Farmers Co Op Retail Stores Forms for Hennepin
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FAQ
Agricultural cooperatives are organized to help farmers gain market power by joining together to market their crops, increase their bargaining power by achieving economies of scale, processing their commodity to add value, and/or to purchase supplies and services.
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.
When various farmers in a village pool there land together and agree to treat the pooled piece of land as one big farm for the purpose of cultivation, purchase the necessary inputs for the cultivation, and market the crops jointly, they are assumed to have formed a cooperative farming society.
Individual farmers cannot consistently and reliably control the price they receive for their agricultural products or the price they pay for the inputs needed to produce those goods. Thus, farmers often form cooperatives so that they can enhance their economic market power.
Each member Co-op is an independent business owned by its farmer-members; those local Co-ops, in turn, own TFC. This gives the farmer true ownership of his or her own farm supply and service organization. Each farmer-member owns one share of voting stock.
Farmer-owned co-ops help producer-members market and process their crops and livestock, and secure needed production supplies and services. Consumer-owned rural utility co-ops provide electrical power and telecommunications services. Financial co-ops provide credit and financial services.