Cooperatives are a business model found in U.S. agriculture typically not seen in other sectors of the economy. Cooperatives allow farmers to pool resources, gain market access, share risk, and enjoy economies of scale. They also allow farmers to take part in governance.
Daniel Munch, an American Farm Bureau Federation economist, recently delved into agricultural cooperatives in a Farm Bureau Market Intel piece. Munch reports there were 1,671 agricultural cooperatives in the U.S. in 2022, down 1.6 percent from 2021 and down 24 percent over the previous decade.
Minnesota had the most cooperatives with 182, followed by Texas and North Dakota (Figure 4). Nebraska had 57. Membership in cooperatives was 1.84 million in 2022, down slightly from 2021 (Figure 5). Kentucky had the most, followed by Missouri and Minnesota. Nebraska had nearly 57,000 memberships.
Cooperatives in 2022 generated over $300 billion in total gross business volume, a record amount. Iowa had the greatest volume followed by Minnesota and Illinois. More information can be found at: https://www.fb.org/market-intel/the-crucial-role-of-farmer-cooperatives-and-why-active-participation-matters.
FIGURE 4. NUMBER OF COOPERATIVES CONDUCTING BUSINESS IN STATE, 2022
Source: Daniel Munch, Market Intel, American Farm Bureau, June 24, 2024
FIGURE 4. NUMBER OF COOPERATIVES CONDUCTING BUSINESS IN STATE, 2022
Source: Daniel Munch, Market Intel, American Farm Bureau, June 24, 2024
