Cooperatives reflect Maine spirit

strengthen local economies In a world increasingly dominated by large corporations and impersonal institutions, cooperatives stand as a testament to the power of local ownership and community-driven initiatives.

David Libby
Special to the Press Herald

Maine is known for its tight-knit communities, scenic landscapes, and a strong sense of local pride. With October’s designation as “Cooperative Month,” this spirit of community is reflected in the prevalence and success of cooperatives throughout the state. October’s designation as “National Co-op Month” is a timely reminder that these member-owned organizations play a crucial role in Maine’s local economy, providing everything from financial services and housing to food and child care and fostering economic stability and growth.

As someone who has been part of the cooperative movement in Maine for four decades, I have had the good fortune of having a front-row seat watching as the values, spirit and impact of cooperatives have been embraced in Maine. Our state has one of the strongest cooperative movements in the country, led by financial services, as Maine is the fifth-strongest credit union state based on population. With nearly 750,000 credit union members (including 40,000 at Town & Country alone), we represent a vital aspect of Maine’s economic and social fabric and underscore the extent to which the cooperative model also contributes to local prosperity.

Examples of cooperatives in Maine extend far beyond credit unions and include: agricultural cooperatives that support local farmers by providing access to shared resources, collective marketing and bulk purchasing; housing cooperatives that address the critical need for affordable and community-oriented living spaces; energy cooperatives that focus on expanding access to renewable energy sources like solar power; and worker cooperatives that make valuable contributions by providing alternative employment models that prioritize worker ownership and democratic decision-making.

At its core, the cooperative model is about people coming together to meet common needs and aspirations through collective action. Unlike traditional for-profit businesses, cooperatives are owned and controlled by their members, who share in the decision-making process and benefit from the organization’s success. This model can be applied to various sectors, including finance, agriculture and retail, and has been a cornerstone of Maine’s economic landscape.

Cooperatives across the state often reinvest their profits into community development projects, offer educational resources and support local initiatives. This reinvestment helps create a resilient local economy that is less susceptible to external economic shocks.

In times of economic uncertainty, credit unions and cooperatives provide stability. Because they are rooted in the community and accountable to their members, cooperatives are more likely to prioritize long-term stability over short-term gains. This was evident during the financial crisis of 2008, when many credit unions continued to provide credit to their members even as traditional banks tightened lending. Similarly, during the COVID-19 pandemic, many cooperatives adapted quickly to meet the needs of their members, demonstrating their flexibility and commitment to serving their communities.

At Town & Country, one of our primary themes is “local helping local,” a theme and focus that goes well beyond financial services. While financial well-being is our top priority for our members, it’s also about focusing on the well-being and vibrancy of our communities and organizations located in them. After all, we live here, too, and many of us have children in local schools, go for walks on local trails and volunteer for local nonprofits. Nearly all cooperatives are an extension of the communities they serve, so we have a personal interest in not only making a difference but making a lasting impact.

The future of cooperatives in Maine is promising. In a world increasingly dominated by large corporations and impersonal institutions, cooperatives stand as a testament to the power of local ownership and community-driven initiatives. They embody the values that Mainers hold dear – trust, fairness, and mutual support – making them an invaluable part of the state’s economic landscape.

ABOUT THE AUTHOR

David Libby is the president and CEO of Town & Country Federal Credit Union, one of Maine’s largest financial cooperatives. He is a resident of Scarborough.

Reprinted from the Portland Press Herald (published 10/1/2024)