MODULE 4

Conflict Management and Enabling of a ‘Perfect’ Ending

2. Preparing for Potential/Possible Conflict in Collaborative/Cooperative Arrangements

A number of areas where practical steps can be taken to address potential/possible conflict in Collaborative/Cooperative Arrangements include:

  • Written agreements
  • Conflict Audit
  • Risk Audit

Collaborative/Cooperative arrangements need to have written agreements whether formal legal documents or not which set out the essential details for the operation and functioning of the arrangement. These agreements may be used as a reference point for the functioning of the collaborative/cooperative arrangement or at a time of conflict/potential conflict.

  • Agreements protect the collaborative unit, the individual farmers, their families and their farm businesses.
  • Agreements should preferably be of a legal nature but if not, should be agreed and signed by all partners.
  • Agreements also allow for smoother functioning of the collaborative arrangement.
  • The key issues addressed in a collaborative/cooperative farming written agreement include:
    • Assets included in the arrangements e.g. land, buildings, machinery/equipment.
    • Funding of future investments.
    • Ownership of future investments.
    • Location of future investments e.g. site of a new building, production unit, milking parlou.r
    • Profit distribution between members.
    • Workload/input of members.
  • The key issues addressed in a collaborative/cooperative farming written agreement include (continued):
    • Workload/input of member.
    • Obligations of members.
    • Rights/entitlements of members.
    • Level of involvement of other family members.
    • Dispute settlement process.
    • Treatment of EU/National payments (current and in future).
    • Taxation.
    • Livestock/production licences.
    • Process of involving new members.
    • Process for succession/inheritance within the arrangement.
    • Exit/dissolution strategy.
    • Any other key elements identified by the members.

Example Case Study Reutehof GbR

  • Collaborative/Cooperative arrangements should at the development stage or an early stage in their operation undertake a risk audit
  • A risk audit does not eliminate risk but helps to create an awareness among members of the potential risks, how risk could be avoided and/or addressed if it materialises
  • The audit will identify the risks/threats to the collaborative/collaborative arrangement, the likelihood of the risks/threats occurring, the consequences if the risks/threats materialise and suggest how the risks/threats could be avoided/minimised and ways to address/solve them

Some of the main areas include:

  • Bad investment decisions
  • Differing farm management practices
  • Serious dispute/conflict
  • Financial insolvency
  • Death or serious illness
  • Market problems/volatility
  • Decline in commitment from members
  • Age
  • Lack of successors
  • Family interruption/interference
  • Non-achievement of targets/goals
  • Divergence of views/plans/goals
  • Incompatibility of members
  • Animal disease outbreak
  • Lack of commitment/loyalty to the arrangement
  • Lack of opportunities to expand/develop/grow
  • Members withdrawing/exiting

 

Template and example for Risk Audit (utilise this template to develop an audit checklist appropriate to specific needs)

  • Collaborative/cooperative arrangements should at the development stage or an early stage in their operation undertake a conflict audit
  • A conflict audit does not eliminate conflict but helps to create an awareness among members of the potential areas for conflict, how conflict could be avoided/minimised and/or addressed
  • The audit will identify areas for potential conflict, the likelihood of conflict occurring, the consequences if conflict occurs and suggest ways by which they can be avoided/minimised and ways to address/solve them

Some of the main areas include:

  • Investment decisions and location of new investments/assets
  • Funding of investments
  • Ownership of new assets
  • Non-achievement of targets/goals
  • Divergence of views/plans/goals
  • Differing farm management practices

Some of the main areas which could be included in a conflict audit include (continued):

  • Time management and labour input
  • Time off/holidays/rostering of input
  • Family involvement/interruption/interference
  • Involvement of other/new members
  • Exit of a member
  • Expansion/development decisions
  • Enterprise development/change
  • Succession
  • Distribution of profits
  • Market problems/volatility
  • Decline in commitment from partners
  • Lack of commitment/loyalty
  • Retirement
  • Exit strategy

Template and example for Conflict Audit (utilise this template to develop an audit checklist appropriate to specific needs)

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SELF-ASSESMENT

This questionnaire will allow you to evaluate the competences acquired by studying the module.

This project has been funded with support from the European Commission.This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
CO-FARM: Enhancing COoperation amongst FARMing entrepreneurs
Project Number: 2016-1-IE01-KA202-016870

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