CUMAFarm Machinery Cooperatives

_____________

Pierre-François VAQUIE,M f th N ti l F d ti f CUMAManager of the National Federation of CUMA

www cuma france fr

LET’S FARM OUR LAND TOGETHER

www.cuma-france.fr

What we will talk aboutWhat 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

interventionintervention

CUMA are…

SERVICE CO-OPERATIVES IN AGRICULTURE Set up by and for farmers

COLLECTIVE INVESTMENT AND JOINT USE

Of machinery, building, workersfor tasks directly linked to production cycles

LITTLE AUTONOMOUS GROUPS to ease or improve conditions of production

and increase the farm’s productivity

LET’S FARM OUR LAND TOGETHER

Key Factsy

11545 Cuma in France

4600 employees (drivers, mechanics,…)

around 20 farmers / Cumaaround 20 farmers / Cuma

av. turn-over : 45 000 €

40% of french farms are involved in a Cuma

Key Facts : Main activitiesy

% OF CUMA OFFERING THESE SERVICES :

Transportation

% OF CUMA OFFERING THESE SERVICES :

SprayingHay baler

Toothed and disc implement …

Combine harvesterSlurry spreader

Spraying

P t t d diGrape harvest

Low tillage/scratch farming

0% 10% 20% 30% 40% 50% 60%

Potato and veg. digger

Key Facts : Investment Funding

WAYS OF FINANCING (Millions € )

20%

53 % SELF-FINANCING

OTHER LOANS

14 % SUBSIDIZED LOAN

13 % SUBSIDIES

An asset for the competitivity of littleand middle sized farmsand middle sized farms

mechanization costs

Low financial commitment( h i f th it l) / A(sharing of the capital) / Accessto up-to-date machinery

Credit access

O i ti f kOrganization of work

Risk sharingg

Flexibility

LET’S FARM OUR LAND TOGETHER

From Cuma project to set up : Key points / Needs analysis

A group of farmers should take time to define his own common project possibly with the help pf a Cuma advisor

y p y

project, possibly with the help pf a Cuma advisor.

Individual projects of the farmers ? Equipment needs?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,…)( p , )

Group strategy (prefers “comfortable organization” and disponibility or lowest cost possible?),…

Size/ Type of investment neededSize/ Type of investment needed

Emergence of the projectEmergence of the project

From Cuma project to set up : Key points / The funding plan

Market price of the equipment: …. 10 000 € for instance

y p g p

Registered capital (20% recommended): …….. 2 000 €Each farmer commit to use the equipment on a defined area

Total area involved : 200 ha for instanceTotal area involved : 200 ha for instance

Value of the share : …. 10 €/ha

MEMBERS AREA SOCIAL CAPITALMEMBERS AREA(or relevant unit)

SOCIAL CAPITAL per MEMBER

Mr A 10 ha 100 €

Mr B 50 ha 500 €

Mrs C 100 ha 1000 €Mrs C 100 ha 1000 €

Mr D 20 ha 200 €

Mrs E 20 ha 200 €Mrs E

From Cuma project to set up : K i t / Th f di lKey points / The funding plan

Registered Capital …. .€ 2000 €

( ibl ) S b idi €(possibly) Subsidies ….. €Total social capital+subsidies

….. € 2000 €social capital+subsidies

Credit (still to finance) ….. € 8000 €= loan needed

Purchase of the equipment by the Cumaq p y

From Cuma project to set up : Key points / Cost-in-use

Calculation’s Cost/year

y p

factorsFor instance : 8 years

….€/year for Mr A, …€/year for Mrs B,…

d di th b f h f th i l t i l d i th ti itdepending the number of ha of their plots involved in these activity

Principlesp

MEMBERSMEMBERS

• Voluntary membership • Commitment

MEMBERSMEMBERS==

DECISIONDECISION--MAKERS MAKERS ++Commitment

• Democratic management• Equity

+ + USERSUSERS

To specify how it operates:• invoicing procedures, • use of equipment,

h d l t• schedules, etc.

The strength of a networkg

FEDERATIONS OF CUMA ARE AUTONOMOUS AND RULED BY

FARMERSFARMERS

80

11 545 Cuma

80Local/regional

federationsLocal institutions

Representation, advocacy

Agricultural ministry, EuropeanUnion

Nationalfederation

Union

The strength of a networkRole of the federationsRole of the federations

Support and advice to the groups ( by SKILLED

GROUP ADVISORS)

Decision-support tools and methods

Trainings, Events

Advocacy

Accountancy supporty pp

Technical datas and figures

Support from the public policiesThe legal frame

The 10th of September 1947 law regarding the cooperatives’ legal status gathers together in a single text all the rules common

g

to the different type of cooperative societies and set their modes and terms of functioning.

Cuma, as other agricultural cooperatives are regulated by the 10th of , g p g ySeptember 1947 law and by the Rural Code (Title II Book V).

Ministry of Agriculture establishes the standard statutes that agricultural cooperatives must absolutely followagricultural 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

i ltagriculture.

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.employers group.

Support from the public policiesThe financial incentives

A SPECIFIC TAX REGIME FOR COOPERATIVES

Exemption of local business taxes

SUBSIDIES

- Subsidized loans for machinery purchased in CCuma

- Subsidies linked to specific development strategies, from European Union and/or local authorities –o u opea U o a d/o oca aut o t esdepending the area and the kind of investmentfor instance : specific machinery linked to good

farming practicesfarming practices,..