Support Letter from M&M Divide RC&D

Dear Mr. Adams,

The Missouri & Mississippi Divide Resource Conservation & Development (M&M Divide RC&D) located in Carroll, IA has partnered with the Community Market Cooperative to assist in their fundraising efforts. M&M Divide RC&D, Inc. is a non-profit 501 (c) 3 organization designed to improve rural economic development in a six county area in West Central Iowa. In short, we provide a way for people to work together to plan and carry out activities that will make their community a better place to live. M&M Divide RC&D received its non-profit status in 1992 and has since worked on and sponsored various projects including the establishment of a forestry management program, small business and community development, recreational trails, value-added agriculture studies, and other similar projects.


Community Market Cooperative is a niche grocery market to be located in Carroll, Iowa. Community Market’s emphasis will be to provide local products and food items to shoppers as well as natural and organic fresh, frozen and processed foods and health and beauty aides. Although the Community Market is a cooperative and relies heavily on membership, the store will be open to the public. Their mission statement is as follows:
Community Market Cooperative exists to serve our owners and community by:
 Supporting our community’s health and well-being and;
 Stimulating the local agricultural production of natural and organic foods by providing an economic outlet.
Community Market Cooperative (CMC) is incorporated under Chapter 501A in the Code of Iowa. Chapter 501A allows a cooperative to organize on a partnership model similar to a Limited Liability Company and to have both patron and non-patron investors.
This significant feature provides a cooperative to seek outside equity capital to create or expand the Cooperative, without having to claim the funds as income. The bylaws for CMC specify that Non-Patron investors must be citizens of the state of Iowa. Choosing the cooperative route as opposed to a sole proprietorship enables CMC to put forth their mission of providing an economic outlet for local producers and giving back to the community. The cooperative will be dedicated to offering fair trade value to producers for their wares and will offer patronage dividends to stockholders during years the store is profitable.

The majority of Community Market’s customers will be members of the cooperative. Members will have paid a one-time fee of $100 to own one share/one vote in the cooperative. Non-members will also be welcome to shop at the store with no difference in services except that they will not receive membership benefits.
Based on an initial feasibility study, the trade area consists of a 35-mile radius around the city of Carroll. This radius includes eight counties which, based on statistical analysis, has a total population of about 100,000 people. Higher sales penetration rates will be achieved from customers of the trade area closer to Carroll and lower sales penetration will be achieved from the more distant reaches of the trade area.
CMC aims to target consumers who are interested in getting local foods on a year round basis, more natural and organic foods for healthier eating and natural and organic non-food items for a healthier lifestyle. A trend is growing across the nation in which consumers are becoming more interested in getting food and other products that are grown and produced closer to home, decreasing the cost of packaging and transportation.
Many consumers in and around Carroll are currently driving to Ames, Des Moines or Omaha for natural and organic foods. Also, although consumers may know of local producers, it is not always easy to purchase food items from multiple producers. Community Market Cooperative will keep consumers in the area by offering the same types of products as the stores in the bigger cities and will finally offer one place to buy a myriad of local foods and products on a year round basis. Through national and local studies it has been found that consumers will pay up to 25% more if they know that the producer has received a fair value on their products.

Currently the M&M Divide RC&D is the acting fiscal agent for CMC and is handling all income and expenses. Community Market Cooperative has already received the following: $1,098 donation from Practical Farmers of Iowa; $2800 matching grant from the USDA-NRCS; $9,000 matching grant from Food Coop 500, $1,500 from Pioneer Hi-bred International, $500 from Carroll Soil and Water Conservation and $500 from the Scholar Foundation. Additionally, CMC has raised $3,100 in private donations and $7,300 in Patron Shares (memberships). These initial funds have been used towards incorporation fees, a complete feasibility study, some advertising and marketing costs and some reimbursement costs. Fundraising efforts are ongoing as CMC holds membership drives around the eight-county area, other grants are being researched, and a capital campaign is being organized.

The Community Market Cooperative is dedicated to supporting local, family producers who practice sustainable agriculture and providing a healthy grocery alternative to consumers. The M&M Divide RC&D and the Community Market Cooperative find this collaboration to be mutually benefiting as it relates to our respective missions, thus the RC&D firmly lends its full support towards the implementation and success of this project.

Please do not hesitate to call if you have any questions or need additional information. Questions can be directed to Rick Tafoya, RC&D Coordinator, at (712) 792-4415 or email rick.tafoya@ia.usda.gov or Denise Webber, CMC President (712) 830-1125 or email organic_homestead@yahoo.com.

Thank you for your thoughtful consideration.

Respectfully,


Walter Wittrock
M&M Divide RC&D, Chairman