Farmer's Organization - Chapter 4

Objectives

At the conclusion of this unit members of the Association will be able to:

• Understand basic operating principles of association management.

• Prepare a calendar of agriculture and other activities.

• Manage financial affairs and other credit related topics.

Lesson preparation

• Posters

• Blackboard/chalk

• Large calendar/prepare a Training Calendar

Concepts to be taught

• General principles of management of an AFF

• Activities plan

• Meeting calendar

• Committee organization

• Bank account/line of credit

• Financial records

Introduction

The organization of an Association of Farmers Friends entails: farmers selection, use of BHNA, understanding of the community, getting to know individuals who will serve in various positions, etc. The facilitator needs to be aware of cultural, religious, social, and hierarchical differences in the society where he/she works.

This exercise demands the facilitator to be knowledgeable about the area and its people. He needs to be familiar with local circumstances regarding farmer organization. In some areas, this can be condoned or prohibited by order of the government. Facilitators must pay close attention to prevalent social conditions, and government regulation in regards to group forming or organization. The AFF promoted by the Benson Institute is organized with the purpose to accept new technology (SSAP), manage funding, promote exchange of ideas, increase food production, improve health and sanitation. None of the expressed above has or is connected to a political ideology or religious expression. The Benson institute is not interested in obtaining gain, income, or property from any individual or group of individuals. Because many farmers throughout the world have been abused, it is hard and difficult to trust organizations which desire to make a contribution to their well-being.

When explaining this concepts allow enough time for individuals to ask questions and express doubts. Answer directly and to the point. Explain your position as member of he team. Do not hesitate when asked. If you don't have an answer, say so, do not make up answers.

It is important that AFF members understand all concepts and ideas presented. Many times doubts and concerns can be misinterpreted and misunderstandings will result. This situation can be avoided if the AFF leaders are properly trained and taught.

Concept #1

General principles of management of an AFF:

• Responsibility: When leaders ask or petition a task from members, the task must be completed during time allotted or allowed.

• Direction: leadership should be continuously aware of the stages in which a particular task is being completed.

• Inform: Keeping the committee of individuals responsible for the task or chore avoids misunderstandings regarding assignment of responsibility.

• Accountability: leaders must continuously provide the means by which members or committees can be accountable to the leadership.

• Report: leaders as well as members should provide an oral or written report of their finding regarding a particular task.

In order for the AFF to work together effectively, all members should be fully informed. All discussion must be conducted in a business like atmosphere. There should be enough paper and pencils. The secretary or treasurers should be ready to take notes and report of all needed information.

• Meetings should be arranged with time. * Agenda should be prepared before the meeting. * Committee members or individuals should be present.

Facilitator should:

• Encourage participation and discussion of the subject matter by all members. * Encourage cooperation among members. * Invite members to share ideas and other activities.

Facilitator check list

AFF leadership should assess any task by asking:

• Did the task start on time?

• What was the purpose of the meeting or task?

• What can be accomplished with the meeting?

• Did the AFF review the agenda?

• Did the AFF agree on the topics of the agenda?

• Did the leadership encourage participation?

• Did the leadership help the AFF to make a decision?

• Was the meeting to the point; did it end on time?

Management Process

Facilitator should briefly review presenting a specific case (select an actual case) on how to put to work management principles.

Phase Steps:

• What can be done?

Objectives

Research

Alternatives

• What is going to be done?

Procedures

Programs

Budget

• How is it going to be done?

Assignments

Tasks

• What is required to do it?

Selection

Development of steps

List of items needed

Resources

• Who is going to do it?

Leadership

Communication

Supervision

• How it was completed?

Operations

Interpretation

Implementation

Concept #2

Activities plan

When the leaders ask "someone" to do "something" and he/she thinks that "somebody" is going to do it, for sure "somebody" will not do it, and "nobody" will be blamed for it.

When organizing a task or activity follow these steps:

• Describe clearly what is to be done: "Please ask Pedro to buy 5 lbs. of soybean seeds."

• Provide alternatives where the task can be completed: "You can buy soybean at AAA stores."

• Inform why you need the item or task to be done: "I need the soybean seed now because this is the season for soybean."

• Provide the means and tools to facilitate the task: "Here you have $50.00 for the seeds, $5.00 for the bus and $10.00 for delivery."

• Give additional directions regarding the item, task, or chore: "Take the seed to the president of the AFF, on Friday at 2 P.M."

• Ask for a brief evaluation on how the task was completed: "where is the invoice and transportation bill?" Did you take the seed to the president?

• Ask if he/she found another way of completing the task: "Did you have any problems. How did you solve it?" Do you think it was good seed?

• When attempting to teach work organization, follow this flow chart example:

Correct course of action

Ask:

• Is it efficient?

• Does it fulfill the objective of the AFF?

• Is it economical?

• Have I compared this action to other possible alternatives?

• Have I planned it correctly?

• Is this precisely what I need to do?

• Is it flexible enough? Can I change course?

• Is it coordinated with other activities or goals of the AFF?

Write:

• Procedures to understand process.

• Steps to review later.

• Task repetition. Avoid duplication.

Budget:

• Quantify what is needed.

• Request appropriate number.

• Work with your pencil and calculator.

• Review your costs and income.

Proceed:

The leadership and committee chairman should be able to present specific tasks or a personal example on how you as a facilitator want to organize a specific task. Make sure that you have reviewed all concepts and ideas. If necessary, ask a member to review the steps of the work to be accomplished. (1) [Cooperativas de Producción Agrícola, en Guatemala, 1988, INACOP].

Concept #3

Meeting calendar

When organizing an AFF meeting there are four very important items that need to be considered prior to calling for a general assembly:

• Time: Find a block of time that fits the tasks, chores, and activities of the members of the AFF. Make sure that a large portion of the farmers agree to a specific time. Ask if it is possible for them to request that a member of the family take care of a particular job so they can come to the meeting. Remember that many times, farmers will make the time to attend a meeting, but, they are sacrificing other activities that could be critical to their agricultural schedule.

• Place: Find an appropriate place for the AFF to meet. It is much better to find a central location for easy access to all members of the association. It is important to find a place that is free from interruptions. It is better to request that the members do not bring their children.

• Leadership: Before setting any kind of a meeting or assembly, make sure that the president and leadership are fully aware of the nature, time, and place of the meeting. The president is to be notified first, if the president is not present, out of town, etc., contact the vice-president immediately. Unless the meeting is absolutely critical, do not contact the secretary or other committee members. By setting up a meeting without the leadership, you are creating a conflict.

• Communication: The AFF leadership is responsible for communication all types of information to the members. Do not short the circuits by keeping the leadership in the dark.

Types of meetings

• General assembly: This meeting includes every member of the association and the leadership. It is called by the leadership to discuss important matters concerning the entire AFF, and may require a mote on a decision to be taken. This meeting should occur at least once a month.

  • Agenda: Should be ready prior to the meeting.

  • Welcoming: Should be conducted by the president or vice-president.

  • Reading of the minutes: Should be done by the secretary.

  • Business transaction: Moderated by the president or vice-president according to previous arrangement.

  • Attendance record: Should be completed by the secretary, by reading the names of all those in attendance.

  • Recording of the business transaction: Should be done by the secretary.

  • Budget reporting: Should be done by the treasurer.

  • Assignments: Should be done by the leadership.

  • Closing: Should be done by the leadership.

  • Special announcements: Should be done by any member of the leadership or member of the AFF.

• Leadership meeting: This meeting includes only the members of the presidency; the president, vice-president, secretary and treasurer. A committee member may be invited at the request of the president. It deals primarily with the general administration of the AFF. During this meeting, the presidency should discuss special problems, prepare agendas, seek solutions to specific problems and issues common to members of the AFF, prepare training sessions in coordination with the training committee, analyze the budget, correct minutes, and present items for discussion in the AFF agenda. They should also consider:

  • Admission of new members.

  • Approval of purchases.

  • Response to correspondence.

  • Assignments to committees.

  • Authorized payment.

  • Specific member problems or request.

  • Replacements and/or calls of other members to committees, etc.

• Training session: This meeting includes all members of the AFF, it is usually called by the training committee, with the approval of the leadership and the trainer or facilitator. It considers:

  • Specific training topics.

  • Materials needed.

  • Place for the demonstration.

  • Time for the demonstration.

  • Special participation of members.

• Special assembly: this meeting includes all members of the AFF and is only called when a crisis arises. It is the responsibility of the leadership to call a special assembly. Some of the cases will include a natural disaster, the death of a member, the expulsion of a member, special activities or any other emergency that needs to be resolved immediately. This meeting occurs rarely and only under special circumstances.

Concept #4

Committee organization: The various committees are organized under the direction of the leadership and selected to carry out specific tasks or assignments,. Only the committee chairman is selected by unanimous consent. The chairman will select one or two individuals to assist him according to the nature, time, and kind of assignment.

Coordinating committee: It is the responsibility of this committee to audit the books on a monthly basis and to report to the general assembly any irregularities in the financial procedures. It makes sure that all assignments and commitments of the association are fulfilled. It supervises the disbursement of funds and reviews the payback schedule for all the members.

Production committee: It is the responsibility of this committee to ensure that all participation members of the AFF are adequately and properly filling out their Production record Book. Is assists the leadership in planning the annual production schedule, as well as in the execution of the technical plan with the facilitator. It also assists in the preparation of the annual agricultural calendar.

Inputs committee: It is the responsibility of this committee to see that all inputs are properly distributed and adequately used. It assists in the preparation of the PPA (Agricultural Production Package [Paquete de Producción agropecuaria]), and other agricultural related areas of the AFF.

Membership committee: It is the responsibility of this committee to identify new members of the association and present their names for approval by the AFF. It also orients and registers new members and instructs them regarding the rules and regulations of the AFF.

Social activities committee: It is the responsibility of this committee to prepare all social activities for the AFF.

Training Committee: It is the responsibility of this committee to coordinate and prepare special courses, conferences, seminars, or training sessions. It calls on the members to attend the training session. It assists the facilitator in gathering all the members for field days, promotes research among the members or the AFF, prepares literature, pamphlets, and leaflets to be given to the members of the AFF for training, and promotes education among members of the AFF in general.

Concept #5

Financial management

In organizing the AFF, the Benson Institute goals, are:

• To teach family self-sufficiency.

• To train small farmers to learn how to handle credit.

• To provide teaching assistance to promote income generation.

• To provide a vehicle by which funding/loans and credit is properly and effectively controlled.

• To teach principles of honesty and integrity.

• To eliminate handouts, dole, and paternalism.

"Rural people in the Third World most commonly save and borrow through indigenous or "informal" institutions". (1) An Oxfam Manual for development works, B. Pratt and J. Boyden, 1985. The most common are:

"For savings: hiding money, buying valuables or livestock; depositing money/valuables with friends o a broker . . .

"For credit: friends and neighbors, money lenders, and traders; landlords.

These systems are quite prevalent and need to be studied carefully in order to implement a financial/load program among AFF members. The Benson Institute has established basic rules on what it can and cannot do.

The Benson Institute cannot

• Lend money to individuals.

• Offer a loan larger than the capacity of the farmer to pay back.

• Lend money to purchase land, personal items, or to get out of debt.

• Finance commercial operations.

The Benson Institute can

• Grant a load to an AFF.

• Offer loans to AFF for agricultural inputs or related subjects.

• Finance specific community development projects.

• Grant loans to farmers through an AFF in accordance to the farmer's ability to pay back.

Before granting a loan to an AFF, the Benson Institute will:

• Assess the credit need of its members.

• Identify the kinds of inputs needed to cause self-sufficiency.

• Prepare a financial program in conjunction with the leadership concerning the needs of each member.

• Encourage savings on the part of the members.

• Analyze other sources of credit available in the community.

• Assess an interest rate, equivalent to the prevalent local rate to the loan program.

• Expect the AFF to pay back the loan within a mutually agreed period of time.

After a complete assessment of the conditions of the community or AFF (BHNA) the Benson Institute and the leadership of the AFF will do the following:

• Prepare a list of all participation members.

• Choose a back where money will be handled.

• Loan will be approved and money deposited in the local bank account (savings, passbook, or checking) with two signatures.

• Benson Institute Coordinator and President of AFF Members will sign payback agreement (one copy to the AFF and another to Benson institute Coordinator).

• Treasurer will file all agreements and prepare a payback schedule. Treasurer receives payback money, gives receipt of payment, and deposits regularly in the bank account.

• Benson Institute Coordinator and leadership will assess an interest rate no less than local rural banks presently charge.

• Benson Institute will review accounting on a monthly basis.

• AFF leadership will provide a list of all members who receive agricultural inputs with the monetary assigned value.

The AFF leadership is now ready to begin the purchase of needed agricultural inputs. It is the responsibility of the AFF to locate the inputs and make arrangements for transportation. Distribution of inputs is done in the presence of AFF leadership and B.I. Coordinator. Each member carefully inspects input content and signs payback agreement. Inputs are now in the hands of the members.

Any complaints or problems should be handled at this point to avoid confusion regarding amount, value, and total loan payback.

Treasurer*: It is the responsibility of the treasurer to keep accurate records of all financial and banking transactions incurred by the association. He responds directly to the president of the association and under the leadership of the presidency he prepares payments and monthly statements. Other responsibilities include:

• To keep an updated version of the monthly financial report.

• To issue receipts for all payments.

• To keep an inventory of all the AFF assets.

• To sign receipts, correspondence, and other documents related to financial statements as requested by the president.

• To contribute to the preparation of the annual budget.

• To accept all income from the AFF.

• To deposit all monies that belong to the AFF in the bank account.

• To make payments of al past due notices for invoices to prepare the monthly financial report.

• To make the leadership aware of any irregularities in financial procedures.

• To promote sound financial management by presenting specific topics at the general assembly.

• To assist the president in the disbursement of funds.

*Refer to the Association of Farmers Friends Guide of Instructions, March, 1991.

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