What is an Agricultural Cooperative Corporation?

A grassy field in the foreground that turns into dense forest, fluffy clouds gather overhead
Photo by Cédric VT / Unsplash

Since the definition for an ACC is, um... tedious and long, I'll share it here in full:

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"An association may be organized to engage in any agricultural or related activity, including, but without limitation, any activity in connection with the producing, marketing, selling, harvesting, dairying, preserving, drying, processing, canning, packing, milling, ginning, compressing, storing, transporting, handling, or utilization of any agricultural or forestry products produced by it or delivered to it by its members or others; with the manufacturing or marketing of the by-products thereof, or in connection with the purchase, hiring, or use by it or its members or others of supplies, machinery, or equipment; in the acquisition or improvement of land; in the construction or maintenance of houses, barns, sheds, or facilities for its use or the use of its members; for indemnifying or replacing damaged, lost, or destroyed livestock or other tangible personal property pertaining to agriculture belonging to its members; in burial activities; or the furnishing of medical, dental, health, hospitalization, nursing, or any related services, or medicines or medical supplies to its members and their families." - Acts 1939, No. 153, § 4; A.S.A. 1947, § 77-1004.

Congratulations if you made it through that paragraph of a sentence! Very long story short, ACC's are a means for likeminded people who want to do any sort of agriculture together to organize and share resources as a non-profit entity.

Organizing ourselves as an ACC will allow us to pool our resources (money) in a centralized bank account that belongs to the corporation instead of an individual or group of individuals. In addition, ACC's are subject to annual reporting to maintain their tax exempt status, but their function as a non-profit is to benefit their own members. This is different from a 501(c)(3), which benefits the public.

ACC's are empowered to:

  • Borrow money
  • Invest money
  • Save money
  • Purchase property
  • Create contracts
  • Sue and be sued
  • Represent its members

ACC's are required to:

  • Prepare and file articles of association
  • Have at least 5 members
  • Have governing by-laws
  • Have a board of directors that meet at least once per year

Read more about Agricultural Cooperative Corporations in Arkansas.

Read more about how the USDA supports ACCs.

How will Dandelion Commons function as an ACC? We will use the protection of this legal entity to begin saving money together to purchase land and build an ecovillage community. The ecovillage will be home to members who are engaged in creating and sustaining a food forest, market garden, and animal husbandry.

Stick around as we share more about our plans for Dandelion Commons!

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Jamie Larson
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