 regionally specific trainings on co-op start-up1.3. Facilitate 5 regional farmer co-op task forces to improve business resilience1.4. Deliver 30 consultations to new stakeholders on co-op opportunities1.5. Create 10 digital technical assistance resourcesActivity 2: Improve Financial and Management Sustainability for Rural Co-op Groups--Center staff will train new cooperative owners on strategies to thrive beyond the first five years of operations, including trainings on finance and open book accounting practices. New training tools will improve comprehension and retention of complex business concepts with evidence-based approaches. Co-op groups and members will apply business strategies in real-world scenarios through interactive trainings. Center staff will consult with co-op groups to transfer business development skills to their own cooperatives. Trainings on financial oversight and operational efficiency will offer the opportunity for co-op leaders to expand management knowledge. The Center has supported value-added producers for the past decade, providing step-by-step support through funding applications, business planning, and product development. Value-added trainings and consultations in FY 2025 will expand this work throughout the 4-State Service Area. The Center will work with established co-ops to develop leadership and new business strategies, including opportunities for value-added production that can stabilize off-season income for farmers and ranchers.Specific tasks associated with this activity include:2.1. Develop 3 training tools on co-op financial oversight and management2.2. Deliver 20 trainings on strategic business development to co-ops and members2.3. Deliver 25 consultations on strategic business development to co-ops and members2.4. Deliver 5 trainings on financial oversight and operational efficiency2.5. Deliver 5 trainings on effective strategies for new value-added enterprises2.6. Deliver 20 consultations to producers creating new value-added enterprisesActivity 3. Grow Skilled Workforce Through Employee Ownership--The Center will deliver training, consultation, and support to develop rural workforces and prepare employees to become business owners. New trainings will increase knowledge of the cooperative model, and teach leadership, management, and strategic analysis to assist employees in the transition to business ownership. Employee groups (buyers) and business owners (sellers) have different needs and interests in the transition process, and Center staff will engage with both to facilitate informed strategic decision-making. An ownership transition manual, developed in collaboration with project partners, will maximize efficiency of the project, enabling owners and employees to build skills independently.Specific tasks associated with this activity include3.1. Present 5 new trainings on business exit planning and employee ownership3.2. Deliver 20 consultations to employee groups pursuing a business purchase3.3. Deliver 15 consultations to rural business owners pursuing a sale to employees3.4. Create 1 employee ownership transition guide for small business owners