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A farm cooperative involves a network of member farmers who reap many benefits of doing business as a unit. Individual farms work together to buy necessary supplies and services, as well as distribute, market and sell their products. Farmers save costs and access goods and services otherwise unavailable to them.
Step 1 - Identify a Common Economic Goal. Step 2 - Determine Business Feasibility. Step 3 - Develop a Business Plan. Step 4 - Draft Legal Papers and Incorporate the Co-operative.
A cooperative or co-op is a type of legal entity that is distinguishable from standard, for-profit corporations, LLCs, and partnerships. Co-ops offer a flexible business model that can be used by any group of people who are interested in creating a democratic decision-making company that benefits all members.
operative is a legally incorporated corporation that is owned by its members, who use the cooperative's services or purchase their products.
Cooperatives are sometimes small and sometimes big. They range from informal, unincorporated associations with few members to large corporations which count their members in the tens of thousands. Most of them nowadays are incorporated. A cooperative can be incorporated with or without issuing stock to its members.
Types of CooperativesProducer / Marketing Cooperatives.Consumer Cooperatives.Worker Cooperatives.Housing Cooperatives.Financial Cooperatives.New Generation Cooperatives.Multi-Stakeholder Cooperatives.Non-profit Community Service Cooperatives.
Types of Cooperatives1) Retail Cooperatives. Retail Cooperatives are a type of "consumer cooperative" which help create retail stores to benefit the consumers making the retail our store.2) Worker Cooperatives.3) Producer Cooperatives.4) Service Cooperatives.5) Housing Cooperatives.
There are two primary types of agricultural service cooperatives: supply cooperatives and marketing cooperatives. Supply cooperatives supply their members with inputs for agricultural production, including seeds, fertilizers, fuel, and machinery services.
Marketing, supply, and service cooperatives are the most common types of agricultural cooperatives in the United States. Marketing cooperatives assemble, pack, process, and sell members' products in both domestic and foreign markets.