United States

Department of

Agriculture

Rural

Development

Administration

Cooperative

Services

CS Service

Report 43

Farmer Cooperative

Statistics, 1993
Abstract

Farmer Cooperative Statistics, 1993

Ralph M. Richardson

Celestine C. Adams

Katherine C. DeVille

Jacqueline E. Penn

John W. Stutzman

and Charles A. Kraenzle

Statistics and Technical Services Staff

Cooperative Services

Rural Development Administration

U.S. Department of Agriculture

AG BOX 3256

Washington, DC 20250-3256

A survey of U.S. farmer cooperatives for calendar year 1993 showed net

income of $1.36 billion, down from $1.44 billion in 1992. Gross and net business volumes were up for the 4,244 cooperatives included in the survey.

Assets, liabilities, and net worth were up. Business volume, number of cooperatives, and cooperative memberships were reported by commodity for those

cooperatives classified as marketing, farm supply, and service. Cooperative

trends in number of cooperatives, memberships, sales volume, net income,

assets, liabilities, and net worth are reported. Data on balance sheet and net

income and selected activities of other service organizations also are reported.

Keywords: cooperatives, statistics, business volume, memberships, balance

sheet, net income.

CS Service Report 43

November 1994

Price: domestic-$3.00: foreign-$3.75
Preface

Farmer cooperative statistics are collected annually to provide information on the progress and trends in cooperatives’ growth and development.

Many people use these statistics for various purposes such as research,

technical assistance, education, planning, and public policy. Acquiring, analyzing, and disseminating farmer cooperative statistics is authorized by the

Cooperative Marketing Act of 1926.

This report provides aggregate information on the number, membership, business volume, and net income of farmer cooperatives classified by

principal product marketed and major functional type. Fishery cooperatives

were included as miscellaneous marketing cooperatives for the first time.

Both gross (includes intercooperative business) and net (excludes intercooperative business) dollar volumes of cooperatives are reported.

Statistics for 1993 are compiled both on a State and national basis.

Data by State are collected every other year.

The information was collected from individual farmer and fishery cooperatives by a mail survey of all organizations identified by Cooperative

Services (CS) as farmer or aquacultural cooperatives. Information was

requested for their business years that ended during calendar 1993.

Cooperative Services (CS) conducts an annual census because of the

need to make more accurate estimates for all cooperatives and the need for

more data on individual cooperatives for research, education, and technical

assistance purposes.

Statistics for all cooperatives were derived by adding data estimated for

nonrespondents to respondent data. Those responding to the 1993 survey

accounted for 82.7 percent of the total gross sales handled by farmer cooperatives.

CS depends on the cooperative community’s response to its annual

survey to develop a detailed and comprehensive set of statistics on farmer

cooperatives. The time and effort taken to provide information and the timeliness with which it is furnished are greatly appreciated.

Appreciation is extended to CS staff for assistance in collecting and

reviewing data and to John H. Wells for providing technical support.

. . .

ill
Contents

HIGHLIGHTS . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..-.................. VIII

I--DEFINITION OF A FARMER COOPERATIVE ........................................ 1

Classification of Cooperatives ........................................................... .2

Organizational Membership Structures.. ............................................

.2

II-1 993 STATISTICS ............................................................................... .3

Number of Cooperatives ..................................................................... 3

Memberships.. .................................................................................... 9

Business Size.. ................................................................................... 9

Business Volume.. ........................................................................... .12

Net Income ....................................................................................... 13

Balance Sheet .................................................................................. 22

Selected Financial Ratios ................................................................ .23

III-COOPERATIVE TRENDS, 1984-93.. ................................................ .25

Number of Cooperatives ................................................................... 25

Memberships .................................................................................... 26

Business Volume ............................................................................ .29

Net Income ...................................................................................... 31

Balance Sheet .................................................................................. 32

IV-OTHER SERVICE COOPERATIVES.. ...............................................34

Farm Credit System .......................................................................... 34

Rural Telephone Cooperatives .......................................................... 35

Rural Electric Cooperatives .............................................................. 35

Rural Credit Unions.. ....................................................................... .35

Dairy Herd Improvement Associations.. ............................................35

APPENDIX FIGURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

iv
TABLES

Table l-Number of cooperatives and memberships, by major business

activity, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Table 2-Number of cooperatives and memberships, by major business

activity and State, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Table 3-Estimated number of branches operated by grain

and farm supply cooperatives, 1992-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Table 4-Farmer cooperatives grouped by gross business

volume, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Table &-Cooperatives’ gross and net business volume

by commodity, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Table 6-Cooperative business volume by commodity

and State, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Table 7-Farmer cooperatives’ net income, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Table 8-Combined balance sheet data for farmer

cooperatives, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ . . . . . . . . . . . . . . . 22

Table g--Combined assets of farmer cooperatives, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . 23

Table 1 O-Selected financial ratios of cooperatives, 1993 . . . . . . . . . . . . . . . . . . . . . . . . 24

Table 11 -Number of farmer cooperatives, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Table 12-Memberships in marketing, farm supply, and service

cooperatives, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Table 13-Cooperatives’ net business volume, 1984 and 1993 . . . . . . . . . . . . . . . . 29

Table 14-Cooperatives’ gross and net business

volume, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Table 1 &-Net income of farmer cooperatives, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Table 16-Combined balance sheet data of farmer

cooperatives, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Table 17-Farm Credit System combined assets, net worth,

and net income, 1986-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Table 18-Number and structure of active farm credit

cooperatives, July 1 , 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Table 1 g--Farm Credit Banks and Associations’ combined assets, net

worth, net loans, and net income, 1986-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Table 20-Banks for Cooperatives combined assets, net worth,

net loans, and net income, 1986-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Table 21-Number, participation, and level of activity of selected service

cooperatives by State, December 31, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

FIGURES

Figure l-Branches of Grain and Farm Supply

Cooperatives, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..*.......... 8

Figure 2-Distribution of Memberships by Type

of Cooperative, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Figure 3-Farmer Cooperatives Grouped by Business

Volume, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Figure 4--Relative Importance of Major Farm Products

Marketed by Cooperatives, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Figure &----Relative Importance of Major Farm Supplies

Handled by Cooperatives, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 6-Farmer Cooperatives in the United States, 1984-93 . . . . . . . . . . . . . . . . 26

Figure 7-Cooperatives Removed from CS’s List, 1984-93 . . . . . . . . . . . . . . . . . . . . . . 27

Figure 8-Memberships in Farmer Cooperatives, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . 27

Figure 9-Cooperatives’ Net Business Volume, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . 28

Figure 1 O-Cooperatives’ Sales of Selected

Commodities, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..*......... 30

Figure 1 l-Cooperatives’ Sales of Farm Supplies, 1984-93 . . . . . . . . . . . . . . . . . . . . . 30

Figure 12-Net Income of Farmer Cooperatives, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . 32

Figure 13-Assets of Farmer Cooperatives, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

APPENDIX FIGURES

Appendix Figure l-Number of Cooperatives,

Leading States, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Appendix Figure 2-Cooperative Memberships,

Leading States, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Appendix Figure 3-Cooperatives’ Net Business Volume,

Leading States, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Appendix Figure 4-Distribution of Farmer Cooperatives

by Type of Cooperative, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Appendix Figure $-Distribution of Net Income

by Type of Cooperative, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Appendix Figure 6-Distribution of Losses

by Type of Cooperative, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Appendix Figure 7-Distribution of Net Worth

by Type of Cooperative, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Appendix Figure 8-Cooperatives’ Net Business

Volume, 1972-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Appendix Figure 9-Cooperatives’ Gross and Net Business

Volume, 1984-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Appendix Figure l O-U.S. Farms and Farmer Cooperative

Memberships, 1972-93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ . . . . . . . . . . ~ . . . . . . . . . . 46

vii
Highlights

For 1993, marketing, farm supply, and related-service cooperatives reported a combined net income of $1.36 billion, down 5.7 percent from the $1.44 billion reported in 1992. The 1993 net included intercooperative dividends and

refunds of $318 million-down 10.8 percent from $356 million.

l Total gross business volume (including intercooperative business) handled by cooperatives increased 4.6 percent to $97.7 billion from $93.4 billion.

l Total net business, excluding intercooperative business, was up 4.5 percent to $82.9 billion from $79.3 billion.

l The number of cooperatives declined 1.6 percent from 4,315 to 4,244.

Each year, new cooperatives are formed and others disappear as they discontinue operations due to merger, acquisition, or business failure.

l Grain and farm supply cooperatives operated an estimated 4,779

branches in 1993.

l Cooperative memberships of 4,023,264 decreased 1.2 percent from

4,071,869.

l Gross value of farm products marketed by cooperatives in 1993

increased 4.8 percent to $66.8 billion from $63.8 billion. Net value of these farm

products, after eliminating duplication from intercooperative business, was up

4.7 percent to $60.9 billion from $58.2 billion.

l Gross value of farm supplies handled by farmer cooperatives was up 4.2

percent to $28.2 billion from $27 billion. After adjusting for intercooperative

business, their value increased 3.8 percent to $19.2 billion from $18.5 billion.

l Receipts for services related to marketing farm products and handling

farm supplies plus other income were up 5.8 percent to $2.7 billion.

l Combined assets for all farmer cooperatives increased 4.5 percent to

$33.4 billion. Net assets, after eliminating intercooperative investments, were

up 4.3 percent to $30.8 billion from $29.6 billion.

l Total liabilities of $18.6 billion were up 4.8 percent from $17.8 billion.

l Net worth, or member and patron equity, was up 4.2 percent to $14.8 billion. Total assets financed by member and patron equity were down slightly

from 44.4 percent to 44.3 percent.

. . . Vlll
l Leading States in number of cooperatives were Minnesota, North

Dakota, Texas, and Iowa. They accounted for 1,276 cooperatives or 30.1 percent of farmer cooperatives.

l Minnesota, Iowa, Wisconsin, and Illinois led all States in number of

memberships, with 1 ,133,151 or 28.2 percent of total memberships.

l Leading States in net business volume were California, Iowa, Wisconsin,

and Minnesota. These States accounted for $27.5 billion in net business volume or 33.2 percent of cooperatives’ total net business volume.

HIGHLIGHTS CAPSULE

1992

Number of cooperatives 4,315 4,244

Memberships 4,071,869 4,023,264

Net Business volume (million dollars) 79,284 82,872

Net income (million dollars) 1,440 1,358

Total assets (million dollars) 31,994 33,446

Net worth (million dollars) 14,213 14,812

Leading State: 1991

Number of cooperatives Minnesota

(422)

Memberships Minnesota

(365,117)

Net Business volume (million dollars) California

(8,014)

1993

1993

Minnesota

(404)

Minnesota

(392,815)

California

(8,349)

ix
Farmer Cooperative Statistics,

Ralph M. Richardson

Celestine C. Adams

Katherine C. DeVille

Jacqueline E. Penn

John W. Stutzman

and

Charles A. Kraenzle 1

Cooperative Services (CS) considers four

major criteria in identifying an organization as a

farmer cooperative: (1) Membership is limited to

persons producing agricultural and aquacultural

products, and to associations of such producers; (2)

cooperative members are limited to one vote

despite the amount of stock or membership capital

owned, or the cooperative does not pay dividends

on stock or membership capital in excess of 8 percent a year, or the legal rate in the State, whichever

is higher; (3) business conducted with nonmembers may not exceed the value of business with

members; and (4) the cooperative operates for the

mutual interest of members by providing member

benefits on the basis of patronage.

These criteria may create larger or smaller

numbers of farmer cooperatives than found in lists

or directories of State agencies or cooperative

councils. CS includes only marketing, farm supply,

and related service cooperatives on its list. Wool

pools are included as marketing cooperatives.

Livestock shipping associations and rice driers,

beginning with 1992 and 1993 respectively, are considered service cooperatives.

Many State lists include other types such as

production, credit, telephone, electric, and consumer cooperatives as well as those that do not fulfill CS’s definition. Other reasons for possible differences in the number of cooperatives is that: (1)

CS may not learn of certain cooperatives operating

in a State for a considerable period of time; (2) a

cooperative may not have completed and returned

an initial questionnaire; or (3) no notice is received

that a cooperative discontinued operating.

Year-to-year comparisons with specific commodity groups, therefore, should reflect any differences in lists and classifications in State and

Federal data.

l Ralph M. Richardson, agricultural statistician; Celestine C.

Adams, agricultural statistician; Katherine C. DeVille, statistical assistant; Jacqueline E. Penn, statistical assistant; John

W. Stutzman, computer specialist; and Charles A. Kraenzle,

director, Statistics and Technical Services Staff (STSS).

1
Classification of Cooperatives

Statistics are presented according to a cooperative’s major function or classification-marketing,

farm supply, and related service.

Marketing cooperatives derive most of their

total dollar volume from the sale of members’ farm

products. CS classifies these cooperatives into one

of 13 commodities or commodity groups depending upon where it conducts most of its business

volume. CS may reclassify a cooperative into a different commodity category if its primary business

volume changes.

Farm supply cooperatives derive most of their

business volume from the sale of farm production

supplies. These cooperatives handle a wide variety

of supplies, farmstead equipment, and building

materials. Many also handle farm and home items

such as heating oil, lawn and garden supplies and

equipment, and food.

Service cooperatives provide specialized business services related to the agricultural business

operations of farmers, ranchers, or cooperatives

such as cotton ginning, trucking, storing, drying,

and artificial insemination. Livestock shipping

associations were included in 1992. Rice drying

cooperatives were added in 1993. Previously, they

were listed with rice marketing cooperatives.

Many cooperatives handle multiple commodities and provide both marketing and farm supply

services, as well as the facilities and equipment

used to perform these services. These associations

are classified according to the predominant commodity or function as indicated by their business

volume.

Information on other types of service cooperatives such as Farm Credit System institutions, rural

credit unions, rural electric cooperatives, and dairy

herd improvement associations is presented separately.

Organizational Membership Structures

Centralized

Of the 4,244 farmer cooperatives in 1993,4,125

were centralized organizations, mostly locals with

individual farmer-members. Centralized cooperatives usually serve a local area or community,

county, or several counties. Most usually perform a

limited number of initial marketing functions. Most

farm supply sales are at the retail level. A few centralized cooperatives, principally regionals, operate

over large geographic areas and have members in

several States. They often provide more vertically

integrated services such as processing farm products or manufacturing feed and fertilizer.

Bargaining associations also have a centralized organizational structure. They derive all or

most of their business volume from negotiating

with distributors, processors, and other buyers and

sellers over price, quantity, grade, terms of sale,

and other factors involved in marketing farm products. Only a few bargain to purchase farm supplies.

While the primary function of such an association

is to bring buyers and sellers together to contract

for the sale of members’ products, many bargaining associations now perform additional functions.

For example, dairy bargaining associations at

one time only negotiated price. Now, many perform additional functions, such as physically handling part of the milk for spot sales. Bargaining

associations, like other dairy marketing cooperatives, represent their members at Federal or State

milk marketing order hearings.

Federated

Federated cooperatives comprise two or more

member associations organized to market farm

products, purchase production supplies, or perform bargaining functions.

The 76 associations identified as federated

often operate at points quite distant from their

headquarters. Federated cooperative members are

usually local cooperatives. Some federations are

interregional associations whose members are

regional cooperatives.

Mixed

A small number of cooperatives have both

individual farmer-members and autonomous cooperative members. These associations, a combination

of centralized and federated structures, serve large

geographic areas with members in many States,

and provide a variety of integrated services. CS has

identified 43 cooperatives with a “mixed” structure.

2
Cooperatives’ net business volume of $82.9

billion in 1993 was a record high. Net income of

$1.36 billion, however, was down from the $1.44

billion reported in 1992. Number of cooperatives

and memberships, at 4,244 and 4,023,264, respectively, were down. Combined assets, net worth,

and liabilities were all up.

Number of Cooperatives

The 1993 survey accounted for 4,244 marketing, farm supply, and related service 2 cooperatives,

compared with 4,315 in 1992. The net decrease of

71 associations (1.6 percent) largely reflected a continuing trend involving dissolution, merger, or

acquisition.

Of the 4,244 cooperatives, 2,214 primarily

marketed farm products, 1,547 handled primarily

farm production supplies, and 483 provided services related to marketing or purchasing activities

(table 1).

During 1993, marketing cooperatives

increased from 51.4 percent in 1992 to 52.2 percent

of the total number of cooperatives; farm supply

cooperatives decreased from 37.5 to 36.4 percent;

and related service cooperatives increased from

11.1 to 11.4 percent.

These percentage changes to some extent

reflect reclassification because of dollar volume

changes. In any given year, sales of farm supplies

or grains and oilseeds could be higher due to market supply and demand conditions. Also, reclassifying cotton ginning, livestock shipping, and rice

drying associations from marketing to service

increased the percentage of service cooperatives.

Cooperative numbers and memberships by

major business activity and by State are shown in

table 2. The location of a cooperative is based on its

headquarters.

The leading States in number of cooperatives

(appendix figure 1) were Minnesota (404), North

Dakota (302), Texas (291), and Iowa (279). These

2 Services include trucking, cotton ginning, storage, crop

drying, artificial insemination, livestock shipping, and similar services affecting the form, quality, or location of farm

products and supplies. They do not include credit, electric,

telephone, or other such services not directly related to marketing or purchasing activities.

four States accounted for 1,276 cooperatives or 30.1

percent of the U.S. total.

Branches Operated by Grain

and Farm Supply Cooperatives

Many cooperatives operate facilities at branch

locations to better serve their members. Most are

owned although some are leased. A number were

formerly independent cooperatives serving a local

community. For economic or other reasons, many

were acquired by or merged with other cooperatives and operated as branches from which to serve

members and patrons at outlying locations.

For the first time, CS collected information on

the number of branches cooperatives operated during their 1992 fiscal years. Based on fiscal 1993

information collected, estimated number of branches for 1992 was revised upward. In 1992, grain and

farm supply cooperatives operated an estimated

4,644 branches-l,867 and 2,777, respectively. In

Table l- Number of cooperatives and memberships,

by major business activity, 1993

Major business activity cooperatives Memberships

Beans and peas, dry edible 10 2,477

Cotton 16 37,768

Dairy 258 122,396

Fruits and vegetables 282 50,901

Grains and oilseeds l 1,193 876,790

Livestock 106 340,639

Nuts 20 50,471

Poultry 13 24,702

Rice 21 16,865

Sugar 55 13,175

Tobacco 25 261,122

Wool and mohair 107 27,705

Miscellaneous 108 4,490

Total marketing 2,214 1,829,501

Farm supply 1,547 1,977,336

Service 483 216,427

Total 4,244 4,023,264

Number

1 Excludes cottonseed. Cottonseed safes were included with

cotton. Cottonseed meal and oil were included with feed and

miscellaneous, respectively.

3
Table 2- Number f of cooperatives and memberships,’ by major business activity and State,1993 3

State Coop hqts.

in State Memberships State Coop hots

in State Memberships

BEANS AND PEAS, DRY EDIBLE

California 5

Other States

-

5

United States 10

COlTON 4

Arkansas 3

California 3

Mississippi 3

Texas 4

Other States

-

3

United States 16

DAIRY

California 10

Hawaii 3

Illinois 6

Iowa 10

Michigan 3

Minnesota 47

New York 63

North Carolina 4

North Dakota 5

Ohio 8

Oregon 4

Pennsylvania 2 1

Vermont 3

Virginia 4

Wisconsin 40

Other States

-

27

United States 258

FRUITS AND VEGETABLES 5

Arizona 4

Arkansas 5

California 78

Colorado 11

Florida 35

Georgia 4

838

1,639

2,477

692

2,493

5,331

21,699

7,553

37,768

1,864

14

3,560

10,910

4,666

21,411

7,018

642

1,361

4,072

705

7,561

2,049

1,241

25,942

29,380

122,396

733

800

22,009

1,006

2,282

191

FRUITS AND VEGETABLES s(Continued)

Hawaii 9

Kentucky 3

Maine 4

Massachusetts 3

Michigan 18

New Jersey 9

New York 11

North Carolina 4

Ohio 5

Oregon 11

Pennsylvania 8

Texas 5

Vermont 3

Virginia 4

Washington 24

Other States

-

24

United States 282

279

390

509

440

4,544

914

1,050

226

1,456

1,231

1,803

531

26

141

5,747

6 4,593

50,901

GRAINS AND OILSEEDS EXCLUDING COTTONSEED 7

Arkansas 3 919

Colorado 18 10,355

Idaho 9 6,154

Illinois 130 98,505

Indiana 28 60,197

Iowa 166 103,427

Kansas 138 126,309

Louisiana 3 260

Michigan 12 7,676

Minnesota 128 99,251

Mississippi 7 2,776

Missouri 17 17,099

Montana 18 12,411

Nebraska 88 75,073

North Dakota 148 71,322

Ohio 53 42,435

Oklahoma 55 38,614

Oregon 5 3,614

South Dakota 90 66,835

Texas 43 20,597

Washington 26 9,004

Other States

-

8 3,957

United States 1,193 876,790

Continued
Table 2- Number 1 of coops and memberships, * by major business activity and State,1993 3 (Continued)

State Co-op hqts.

in State Memberships Co-op hqts

in State Memberships

LIVESTOCK 5

Alabama

Colorado

Idaho

Indiana

Kentucky

Michigan

Minnesota

Mississippi

Missouri

New York

North Dakota

Ohio

Pennsylvania

Virginia

West Virginia

Wisconsin

Other States

United States

NUT 8

California

Hawaii

Other States

United States

POULTRY

California

Utah

Other States

United States

RICE 5

California

Louisiana

Texas

Other States

United States

SUGAR Q

Idaho

Louisiana

Michigan

Minnesota

Montana

Wyoming

Other States

United States

8

4

4

3

4

3

3

6

5

4

9

4

3

9

4

8

-

25

106

6

3

-

11

20

3

3

-

7

13

6

3

8

-

4

2 1

7

11

8

4

3

4

-

18

55

6,975

3,590

12,233

5,050

2,775

29,493

59,005

8,703

11,392

35,017

10,494

8,305

120

2,205

723

36,682

6 107,877

340,639

6,546

310

43,615

50,471

75

112

24,515

24,702

2,368

219

1,472

12.806

16,865

913

825

2,835

1,866

529

386

5.821

13,175

TOBACCO 8

Kentucky

North Carolina

Tennessee

Virginia

Other States

United States

WOOL AND MOHAIR

Idaho

Montana

North Dakota

Pennsylvania

Utah

Virginia

West Virginia

Wyoming

Other States

United States

MISCELLANEOUS ‘0

Alaska

California

Florida

Maine

Massachusetts

Michigan

Minnesota

Mississippi

North Dakota

Washington

Other States

United States

TOTAL MARKETING

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

5

7

7

3

-

3

25

73,288

72,546

47,050

24,489

43,749

261 ,122

9

20

6

18

5

12

8

5

-

24

107

460

1,372

209

2,258

553

2,362

1,816

398

18,277

27,705

16

13

7

15

4

4

4

4

4

5

-

32

108

710

1,157

113

90

24

64

86

178

28

346

1,694

4,490

13 14,119

16 710

5 1,751

17 14,445

130 42,843

38 16,774

46 7,779

9 38,325

2 1 876

33 22,499

144 126,157

32 72,326

181 147,331

138 133,799

Continued

5
Table 2- Number 1 of coops and memberships, * by major business activity and State,1993 s(Continued)

Co-op hqts.

in State

Memberships Co-op hqts

in State Memberships

TOTAL MARKETING (Continued)

Kentucky

Louisiana

Maine

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New Jersey

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign

United States

FARM SUPPLY

Alabama

Arkansas

California

Colorado

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

16

22

20

10

48

191

23

25

46

97

14

82

23

179

75

60

26

52

6

93

9

68

16

9

34

59

13

54

9

12

2,214

79,913

2,919

1,054

1,447

50,233

183,104

18,832

35,619

15,473

97,396

3,403

43,782

91,480

85,310

63,593

53,233

8,834

11,821

19,757

76,728

48,682

54,559

7,402

2,390

36,319

16,716

4,740

64,318

883

4,632

5,195

1,829,501

50 50,233

43 47,011

21 17,290

21 16,384

6 7,199

5 1,372

6 1,537

15 14,072

74 108,518

32 48,098

94 106,337

32 25,887

30 126,274

25 10,635

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Dakota

Tennessee

Texas

Utah

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign

United States

SERVICE ”

Alabama

Arizona

Arkansas

California

Hawaii

Illinois

Iowa

Kentucky

Louisiana

Michigan

Minnesota

Mississippi

Nebraska

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Pennsylvania

14

5

34

181

42

44

43

57

21

3

115

27

29

17

8

76

71

51

9

39

33

14

142

7

11

1,547

50,881

5,646

18,095

178,203

53,628

149,944

25,432

44,546

25,247

42,625

60,765

33,459

21,879

27,691

24,478

62,911

77,724

28,916

5,519

128,802

15,675

60,070

148,206

4,025

101,692

430

1,977,336

5 195

4 824

6 1,094

49 5,352

7 177

6 1,044

4 1,690

5 4,131

13 2,188

6 7,224

32 31,508

31 2,134

3 972

4 1,628

5 12,361

4 155

8 496

7 7,589

27 8,109

7 18,229

Continued
Table 2- Number I of coops and memberships, * by major business activity and State,1993 3 (Continued)

State Co-op hqts.

in State Memberships State Coop hqts

in State Memberships

SERVICE 11 (Continued)

Texas

Washington

Wisconsin

Other States

United States

TOTAL

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Carolina

South Dakota

Tennessee

Texas

Utah

172 40,486

5 2,856

52 36,735

21 29,250

483 216,427

68 64,547

16 710

10 61,896

66 62,550

200 65,485

60 33,162

4 3,361

3 28,301

54 27,050

15 39,790

34 2,590

50 36,576

224 235,719

65 120,424

279 255,358

172 159,903

5 1 210,318

60 15,742

22 8,538

17 51,873

15 7,940

88 75,552

404 392,815

96 74,594

70 186,265

89 40,905

157 142,914

18 6,724

7 3,149

108 81,390

30 134,260

302 146,571

109 104,641

116 83,221

44 36,535

67 54,528

8 20,219

170 140,095

82 127,609

291 123,961

26 15,321

TOTAL (Continued)

Vermont 9 7,696

Virginia 74 170,121

Washington 97 35,247

West Virginia 27 64,810

Wisconsin 248 249,259

Wyoming 16 4,908

Other States 6 2,496

Foreign 5,625

United States 4,244 4,023,264

1 Includes centralized and federated cooperatives and those with

mixed organizational structures.

2 Includes farmer-members (entitled to vote for directors) but not

nonvoting patrons. (Duplication in these membership figures occurs

because many farmers belong to more than one cooperative.)

Totals may not add due to rounding.

3 Data coveting operations of cooperatives for fiscal years ending

in 1993. States listed are those with more than two cooperatives or

where disclosure is not a problem.

4 Cotton ginning cooperatives in previous reports were included in

this classification. These cooperatives were reclassified as service

cooperatives in 1989.

5 Cooperatives performing specific services related to a commodity

are included. Incorporated local associations of a federation that

perform the actual marketing or processing are counted.

* Includes foreign memberships.

’ Excludes soybean meal and oil.

B Membership fluctuates annually and is affected by the extent to

which producers participate in price stabilization programs.

9 Includes sugar, sugarcane, sugar beets, honey, maple syrup,

molasses, and sorghum.

lo Includes forest products, hay, hops, nursery stock, coffee, and

other farm products not separately classified.

I1 Cooperatives providing services related to marketing or

purchasing activities. Major services provided are cotton ginning,

trucking, storing, grinding, drying, and artificial insemination.

7
Figure 1- Branches of Grain and Farm Supply Cooperatives, 1993

Number

2,500

Cooperatives

Less than 5 5-9.9 1 O-24.9

Assets (million dollars)

200 or more

Table 3- Estimated number of branches operated by grain and farm supply cooperatives, 1992-93 I

Item

Less than 5 5-9.9

Asset grouping (Mil. dol.)

Total

1 o-24.9 25-199.9 200 or more

Grain

1992: co-ops

Branches

902 211 114 12 4 1,243

441 480 529 94 323 1,867

1993: co-ops 808 233 131 18 3 1,193

Branches 410 479 688 177 311 2,065

Farm Supply

1992: co-ops

Branches

1,332 176 45 56 9 1,618

724 482 208 287 1,076 2,777

1993: co-ops 1,206 185 96 52 8 1,547

Branches 642 455 297 269 1,051 2,714

1 Number of branches estimated for 1992 was revised based on information cooperatives reported for 1993.
Figure 2- Distribution of Memberships by Type of Cooperative, 1993

Perceni: based on 4,023,264 memberships.

Tobacco 6.5 -

Poultry 0.6

Livestock 6.5

Dry Beans 0.1

Farm Supply 49.1

..::..i.......................... .._.........................:......

..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _-.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~ :.:.:.I’

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. ..L..................................

.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..i. ::::..:..:: . . . . . . . . . . . . . . .::, ::. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

:::::::::::::::::v .:.:.>:.:.:.m.m

Miscellaneous 0.1

Fruit & Vegetable 1.3

Related Service 5.4

;!g A.43

Cotton’0.9

Dairy 3.0

Wool 0.7

Grain 21.8

1993, grain and farm supply cooperatives operated

an estimated 4,779 branches (table 3 and figure 1).

Figure 1 shows that several of the larger

(mainly regional) cooperatives had more branches

than many smaller (local) cooperatives. For example, 11 of the grain and farm supply cooperatives,

or 0.4 percent, accounted for 28.5 percent of the

total number of branches operated by all such

cooperatives.

Memberships

Memberships in marketing, farm supply, and

related service cooperatives totaled 4,023,264 in

1993, down 1.2 percent from 4,071,869 in 1992

(table 1).

By type, more than 49 percent were memberships of farm supply cooperatives (figure 2), 21.8

percent of grain, and 20.3 percent of livestock,

tobacco, and service. Only 3 percent of cooperatives’ total memberships were of dairy cooperatives, which accounted for 24.7 percent of cooperatives’ net business volume in 1993.

The number of memberships by State is

shown in table 2. Leading States were Minnesota

(392,815), Iowa (255,358), Wisconsin (249,259), and

Illinois (235,719) (appendix figure 2). Memberships

in these States accounted for 1,133,151 or 28.2 percent of the national total.

Business Size

Measured by annual gross business volume,

farmer cooperatives increased in size. Most remain

small and serve local areas. Several are seeking

regional, national, or even international markets to

increase business volume.

The increased size of individual cooperatives

comes in part from mergers and acquisitions.

However, data used were not adjusted for changes

in price levels, and some size changes resulted

from inflationary effects.

In 1993,82.2 percent of all farmer cooperatives

reported business volumes of less than $15 million.

They accounted for only 15.1 percent of the total

gross dollar volume (table 4 and figure 3). Only 1.4

percent of farmer cooperatives reported business

volumes of at least $250 million. These cooperatives, however, accounted for 55.3 percent of the

total sales, up from 54.5 percent in 1992.

9
Figure 3-- Farmer Cooperatives Grouped by Business Volume, 1993

Percent of total

60

5 0

40

30

20

10

0

Less than 5 5-9.9 10-14.9 15-99.9 100-249.9 250-999.9 1,000 or more

Gross business volume (million dollars)

Table 4- Farmer cooperatives grouped by business volume, 1993 l

Volume group (mil. dol.)

Number

Cooperatives Dollar volume

Percent of total Gross2(mil. dol.) Percent of total

Less than 5.0 2,313 54.5 4,467 4.6

5 - 9.9 806 19.0 5,800 5.9

10 - 14.9 368 8.7 4,497 4.6

15 - 24.9 313 7.4 6,009 6.2

25 - 49.9 253 6.0 8,735 8.9

50 - 99.9 73 1.7 4,889 5.0

100 - 199.9 40 0.9 5,719 5.9

200 - 249.9 16 0.4 3,529 3.6

250 - 499.9 27 0.6 9,711 9.9

500 - 999.9 23 0.5 15,881 16.2

1,000 and more 12 0.3 28,506 29.2

Total 4,244 100.0 97,744 100.0

1 Business volume includes revenues from marketing plus the value of products bargained for or handled on a commission basis, supply

sales, service receipts, and other income.

2 Includes intercooperative business volume. Total does not add due to rounding.

10
Table 5- Cooperatives’ gross and net business volume by commodity, 1993 1

Commodity Gross volume Net volume

Million dollars Percent Million dollars Percent

Products marketed:

Beans and peas (dry edible)

Cotton

Dairy

Fruits and vegetables

Grain and oilseeds

excluding cottonseed

Livestock

Nuts

Poultry

Rice

Sugar

Tobacco

Wool and mohair

Miscellaneous 3

193.8 0.2 191.3 0.2

1,975.4 2.0 1,914.4 2.3

22,680.5 23.2 20,510.2 24.8

8.864.9 9.1 8.371 .O 10.1

19,099.3 19.5 16,463.g 19.9

5,667.7 5.8 5,667.7 6.8

867.2 0.9 867.2 1.1

1,638.8 1.7 1,375.2 1.7

782.7 0.8 781.6 .9

2,071.4 2.1 1,834.l 2.2

633.2 0.7 633.2 0.8

19.6 2 10.9 2

2,345.0 2.4 2.308.9 2.8

Total farm products 66.839.4

Supplies purchased:

Farm chemicals

Feed

Fertilizer

Petroleum

Seed

Other supplies 4

2,989.3 3.1 2,157.8 2.6

6,320.O 6.5 4,680.O 5.7

6,170.g 6.3 3,757.8 4.5

8,298.0 8.5 5,165.4 6.2

783.2 0.8 594.2 0.7

3,618.7 3.7 2,862.7 3.5

Total farm supplies 28,180.l

Services provided:

Trucking, cotton ginning,

storage, grinding, locker

plants, misc. 5 2,724.2

Total business 97,743.7

68.4 60.929.5 73.5

28.8 19,217.8 23.2

2.8

100.0

5 2,724.2

82,871.5

3.3

100.0

1 Gross includes and net excludes intercooperative business. Totals may not add due to rounding.

2 Less than 0.05 percent.

3 Includes coffee, fish, forest products, hay, hops, seed marketed for growers, nursery stock, other farm products not separately classified, and

sales of farm products not received directly from member-patrons. Also indudes manufactured food products and resale items marketed by

cooperatives.

4 Includes building materials, containers and packaging supplies, farm machinery and equipment, meats and groceries, automotive supplies,

hardware, chicks, and other supplies not separately classified.

5 Charges for services related to marketing or purchasing but not included in the volume reported for those activities, plus other income.

11
The 100 largest cooperatives (mostly regionals

and interregionals and usually operating over large

geographic areas) are a very important segment. In

1993, they accounted for $52.3 billion3 in business

volume, 53.5 percent of the total. Either directly

and through member cooperatives, this group

serves a large proportion of the total memberships.

Business Volume

Total gross business volume of 4,244 marketing, farm supply, and related service cooperatives

for 1993 was $97.7 billion (table 5), up 4.6 percent

from $93.4 billion in 1992.

Total net business volume of farmer cooperatives in 1993 was $82.9 billion-$60.9 billion for

farm products marketed, $19.2 billion for farm

supplies purchased, and $2.7 billion for services

performed and from other income. The total net

figure of $82.9 billion, which excludes intercooper3 Staiert, Jim J. “Near-Record Revenues in ‘93 for Top 100

U.S. Farmer Cooperatives,” Farmer Cooperatives, Vol. 61, No.

7, October 1994, USDA, RDA/CS, Washington, DC., pp. 20-

24.

ative business (the difference between gross and

net business volumes), increased 4.5 percent from

$79.3 billion in 1992. However, discounting for

price change, net business volume increased 2.1

percent.4

Gross volume of farm products marketed by

cooperatives increased 4.8 percent, from more than

$63.8 billion in 1992 to $66.8 billion in 1993. The net

volume of farm products marketed was $60.9 billion or 73.5 percent of the total net volume of cooperatives. This represents an increase of 4.7 percent

from $58.2 billion.

Figure 4 illustrates the leading products marketed by cooperatives based on net marketing business volume. Dairy led with 33.7 percent, followed

by grains and oilseeds (excluding cottonseed) with

4 Deflated 1993 cooperative business volume was $81 billion, up 2.1 percent from the actual $79.3 billion in 1992. The

$81 billion was derived by deflating farm products marketed by indices of producer prices and processed foods and

feeds and farm supplies (inputs) and service income by the

index of prices paid by farmers for production items excluding interest, taxes, and wages.

Figure 4- Relative Importance of Major Farm Products Marketed by Cooperatives, 1993

Grains & Oilseeds 27.0

Dairy 33.7

Dry Beans 0.3

Livestock 9.3

Poultry 2.3

Tobacco 1 .O

Sugar 3.0

Rice 1.3

Other 3.9

Fruits & Vegetables 13.7

Nuts 1.4

Cotton 3.1

Percent based on a net marketing business volume of $60.9 billion.

12
27 percent. Fruits and vegetables ranked third with

13.7 percent.

Gross volume of all farm supplies handled by

cooperatives was $28.2 billion, up 4.2 percent from

$27 billion. Net farm supply volume of $19.2 billion

accounted for 23.2 percent of the total net business

volume, up 3.8 percent from $18.5 billion.

Sales of feed, fertilizer, farm chemicals, petroleum, and other supplies were all up, but seed sales

were down.

The leading farm supplies handled by cooperatives in terms of net business volume were petroleum, 26.9 percent; feed, 24.4 percent; and fertilizer,

19.6 percent (figure 5).

Receipts for services performed by marketing,

farm supply, and related service cooperatives plus

other income amounted to $2.7 billion, up 5.8 percent. Service receipts and other income represented

3.3 percent of total net business volume.

Table 6 shows gross and net business volume

by State. Sales were allocated to the States in which

the product marketed originated and the farm

inputs sold. The leading State in net business of

farm products marketed was California with nearly

$7.7 billion (appendix figure 3). Iowa was the

leader in net sales of farm supplies with nearly $2

billion.

Overall, California, Iowa, Wisconsin, and

Minnesota led all States in net business volume.

The $27.5 billion net business volume in these four

States accounted for 33.2 percent of the U.S. total.

Net Income

Total net income (considering losses) for all

cooperatives in 1993 was $1.36 billion, including

intercooperative dividends and refunds (table 7).

Net income of cooperatives operating strictly on a

pooling basis is excluded. Net income was down

5.7 percent from the 1992 total of $1.44 billion.

Patronage refunds received from other cooperatives of $317.5 million was down 10.8 percent from

$355.9 million.

Marketing cooperatives’ net income of $856

million was up 9.6 percent from the $780.7 million

generated in 1992. Cooperatives handling primarily

grains and oilseeds (39.8 percent), milk and milk

products (28.5 percent), and fruits and vegetables

(12.1 percent) accounted for the largest proportion

of marketing cooperatives’ net income (80.4 percent).

Figure 6- Relative Importance of Major Farm Supplies Handled by Cooperatives, 1993

Other Supplies 14.9

Feed 24.3

-Seed 3.1

Petroleum 26.9 -

Fertilizer 19.6

Chemicals 11.2

Percent based on a net farm supply business volume of $19.2 billion.

13
Table 6- Cooperative business volume I by commodity and State, 1993 *

State

Business volume

Gross Nat

Business volume

state

Gross Net

1,000 dollars

PRODUCTS MARKETED:

BEANS AND PEAS, DRY EDIBLE

California

Other States

82,440

111,352

193,792

81,190

110,102

United States 191,292

COTTON

Arkansas

California

Mississippi

Texas

Other States

146,409 145,841

519,092 471,743

384,832 379,026

344,862 340,355

580.189 577,408

United States 1,975,383 1,914,375

DAIRY

California

Hawaii

Illinois

Iowa

Michigan

Minnesota

New York

North Carolina

North Dakota

Ohio

Oregon

Pennsylvania

Vermont

Virginia

Wisconsin

Other States

2,795,912 2,613,754

21,628 21,628

826,713 670,879

712,372 647,618

628,609 619,482

1,930,143 1,659,466

1,494,989 1,154,752

235,398 216,938

608,607 451,624

468,026 466,194

246,778 236,155

1,228,736 931,966

362,737 354,559

417,425 408,441

4,049,213 3,955,lOl

6,653,190 6,101,632

United States 22,680,477 20,510,188

FRUITS AND VEGETABLES

Arizona 153,174

Arkansas 1,200

California 3,543,735

Colorado 21,088

Florida 1,352,235

Georgia 60,625

Hawaii 26,938

Kentucky 8,307

Maine 38,494

Massachusetts 432,339

Michigan 452,902

139,135

1,200

3,216,413

21,088

1,297,591

55,727

26,938

8,307

38,494

432,339

371,122

1,000 dollars

FRUITS AND VEGETABLES (Continued)

New Jersey 179,391 179,391

New York 181,307 178,407

North Carolina 3,694 3,694

Ohio 7,080 7,080

Oregon 484,867 484,639

Pennsylvania 455,363 455,092

Texas 34,207 34,207

Vermont 13,875 13,875

Virginia 5,290 5,290

Washington 743,786 743,305

Other States 662,583 655,236

Foreign 3 2,389 2,389

United States 8,864,866 8,370,958

GRAINS AND OILSEEDS EXCLUDING

COTTONSEED

Arkansas 169,347

Colorado 188,999

Idaho 60,815

Illinois 1,814,595

Indiana 1,775,054

Iowa 2,471,515

Kansas 1,503,601

Louisiana 25,304

Michigan 130,893

Minnesota 2,212,975

Mississippi 130,940

Missouri 474,285

Montana 291,882

Nebraska 1,686,028

North Dakota 1,943,271

Ohio 735,578

Oklahoma 448,980

Oregon 162,595

South Dakota 985,647

Texas 800,698

Washington 437,234

Other States 474,332

Foreign 3 174,708

169,347

188,999

60,815

1,775,590

1,121,548

2,460,536

1,471 ,014

25,304

130,893

1,691,352

130,940

441,697

194,119

1,473,990

1,519,273

697,136

448,980

130,007

829,725

617,720

388,352

403,292

93,238

United States 19,099,276 16,463,865

Continued

14
Table 6- Cooperative business volume 1 by commodity and State, 1993 2 (Continued)

State

Business volume

Gross Net

State

Business volume

Gross Net

LIVESTOCK

Alabama

Colorado

Idaho

Indiana

Kentucky

Michigan

Minnesota

Mississippi

Missouri

New York

North Dakota

Ohio

Pennsylvania

Virginia

West Virginia

Wisconsin

Other States

Foreign 3

45,077 45,077

106,048 106,048

77,561 77,561

112,859 112,859

31,448 31,448

511,686 511,686

302,711 302,711

77,543 77,543

230,877 230,877

89,002 89,002

148,292 148,292

375,102 375,102

1,638 1,638

19,109 19,109

2,167 2,167

778,808 778,808

2,756,406 2,756,406

1,413 1,413

United States 5,667,746 5,667,746

NUTS

California

Hawaii

Other States

United States

621,030 621,030

16,178 16,178

229,988 229,988

867,196 867,196

POULTRY

California

Utah

Other States

United States

45,379 45,379

185,886 59,341

1,407,570 1,270,479

1,638,834 1,375,200

RICE

California

Louisiana

Texas

Other States

197,757 196,624

15,414 15,414

43,731 43,731

525,788 525,788

United States 782,691 781,557

1,000 dollars 1,000 dollars

SUGAR

Idaho

Louisiana

Michigan

Minnesota

Montana

Wyoming

Other States

Foreign 3

United States

159,866

241,760

163,619

618,068

59,398

26,079

801,992

572

2,071,355

TOBACCO

Kentucky

North Carolina

Tennessee

Virginia

Other States

United States

161,898

287,803

68,172

50,430

64,940

633,244

WOOL AND MOHAIR

Idaho

Montana

North Dakota

Pennsytvania

Utah

Virginia

West Virginia

Wyoming

Other States

United States

46

592

26

212

2,470

328

301

68

15,525

19,569

MISCELLANEOUS MARKETING 4

Alaska 9,373

California 240,833

Florida 16,928

Maine 9,323

Massachusetts 949

Michigan 46,312

Minnesota 143,982

Mississippi 170,022

North Dakota 18,772

Washington 76,854

Other States 1 ,019,764

Foreign 3 591,859

United States 2,344,971

159,866

158,709

148,758

515,468

59,398

26,079

765,294

572

1,834,144

161,898

287,803

68,172

50,430

64,940

633,244

46

592

26

212

2,470

328

301

68

6,807

10,851

9,373

240,812

16,885

9,323

949

45,945

126,875

169,707

18,772

76,833

1,001,776

591,631

2,308,884

Continued

15
Table 6- Cooperative business volume l by commodity and State, 1993 2 (Continued)

State

Business volume

Gross Net

state

Business volume

Gross Net

1,000 dollars

TOTAL FARM PRODUCTS MARKETED

Alabama 661,856 635,497

Alaska 9,373 9,373

Arizona 598,709 568,881

Arkansas 1,084,067 1,077,244

California 8,254,328 7,695,095

Colorado 581,799 577,569

Florida 2,277,603 2,131,443

Georgia 816,965 808,678

Hawaii 86,343 86,343

Idaho 825,758 818,366

Illinois 3,229,212 3,034,145

Indiana 2,300,168 1,640,323

Iowa 4,407,716 4,330,614

Kansas 1,930,701 1,884,968

Kentucky 598,091 559,400

Louisiana 513,003 429,618

Maine 66,709 66,259

Massachusetts 895,306 732,779

Michigan 1,980,807 1,874,422

Minnesota 5,363,359 4,357,499

Mississippi 849,990 843,316

Missouri 1,496,962 1,360,631

Montana 429,414 331,651

Nebraska 2,615,090 2,362,562

New Jersey 241,020 237,343

New York 1,813,179 1,470,042

North Carolina 718,763 699,311

North Dakota 3,003,119 2,385,189

Ohio 1,625,664 1,576,672

Oklahoma 956,641 946,090

Oregon 1 ,100,989 1,033,580

Pennsylvania 1,771,754 1,474,256

South Carolina 97,514 96,142

South Dakota 1,385,158 1,184,205

Tennessee 274,015 273,488

Texas 2,091,341 1,885,311

Utah 402,741 267,368

Vermont 379,364 371,187

Virginia 566,587 555,426

Washington 1,919,522 1,837,941

West Virginia 46,827 45,907

Wisconsin 5,275,069 5,179,035

Wyoming 43,006 42,722

Other States 482,855 462,365

Foreign 3 770,941 689,243

United States 66,839,397 60,929,500

1,000 dollars

FARM SUPPLIES PROVIDED:

FARM CHEMICALS

Alabama

Arkansas

California

Colorado

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Dakota

Tennessee

Texas

Utah

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign 3

United States

57,665 27,960

128,346 68,367

26,713 23,778

24,508 20,790

17,496 17,316

20,302 18,651

1,714 1,714

17,690 17,690

308,645 213,423

202,852 142,644

430,072 291,919

93,428 68,606

41,826 37,430

61,227 35,728

18,823 17,098

3,912 3,644

22,705 22,113

340,917 222,876

62,976 47,218

69,143 60,896

29,539 23,430

139,217 119,827

30,572 26,615

25,823 21,043

96,743 78,763

76,188 75,021

23,634 17,591

27,606 21,496

21,679 20,124

111,686 81,966

96,763 55,885

62,477 54,203

12,362 12,362

20,553 17,458

36,637 24,196

2,712 2,433

154,954 94,737

2,979 2,979

46,866 44,125

19,363 3,685

2,989,315 2,157,802

Continued

16
Table 6- Cooperative business volume I by commodity and State, 1993 2 (Continued)

State

Business volume

Gross Net

state

Business volume

Gross Net

FEED

Alabama

Arkansas

California

Colorado

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Dakota

Tennessee

Texas

Utah

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign 3

151,096 136,063

119,830 74,363

144,667 120,974

50,787 39,419

75,113 72,893

165,339 161,739

3,368 3,368

37,074 20,716

263,006 187,038

292,615 152,650

940,223 650,197

265,843 179,238

56,094 47,211

49,718 35,345

39,321 35,070

30,290 27,335

53,346 49,628

663,524 450,286

102,702 92,583

189,850 150,780

32,035 22,329

226,569 153,799

215,316 190,669

80,592 70,680

68,182 47,687

122,875 119,782

83,760 63,414

47,702 45,847

127,599 109,820

173,238 122,646

210,400 111,271

128,113 98,546

48,013 47,085

111,186 94,567

38,943 37,088

14,425 12,578

426,715 261,621

10,804 10,804

349,507 311,964

110,234 60,913

United States 6,320,015

I, 000 dollars 1,000 dollars

4,680,005

FERTILIZER

Alabama

Arkansas

California

Colorado

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Dakota

Tennessee

Texas

Utah

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign 3

United States

106,498 67,287

164,207 88,131

62,356 61,345

75,823 60,461

82,192 29,579

60,961 48,260

1,536 1,536

28,021 28,021

566,307 312,042

431,693 224,754

736,795 398,146

354,137 251,598

119,297 78,320

133,052 48,916

26,430 24,092

6,053 5,532

36,702 33,881

579,641 306,417

116,596 84,653

196,189 145,037

53,004 43,012

270,724 213,493

37,363 33,926

46,116 39,414

239,441 145,892

182,989 113,238

110,275 79,920

42,854 32,862

28,036 25,015

158,911 114,324

256,357 106,858

225,956 139,975

15,444 15,444

52,533 47,949

40,121 27,057

7,499 6,824

311,828 157,454

3,420 3,420

65,627 58,064

137,898 55,628

6,170,881 3,757,780

Continued

17
Table 6- Cooperative business volume 1 by commodity and State, 1993 * (Continued)

State

Business volume

Gross Net

state

Business volume

Gross Net

1,000 dollars 1,000 dollars

PETROLEUM

Alabama

Arkansas

California

Colorado

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Dakota

Tennessee

Texas

Utah

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign 3

5,048 4,848

83,113 46,208

3,863 3,795

110,285 89,236

3,416 3,416

611 611

629 629

99,621 67,365

518,301 305,795

361,105 237,290

823,508 460,016

915,183 328,327

86,053 69,563

17,647 11,820

67,813 60,389

43,245 32,720

59,524 45,563

742,981 473,309

27,691 21,362

410,884 318,339

204,587 96,571

388,096 273,277

289,329 218,816

15,598 13,420

407,830 251,275

113,777 94,253

202,965 82,633

104,713 72,669

253,373 191,699

214,453 182,635

73,202 48,222

155,493 108,660

3,489 3,489

109,313 94,612

198,331 112,882

28,105 26,324

605,267 395,024

44,890 23,528

297,355 229,359

207,345 65,446

United States 8,298,031 5,165,392

SEED

Alabama

Arkansas

California

Colorado

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Dakota

Tennessee

Texas

Utah

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign 3

United States

38,296 17,503

25,453 14,510

28,291 28,291

2,256 2,256

6,869 5,596

11,298 10,698

825 825

7,940 7,224

61,537 38,938

42,625 26,564

68,398 42,556

9,815 9,815

17,357 15,627

18,417 10,672

9,446 8,487

4,205 4,065

9,125 8,812

46,029 34,515

14,500 11,642

26,820 23,828

7,857 4,518

11,081 7,653

21,310 20,389

9,461 7,996

31,860 23,807

20,400 20,400

4,900 4,900

14,186 13,523

17,429 16,620

13,279 10,263

45,599 29,518

14,649 14,849

5,468 5,468

18,418 16,688

12,558 11,231

2,649 2,383

44,583 26,159

3,326 2,663

33,565 31,969

1,107 974

783,186 594,192

Continued

18
Table 6- Cooperative business volume I by commodity and State, 1993 z (Continued)

State

Businessvolume

Gross Net

state

Businessvolume

Gross Net

1,000 dollars

MISCELLANEOUS SUPPLIES 5

Alabama 82,808 74,017

Arkansas 100,788 59,056

California 139,892 71,592

Colorado 40,524 36,188

Florida 100,830 100,214

Georgia 75,332 72,868

Hawaii 2,629 2,629

Idaho 38,064 33,706

Illinois 114,219 66,462

Indiana 51,418 43,507

Iowa 217,459 155,841

Kansas 112,384 83,703

Kentucky 66,201 60,427

Louisiana 38,593 24,585

Maryland 37,135 33,967

Massachusetts 25,974 24,457

Michigan 70,051 60,250

Minnesota 283,308 208,062

Mississippi 43,828 40,214

Missouri 108,610 74,699

Montana 38,612 33,735

Nebraska 109,653 90,646

New York 212,510 177,822

North Carolina 27,517 23,897

North Dakota 106,781 94,132

Ohio 71,903 62,222

Oklahoma 35,260 27,714

Oregon 89,903 85,451

Pennsylvania 112,114 102,924

South Dakota 80,785 67,829

Tennessee 146,792 80,532

Texas 64,784 52,338

Utah 35,328 34,605

Virginia 143,706 108,398

Washington 84,397 57,850

West Virginia 23,302 20,716

Wisconsin 230,387 200,593

Wyoming 11,291 11,278

Other States 216,366 192,333

Foreign 3 27,237 11,190

United States 3,618,677 2,862,653

1,000 dollars

TOTAL FARM SUPPLIES

Alabama 441,412 327,678

Arkansas 621,738 350,635

California 405,782 309,774

Colorado 304,185 248,350

Florida 285,915 229,013

Georgia 333,843 312,827

Hawaii 10,701 10,701

Idaho 228,412 174,723

Illinois 1,832,016 1,123,697

Indiana 1,382,308 827,408

Iowa 3,216,454 1,998,676

Kansas 1,750,792 921,286

Kentucky 386,827 308,578

Louisiana 318,655 167,067

Maryland 198,967 179,103

Massachusetts 113,679 97,753

Michigan 251,454 220,247

Minnesota 2,656,401 1,695,465

Mississippi 368,292 297,673

Missouri 1,001,496 773,579

Montana 365,634 223,595

Nebraska 1,145,340 858,694

New York 806,400 668,235

North Carolina 205,106 176,450

North Dakota 950,837 641,555

Ohio 588,131 484,917

Oklahoma 460,795 276,173

Oregon 326,963 271,849

Pennsylvania 560,231 466,201

South Dakota 752,352 579,663

Tennessee 829,113 432,286

Texas 651,472 468,371

Utah 120,104 118,453

Virginia 455,709 379,671

Washington 410,986 270,304

West Virginia 78,692 71,258

Wisconsin 1,773,734 1,135,588

Wyoming 76,711 54,673

Other States 1,009,284 867,816

Foreign 3 503,184 197,836

United States 28,180,104 19,217,824

Continued

19
Table 6- Cooperative business volume 1 by commodity and State, 1993 2 (Continued)

State

Business volume

Gross Net

State

Business volume

Gross Net

1,000 dollars 1,000 dollars

SERVICES PROVIDED: 6

Alabama 13,539 13,539

Arizona 10,626 10,628

Arkansas 71,599 71,599

California 344,282 344,282

Hawaii 6,749 6,749

Illinois i 48,320 148,320

Iowa 184,107 184,107

Kentucky 28,578 28,578

Louisiana 15,664 15,664

Michigan 61,638 61,638

Minnesota 167,652 167,652

Mississippi 221,148 221,148

Nebraska 101,536 101,536

New Mexico 3,253 3,253

New York 101,650 101,650

North Carolina 18,802 18,802

North Dakota 42,800 42,800

Ohio 78, i 59 78,159

Oklahoma 38,560 38,560

Pennsylvania 51,660 51,660

Texas 212,216 212,216

Washington 114,221 114,221

Wisconsin 70,936 70,936

Other States 616,518 616,518

United States 2,724,216 2,724,216

TOTAL:

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

1,116,807 976,714

45,458 34,328

653,488 609,250

1,777,404 1,499,477

9,004,392 8,349,151

908,460 848,396

166,351 146,379

99,619 89,282

2,661,348 2,458,286

1,163,360 1,134,056

103,793 103,793

1,063,980 1,002,900

5,209,548 4,306,163

3,754,366 2,539,621

7,808,277 6,513,397

3,780,634 2,905,395

1,013,496 896,555

TOTAL: (Continued)

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign 3

United States

847,322 612,349

233,091 213,530

461,967 430,891

1 ,017,704 839,251

2,293,899 2,156,307

a,la7,412 6,220,616

1,439,431 1,362,137

2,610,916 2,246,667

802,904 563,102

3,861,966 3,322,793

416,514 384,170

109,813 104,562

2,721,228 2,239,926

942,672 894,564

3,996,756 3,069,544

2,291,954 2,139,747

1,455,995 1,260,822

1,463,768 1,341,245

2,383,645 1,992,117

273,373 264,521

2,174,775 i,aol,i33

1,125,742 728,389

2,955,029 2,565,898

540,492 403,470

528,356 497,839

1,067,813 980,614

2,444,728 2,222,465

125,877 117,524

7,119,739 6,385,559

121,495 99,172

122,437 110,390

1,274,125 887,079

97,743,717 82,871,539

See footnotes next page

20
Footnotes to table 6

1 Data covering operations of cooperatives whose business years

ended during calendar 1993. Includes independent local

cooperatives, federations, centralized regional cooperatives, and

cooperatives with mixed organizational structures. The volume of

products marketed is allocated to the State in which they originate

and the volume of farm supplies is allocated to the State in which

they are sold; service volume and other income is allocated to the

State of origin when services relate to farm products marketed or to

the State of destination when related to farm supplies sold.

2 Gross business volume includes sales between cooperatives. Net

business volume excludes sales between cooperatives. States

listed are those where more than two cooperatives handle the

commodity or farm supply or where disclosure is not a problem.

Totals may not add due to rounding.

3 Includes value of farm products imported, farm supplies exported,

services related to imported farm products or exported farm

supplies, sales to domestic military installations, or sales of farm

products not received directly from member-patrons.

4 Includes forest products, hay, hops, nursery stock, fish, coffee,

seed marketed for growers, and other farm products not separately

classified. Also includes manufactured food products and resale

items marketed by cooperatives.

5 Includes building supplies, containers and packaging supplies,

farm machinery and equipment, animal health products, automotive

supplies, food, hardware, chicks, and other supplies not separately

classified.

s Income from services related to marketing and purchasing

activities but not included in the volumes reported for these

activities.

Table 7- Farmer cooperatives’ net income, 1993 l

Principal products marketed

and major function co-ops 2 Total net income Income from

own operations

Income from

other co-ops 3

Products marketed:

Cotton

Dairy

Fruits & vegetables

Grains and oilseeds excluding cottonseed

Livestock and poultry

Rice

Sugar

Other products 4

Total farm products

Total farm supplies

Total related services

Combined total

Number ______________________________Million d~~~~r~________ _____ ___ ________ _______

16 77.7 77.1 0.6

258 244.1 216.6 27.4

282 103.9 94.9 9.0

1,193 340.5 239.1 101.4

119 31.9 30.4 1.5

21 14.9 14.9 0.02

55 13.4 13.3 0.03

270 29.6 25.7 3.9

2,214 856.0 712.1 143.9

1,547 435.9 285.3 150.6

483 66.4 43.4 23.1

4,244 1,358.4 1.040.8 317.5

1 Number of cooperatives includes those operating on a pooling rather than net margin basis.

Totals may not add due to rounding.

* Many cooperatives have multiproduct and multifunctional operations.

Most are classified according to predominant commodity or function indicated by business volume.

3 Excludes patronage refunds from CoBank and Banks for Cooperatives.

4 Includes dry edible beans and peas, nuts, tobacco, wool, and miscellaneous products.

21
Farm supply cooperatives accounted for 32.1

percent of cooperatives’ total net income in 1993

compared with 40.7 percent in 1992. Income from

farm supply cooperatives’ own operations was

$285.3 million compared with $404.6 million in

1992. Refunds from other cooperatives of $150.6

million was also down from $182.2 million.

Farmer cooperatives’ net income from own

operations in 1993 totaled $1,040.8 millionr’own

4.0 percent from $1,084.4 million. Nearly 23.4 percent, or $317.5 million, of total net income was generated from other cooperatives, down from $355.9

million in 1992. Marketing cooperatives’ net income

from other cooperatives totaled $143.9 million and

accounted for 10.6 percent of their total. Grain cooperatives’ net income from other cooperatives was

$101.4 million or 29.8 percent of their total.

Income before losses equaled $1,545.4 million.

Losses from an estimated 595 cooperatives totaled

$187.1 million in 1993. Estimated losses were $172.5

million in 1992.

Balance Sheet

Combined assets for all farmer cooperatives

totaled $33.4 billion in 1993, up 4.5 percent from

$32 billion for 1992 (table 8). Assets of cooperatives,

excluding intercooperative investments, totaled

$30.8 billion compared with $29.6 billion, a 4.3-percent increase (table 9).

Total liabilities were $18.6 billion, up 4.8 percent from the $17.8 billion reported in 1992. Net

worth, or member and patron equity, was $14.8 billion, up 4.2 percent from $14.2 billion in 1992. The

proportion of total assets financed by member and

patron equity edged down from 44.4 percent to

44.3 percent.

Of the $33.4 billion in total assets, marketing

cooperatives accounted for $22.8 billion, up 16.3

percent from 1992. A significant part of the increase

was due to the reclassification of a large cooperative from farm supply to marketing. Cooperatives

whose principal products were grains and oilseeds

(excluding cottonseed) had total assets of $7.8 billion in 1993 and $7.2 billion in 1992, up 9.3 percent.

Among the marketing cooperatives, those with primarily grain also maintained the largest proportion

of investments in other cooperatives in both 1993

(11.1 percent) and 1992 (11.6 percent).

Assets of marketing cooperatives, excluding

investments in other cooperatives, were $21.5 billion, up 16.7 percent from 1992.

Farm supply cooperatives had total assets of

$9.9 billion compared with $11.7 billion in 1992,

Table 8- Combined balance sheet data for farmer cooperatives, 1993 I

Principal products marketed

and major function co-ops 2

Total Total

assets liabilities

Net

worth

Products marketed:

Cotton

Dairy

Fruits & vegetables

Grains and oilseeds excluding cottonseed

Livestock and poultry

Rice

Sugar

Other products 3

Number

16 704.7 412.9 291.8

258 4,547.g 2,812.l 1,735.a

282 4,457.6 2,916.6 1,541 .o

1,193 7617.1 4,127.3 3,669.a

119 2,795.6 1,766.O 1,029.7

21 4769 260.7 216.2

55 793.0 435.6 357.4

270 1,223.3 660.2 563.1

Total farm products

Total farm supplies

Total selected services

Combined total

2,214 22,818.2 13,391.3 9,426.g

1,547 9,909.2 5,016.l 4,893.0

483 718.7 226.4 492.3

4,244 33,446.0 18,633.g 14.812.1

__________________________ Mij/ion ~llars_______________ _____-____.

1 Totals may not add due to rounding.

2 Many cooperatives have multiproduct and multifunctional operations. Most are classified according

to predominant commodity or function indicated by business volume.

3 Includes dry edible beans and peas, nuts, tobacco, wool, and miscellaneous products.

22
down 15.5 percent due mainly to the reclassification of a cooperative. Excluding intercooperative

investments, assets amounted to $8.7 billion in

1993, down 17.8 percent from 1992.

Net worth, or member and patron equity, for

all marketing cooperatives totaled $9.4 billion, up

13.2 percent from 1992. Marketing cooperatives

accounted for 63.6 percent of farmer cooperatives’

combined net worth. The figure for farm supply

cooperatives was 33 percent. For marketing cooperatives, the highest percent of total assets represented by net worth shown in table 8 (47.2 percent) was

for those primarily marketing grains and oilseeds

excluding cottonseed. The lowest, 34.6 percent, was

for cooperatives primarily marketing fruits and

vegetables. Cooperatives classified as farm marketing and farm supply had 41.3 and 49.4 percent,

respectively, of their assets financed by net worth.

Selected Financial Ratios

Financial ratios are often used to determine

the relationships between items in the financial and

income statements of a business operation and help

in analyzing a coope;ative’s economic and financial

situation.

Financial ratios can indicate problem areas.

However, they cannot be used to solve problems

but can serve as guidelines for planning purposes

and aids in formulating actions. Care must be

taken in their use because both items used to calculate a ratio are subject to considerable variation.

How a ratio is interpreted is largely subjective.

Several financial ratios were selected to give

some indication of cooperative performance. These

include return on assets, net worth-to-assets, the

return on sales, total sales-to-assets, and the current

ratio.

The return on assets and return on sales ratios

are used to indicate profitability. The net worth-toassets ratio provides some indication of a cooperative’s ability to meet long-term financial obligations. The total sales-to-asset ratio (asset turnover

ratio), indicates how efficiently a cooperative is

using its assets. The current ratio (current assets

divided by current liabilities) probably best measures a cooperative’s ability to meet current obligations.

Table 10 lists the values of these ratios for the

cooperatives reporting to CS. Extreme values (high

and low ratios) were excluded so that the ratios

would be more representative of the cooperatives

Table Q- Combined assets of farmer cooperatives, 1993 I

Principal products

marketed and

major function

co-ops *

Assets investments

of own in other

operations co-ops

Total assets

Investments

in other coops

as percent of

total

Products marketed:

Cotton

Dairy

Fruits & vegetables

Grains and oilseeds

excluding cottonseed

Livestock and poultry

Rice

Sugar

Other products 3

Total farm products 2,214

Total farm supplies 1,547

Total selected services 483

Combined total 4,244

Number _________________ _________ Mijjion &lj~rs________ __________________.

16 699.7 4.9 704.7

258 4,320.4 227.5 4,547.Q

282 4,383.2 74.4 4,457.6

1,193

119

21

55

270

6,951.7 865.3 7,817.1

2,732.Q 62.7 2,795.6

477.5 1.4 478.9

788.0 5.0 793.0

1 ,188.0 35.4 1,223.3

21,541.4 1,276.8 22,818.2

8,651.2 1,257.Q 9,909.2

651.4 67.3 718.7

30,844.O 2,602.O 33,446.0

0.7

5.0

1.7

11.1

2.2

0.3

0.6

2.9

5.6

12.7

9.4

7.8

1 Totals may not add due to rounding.

* Many cooperatives have multiproduct and multifunctional operations. Most are classified according

to predominant commodity or function indicated by business volume.

3 Includes dry edible beans and peas, nuts, tobacco, wool, and miscellaneous products.

23
Table lo-Selected financial ratios of cooperatives, 1993 1

Type of co-op and Net income/ Net worth/

range of assets (Million dollars) assets * assets3

Net income/ Sales/

sales’ assets’

Current

WiO5

_______________________ percent_______________________ -----_--_ Number _____ ____

Beans and peas (dry edible) 3.6 55.0 1.3 2.9 1.8

Cotton 11.6 43.8 5.5 3.0 1.8

Dairy 6.2 46.4 1.4 6.1 2.0

Less than 0.5 10.0 52.0 1.5 7.9 5.6

0.5 - 0.99 8.1 61.3 2.1 4.9 2.1

1 .o - 2.49 5.3 55.4 1.3 6.0 1.7

2.5 - 24.99 4.9 41.8 1.2 7.1 1.4

25.0 - 99.99 6.4 39.6 1.4 5.5 1.4

100.0 - 499.99 5.9 43.1 1.4 4.4 1.4

Fruit and vegetable 2.8 43.2 .8 3.3 1.9

Less than 0.5 -11.0 33.9 -4.8 6.3 1.3

0.5 - 0.99 16.5 58.1 3.1 8.3 3.5

1 .o - 2.49 2.5 58.2 .9 3.1 2.6

2.5 - 24.99 5.9 43.3 2.9 2.9 1.5

25.0 - 99.99. 2.3 36.0 1.8 2.0 2.4

100.0 - 499.99 2.1 35.7 1.2 2.0 1.4

Grains and oilseeds 6 4.4 56.5 1.5 3.0 2.4

Less than 0.5 -2.2 77.6 -.4 5.5 5.6

0.5 - 0.99 3.5 71.1 .9 3.8 4.6

1 .o - 2.49 4.5 52.1 1.7 2.8 1.6

2.5 - 24.99 3.8 34.2 1.9 2.0 1.6

25.0 - 99.99 3.2 33.7 1.7 2.0 1.1

Livestock 4.0 46.3 2.9 16.5 8.2

Nuts 7.7 47.7 2.4 3.8 3.4

Poultry 7.1 53.9 1.4 4.8 1.7

Rice 1.6 56.8 .7 2.1 3.4

Sugar 2.9 46.9 2.3 1.4 1.2

Tobacco 11.5 68.1 .9 27.5 1.7

Other products 2.8 50.7 2.6 3.5 2.0

Fishery -4.0 34.0 -1.7 6.6 1.5

Farm supply 6.4 68.5 3.0 2.3 3.3

Less than 0.5 4.0 75.2 1.3 3.3 7.1

0.5 - 0.99 5.6 72.4 2.7 2.3 3.5

1 .o - 2.49 7.0 75.2 3.4 2.2 4.2

2.5 - 24.99 6.6 62.8 3.2 2.2 2.0

25.0 - 99.99 11.6 48.7 5.9 2.7 1.4

100.0 - 499.99 3.5 42.1 1.6 2.2 1.6

Service 12.2 69.6 10.6 1.2 9.8

Cotton gins 8.9 68.7 .4 1.5 10.2

1 Based on cooperatives reporting. Excludes strictly bargaining or pooling cooperatives. Ratios were calculated by summing the individual

ratios and dividing by the number of cooperatives. All five ratios were calculated for the same cooperatives in each group. Outliers (extreme

values) not representative of the group were excluded.

2 Includes net income before any income taxes are deducted. Calculated by dividing net income by total assets. Usually referred to as the

return on assets.

3 Net worth, or member equity, is the value of the assets owned by members. The ratio was calculated by dividing total net worth by total

assets.

4 Total sales includes service receipts and other income and patronage refunds received from other cooperatives and CoBank and Banks for

Cooperatives. The return on sales was found by dividing net income by total sales.

s The current ratio was derived by dividing current assets by current liabilities.

6 Excludes cottonseed.

24
reporting. For the predominant types of cooperatives (dairy, fruits and vegetable, grain, and farm

supply), ratios are also shown for cooperatives by

selected asset category. These ratios offer cooperative leaders a general barometer to use in comparing their operations with others of the same type

(and/or size).

The return on assets (net income/assets) varied considerably, but tended to decrease with an

increase in size. The net worth-to-asset ratio was

highest among the smaller farm supply cooperatives. Generally, as cooperatives become larger, less

of their assets is financed by members.

The return on sales (net income/total sales)

ranged from a -4.8 percent for the smallest fruit and

vegetable cooperatives to a high of 10.6 percent for

service cooperatives (excluding cotton gins).

However, the ratio for most type and size groups

was between 1 and 3 percent.

The sales-to-assets ratio ranged from 1.2 for

service cooperatives to 25.7 percent for tobacco

cooperatives. Among dairy and fruit and vegetable

cooperatives, the ratio tended to decrease as size of

cooperative increased. Generally, this reflects the

large investment in processing or manufacturing

equipment typical of the larger dairy and fruit and

vegetable cooperatives. The sales-to-assets ratios

for grain and farm supply cooperatives did not

vary much with size of cooperative. This was especially true for farm supply cooperatives. Most grain

and farm supply cooperatives are not as involved

in manufacturing or processing as are the dairy

and fruit and vegetable cooperatives.

The generally high sales-to-assets ratios for

the smaller cooperatives as well as for some types

of cooperatives is due to their involvement in bargaining or other marketing functions not requiring

major investments in plant and equipment.

The current ratio (current assets/current liabilities) ranged from 1.1 for grain cooperatives with

assets of $25 million to $100 million to 10.2 for cotton ginning cooperatives. Current ratios tended to

be higher for the medium- and smaller-sized cooperatives than for the larger ones because larger

cooperatives generally finance a larger proportion

of their assets with borrowed capital.

The changing economic environment in the

1980s forced some cooperatives out of business.

Others had to make difficult adjustments such as

reducing the number of employees and selling off

less productive assets. An indication of the stress is

noted in business volume of farmer cooperatives,

which dropped from $73 billion in 1984 to $58.4 billion in 1986. Volume subsequently rebounded to

reach $77.3 billion in 1990 and a record of $82.9 billion in 1993 (appendix figure 8).

Number of Cooperatives

The total number of marketing, farm supply,

and related service cooperatives declined from

5,782 in 1984 to 4,244 in 1993 (table 11 and figure 6).

Marketing cooperatives declined from 3,514 to

Table 1 l- Number of farmer cooperatives, 1984-93

Period ’ Marketing Farm supply Service Total

Number

1984 3,514 2,136 132 5,782

1985 3,441 2,036 148 5,625

1986 3,260 1,971 138 5,369

1987 3,054 1,941 114 5,109

1988 2,988 1,836 113 4,937

1989 2 2,550 1,803 446 4,799

1990 2,519 1,717 427 4,663

1991 2,384 1,689 421 4,494

19923 2,218 1,618 479 4,315

1993’ 2,214 1,547 483 4,244

t For years before 1964, see Cooperative Historical Statistics, CIR 1, Section 26, USDA, ACS, Washington, DC, Revised January 1993.

2 Cotton ginning cooperatives were reclassified from marketing to service.

3 Livestock shipping associations were reclassified from marketing to service.

4 Rice driers reclassified from marketing to service.

25
Figul ‘8 6-

7

Service

Farm Supply

Marketing

1984 85 86 87 88 89 90 91 92 93

Cotton ginning cooperatives, livestock shipping associations, and rice driers reclassified from marketing

to service cooperatives in 1989, 1992, and 1993, respectively.

2,214 and farm supply cooperatives from 2,136 to

1,547. The increase shown for the number of service cooperatives, from 132 to 483, was due primarily to reclassifying cotton ginning cooperatives,

livestock shipping associations, and rice driers

from marketing to service.

From 1984 through 1993,2,230 cooperatives

were removed from CS’s list of farmer cooperatives, a loss of about 223 per year. Of those, 39.9

percent were dissolved, 23.8 percent merged, 18.6

percent were acquired by other cooperatives or

investor-owned firms, and the remaining 17.7 percent were removed for other reasons (figure 7).

The number of cooperatives removed from

CS’s list of farmer cooperatives was the lowest it

has been since 1976. This suggests greater economic stability for cooperatives.

Memberships

Memberships in farmer cooperatives, more

than 4.8 million in 1984, dropped to 4 million in

1993 (table 12 and figure 8). The long-term decline

in part reflected the decreasing number of farmers

in the United States. Many farmers were members

of more than one cooperative and each membership was counted. Total membership contains

duplication that cannot be eliminated with current

reporting methods. Consequently, number of memberships exceeds the number of farmers.

Though many farmers maintained membership in more than one cooperative, nearly 18.3 percent did not actively patronize their cooperatives,

down from 20.5 percent in 1992.

Yearly membership figures often vary widely

for cooperatives participating in price stabilization

programs such as cotton, peanuts, or tobacco,

reflecting the movement of producers in and out of

programs.

Member classification depends on the type of

cooperative they use and may not be related to the

members’ products marketed or supplies purchased. For example, a member may use a cooperative to market only one of the farm products handled by the cooperative, or a member may use a

cooperative classified in the marketing group to

purchase one or more production supplies. A member’s business with the cooperative, therefore, may

not be in the group that represents the cooperative’s major business volume (the criterion for clas26
Figure 7- Cooperatives Removed from CS’s List, 1994-93

Number

300 [

m Dissolutions

E#J Mergers

m Acquisitions

0 Other

01 ’

I I I I I I I I I

1984 85 86 87 88 89 90 91 92 93

Based on a list of all U.S. farmer cooperatives maintained by Cooperative Services. Mergers also include consolidations. Other

includes cooperatives dropped due to inactivity and unknown and miscellaneous reasons.

Figure 8- Memberships in Farmer Cooperatives, 1984-93

Million

Service

Farm Supply

Marketing

1984 85 86 87 88 89 90 91 92 93

27
Table 12- Memberships in marketing, farm supply, and service cooperatives, 1984-93

Period ’ Marketing Farm supply Service Total

1984 2,317 2,397 128 4,842

1985 2,214 2,398 169 4,781

1986 2,140 2,310 150 4,600

1987 2,026 2,282 132 4,440

1988 1,912 2,142 141 4,195

1989 2 1,856 2,035 243 4,134

1990 1,882 2,006 232 4,119

1991 1,842 2,025 191 4,059

1992s 1,839 2,020 212 4,072

19934 1,830 1,977 216 4,023

1,000

1 For years before 1983, see Cooperative Historical Statistics, CIR 1, Section 26, USDA, ACS, Washington, DC, Revised January 1993.

2 Cotton ginning were reclassified from marketing to service.

3 Livestock shipping associations were reclassified from marketing to service.

4 Rice driers were reclassified from marketing to service.

Figure 9- Cooperatives’ Net Business Volume, 1994-93

Billion dollars

90

50 j

I I I I I I I I I I

1984 85 86 87 88 89 90 91 92 93

1 Actual safes were adjusted by price changes based on 1984 = 100.

28
sifying cooperatives in this report). The membership, however, will be included arbitrarily in that

classification.

Business Volume

Net cooperative business, unadjusted for

changes in the price level, increased from $73 billion in 1984 to $82.9 billion in 1993 (table 13).

Adjusted for price change 5, net cooperative business totaled $77.1 billion in 1993 (figure 9). Lower

real prices in 1985-88 caused cooperatives’ net business volume in real dollars to be higher than the

actual dollars. The real increase in net business volume during 1992-93 was 2.1 percent.

Four major commodity groups-dairy, grains

and oilseeds excluding cottonseed, fruits and vegetables, and livestock-decreased from 84.4 percent

of all marketing sales in 1984 to 83.7 percent in

1993. Grains and oilseeds (excluding cottonseed)

showed a significant decrease-from 37.8 to 27 percent. Dairy and fruits and vegetables as a percentage of total cooperative business volume increased

from 29.8 percent in 1984 to 34.9 percent in 1993.

Trends in cooperatives’ sales of these major

commodity groups for 1984~93 are shown in figure

10. Grains and oilseeds sales show the largest variation during this period.

In the farm supply group, petroleum, feed,

and fertilizer were especially important. They

accounted for 74 percent of cooperatives’ total farm

supply sales in 1984 and 70.8 percent in 1993.

Beginning with 1987, the trend for cooperative

sales of petroleum has been upward (figure 11).

Feed sales reached a low point in 1986. Fertilizer

and chemical sales bottomed out in 1987. All have

since rebounded. Seed sales, however, leveled off.

Net marketing of farm products totaled $54.6

billion in 1984, bottomed out at $41.5 billion in 1986

and was a record high at $60.9 billion in 1993 (table

14). Aggregate farm supply sales were $17 billion

in 1984 and $19.2 billion in 1993 compared with a

low of $14.3 billion in 1987. Beginning in 1990, serTable 13- Cooperatives’ net business volume, 1994

and1993’

Net Volume

Function

1984 1993

Products marketed:

Beans and peas (dry edible)

Cotton

Dairy

Fruits and vegetables

Grains and oilseeds *

Livestock

Nuts

Pouftry

Rice

Sugar

Tobacco

Wool and mohair

Other products

Total farm products

Supplies purchased:

Farm chemicals

Feed

Fertilizer

Petroleum

Seed

Other supplies

Total farm supplies

Services provided:

Trucking, cotton ginning,

storage, grinding, locker

plants, misc.

Total business

Million dollars

120.2 191.3

2,471.4 1,914.4

16,707.6 20,510.2

5,058.g 8,371.0

20,607.3 16,463.g

3,688.g 5,667.7

877.9 867.2

1,116.g 1,375.2

924.6 781.6

1,715.l 1,834.l

537.4 633.2

32.7 10.9

697.1 32,308.9

54,556.0 60,929.5

1,460.3 2,157.8

3,640.6 4,680.O

3,434.7 3,757.E

5,477.4 5,165.4

586.9 594.2

2,369.l 2,862.7

16,969.0 19,217.8

1,521.5 2,724.2

73,046.5 82,871.5

1 Excludes intercooperative business volume. Totals may not add

due to rounding.

2 Excludes cottonseed. Cottonseed sales were included with

cotton. Cottonseed meal and oil sales were included with feed and

other products, respectively.

J Includes value of processed oilseeds.

5 Marketing sales was deflated by the index of producer

prices received for “farm products, processed foods and

feeds” (1984 = 100). Supply sales and service receipts and

other income were deflated by the index of prices paid by

farmers for “production items” excluding interest, taxes,

and wages (1984 = 100).

29
Figure IO- Cooperatives’ Sales of Selected Commodities, 1984-93

Billion dollars

25

Milk and Milk Products

20

15

10

5

0

Livestock

I I I I I I I I I I

1984 85 86 87 88 89 90 91 92 93

Excludes intercooperative business.

Figure I I- Cooperatives’ Sales of Farm Supplies, 1984-93

Billion dollars

Seed

1984 85 86 87 88 89 90 91 92 93

Excludes intercooperative business.

30
Table 14- Cooperatives’ gross and net business volume, 1984-93 1

Period 2 Farm

products

Gross volume

Fan Services 3

supplies Total Farm

products

Net volume

Farm

supplies Services 2 Total

1984 67.6 27.7 1.5

1985 57.0 26.4 1.6

1986 47.6 23.6 1.8

1987 50.3 22.5 1.9

1988 56.2 24.0 1.9

1989 60.3 25.8 2.0

1990 64.1 26.3 2.3

1991 61.4 26.8 2.5

1992 63.8 27.0 2.6

1993 66.8 28.2 2.7

1984 69.8 28.6 1.6 100 74.7 23.2 2.1 100

1985 67.0 31.1 1.9 100 72.1 25.4 2.5 100

1986 65.2 32.4 2.4 100 71 .l 25.9 3.0 100

1987 67.3 30.2 2.5 100 73.2 23.7 3.1 100

1988 68.4 29.2 2.4 100 73.9 23.2 2.9 100

1989 68.4 29.3 2.3 100 73.8 23.4 2.8 100

1990 69.1 28.4 2.5 100 74.9 22.1 3.0 100

1991 67.7 29.5 2.8 100 73.3 23.4 3.3 100

1992 68.3 28.9 2.8 100 73.4 23.4 3.2 100

1993 68.4 28.8 2.8 100 73.5 23.2 3.3 100

Billion dollars

96.9 54.6

85.1 47.3

73.0 41.5

74.7 44.2

82.1 49.1

88.1 53.2

92.7 57.8

90.8 56.2

93.4 58.2

97.7 60.9

Percent

17.0 1.5 73.0

16.6 1.6 65.6

15.1 1.8 58.4

14.3 1.9 60.3

15.4 1.9 66.4

16.9 2.0 72.1

17.1 2.3 77.3

17.9 2.5 76.6

18.5 2.6 79.3

19.2 2.7 82.9

1 Gross includes and net excludes intercooperative business.

2 For years prior to 1984, see Cooperative Historical Statistics, CIR 1, Section 26, USDA, ACS, Washington, DC, Revised January 1993. Data

for prior years are not entirely comparable due to revisions in statistical procedures.

3 Services related to marketing or supply purchasing, but not included in the volumes reported for these activities. Beginning with 1990, other

income and revenue were included with service receipts.

vice receipts were expanded to include other

income and revenue.

Gross business volume was $96.9 billion in

1984 but dropped to $73 billion in 1986. Farm product marketings ranged from 65.2 percent to 69.8

percent of cooperatives’ total gross business volume during 1984-93. Net business volume of farm

products sold ranged from 71.1 percent to 74.9 percent of cooperatives’ total net business volume.

The higher percentage of net business volume

from farm products marketed, as compared with

the percentage of gross business volume from farm

products marketed, results from greater intercooperative business in purchasing farm supplies than

in marketing farm products.

Net Income

Net income of farmer cooperatives totaled

$1.36 billion in 1993, the lowest since 1989. During

1984-93, net income declined to $688 million in

1986, then rose to a record high of nearly $1.9 billion in 1989 (table 15 and figure 12).

Net income from other cooperatives and from

own operations varied during the decade, reflecting the difficult economic times agriculture faced

particularly in the mid-1980s. In 1993, refunds from

other cooperatives accounted for 23.4 percent of

total net income. This indicates the importance of

cooperatives working together.

31
Table 15- Net income of farmer cooperatives,

1984-93 1

From other From own

Year cooperatives * operations Total

Million dollars

1984 185 824 1,009

1985 210 566 775

1986 140 548 688

1987 63 1,423 1,486

1988 148 1,532 1,680

1989 308 1,543 1,851

1990 330 1,110 1,440

1991 381 1,189 1,570

1992 356 1,084 1,440

1993 318 1,041 1,358

1 Totals may not add due to rounding. Excludes income from

cooperative pooling operations.

* Dividends and patronage refunds received from other marketing,

farm supply, and related-service cooperatives.

Balance Sheet

During 1984-93, farmer cooperatives made

some adjustments to their overall balance sheet.

Increasingly, more of the assets were being

financed through member and patron equity. In

1984, total assets of all farmer cooperatives totaled

$29.2 billion (table 16), but dropped to $26.5 billion

in 1986. Beginning in 1987, cooperatives’ assets

increased steadily to more than $33 billion in 1993

(figure 13).

Cooperatives’ net worth financed 41.7 percent

of their total assets in 1984 and 44.3 percent in 1993,

peaking in 1987 at 46.4 percent.

Investments in other cooperatives as a percent

of total assets appear to be declining. In the mid198Os, more than 10 percent of cooperatives’ total

assets were investments in other cooperatives.

These investments averaged 8.5 percent during

1988-93 and 7.8 percent in 1993.

Figure 12- Net Income of Farmer Cooperatives, 1994-93

Billion dollars

2.0 1

1.6

0.8

From Own

Operations

From Other

co-ops

1984 85 86 87 88 89

Excludes cooperatives operating on a strictly pooling basis.

32
Table 16- Combined balance sheet data of farmer cooperatives, 1994-93

Assetsfrom Investments in Total

Year ownoperations otherco-ops assets

Total Net

liabilities worth

Million dollars

1984 26,201 2,981 29,182 17,001 12,181

1985 24,509 3,270 27,779 15,726 12,053

1986 23,639 2,857 26,496 14,601 11,895

1987 24,823 2,820 27,643 14,819 12,824

1988 26,524 2,762 29,286 16,461 12,825

1989 27,078 2,571 29,649 16,337 13,313

1990 27,155 2,869 30,024 16,575 13,449

1991 28,766 2,501 31,268 17,227 14,040

1992 29,572 2,422 31,994 17,780 14,213

1993 30,844 2,602 33,446 18,634 14,812

Figure 13- Assets of Farmer Cooperatives, 1994-93

Billion dollars

35 1

25 Liabilities

Net Worth

1984 85 86 87 88 89 90 91 92 93

33
Other types of service cooperatives were operating in 1993 besides those directly related to marketing and purchasing.

Farm Credit System

The Farm Credit System (FCS) is a nationwide

system of lending institutions and affiliated service

and other entities. FCS provides credit and related

services to farmers, ranchers, producers and harvesters of aquatic products, rural homeowners, certain farm-related businesses, agricultural and

aquatic cooperatives and rural utilities and to certain foreign or domestic entities in connection with

international transactions.

The FCS includes Federal Land Bank

Associations (FLBAs), Production Credit

Associations (PCAs), Agricultural Credit

Associations (ACAs), Federal Land Credit

Associations (FLCAs), Farm Credit Banks (FCBs),

and Banks for Cooperatives (BCs).

On December 31,1993, the combined assets of

FCS totaled $64.8 billion-up 2.5 percent from

$63.2 billion in 1992 (table 17). Net worth totaled

$8.3 billion and net income was $1,217 million, up

23.4 percent from 1992.

Numbers of selected farm credit cooperatives

are shown by farm credit district or bank affiliation

in table 18. Since December 31,1992, the number of

farm credit districts has been reduced from 11 to 8.

The former Louisville and Omaha farm credit districts are now part of AgAmerica and the Jackson

district has been merged into the Columbia and

Texas districts.

The FLBAs serve as agents for originating and

servicing long-term loans made by FCBs. The proceeds of long-term loans are used for the purchase

of agricultural real estate and rural homes and refinancing agricultural real estate and rural home

mortgages. As of July 1,1994, there were 72 FLBAs,

down from 77 at the end of 1992 (table 18).

Of the 31 FLCAs operating in 1993-94,20 were

located in the AgriBank district. FLCAs were

authorized by the Agricultural Credit Act of 1987.

PCAs provide farmers and ranchers shortand intermediate-term loans for various purposes,

such as operating expenses, farm equipment, livestock, farm buildings, and other capital improvements.

The FCS had 69 PCAs as of July 1,1994,20 of

them in the AgriBank district.

ACAs resulted from the merger of FLBAs with

PCAs. ACAs offer both long- and short-term loans.

Sixty-six ACAs were operating as of July 1,1994,23

of them in Columbia and 16 in Baltimore.

The FCBs provide loan funds and support services to FLBAs, ACAs, FLCAs, and PCAs within

their districts. Combined assets of the FCBs and

associations totaled $47.1 billion in 1993, down

Table 17- Farm Credit System combined assets, net worth, and net income,

1986-93 1

Year Assets Net worth Net income

Million dollars

1986 70,101 5,641 (1,913)

1987 62,239 5,030 (18)

1988 61,616 5,301 704

1989 63,954 5,440 695

1990 63,515 5,840 608

1991 62,504 6,399 811

1992 63,197 7,214 986

1993 64,798 8,312 1,217

1 As of December 31 of each year. Data for 1986,1987, and 1988 were taken from Farm Credit Administration Annual Report, 1989, Farm

Credit Administration, McLean, VA. Data for 1989-93 were taken from Farm Credit System, Annual Information Statement-7993, Federal

Farm Credit Banks, Funding Corporation, Jersey City, NJ, February 24, 1994, p. 3.

34
from $47.7 billion in 1992 (table 19). Net worth was

$8.4 billion and net loans totaled nearly $39 billion.

Net income grew to $920 million in 1993 from $722

million in 1992.

There are three BCs-CoBank, in Denver; St.

Paul Bank, based in Minnesota, and the Springfield

Bank, based in Massachusetts. They provide short-,

intermediate-, and long-term credit to agricultural

cooperatives and rural utilities nationwide.

CoBank also provides international credit services

to finance exports of American agricultural products.

Assets of the BCs totaled $16.6 billion on Dec.

31,1993 (table 20). The combined net worth of

$1,201 million financed 7.3 percent of the banks’

combined assets. The combined net loans of the

BCs totaled $13.1 billion, up 12.1 percent from $11.7

billion in 1992. Net income in 1993 totaled $170

million, up 5.6 percent from $161 million in 1992.

Rural Telephone Cooperatives

On December 31,1993, there were 240 rural

telephone cooperatives borrowing from the Rural

Electrification Administration (REA) with revenues

of $1,023 million and 1,304,OOO subscriber members. Iowa had the most cooperatives, 32, or 13.3

percent of the total. South Carolina accounted for

more subscriber memberships (10.4 percent) than

any other State (table 21). Texas led all States in

revenue, with 12.9 percent of the total.

Rural Electric Cooperatives

The Nation’s 887 rural electric cooperatives

reported 11.6 million consumer members and revenue of $24.5 billion. Texas led all States, with 8

percent of total associations, while Georgia led

with the most consumer members (9.9 percent) and

revenue (10.4 percent).

Rural Credit Unions

The 699 rural credit unions reported nearly 3.6

million members and savings of $12.5 billion.

Wisconsin led all States in number of associations

(10.4 percent) while California led in number of

members (24.8 percent) and in savings (29.7 percent).

Dairy Herd Improvement Associations

Dairy Herd Improvement Associations

(DHIA) had 35,272 memberships. The DHIAs tested nearly 3.6 million cows. Wisconsin (5,717),

Pennsylvania (4,799), Minnesota (4,348), and New

York (3,539) combined accounted for 52.2 percent

of total members. About 716,000, or 20 percent, of

the cows tested were in California.

Table 18- Number and structure of active farm credit cooperatives, July 1,1994 1

District or bank affiliation Federal Land Bank Production Credit Agricultural Credit Federal Land Credit

Associations (FLBA) Associations (PCA) Associations (ACA) Associations (FLCA)

Number

Springfield

Baltimore

Columbia

Wichita

Texas

Western

AgAmerica

AgriBank

Total

- -

- -

- 1

22 18

48 18

2 11

- 1

- 20

72 69

11 -

16 -

23 -

- -

4 10

1 1

11 20

66 31

- = None located in the district.

1 Table excludes service corporations, two Production Credit Associations, one Federal Land Bank Association, and one Federal Land Bank in

liquidation. The Farm Credit System structure also includes three Banks for Cooperatives-National Bank for Cooperatives (CoBank), the

Springfield (MA) Bank for Cooperatives, and the St. Paul (MN) Bank for Cooperatives-and 8 Farm Credit Banks not included in this table.

Source: FCA Quarterly Report, Quarter Ending March 37, 1994: RiskAnalysis of Farm Credit System Operations, Farm Credit Administration,

McLean, VA, p. 11.

35
Table I 9- Farm Credit Banks and Associations’ combined assets, net worth, net loans, and net income,

1986-93 1

Year Assets Net worth Net loans Net income

Million dollars

1986 59,889 3,807 49,311 (1,405)

1987 50,432 3,369 42,630 (130)

1988 47,849 3,976 40,956 750

1989 48,516 3,707 39,477 516

1990 47,231 4,203 38,922 264

1991 2 47,363 6,096 38,525 584

1992 47,730 6,620 39,011 722

1993 47,145 8,400 38,961 920

1 As of December 31 of each year. The FCBs resulted from the mergers of the Federal Land Banks and Federal

Intermediate Credit Banks on July 6, 1968.

* Revised.

Source: Federal Farm Credit Banks Funding Corporation, Jersey City, NJ, and Farm Credit Administration, McLean, VA.

Table 20- Banks for Cooperatives combined assets, net worth, net loans, and net income, 1986-93 1

Year Assets Net worth Net loans Net income

1986 9,811 1,074 7,402 1

1987 11,138 1,035 8,246 80

1988 13,175 1,008 10,067 86

1989 13,946 946 10,548 106

1990 14,460 933 11,151 72

1991 14,486 986 11,316 120

1992 14,577 1,064 11,725 161

1993 16,562 1,201 13,148 170

Million dollars

1 As of December 31 of each year.

Source: Federal Farm Credit Banks Funding Corporation, Jersey City, NJ and Farm Credit Administration, McLean, VA.

36
Table 21- Number, participation, and level of activity of selected service cooperatives

by State, December 31,1993 l

Rural telephone cooperatives 2

State

Members Members

CoOpeEl- (sub- Revenue State Coopera- (sub- Revenue

tives scribers) tives scribers)

Alabama 3

Alaska 7

Arizona 1

Arkansas 2

California -

Colorado 5

Delaware -

Florida -

Georgia 4

Idaho 3

Illinois 7 22 19 Pennsylvania

Indiana 8 30 21 South Carolina

Iowa 32 57 42 South Dakota

Kansas 10 51 53 Tennessee

Kentucky 8 88 53 Texas

Louisiana

Maine

Maryland

Michigan

Minnesota

Mississippi -

Missouri 8

Montana 7

Nebraska 5

Number

-

-

-

-

19

1,000

23

47

3

7

-

Ml. dol. Number 1,000 Mil. dol.

15 Nevada -

55 New Hampshire -

6 New Jersey -

7 New Mexico 5

- New York -

8 7

- -

- -

27 18

10 6

- -

- -

- -

- -

70 48

- -

46 34

39 47

9 7

- -

- -

- -

21 36

- -

North Carolina 9 119 60

North Dakota 10 53 44

Ohio 7 7 5

Oklahoma 2 40 45

Oregon 9 40 28

- -

6 136

13 47

7 116

21 115

-

85

37

62

132

Utah 3

Vermont -

Virginia 5

Washington -

West Virginia 2

1 1

-

10

-

3

Wisconsin

Wyoming

1 1

1

26

1

United States 240

12

-

17

-

3

40

1

1,304 1,023

Continued

37
Table 21- Number, participation, and level of activity of selected service cooperatives

by State, December 31,1993 1 (Continued)

Rural electric cooperatives *

State CoOpeEltives

Members

(oonsumers)

Revenue State Cooperatives

Members

(consumers)Revenue

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Delaware

Florida

Georgia

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Michigan

Minnesota

Mississippi 22 494 938

Missouri 46 489 1,256

Montana 25 104 146

Nebraska 3 8 88

Number

22 387 670 Nevada 3 19 45

12 97 225 New Hampshire 1 66 96

6 101 321 New Jersey 1 10 13

20 350 907 New Mexico 17 151 336

3 14 17 New York 4 14 12

23 337 866 North Carolina 29 648 1,529

1 49 55 North Dakota 26 107 874

15 537 1,158 Ohio 26 282 497

43 1,154 2,559 Oklahoma 26 340 580

8 49 60 Oregon 14 111 156

27 197 521 Pennsylvania 13 181 337

42 367 711 South Carolina 22 471 1,028

47 179 422 South Dakota 33 113 203

35 180 428 Tennessee 20 668 865

28 565 1,550 Texas 70 888 1,587

13

4

2

14

50

1,000 Ml. dol. Number 1,OOOd Ml. dol.

279 779 Utah 5 24 191

15 13 Vermont 3 22 36

135 217 Virginia 13 332 488

225 251 Washington 8 37 57

540 926 West Virginia 1 5 4

Wisconsin 28 192 352

Wyoming 13 72 153

United States 887 11.608 24,522

Continued

38
Table zl- Number, participation, and level of activity of selected service cooperatives

by State, December 31,1993 1 (Continued)

Rural credit unions 3

State cooperat&S

Members Savings state cooperatives

Members Savings

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts 8 10 17

Michigan 29 375 864

Minnesota 39 180 552

Mississippi 4 7 14

Missouri 8 18 37

Number

11 20 62 Montana 13 52 172

1 18 66 Nebraska 17 11 28

4 13 30 Nevada 6 35 158

3 5 12 New Hampshire 2 1 1

64 884 3,724 New Jersey 6 11 20

14

1

1

17

14

19

9

14

19

7

23 70 196 South Dakota 9 12 28

7 30 68 Tennessee 10 13 34

10 15 33 Texas 35 100 311

10 22 72 Utah 10 13 32

6 47 193 Vermont 7 12 25

1,000 Ml. dol. Number 1,000 Ml. dol.

18 54 New Mexico 3 34 126

1 1 New York 30 151 573

2 9 North Carolina 17 35 69

84 307 North Dakota 32 90 399

31 69 Ohio 14 41 60

97 588 Oklahoma 4 6 27

12 26 Oregon 11 64 226

61 168 Pennsylvania 22 30 62

56 362 Rhode Island 3 44 375

6 17 South Carolina 4 8 31

Virginia 7 41 127

Washington 16 142 558

West Virginia 3 4 8

Wisconsin 74 527 1,549

Wyoming 2 2 3

United States 699 3,561 12,543

Continued

39
Table 21- Number, participation, and level of activity of selected service cooperatives

by State, December 31,1993 1 (Continued)

Dairy herd improvement 4

State Members cows

(herds) tested state Members COWS(herds) tested

Alabama

Alaska

Arizona

Arkansas

California

Colorado 111 29 New Mexico 3 4 2 7

Connecticut 160 17 New York 3,539 306

Delaware 42 6 North Carolina 390 57

Florida 122 54 North Dakota 121 9

Georgia 261 51 Ohio 1,372 95

Hawaii - -

Idaho 279 46

Illinois 940 63

Indiana 697 51

Iowa 1,694 97

Kansas 493 37 South Dakota 290 22

Kentucky 408 32 Tennessee 446 48

Louisiana 240 28 Texas 491 114

Maine 242 18 Utah 265 36

Maryland 591 47 Vermont 656 53

Massachusetts 164 12 Virginia 623 74

Michigan 1,377 130 Washington 411 87

Minnesota 4,348 251 West Virginia 114 11

Mississippi 160 21 Wisconsin 5,717 353

Missouri 682 54 Wyoming 5 1

Number 1,000

125 20

- -

57 48

135 11

1,230 716

Montana

Nebraska

Nevada

New Hampshire

New Jersey

Oklahoma 223 20

Oregon 307 49

Pennsylvania 4,799 294

Rhode Island 15 1

South Carolina 116 20

United States 35,272 3,588

Number 1,000

77 8

390 31

2 7 9

146 12

140 12

- = None reported in the State.

1 Totals may not add due to rounding.

* Source: Rural Electrification Administration, USDA.

3 Source: Credit Union National Association, Inc. (Includes federally chartered and State-chartered credit unions.)

4 Source: Agncultural Research Service, USDA.

40
Appendix Figure I- Number of Cooperatives, Leading States, 1993

Number

500

400

300

200

100

0

.............................. ................

............................. ...............

............................... ...............

........ ‘.~.‘.~.~.~.:.:.~.~ ...................

........................

...............

...............................

............

..

‘.‘.‘.‘.‘.~.‘.~.~.:

............................

.................

.............................

...............................

...............

.....

.....................

...............

...................................................................... ‘.‘.‘::.:.:.:.:.:.:.: .............................. ...............

........ ..........................................................................

...........................

...................................................

........................................

..............................

..............................

....................

.................

:::::::::::::::::.:.:.:.:.:.:.

.:.~:.:.:.:.:.:.:.:.:.:.~

Minnesota N.Dakota Texas Iowa Wisconsin

These seven States accounted for 45.9 percent of the 4,244 cooperatives.

Service

SUPPlY

Marketing

Illinois California

41
Appendix Figure 2- Cooperative Memberships, Leading States, 1993

Thousands

500 1

..............................

..............................

..............................

................ ...............

.............................

.............................. ............................................................

............................................................

............................................................

............................................................

........

...................................................................................

...........................................................................................

............................................................................

.~.~.~.~_~_~.~_~.~_~.~.~.~.~.~

.~.~.~_~_~_~_~_~_~.~.~.~.~.~.~

.~.~.~_~_~_~_~_~.~.~.~.~.~.~.~

.~.~.~_~_~_~_~_~_~.~.~.~.~.~.~

.~.~.~_~_~.~_~_~.~.~.~.~.~.L~

...........................................................................

..............................

..............................

..............................

...............

........ .......

......................... .

..............................

............................................................

..........................................................................................

..........................................................................................

..........................................................................................

........................................................................................................................ ...............

..........................................................................................

..............................

...............

...............

..............................

..............................

Minnesota Iowa Wisconsin Illinois Kentucky Missouri Virginia

These seven States accounted for 42.3 percent of the 4,023,264 COOperatiV0S.

Appendix Figure 3- Cooperatives’ Net Business Volume, Leading States, 1993

Billion dollars

10

8

6

California Iowa Wisconsin Minnesota Illinois Nebraska N.Dakota

Services

Supplies

Marketing

_-

These seven States accounted for 46.1 percent of the $82.9 billion in total co-op net sales.

42
Appendix Figure 4- Distribution of Farmer Cooperatives, by Type of Cooperative, 1993

Farm Supply 36.5

Other 6.3

Sugar 1.3

Livestock & Poultry 2.8

Grain 28.1

Percent based on 4,244 cooperatives.

Service 11.4

Cotton 0.4

Dairy 6.1

Fruit & Vegetable 6.6

Rice 0.5

Appendix Figure 5- Distribution of Net Income, by Type of Cooperative, 1993

Farm Supply 32.1

Livestock & Poultry 2.3

Sugar 1 .O

Rice 1.1

Grain 25.1

Fruit & Vegetable 7.6

. . .

. . .

. . . .

. . . .

. . . .

. . . .

. . . .

. . .

Service 4.9

All Other 2.2

Cotton 5.7

Dairy 18.0

Percent based on net income of $1.36 billion.

43
Appendix Figure 6- Distribution of Losses, by Type of Cooperative, 1993

Farm Supply 45.0

Grains & Oilseeds 10.3

Fruit & Vegetable 11 .Q

Service 5.7

All Other 3.5

Dairy 1.8

Cotton 0.7

l . . .

l . . .

l . . Livestock 8 Pouhy 20.2

Percent based on losses of $187.1 million.

Appendix Figure 7- Distribution of Net Worth, by Type of Cooperative, 1993

Farm Supply 33.0

Sugar 2.4 -

Rice 1.5 -

I

. . . . . .

. . . . .

. . . . . .

Service 3.3

All Other 3.8

- Livestock 8 Poultry 7.0 :::: j:;: I

- Cotton 2.0

- Dairv 11.7

Grains & Oilseeds 24.9

Fruit & Vegetable 10.4

Percent based on net worth of $14.8 billion.

44
Appendix Figure a- Cooperatives’ Net Business Volume, 1972-93

Billion dolla cs

100

80

60

40

20

0

Farm Supply

1972 74 76 78 80

Total includes value of related services provided.

82 84 86 88 90 92 93

_

Appendix Figure 9- Cooperatives’ Gross and Net Business Volume, 1984-93

Billion dollars

100

90

80

70

60

50

40

1984 85 86 87 88 89 90 91 92 93

The difference between gross and net represents intercooperative business.

45
Appendix Figure I 0- U.S. Farms and Farmer Cooperative Memberships, 1972-93

Millions

7

6

Memberships

Farms

I I I I I I I I l l l 11 l l l l 11 l l l

1972 74 76 78 80 82 84 86 88 90 92 93

Memberships wera higher than farm numbers because many farmers belonged to more than one cooperative.

46
U.S. Department of Agriculture

Rural Development Administration

Cooperative Services

Ag Box 3256

Washington, D.C. 20250-3256

RDA Cooperative Services (CS) provides research, management, and educational

assistance to cooperatives to strengthen the economic position of rural America. It works

directly with rural leaders and Federal and State agencies to improve organization,

leadership, and operation of rural cooperatives and businesses.

CS (1) helps rural residents develop cooperatives and businesses to obtain supplies and

services at lower cost and to get better prices for products they sell; (2) advises rural

residents on developing existing resources through cooperative action to enhance rural

living; (3) helps cooperatives improve services and operating efficiency; (4) informs

members, directors, employees, and the public on how cooperatives work and benefit

their members and their communities; and (5) encourages international cooperative

programs.

CS publishes research and educational materials, including Farmer Cooperatives

magazine. The United States Department of Agriculture (USDA) prohibits discrimination

in its programs on the basis of race, color, national origin, sex, religion, age, disability,

political beliefs and marital or familial status. (Not all prohibited bases apply to all

programs). Persons with disabilities who require alternative means for communication of

program information (braille, large print, audiotape, etc.) should contact the USDA Office

of Communications at (202) 720-7808 (TDD).

To file a complaint, write the Secretary of Agriculture, U.S. Department of Agriculture,

Washington, D.C. 20250, or call (202) 720-7327 (voice) or (202) 720-1127 (TDD). USDA

is an equal employment opportunity employer.

Q U.S. GOVERNMENT PRINTING OFFICE: 1994 386-126/00349