understading collaborative farming models

An oregon-centered Definitions guide

Farming is an inherently collaborative effort. There are countless opportunities in the process of planning, growing, harvesting, processing, marketing, and distributing farmed goods where collaboration can enhance farmers’ productivity, profitability, and quality of life. 

This definition guide aims to demystify some of the terms used to describe different ways farmers might collaborate. First, we break down the three Cs: Collaborative, Collective, and Cooperative. Then we dive into different ways farmers might collaborate to establish a business entity, access land and capital, and/or market their products. 

All terms in this guide are defined in the context of farming. When available, we include Oregon-based examples of the different models, although not all models are represented in the state. This guide is not comprehensive, and the terms described are not mutually exclusive. There are countless ways different models can be layered to collaborate on different levels. 

Collaborative Farming: A catch-all term for any form of farming that involves two or more people working in collaboration. This can take numerous forms from sharing land, sharing tools, forming a joint business, or working together to market and distribute products. 

Collective Farming: For the purposes of this guide, we understand “collective” to be another catch-all to describe a team-based approach to farming. In a more broad context, “collective” can also be understood as a democratic management approach to any project. 

Cooperative/Co-op: While the word “cooperative” is often understood to be another synonym for “collaborative”, the term has specific legal implications that define it separately. The distinctive characteristic of a cooperative is that it is owned and operated by and for the benefit of its members. You will see different kinds of cooperatives referenced in the below definitions. In Oregon, a farm must form a cooperative corporation and meet a certain set of requirements in order to include the word “cooperative” in their name. A farm can be a different form of legal entity, such as an LLC, and still incorporate cooperative principles into their bylaws, but cannot include the word “cooperative” in the business name. 

Learn more by exploring our definitions guide below or watching our short explanatory video.

I want to collaborate to…

ways to collaborate to Start a Farm Business Entity

Worker cooperative: A cooperative in which some or all workers on the farm are also owners of the farm. The farm operates for the benefit of the member-owners. The cooperative must treat their members as employees in the day-to-day operations, so they must be able to comply with all employment related laws. These currently make up a very small share of the cooperative sector. 

Example: Our Table Cooperative in Sherwood, OR

General Partnership: Whenever two or more people farm together without forming a corporation, they default into a general partnership. Because each partner has unlimited personal liability for all the debts of the business, including any actions taken by the partner(s), it is not recommended to enter a general partnership. In some states, a limited liability partnership (LLP) is an option. In Oregon, LLPs are relegated to certain professional industries and are not available to farmers. Forming a multi-member LLC is an alternative to avoid becoming a general partnership. 

Multi-Member LLC: A limited liability company (LLC) with two or more members is a multi-member LLC. Organizing as an LLC provides limited personal liability protection for the business’ owners. An LLC is not implicitly a collaborative model, but an LLC can easily incorporate collaborative principles into its structure. A group of farmers could establish an LLC and delineate a collaborative management model in the articles of organization. 

Example: Winter Green Farm in Noti, OR

Collaborative Nonprofit: A nonprofit no true owners. The organization is typically led by a board of directors. However, there are emerging ways to incorporate self-directed, worker-led democratic principles into nonprofit leadership structures. A nonprofit model works best when the main purpose of the farm is educational or charitable. 

Example: Zenger Farm (nonprofit farm) in Portland, OR; Sustainable Economies Law Center (self-directed nonprofit) in Oakland, CA

ways to collaborate to Access Land and Capital

Farm Incubator: Programs where resources such as land, infrastructure, and tools are leased affordably to beginning farmers to help them launch new farm businesses, build markets, and scale up. These programs often include some form of training, business development, or other technical assistance. Farmers participating in farm incubators often farm adjacent to other beginning farmers and share resources like tractors, greenhouses, storage, joint supply orders, etc. 

Example: Headwaters Incubator Farm in Gresham, OR; Oregon Food Bank’s Pathways to Farming Incubator Program at Unity Farm in Portland, OR 

Agrarian Commons: A type of community land trust that puts protections on a piece of land limiting its ability to be used outside of ecologically regenerative farming. The commons is managed by a board composed of the farmers, local community members, and representatives of Agrarian Trust, the national nonprofit that supports agrarian commons. Farmers are given long-term, affordable, equitable leases to the land. This model can be replicated outside of Agrarian Trust, and folks interested in creating new agrarian commons projects can approach AT for support. 

Example: Puget Sound Agrarian Commons in Whidbey Island, WA

Eco-villages: A community of people who live intentionally with shared ecological and social values. These communities often include a farm, sometimes to support the ecovillage financially. The level to which the farm entity and community are interconnected varies by site. 

Example: Alpha Farm in Deadwood, OR 

Joint land leasing: 

1. Separate leases: A group of collaborative farmers can have separate individual leases at the same property with the same landlord. This arrangement allows for the easy exit of any one farmer, but could require some forethought about how a potential exit would be handled, and how a new lessee might be brought in. 

2. Joint lease: A group of collaborative farmers might jointly sign one lease with a landlord. If this route is chosen, it is recommended to form a third party legal entity, like an LLC, to lease the land. This entity then subleases the land to the farmers/farm business(es).

Joint land ownership:

1. Tenancy in Common and Joint Tenancy: Both Tenancy in Common (TIC) and Joint Tenancy are ways two or more people can own a piece of farmland together. There are nuances between the two, but they both carry liability risks. Generally, neither is recommended for non-related groups of farmers. 

2. LLC or Cooperative: A group of farmers, or a group of farmers plus external stakeholders, might establish a separate non-farming LLC or cooperative to purchase a piece of land. That land holding entity then leases the land to the farm business(es). This is often preferable to tenancy in common or joint tenancy because it removes personal liability and allows more flexibility in determining the ownership details between the farmers. 

   Example: Glen Valley Organic Farm in Fort Langley, BC established as a cooperative to purchase a plot of land to preserve it for farming. The cooperative leases the land to three farm businesses.

Purchasing Co-op: A cooperative with multiple farm businesses as members that comes together to access better pricing, usually through bulk purchasing. A group of farms might create a purchasing co-op to purchase pricier equipment and then lease it out to members. The individual farms that make up the purchasing cooperative do not themselves have to be cooperatives. 

Example: Grange Co-op 

ways to collaborate to Market and Distribute Products

Marketing (also called Producer) Co-op: A cooperative owned by its farmers members that aggregates, distributes, and markets their goods. The individual farms that make up the marketing cooperative do not themselves have to be cooperatives. This is the most common form of agricultural cooperative, and is often used by larger commodity growers. 

Example: Gorge Farmer Collective

Food Hub: An organization that manages the aggregation, storage, distribution, processing, and/or marketing of local food products. Food hubs can help address barriers to entry and increase distribution capacity for small producers. A food hub can be a nonprofit, cooperative, or private corporation. 

Example: Josephine County Farm Collective, North Coast Food Web

Multi-Farm CSA: Two or more farms come together to market their produce collectively through a joint CSA (or other farm subscription model). Oftentimes involves farms offering different products to provide a more varied, “whole diet” CSA. 

Example: Full Farm CSA via Deck Family Farm