Jack Gherty, president and CEO of Land O'Lakes, on leading a branded food and farm supply cooperative

Executive Overview Cooperatives are a unique form of organization compared to the more familiar corporate forms of ownership, limited liability companies, partnerships, and proprietorships. Users of the cooperative's services are also voting members who control the cooperative, the owners who provided the equity capital, and patrons who received the benefits of use. Profits or net income are usually distributed as patronage-based refunds. Globally, farmer-owned cooperatives are important suppliers in the world food economy. Cyclical downturns in agriculture contributed to the recent bankruptcy of two large cooperatives. Farmland Industries and Agway, and caused financial stress in others. Like other businesses, cooperatives have become increasingly aware of the need to more proactively manage uncertainty in the food economy. A unique aspect of leading a cooperative includes educating its member-owners, who must understand the risks and rewards of growing a modern cooperatively organized company in the foo...