When Congress enacted the Cooperative Marketing Act of 1926, it directed the USDA to create a range of federal services in support of producer-owned cooperatives. For nearly 100 years, USDA has gathered statistics, conducted research, provided education, and offered cooperative development to America’s agricultural cooperatives.
In the mid-1990s, the independent agency then called Agricultural Cooperative Service merged with other federal organizations into USDA Rural Development. That change sparked interest in additional types of cooperatives that touch the lives of all rural residents. One request emerged from rural Wisconsin – creating a worker cooperative of home-based caregivers serving the elderly and people with disabilities. This is not surprising given the rapidly aging population of rural America, ahead of the curve for the rest of the country.
In the late 1990s, Margaret Bau was newly hired by USDA Rural Development to provide cooperative development across Wisconsin. The human services director of rural Waushara County inquired about technical assistance to form a worker cooperative among caregivers. She was inspired by a three-page case study of Cooperative Home Care Associates of the south Bronx, New York City. Could such an innovative model in providing care be a solution to a situation facing rural residents? With a membership of 60 women, Cooperative Care commenced operations on June 1, 2001.
In the care economy, quality of care is dependent upon a long term, stable relationship between the care recipient and the care giver. Unfortunately, the elder care industry is plagued by annual caregiver turnover rates of 79%. But care delivered via worker cooperatives creates a stable, nurturing environment. According to 2023 survey data collected by The ICA Group, homecare worker co-ops report an annual turnover rate of 30% and pay $1.20/hour more than conventional agencies.
Thanks to the work of co-op development centers partially funded by the Rural Cooperative Development Grant and the Socially Disadvantaged Groups Grant there are now over two dozen homecare worker co-ops. Caregivers and the co-op development centers support one another with technical assistance, national networking, and an annual conference. To learn more see the Homecare Cooperative Initiative and the emerging Elevate Cooperative.