Rural communities have significant economic assets and entrepreneurial energy, but they also face unique opportunities and challenges in maintaining essential services and local businesses

The Department of Agriculture National Institute of Food and Agriculture awarded Cooperative Development Services, Inc. $357,778 under the Rural Cooperative Development Grants program (CFDA 10.771) on September 30, 2025.

The award funds technical assistance to rural communities across Minnesota, Wisconsin, and Iowa to establish and strengthen cooperatives in grocery, agricultural, childcare, and worker-ownership sectors. Deliverables include business planning, feasibility studies, governance training, and ongoing operational support for grocery cooperatives that ensure food access, agricultural cooperatives that help farmers access markets and improve pricing, childcare cooperatives addressing workforce needs, and worker cooperative conversions that preserve locally-owned businesses when owners retire. The project is performed in partnership with the University of Wisconsin Center for Cooperatives and develops and documents new models, particularly for employer-led childcare cooperatives, designed for national replication.

Cooperative Development Services, Inc., a Minnesota-based nonprofit, serves as the recipient. The period of performance runs through December 31, 2026, with place of performance in Eagan, Minnesota.

This project addresses these challenges through cooperative development, byhelping rural communities create and strengthen businesses that are owned and controlled by the people who use them. Cooperatives offer particular advantages for rural areas because they keep ownership local, prioritize community benefit, and can make businesses viable in smaller markets where traditional businesses might struggle. The project will work across minnesota, wisconsin, and iowa to help rural communities develop grocery CO-OPS that ensure continued food access, agricultural CO-OPS that help farmers get better prices and access new markets, childcare CO-OPS that address critical workforce needs, and worker CO-OP conversions that provide a strategy to preserve local businesses when owners retire. The work involves providing hands-on technical assistance including business planning, feasibility studies, governance training, and ongoing support to help these cooperatives succeed.through a partnership between cooperative development services and the university of wisconsin center for cooperatives, the project combines decades of experience with innovative approaches to create new models that can be replicated nationally. The partnership will develop and test new approaches, particularly for employer-led childcare CO-OPS, while documenting what works so other communities can benefit from these innovations. The ultimate impact will be stronger rural economies with locally-owned businesses that provide essential services, create and preserve jobs, and help rural communities to prosper. By keeping businesses locally owned and community-focused, cooperatives help rural communities sustain theireconomies. The project will also strengthen the national network of organizations that support cooperative development, ensuring that rural communities across the country have access to the expertise and resources needed to pursue cooperative solutions to their economic challenges. This work supports broader national priorities including food security, rural economic development, and ensuring that all americans have access to essential services regardless of where they live. Successful rural CO-OPS contribute to a more dynamicand resilienteconomy while preserving the rural communities that are essential to american agriculture and culture.