Legal and Organisational Structures An overview for Community Supported Agriculture Mark Simmonds Field Officer – Good Food, Good Governance Making Local Food Work Project

Legal and Organisational Form Legal form – How the law regards you Examples of legal forms: Unincorporated Association Company Limited by Guarantee Community Interest Company Organisational form – How you regard yourself Example of organisational forms: Community Supported Agriculture Scheme Co-operative Farmers’ Market Social Enterprise

Incorporation Creates a separate legal identity from the membership, the “corporate body” Corporate Body Incorporation

Limited Liability Credibility Organisation can own property in its own right Organisation can enter into contracts  Cost  Administrative burden  Penalties for poor administration  Loss of privacy

CSA Types of CSA Subscription (Farmer driven) Shareholder (Consumer driven) Farmer co-operative (Farmer driven) Farmer-consumer co-operative Community Run Agriculture (Consumer=Farmer) LandownerConsumer Grower

CSA Structure - Subscription (Farmer or grower driven) Simple agreement between consumer and grower Grower has most of risk and responsibility Consumer organisation need not be incorporated Example - Earthshare Landowner Consumer Grower Pays subscription to Legal form Company Limited by Shares Organisational Form Worker Co-operative Rents land from

Legal form Industrial & Provident Society (Soc Ben) CSA Structure - Shareholder (Consumer driven) –Example 1 Consumer has all of risk and most of responsibility Grower is often an employee of the CSA Consumer owns or rents the land Consumer incorporated (often IPS) Examples – Stroud Community Agriculture, Fordhall Farm Landowner Consumer Grower Employs Rents land from Work in partnership

CSA Structure - Shareholder (Consumer driven) – Example 2 Consumer has all of risk and most of responsibility Grower is often an employee of the CSA Consumer owns or rents the land Often incorporated (often IPS) Examples – Stroud Community Agriculture, Fordhall Farm Landowner Consumer Grower Legal form Industrial & Provident Society (Soc Ben) Exempt charity Work in partnership

CSA Structure - Farmer co-operative (Farmer driven) Co-operation between growers Different growers specialise to increase choice May or may not incorporate More common in Japan and USA UK has many non-CSA agricultural co-operatives Consumer Grower Box scheme Typical Legal form Industrial & Provident Society (bona fide co-op)

Box scheme CSA Structure - Community Run Agriculture The grower is the consumer (although may be other consumers) Likely to be incorporated CSA will rent or own the land Example – Green Patch, Kettering Landowner Consumer Grower Consumer Same Legal form Company Limited by Guarantee Rents land from

How to decide on your structure First consider: Exactly what is it you want to achieve? Why you want to achieve it (your ethos)? How you will be funded? What will you do with any profit? Who will be involved and how? Assets and ownership Future membership and wind-up Then seek professional advice Select-a-structure exercise