Rural and urban farmers and gardeners and their communities can and should work together to develop sustainable food systems. The cities and towns have markets, along with skilled and willing labor (and some open spaces) while rural communities have land, experienced farmers and a strong desire to build new, sustainable economies.

As discussed on the accompanying page, supply contracts between retailers and local growers will help attract investors to sustainable food systems. This page outlines how business relationships can be formed among farmers, urban and rural landowners and investors.

Brand Partnerships

With brand partnerships, farmers, gardeners and their cooperatives will own controlling interests in “sustainable food companies” that are organized as partnerships, with the farmer as the managing partner. As the managing partners, each farmer will be well compensated since their skill and hard work are central to the success of each new enterprise. The minority partners, both investors and landowners, will most likely be members of organizations with strong business, social and environmental interests, including:

•   Churches, schools, colleges and universities
•   Food companies, including retailers, manufacturers and distributors
•   Land owner groups
•   Green mutual funds
•   Economic development agencies

Each partnership could own one or several sustainable food brands. Our goal is to organize several partnerships in close proximity to one another so that labor, equipment and land can be used to the best advantage. This spreads financial and operating risks while reducing unit production costs.

Partnership Structure and Operation

Returns to investors and land owners will be paid once managing partners reaches production and income goals contained in partnership agreements, and related business plans. These contracts will also detail the duties of each partner.

Briefly, producer responsibilities will include production and coordination on shared operations with near-by managers. The investors will provide the capital and/or operating funds in return for a share of the partnership profits. Landowners, who will also share in the partnership profits, will enter separate lease and ownership agreements with the managing partners. These agreements will cover purchase prices and time frames along with payment of taxes, insurance and maintenance.

The partners will conduct scheduled contract reviews and discuss business plans for each brand, including retail supply contracts. Further, each partnership agreement will contain provisions for an orderly dissolution in the event that consensus cannot be reached on key issues.

Once several partnerships are in place, the members will be encouraged to join informal “partnership councils” to discuss operations, finances, legal issues and markets. The frequency of these meetings and the agendas will be determined by an informal committee that includes managing partners, investors and landowners. In time, these councils may become legal entities with public relations and lobbying duties of their own.

Other Services

Depending on the crops, food products and locations, each partnership will have ready access to experienced agricultural, environmental and dietary consultants, along with marketing, banking, insurance and legal services.
Massena Compensation

Massena Farms will receive a small management and marketing fee from each partnership in return for negotiating and managing supply contracts and related services. This fee will be pegged to services rendered and/or to sales. We will not accept fees and commissions from contractors, service providers or vendors.

End, 08-30-10