There are nearly 3,000 farmer cooperatives in agriculture whose members include a majority of the nation’s 2 million farmers and ranchers, according to the National Council of Farmer Cooperatives (NCFC).
Many types of agricultural cooperatives exist to help provide support and resources for America’s farms and ranches. They include marketing, bargaining, farm supply and credit farmer cooperatives.
Agricultural cooperatives help strengthen bargaining power, maintain access to competitive markets, capitalize on new market opportunities, obtain competitive products and services, improve income opportunities, reduce costs and manage risk.
Farmer cooperatives distribute earnings on a patronage basis. These patronage dividends help boost the income of farmers directly or by reducing the effective cost of the goods and services provided.
Net income for the nation’s agricultural cooperatives soared by 14 percent last year, from $4.3 billion to $4.9 billion, according to a U.S. Department of Agriculture (USDA) report. The annual report on national cooperative business sales figures showed that the agricultural cooperatives posted record net income of $7 billion in 2015.
“The cooperative business model continues to perform strongly,” Agriculture Secretary Tom Vilsack said. “While the model has long been one of the hallmarks of rural economies, its reach has greatly expanded to include almost every aspect of U.S. commerce. The latest data show that cooperatives are a key to building stronger and more vital communities, particularly in rural areas.”
The USDA report included the nation’s top 100 co-ops.
CHS Inc., a fuel, grain and food cooperative based in Minnesota, remains the largest cooperative in the U.S. at $34.7 billion in total business volume for 2015, according to Agri-Pulse.
Dairy Farmers of America, a milk marketing cooperative based in Missouri, came in second place with $13.9 billion in total revenue. Land O’Lakes Inc., a dairy foods and farm supply co-op based in Minnesota, came in third with $13.1 billion in sales.
Texas co-ops that made the list were Plains Cotton Cooperative Association in Lubbock at number 29 and Lone Star Milk Producers Inc. in Wichita Falls at number 64.
A full list can be found here.