LET’S FARM OUR LAND TOGETHER CUMA Farm Machinery Cooperatives _____________ Pierre-François VAQUIE, Manager of the National Federation of CUMA

What we will talk about 1/ General presentation 2/ From Cuma project to set up 3/ Role of the federations of Cuma 4/ State and public policies intervention

LET’S FARM OUR LAND TOGETHER LITTLE AUTONOMOUS GROUPS to ease or improve conditions of production and increase the farm’s productivity COLLECTIVE INVESTMENT AND JOINT USE Of machinery, building, workers for tasks directly linked to production cycles SERVICE CO-OPERATIVES IN AGRICULTURE Set up by and for farmers CUMA are…

Key Facts  Cuma in France  4600 employees (drivers, mechanics,…)  around 20 farmers / Cuma  av. turn-over : € 40% of french farms are involved in a Cuma

Key Facts : Main activities % OF CUMA OFFERING THESE SERVICES :

Key Facts : Investment Funding 20% 53 % 14 % 13 % SELF-FINANCING OTHER LOANS SUBSIDIZED LOAN SUBSIDIES  WAYS OF FINANCING (Millions € )

An asset for the competitivity of little and middle sized farms LET’S FARM OUR LAND TOGETHER  mechanization costs Low financial commitment (sharing of the capital) / Access to up-to-date machinery Credit access Organization of work Risk sharing Flexibility

A group of farmers should take time to define his own common project, possibly with the help pf a Cuma advisor. Individual projects of the farmers ? Equipment needs?  Is there a common need? Is there a real commitment of the group? How many ha involved? Distance? Periods of use? Natural factors (difference between plots,…) Group strategy (prefers “comfortable organization” and disponibility or lowest cost possible?),…  Size/ Type of investment needed From Cuma project to set up : Key points / Needs analysis  Emergence of the project

Market price of the equipment: … € for instance Registered capital (20% recommended): …… € Each farmer commit to use the equipment on a defined area Total area involved : 200 ha for instance Value of the share : …. 10 €/ha MEMBERSAREA (or relevant unit) SOCIAL CAPITAL per MEMBER Mr A 10 ha 100 € Mr B 50 ha500 € Mrs C 100 ha1000 € Mr D 20 ha200 € Mrs E 20 ha200 € From Cuma project to set up : Key points / The funding plan

Registered Capital…..€ 2000 € (possibly) Subsidies….. € Total social capital+subsidies ….. € 2000 € Credit (still to finance)….. € 8000 € = loan needed From Cuma project to set up : Key points / The funding plan  Purchase of the equipment by the Cuma

Calculation’s factors Cost/year For instance : 8 years From Cuma project to set up : Key points / Cost-in-use

To specify how it operates: invoicing procedures, use of equipment, schedules, etc. Principles Voluntary membership Commitment Democratic management Equity MEMBERS = DECISION-MAKERS DECISION-MAKERS+USERS

FEDERATIONS OF CUMA ARE AUTONOMOUS AND RULED BY FARMERS The strength of a network 80 Local/regional federations Cuma Local institutions Agricultural ministry, European Union Representation, advocacy National federation

The strength of a network Role of the federations  Support and advice to the groups ( by SKILLED GROUP ADVISORS)  Decision-support tools and methods  Trainings, Events  Advocacy  Accountancy support  Technical datas and figures

The 10th of September 1947 law regarding the cooperatives’ legal status gathers together in a single text all the rules common to the different type of cooperative societies and set their modes and terms of functioning. Cuma, as other agricultural cooperatives are regulated by the 10 th of September 1947 law and by the Rural Code (Title II Book V). Ministry of Agriculture establishes the standard statutes that agricultural cooperatives must absolutely follow. The regulation hasn’t stop changing and being modified in order to take into account the major changes experienced by French agriculture. Agricultural cooperatives shall also respect other provisions specified in other texts, legal or regulatory. For instance : The 2006 Framework Law on Agriculture introduce in the Labour Code the possibility for the Cuma to act as legally employers’ group. Support from the public policies The legal frame

A SPECIFIC TAX REGIME FOR COOPERATIVES Exemption of local business taxes SUBSIDIES - Subsidized loans for machinery purchased in Cuma -Subsidies linked to specific development strategies, from European Union and/or local authorities – depending the area and the kind of investment for instance : specific machinery linked to good farming practices,.. Support from the public policies The financial incentives