FAQs
Frequently Asked Questions
What is Horse Lake Community Farm Cooperative?
Why was it set up as a cooperative?
Do I have to become a member to buy a share?
Do I get any tax breaks by buying a share?
What do I have to do to become a member?
How much is a share, and can I pay for it over time?
Can I buy shares for my children?
Is there any financial return on the money placed in shares?
What is Horse Lake Community Farm Cooperative?
Horse Lake Community Farm Cooperative (HLCFC) was incorporated in September, 2006. The co-op was formed to purchase and manage the “Betty Place”, a 133 acre operating farm bordering on Horse Lake, near 100 Mile House in southcentral British Columbia. The intention behind the creation of the co-op was to provide community ownership of this farm, and through that, to protect its agricultural capacity in perpetuity. Founders of the cooperative are all farmers and organizations dedicated to the preservation of farmland in BC, some of whom have been farming the Betty Place for a number of years under a lease arrangement with the owner. (Back to the top)
Why was it set up as a cooperative?
A cooperative provides all the benefits of incorporation that companies and societies provide; members do not share liabilities for the co-op’s obligations, any member can enter an arms length agreement or do business with the cooperative and so on. It’s strength lies in its democratic structure. Every member of the cooperative has one vote in major decisions, like electing directors, or major acquisitions or dispositions of assets. This means that there is a broad base of input into such decisions, shared among members of your community. No individual will ever have the ability to take actions that are not in keeping with the will of the membership.(Back to the top)
What would I get as a member?
Membership in the co-op will give you the ability to participate in the activities the co-op carries out. This will include preferential access to food that is produced by the co-op on the co-op’s land, the ability to use portions of the co-op’s land for growing your own food, the right to run for election as a director of the co-op, or simply to participate in the decision of who becomes the directors, and participation in other co-op activities. It will also provide the intangible but invaluable knowledge that your participation will strengthen the food security of your community. As was stated at one meeting by a participant “what would you rather have, one or two percent return on your money, or the knowledge that when your children and grandchildren are grown, that they will still have access to good high quality locally produced food?” (Back to the top)
Do I have to become a member to buy a share?
The shares in the co-op are all membership shares, so yes, you have to become a member in order to purchase a share directly. (Back to the top)
Do I get any tax breaks by buying a share?
Not if you buy a share directly, but the co-op has set up an agreement with the Land Conservancy of BC (TLC), where you can make a tax-deductible donation to TLC with the necessary instructions, and TLC will make an equivalent contribution to HLCFC. This method will not provide you with the benefits of membership. That still requires the membership application and direct purchase of a share in the co-op. (Back to the top)
What do I have to do to become a member?
First, you have to subscribe to purchase one share in the co-op. A Share Subscription Agreement is available. Your membership application will be reviewed and approved by the directors, at which time you will be asked to arrange the purchase of your share. As soon as the directors approve your application, your membership will be in effect. (Back to the top)
How much is a share, and can I pay for it over time?
A single share in the co-op costs $5,000. From time to time the directors may decide that they can accept payment over time, but the full amount of the share is due and payable, under whatever terms you arrange, as soon as your membership is approved. Unlike when you buy a share in a company, your share in the co-op is redeemable. That means that if you ever decide to give up your membership in the co-op, the amount you paid for your share will be returned to you. A group of people may also get together and buy a share in the group’s name, or a business can buy a share in the business’ name. (Back to the top)
How many shares can I buy?
At this point, the co-op is restricting sale of shares to one per person. This allows the co-op to avoid some costly requirements of the Securities’ Act of BC. However, an individual could buy a share, if he or she owned a business company it could also buy a share, and a group to which the person belonged could buy a share as well. (Back to the top)
Can I buy shares for my children?
Any person 16 years of age or older can be a member and the registered owner of a share. If your children are not 16 years old yet, you can buy a share and register it “in trust” for a child who is not yet 16. (Back to the top)
Is there any financial return on the money placed in shares?
This is a decision that is taken by the board of directors every year. The board will bring a resolution to the annual general meeting (AGM) of the co-op if they wish to provide a return on the share capital, and the general membership has the ability to approve that or decide that no return will be given in that year. The co-op is forecasting very modest earnings in the next few years, and its business plan would see these earnings reinvested in building the co-op’s capacity to provide further services to its members, rather than paying it out as dividends on the shares. That decision, however, will be reviewed by the directors prior to each AGM. (Back to the top)
For any further questions or to discuss purchasing a membership please feel free to contact:
- Rob Diether — 395-4042
- Barb Matfin — 395-2099
See our Downloads page for copies of share and membership documents.