A survey of all U.S. farmer cooperatives ending their business year during calendar

year 1997 showed a net income of $2.31 billion, up from $2.25 billion in 1996 and near

the record high of $2.36 billion in 1995. Gross and net business volumes were nearrecord highs for the 3,791 cooperatives in the survey. Assets, liabilities, and net worth

also were up. Business volume by commodity handled is reported for all cooperatives

and by State. Number of cooperatives, cooperative memberships, and number of

employees are classified according to marketing, farm supply, and service function.

Trends in cooperative numbers, memberships, business size, sales volume, net

income, assets, liabilities, and net worth are reported along with data on selected

activities of other service organizations.

cooperatives, statistics, business volume, employees, memberships,

balance sheet, net income.

Farmer Cooperative Statistics, 1997

Ralph M. Richardson, Celestine C. Adams,

Katherine C. DeVille, Jacqueline E. Penn,

and Charles A. Kraenzle

U.S. Department of Agriculture

Rural Development

Rural Business-Cooperative Service

STOP 3256

1400 Independence Ave., S.W.

Washington, DC 20250-3256.

RBS Service Report 56

December 1998

Price: Domestic-$5.00;

foreign-$5.50
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 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, net income, and full-time employees of farmer cooperatives. Cooperatives are

classified by principal product marketed and major function. Fishery cooperatives are

included as miscellaneous marketing cooperatives. Both gross (includes

intercooperative business) and net (excludes intercooperative business) dollar

volumes are reported.

Statistics for 1997 are compiled both on a State and national basis. State data on

cooperative business volume and memberships are collected every other year.

The information was collected from individual farmer and fishery cooperatives by a

mail survey of all organizations identified by USDA’s Rural Business-Cooperative

Service (RBS) as farmer or aquacultural cooperatives. Information was requested for

their 1997 business year.

RBS conducts an annual census because of the need to make more accurate

estimates for all cooperatives and to provide current 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. Responses to the 1997 survey accounted for 91

percent of the total gross sales of farmer cooperatives.

RBS 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.
Contents HIGHLIGHTS ............................................................... .

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

Classification of Cooperatives .............................................. 1

Organizational Membership Structures ...................................... .2

II-1997STATlSTlCS .........................................................

.

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

Memberships ........................................................... .

Employees.. ........................................................... .

BusinessSize .......................................................

..I 3

BusinessVolume.. ...................................................

..13

Netlncome............................................................2 3

BalanceSheet .......................................................

..2 3

Selected Financial Ratios ................................................26

III-COOPERATIVE TRENDS, 1988-97 ..........................................28

Number of Cooperatives .................................................28

Memberships ........................................................ ..3 0

Employees .......................................................... ..3 3

BusinessVolume.. ...................................................

..3 3

Netlncome............................................................3 5

BalanceSheet .......................................................

..3 7

IV-OTHER SERVICE COOPERATIVES .........................................37

FarmCredit System ...................................................

..3 7

Rural Telephone Cooperatives ........................................... .39

Rural Electric Cooperatives .............................................. .40

Rural Credit Unions .................................................... .40

Dairy Herd Improvement Associations .......................................40

TABLES

Table l-Number of cooperatives and memberships, by major business activity, 1997 ....... 2

Table 2-Number of co-ops and memberships by major business activity

andState, ......................................................

.

Table 3-Full-time and part-time and seasonal employees of farmer cooperatives,

by type of co-op, 1996-97 .............................................. 10

Table 4-Farmer cooperatives and memberships, by gross business volume, 1997 ........ 12

Table !%Cooperatives gross and net business volumes by commodity, 1997 ............ 13

Table 6-Cooperatives’ business volume by commodity and State, 1997 ................ 16

Table 7-Cooperatives’ net income, 1997 .........................................24

Table 8-Combined balance sheet data for farmer cooperatives, 1997 ................. .25

Table 9-Combined assets of farmer cooperatives, 1997 .............................26

Table 1 O-Selected financial ratios of cooperatives, 1997 ............................27

Table 1 l-Number of farmer cooperatives, 1988-97 .................................28

Table 12-Estimated number of branches operated by grain and farm supply cooperatives,

1992-97 ........................................................

..3 0

Table 13-Memberships in marketing, farm supply, and service coo&xatives, 1988-97 ..... 30

Table 14-Cooperatives’ use of full-time employees, 1994-97 .........................32

Table 15-Cooperatives’ net business volume, 1988 and 1997 ........................33

Table 1 GCooperatives’ gross and net business volumes, 1988-97 ................... .35

Table 17-Net income of farmer cooperatives, 1988-97 ..............................35

Table 18-Combined balance sheet data of farmer cooperatives, 1988-97 .............. .37

Table 19-Farm Credit Association structure, Jan. 1, 1998 ...........................38

Table 20-Farm Credit System’s combined assets, net worth, and net income, 1993-97 ... .38

ii
Contents Table 21-Farm Credit Banks’ combined assets, net worth, net loans, and net income,

1993-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table 22-Combined assets, net worth, net loans, and net income of St. Paul Bank for

Cooperatives and CoBank, ACB, 1993-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table 23-Number, participation, and level of activity of rural telephone co-ops,

by State, Dec. 31,1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table 24-Number, participation, and level of activity of rural electric co-ops,

byState,Dec.31,1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table 25-Number, participation, and level of activity of rural credit unions,

byState,Dec.31,1997 . . ._.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table 26Number, participation, and level of activity of dairy herd improvement

associations by State, Dec. 31,1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. .3a

. .39

. .39

. .40

. .41

. .42

FIGURES

Figure I-Number of Cooperatives by Function, Leading States, 1997 .................. .3

Figure 2-Branches of Grain and Farm Supply Cooperatives by Size, 1997 .............. .8

Figure 3-Distribution of Memberships by Type of Cooperative, 1997 ................... .9

Figure 4-Cooperative Memberships by Function, Leading States, 1997 ................. .9

Figure 5-Full-Time and Part-Time and Seasonal Employees, by Type of Cooperative, 1997 11

Figure GAverage Number of Full-Time and Part-Time and Seasonal Employees,

byTypeofCooperative,1997.. ...................................... ..ll

Figure 7-Distribution of Farmer Cooperatives and Gross Business Volume, by Size, 1997 . . 12

Figure 6-Relative Importance of Farm Products Marketed by Cooperatives, 1997 ......... 14

Figure 9-Relative Importance of Farm Supplies Handled by Cooperatives, 1997 .......... 15

Figure 1 g-Cooperatives’ Net Business Volume, Leading States, 1997 .................. 15

Figure 1 l-Net Income or Loss by Cooperative Type, 1997 ...........................24

Figure 12-Percentage of Cooperatives’ Assets Financed by Net Worth,

byCooperatveType,1997...........................................2 5

Figure 13-Farmer Cooperatives in the United States, 1988-97 ........................ 29

Figure 14-Cooperatives Removed from RBS’ List, 1986-97 ......................... .29

Figure 15-Grain and Farm Supply Cooperatives and Branches, 1992-97 .............. .31

Figure 1GCooperative Memberships by Function, 1986-97 ..........................31

Figure 17-Cooperatives’ Net Business Volume, 1988-97 ............................32

Figure 1 &Cooperatives’ Net Sales of Selected Commodities, 1986-97 ................. 34

Figure 19-Cooperatives’ Net Sales of Selected Farm Supplies, 1986-97 ................ 34

Figure 20-Cooperatives’ Net Income, 1988-97 ....................................36

Figure 21-Cooperatives’ Net Worth and Liabilities, 1988-97 ..........................36

APPENDIX FIGURES

Appendix Figure l-Cooperatives’ Net Business Volume, 1973-97 .................... .43

Appendix Figure 2-Cooperative.s’ Gross and Net Business Volumes, 1973-97 ........... .43

Appendix Figure 3-U.S. Farms and Farmer Cooperative Memberships, 1973-97 ........ .44

Appendix Figure 4-Distribution of Farmer Cooperatives by Type, 1997 ................ .44

Appendix Figure 5-Distribution of Net Income by Type of Cooperative, 1997 ............ .45

Appendix Figure GDistribution of Losses by Type of Cooperative, 1997 ............... .45

Appendix Figure 7-Distribution of Net Worth by Type of Cooperative, 1997 ............. .46

Appendix Figure E&-Distribution of Full-Time Employees by Type of Cooperative, 1997 .... .46

Appendix Figure 9-Assets Per Full-Time Employee by Type of Cooperative, 1997 ....... .47

Appendix Figure I@-Cooperatives’ Investments in Other Cooperatives, 1966-97 ......... .47

. . . 111
Highlights The 1997 survey of marketing, farm supply, and related-service cooperatives showed a

near-record-high net income and a net business volume equal to the record high set in

1996, but a decrease in number of cooperatives, memberships, and full-time

employees.

l Total net income of $2.31 billion was up 3 percent from the $2.25 billion reported in

1996. The 1997 net included intercooperative dividends and refunds of $685.2

million-down 3.8 percent from $711.9 million.

l Total gross business volume (including intercooperative business) handled by

cooperatives dropped 1.3 percent, from a record $128.1 billion in 1996 to $126.5

billion.

l Total net business, excluding intercooperative business, remained about the same in

1996 and 1997 at $106 billion.

l The number of cooperatives declined 2.4 percent, from 3,884 to 3,791.

l Grain and farm supply cooperatives operated an estimated 5,433 branches in 1997,

up from 5,355 in 1996.

l Cooperative memberships were 3,238,808, a decrease of 11.6 percent from

3,663,584 in 1996.

l Cooperatives employed 172,199 full-time and 115,038 part-time employees in 1997.

Numbers of full-time employees decreased 1.5 percent, while part-time employees

increased 4.6 percent.

l Gross value of farm products marketed by cooperatives in 1997 decreased 5

percent, from $90.3 billion to $85.8 billion. Net value of these farm products, after

eliminating duplication from intercooperative business, was $77.6 billion, down 2.2

percent from $79.4 billion.

l Gross value of farm supplies handled by farmer cooperatives was up 6.8 percent,

from $34.7 billion to $37.1 billion. After adjusting for intercooperative business, the

increase was 6.5 percent, from $23.7 billion to $25.2 billion.

l Receipts for services related to marketing farm products and handling farm supplies,

plus other income, increased 17.6 percent to $3.6 billion.

l Combined assets for all farmer cooperatives increased 3.3 percent to $44 billion. Net

assets, after eliminating intercooperative investments, were up 2.3 percent, from

$39.2 billion to $40.1 billion.

l Total liabilities of $25.5 billion were up 1 percent from $25.2 billion.

l Net worth, or member and patron equity, rose 6.6 percent to $18.5 billion. Member

and patron equity financed 42.1 percent of total assets, up from 40.8 percent in

1996.

l Leading States in number of cooperatives were Minnesota, North Dakota, Texas,

and Iowa. They accounted for 1 ,160, or 30.6 percent, of the 3,791 farmer

cooperatives.

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

with 894,706, or 27.6 percent, of total memberships.

l Leading States in gross business volume were Iowa, Minnesota, California, and

Wisconsin, with $41.8 billion, or 33 percent, of cooperatives’ gross business volume

of $126.5 billion, up from 32.6 percent in 1995.

l Iowa, Minnesota, California, and Wisconsin were the leading States in net business

volume, with nearly $36.4 billion, 34.2 percent of the total, up from 33.1 percent.

iV
HIGHLIGHTS CAPSULE

7996 1997 Change

Number of cooperatives

Memberships

Gross business volume (mil. dol.)

Net business volume (mil. dol.)

Net income (mil. dol.)

Total assets (mil. dol.)

Net worth (mil. dol.)

Full-time employees

Part-time employees

Leading States

Number of cooperatives

Memberships

Net business volume (mil. dol.) 8,891

3,884 3,791

3,663,584 3,238,808

128,098 126,476

106,182 106,474

2,248 2,314

42,588 43,996

17,392 18,537

174,795 172,199

110,001 115,038

1995

Minnesota

389

Minnesota

329,241

California

1997

Minnesota

368

Minnesota

296,058

Iowa

10,941

-93

-424,776

-1,622

292

66

1,408

1,145

-2,596

5,037

-21

-33,183

N/A

”
Farmer Cooperative Statistics, 1997

Ralph M. Richardson, Celestine C. Adams,

Katherine C. DeVille, Jacqueline E. Penn,

and Charles A. Kraenzle 1

l-Definition of a Farmer Cooperative

The Rural Business-Cooperative Service (RBS) of

USDA’s Rural Development 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 regardless of 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 done

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. RBS

includes only marketing, farm supply, and related-service cooperatives on its list. Fishery cooperatives are

included with miscellaneous marketing cooperatives.

Wool pools are included as marketing cooperatives.

Livestock shipping associations and rice drying cooperatives, 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 meet RBS

definition. Other reasons for possible differences in the

number of cooperatives are that: (1) RBS may not

1 Ralph M. Richardson and Celestine C. Adams, agricultural

statisticians; Katherine C. DeVille and Jacqueline E. Penn, statistical

assistants; and Charles A. Kraenzle, director.

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.

Classification of Cooperatives

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

farm supply, and related-service.

Marketing cooperatives cierive most of their total

dollar volume from the sale of members’ farm products. RBS classifies these cooperatives into one of 13

commodities or commodity groups depending upon

which accounts for most of its business volume. RBS

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 reclassified from marketing to service in 1992. Rice drying

cooperatives, added in 1993, previously 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

1
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 3,791 farmer cooperatives in 1997,3,682

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. They, 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 67 federated associations often operate at

points quite distant from their headquarters. Federated

cooperative members are usually local cooperatives

although some 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. RBS has identified 42

such cooperatives.

II-1997 Statistics

Cooperatives’ net biisiness volume was $106.5

billion in 1997, tying the record high set in 1996. Net

income of $2.31 billion w#is up 3 percent from the $2.25

billion reported in 1996 and near the record high $2.36

billion in 1995. Number of cooperatives and memberships, at 3,791 and 3,238,808, respectively, was down.

Combined assets, net worth and liabilities were all up.

Table I- Number of cooperatives and memberships,

by major business activity, 1997

Major business activity Cooperatives Memberships

Number

Beans and peas, dry edible 7 2,859

Cotton 16 42,671

Dairy 236 104,878

Fruits and vegetables 259 43,975

Grains and oilseeds l 1,014 745,009

Livestock 88 236,011

Nuts 17 41,655

Poukry 2 20 34‘293

Rice 18 13,969

Sugar 3 51 13,825

Tobacco 26 172,947

Wool and mohair 88 16,744

Miscellaneous 101 28,996

Total marketing 1,941

Farm supply 1,386

464

Total 3,791

1,497,832

1,557,871

183,105

3,238,808

r Excludes cottonseed. Cottonseed sales were included with cotton.

Cottonseed meal and oil were included with feed and

miscellaneous, respectively.

2 Includes eggs, turkeys, ratite, squab, and related products.

3 Includes beets, sugarcane, honey, and related products.

2
Number of Cooperatives

The 1997 survey accounted for 3,791 marketing,

farm supply, and related-service2 cooperatives, compared with 3,884 in 1996. The net decrease of 93 associations (2.4 percent) largely reflects a continuing trend

involving dissolution, merger, or acquisition. The

largest decrease from 1996-97 was in grain and oilseed

(grain) cooperatives (521, followed by farm supply

(17). Poultry cooperatives increased by four and sugar

cooperatives by two.

Of the 3,791 cooperatives, 1,941 primarily marketed farm products, 1,386 handled primarily farm

production supplies, and 464 provided services related

to marketing or purchasing activities (table 1).

Marketing cooperatives decreased slightly, from

51.8 percent in 1996 to 51.2 percent of the total number

of cooperatives in 1997, while farm supply and relatedservice cooperatives increased slightly, from 36.1 to

36.6 percent and 12.1 to 12.2 percent, respectively.

These percentage changes to some extent reflect

reclassification because of dollar volume changes. In

any given year, sales of farm supplies or grains and

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.

oilseeds could be higher due to market supply and

demand conditions.

Cooperative numbers by major function and

State are shown in table 2. The leading States were

Minnesota (368), North Dakota (297), Texas (272), and

Iowa (223). These four States accounted for 1,160 coopera tives, or 30.6 percent of the total. A cooperative’s

location is based on its headquarters.

The 10 leading States in terms of number of cooperatives are shown in figure 1. It also shows the number of cooperatives by function in each State. For

example, Minnesota had about the same number of

marketing and farm supply cooperatives, while the

majority in Texas were service cooperatives, mainly

cotton gins. Wisconsin, the fifth leading State, had the

largest percentage of farm supply cooperatives.

Grain and Farm Supply Branches

Many cooperatives operate branch facilities to

better serve their members. Most are owned. 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.

In 1997, grain and farm supply cooperatives

operated an estimated 5,433 branches-2,250 and

3,183, respectively. This was a decrease of 76 branches

Figure I- Number of Cooperatives by Function, Leading States, 1997

Number

400

Service

SUPPlY

Marketing

MN ND TX IA WI IL CA KS SD NE

3
Table 2- Number l of co-ops and memberships * by major business activity and State,1997 3

State Hqts. in State Memberships State Hqts. in State Memberships

BEANS AND PEAS, DRY EDIBLE

California 3

Other States

-

4

United States 7

COTTON ’

California 3

Mississippi 3

Texas 4

Other States 6

Foreign 6

-

United States 16

DAIRY

California 10

Illinois 4

Iowa 8

Massachusetts 3

Michigan 3

Minnesota 45

Missouri 3

New York 63

North Dakota 5

Ohio 7

Oregon 3

Pennsylvania 2 1

Texas 5

Virginia 4

Wisconsin 3 1

Other States 21

United States 236

FRUITS AND VEGETABLES 5

Arizona 4

Arkansas 5

California 71

Colorado 9

Florida 27

Georgia 4

Hawaii 10

Maine 5

762

2,097

2,859

2,187

2,911

24,908

12,538

127

42,671

1,774

2,406

5,015

243

3,993

17,348

3,839

5,763

1,137

3,942

803

6,438

1,908

1,142

29,375

19.752

104,878

699

384

20,439

455

2,022

112

430

542

FRUITS AND VEGETABLES5(Continued)

Massachusetts 4 487

Michigan 16 3,457

Minnesota 3 290

Mississippi 4 257

New Jersey 10 893

New York 9 935

North Carolina 4 115

North Dakota 3 179

Ohio 5 460

Oregon 12 1,437

Pennsylvania 6 585

Texas 5 339

Washington 21 5,026

Other States 22 4,328

Foreign 6 104

United States 259 43,975

GRAINS AND OILSEEDS EXCLUDING COTTONSEED 7

Arkansas

Colorado

Idaho

Illinois

Indiana

Iowa

Kansas

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

North Dakota

Ohio

Oklahoma

Oregon

South Dakota

Texas

Washington

Other States

Foreign 6

United States

3

16

5

123

22

133

124

6

107

6

21

13

73

133

42

4 1

3

70

38

25

10

1,259

8,830

1,275

101,555

31,638

94,930

115,005

2,801

69,543

2,558

23,255

9,411

69,596

61,197

31,422

29,487

3,630

51,320

18,773

10,110

3,903

3,511

745,009

Continued
Table 2- Number 1 of co-ops and memberships2 by major business activity and State,19973 (continued)

State Hqts. in State Memberships State Hqts. in State Memberships

LIVESTOCK 5

Alabama

Hawaii

Idaho

Illinois

Indiana

Kentucky

Michigan

Mississippi

Missouri

North Dakota

Ohio

Virginia

West Virginia

Wisconsin

Other States

Foreign 6

United States

NUTa

California

Other States

United States

POULTRY 9

California

Utah

Other States

Foreign 6

United States

RICE 5

California

Louisiana

Texas

Other States

Foreign 0

United States

SUGAR ‘0

Idaho

Louisiana

Michigan

Minnesota

Montana

Wyoming

Other States

Foreign 8

United States

6

4

3

3

3

4

4

6

7

8

4

5

3

5

23

88

5 6,771

12 34,884

17 41,655

3

3

14

-

20

-

18

7

9

8

3

3

4

17

51

5,240

10,341

4,832

40,993

2,301

671

34,969

5,112

4,805

9,548

14,483

1,311

485

3,782

96,905

233

236,011

83

108

33,724

378

34,293

1,978

208

1,100

10,682

1

13,969

2,306

529

2,797

2,225

540

586

4,840

2

13,825

TOBACCO 8

Kentucky

North Carolina

Tennessee

Virginia

Other States

5

8

7

3

-

3

26

78,135

24,908

67,582

1,374

948

United States 172,947

WOOL AND MOHAIR

Idaho

Montana

North Dakota

Ohio

Pennsylvania

Utah

Virginia

Wyoming

Other States

Foreign 6

5

20

5

3

16

4

8

4

23

1,825

872

433

1,722

1,616

420

568

185

9,007

96

United States 88 16,744

MISCELLANEOUS ‘1

Alaska

California

Florida

Georgia

Hawaii

Maine

Michigan

Minnesota

Mississippi

North Dakota

Oregon

Washington

Other States

9

11

6

3

7

15

3

6

3

7

3

5

23

United States 101

7,469

952

315

295

806

918

128

1,932

184

5,440

333

749

9,790

28,996

TOTAL MARKETING

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

10 14,517

9 7,675

5 2,569

14 14,205

117 37,853

28 13,331

38 6,076

12 22,128

25 11,874

24 13,114

134 145,509

26 37,048

Continued

5
TOTAL MARKETING (Continued)

147

124

13

18

22

3

IO

41

169

23

31

40

81

15

4

79

20

166

65

45

25

46

4

72

8

69

12

5

23

56

6

42

8

7

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

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign6 -

111,475

118,592

82,228

3,070

1,850

1,102

1,069

50,042

147,838

12,867

32,930

12,197

75,151

2,860

6,549

9,283

26,869

80,077

53,715

42,392

9,064

8,776

3,327

59,951

68,950

53,677

3,934

1,641

27,453

17,487

1,533

35,617

1,236

2,679

4,452

United States 1,941 1,497,832

FARM SUPPLY

Alabama

Arkansas

California

Colorado

Florida

Georgia

Idaho

Illinois

Indiana

Iowa

Kansas

48 39,097

40 47,990

20 14,958

22 20,317

6 8,952

7 2,596

16 9,965

65 87,647

32 53,766

73 74,655

2 1 16,310

FARM SUPPLY (Continued)

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 6

28

2 1

13

4

27

156

37

43

39

43

11

3

115

23

32

13

7

73

70

48

8

38

31

14

120

6

13

-

49,694

8,899

34,916

3,563

18,095

121,795

89,728

122,522

16,798

33,924

33,488

45,346

48,872

14,243

25,921

12,675

31,458

50,544

70,565

38,031

5,642

61,487

10,534

24,603

115,699

3,454

88,520

582

United States 1,386 1,557,871

SERVICE ‘*

Alabama

Arizona

Arkansas

California

Hawaii

Illinois

Iowa

Kansas

Louisiana

Michigan

Minnesota

Mississippi

Nebraska

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

5 177

4 788

6 1,047

48 3,904

5 116

4 73

3 1,728

3 105

11 1,587

5 5,643

43 26,425

23 7,342

3 472

4 1,386

6 7,598

6 120

16 496

7 7,264

24 7,118

Continued
Table 2- Number I of co-ops and memberships * by major business activity and State,1997 3 (continued)

State Hqts. in State Memberships State Hqts. in State Memberships

SERVICE ‘2 (Continued)

Pennsylvania

Texas

Washington

Wisconsin

Other States

7 13,144

155 37,123

4 2,970

50 26,245

22 31.962

United States 464 183,105

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

63 53,791

9 7,675

IO 46,757

60 63,242

185 56,715

51 33,648

4 3,174

3 25,978

46 27,124

2 1 25,059

32 13,397

4 1 23,079

203 233,229

60 90,915

223 187,858

148 135,007

42 136,427

50 13,556

24 9,214

18 36,624

14 5,050

73 73,780

368 296,058

83 109,937

75 156,093

79 28,995

127 109,547

19 7,724

9 8,311

96 50,369

29 72,335

297 129.445

TOTAL (Continued)

Ohio

Oklahoma

Oregon

Pennsylvania

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign 6

United States

95 75,222

101 75,431

40 21,747

60 53,378

6 3,745

145 110,927

79 141,185

272 128,831

2 1 11,550

5 6,340

63 93,068

91 30,991

20 26,202

212 177,561

14 4,690

5 2,793

- 5,034

- -

3.791 3,238,808

r 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 covering operations of cooperatives for fiscal years that

ended in 1997. 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 but 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.

g Includes foreign memberships.

7 Excludes soybean meal and oil.

* Membership fluctuates annually depending upon producer

participation in price stabilization programs.

9 Includes eggs, turkeys, ratite, sqrrab, and related products.

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

molasses, and sorghum.

r1 Includes forest products, hay, hops, nursery stock, coffee, and

other farm products not separately classified.

r* Cooperatives providing services related to marketing or

purchasing activities. Major servrces provided are cotton ginning,

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

7
for grain cooperatives and an increase of 154 branches

for farm supply cooperatives. Some of the change in

number may have resulted from reclassifying grain or

farm supply cooperatives. Both grain and farm supply

cooperatives averaged more than two branches per

cooperative in 1997. In 1996, grain and farm supply

cooperatives operated an estimated 5,355 branches.

Figure 2 shows that several of the largest (mainly

regional) cooperatives had more branches than many

smaller (local) cooperatives combined. The 47 largest

grain cooperatives-4.6 percent of all grain cooperatives-accounted for 31.4 percent of the total number

of branches operated by grain cooperatives.

Memberships

Memberships in marketing, farm supply, and

related-service cooperatives totaled 3,238,808 in 1997,

down 11.6 percent from 3,663,584 in 1996 (table 1).

By the cooperative’s major business activity, 48.1

percent were memberships of farm supply cooperatives

(figure 3), 23 percent of grain, and 18.3 percent of livestock, tobacco, and service. Dairy cooperative memberships were only 3.2 percent of cooperatives’ total memberships, but accounted for nearly 22 percent of cooperatives’

net business volume in 1997, the same as in 1996.

Among marketing cooperatives, memberships

decreased in 1997 for every type except miscellaneous

marketing, sugar, and cotton cooperatives-all increases.

The number of memberships by State is shown in

table 2. Minnesota again led, with 296,058 memberships, followed by Illinois, Iowa, and Wisconsin.

Figure 4 shows the 10 leading States. Among them,

Texas, Minnesota, and Wisconsin had the largest number of memberships in related-service cooperatives.

Minnesota and Illinois had the most memberships in

marketing cooperatives. The 10 States accounted for

53.2 percent of the total memberships in 1997, down

from 53.5 percent in 1995.

Memberships in cooperatives by farmers, ranchers, and fishermen was larger in the smaller cooperatives than in larger ones. The largest cooperatives

($500 million and more) are all regional and interregional cooperatives. Their members are either local or

regional cooperatives.

Employees

Farmer cooperatives, like other businesses,

employ full-time and, in many cases, part-time and

seasonal employees to run their operations. The number and type of employees hired depends on a number

of factors, such as size of operation, type of commodity

handled, and involvement in value-added activities.

Figure 2- Branches of Grain and Farm Supply Cooperatives by Size, 1997

Number

2500

Less than 5 5-9.9 1 o-24.9

Assets (million dollars)

25-199.9

8
Figure 3- Distribution of Memberships by Type of Cooperative, 1997

Tobacco 5.3%

Fruit 8 Vegetable 1.4%

Livestock 7.3%

Sugar 0.40/

Grain & Oilseed 23%

Percent based on $238,808 memberships.

1 Includes dry bean and pea, wool and mohair, rice, sugar, and miscellaneous marketing cooperatives.

_- Farm Supply 48.1%

- Cotton 1.3%

_- Service 5.7%

-- Other’ 3%

-- Nut 1.3%

-- Dairy 3.2%

Figure 4- Cooperative Memberships by Function, Leading States, 1997

Number (1,000)

300lc

250_

200_

150

100

50

0

MN IL IA WI MO TN KY KS ND TX

9
In 1997, farmer cooperatives employed an estimated 287,237 full-time, part-time, and seasonal

employees, up from 284,796 employees in 1996 (table

3). By type, marketing cooperatives had 203,023

employees, or 70.7 percent; farm supply cooperatives

had 67,726 employees, or 23.6 percent; and related-service cooperatives had 16,488 employees, or 5.7 percent

of the total.

Among marketing cooperatives, those primarily

handling fruits and vegetables had the most employees (60,515), followed by livestock and poultry cooperatives (47,246) and grain and oilseed (33,006).

Figure 5 shows the number of full-time and parttime and seasonal employees by type of cooperative

for 1997. Farm supply cooperatives used the most

employees and cotton cooperatives the least. Rice

cooperatives had the smallest proportion of part-time

and seasonal employees. Related-service, followed by

fruit and vegetable, cooperatives had the largest proportion of part-time and seasonal employees.

Full-time employees totaled 172,199 in 1997,

down from 174,795 in 1996, or 1.5 percent. The number

of full-time employees per association, however, was

45 in both years because cooperative numbers

declined. The 1,941 marketing cooperatives employed

118,479 persons, down 4. I percent from 1996. Dairy

cooperatives, with 28,323, had the most full-time

employees, while livestock and poultry cooperatives,

with 26,399, ranked second. Together, they accounted

for 46.2 percent of the full-time employees of marketing cooperatives.

The 1,386 farm supply cooperatives employed

47,870 persons on a full-time basis, up 5.1 percent from

the 45,566 reported for 1996. They averaged 35 fulltime employees in 1997. IM-time employees of the

464 related-service cooperatives totaled 5,850 in 1997,

up from 5,704 or 2.6 percent.

Cooperatives used 115,038 part-time and seasonal

employees in 1997, up 5,037, or 4.6 percent, from 1996.

Cooperatives marketing other products and fruits and

vegetables were mainly responsible for the increase.

In 1997, marketing cooperatives reported 84,544

part-time and seasonal employees, or 73.5 percent of

the total. Fruit and vegetable and livestock and poultry

cooperatives accounted for 69 percent of them with

58,515. Farm supply cooperatives averaged 14 parttime and seasonal employees. The more labor- intensive fruit and vegetable cooperatives averaged more

than 145 such employees (figure 6).

Table 3- Full-time and part-time and SSaSOfIal SITIplOyeeS of farmer COOperatiVeS, by type of co-op, 1996-97

Principal product(s) Full-time employees Part-time and seasonal 1

marketed or

major function 1996 1997 1996 1997

Number

Products marketed:

Cotton 1,787 1,995 588 649

Dairy 27,621 28,323 3,452 3,168

Fruits & vegetables 26,456 22,847 34,536 37,668

Grains and oilseeds

excluding cottonseed 25,981 23,538 8,777 9,468

Livestock and poultry 28,453 26,399 22,480 20,847

Rice 2,636 2,713 986 278

Sugar 3,482 3,473 4,059 4,225

Other products * 7,109 9,191 4,565 8,241

Marketing 123,525 118,479 79,442 84,544

Farm supply 45,566 47,870 17,844 19,856

Service 5,704 5,850 12,716 10,638

Total 174,795 172,199 110,001 115,038

1 Number of part-time employees was estimated for all cooperatives based on the relationship of part-time to full-time employees for the

respondent cooperatives.

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

10
Figure S- Full-Time and Part-Time and Seasonal Employees, by Type of Cooperative, 1997

Grain and Oilseed

Livestock & Poultry

, Full-Time

0 10 20 30 40 50 60 70

Number (1,000)

1 Includes dry bean and pea, nut, tobacco, wool and mohair, fishery,

and other miscellaneous marketing cooperatives.

Figure 6-- Average Number of Full-Time and Part-Time and Seasonal Employees, by Type of

CoopGative, 1997

Grain and Oilseed

Service

Farm Supply

Other Marketing’

Dairy

Sugar

Cotton

Rice

Fruit & Vegetable

Livestock & Poultry

-7

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

-I

,.. ;:j ,.;::::; .:...

:,:,.,. .)

,: .: II::, jj .,:,., jj::, ‘:

,.,. ,.; ,.;

,.,. .,..... . . . . >

0 5 0 100 150 200 250 300

Number

I Includes dry bean and pea, nut, tobacco, wool and mohair, fishery,

and other miscellaneous marketing cooperatives.

350 400 450

11
Figure 7- Distribution of Farmer Cooperatives and Gross Business Volume, by Size, 1997

Percent of total

70

60

Dollar Volume

Lessthan 5 5-9.9 10-14.9 15-99.9 100-249.9 2500rmore

Gross business volume (million dollars)

Table 4- Farmer cooperatives and memberships, by gross business volume, 1997 l

Volume group

(mil. dol.)

Cooperatives Dollar volume Memberships 3

Number Percent of total Gross * (mil. dol.) Percent of total Number (1,000) Percent of total

Less than 5.0 1,807 47.7 3,388 2.7 576 17.8

5 - 9.9 687 18.1 4,882 3.8 407 12.6

10 - 14.9 357 9.5 4,347 3.4 258 8.0

15 - 24.9 343 9.0 6,642 5.3 351 10.8

25 - 49.9 315 8.3 10,783 8.5 402 12.4

50 - 99.9 135 3.6 8,970 7.1 263 8.1,

100 - 199.9 62 1.6 8,303 6.6 107 3.3

200 - 249.9 12 0.3 2,635 2.1 17 .5

250 - 499.9 35 0.9 12,496 9.9 265 8.2

500 - 999.9 19 0.5 13,429 10.6 182 5.6

1,OOOand more 19 0.5 50,602 40.0 412 12.7

Total 4 3,791 100.0 126,476 100.0 3,239 100.0

1

2

3

4

12

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.

Includes intercooperative business volume. Total may not add due to rounding.

Includes number of farmers, ranchers, and fishermen eligible to vote for directors. Does not include memberships held by other cooperatives,

such as local cooperative memberships in regional cooperatives.

Total may not add due to rounding.
Business Size

Farmer cooperatives, measured by annual gross

business volume, increased in size. Most most remain

small and serve local areas. Several are actively seeking regional, national, and even international markets

to increase business volume.

The increased size comes in part from mergers

and acquisitions. Data used were not adjusted for

changes in price levels, and some size changes resulted

from inflation.

In 1997,75.3 percent of all farmer cooperatives

reported a business volume of less than $15 million.

However, they accounted for only 9.9 percent of the

total gross dollar volume (table 4 and figure 7). Only 1.9

percent of farmer cooperatives reported a business volume of at least $250 million, but they accounted for 60.5

percent of the total sales, up from 59.3 percent in 1996.

Business Volume

Total gross business volume of the 3,791 marketing, farm supply, and related-service cooperatives for

1997 was $126.5 billion (table 51, down 1.3 percent

from the record $128.1 billion in 1996.

Total net business volume of farmer cooperatives

in 1997 was $106.5 billion, $77.6 billion for farm products marketed, $25.2 billion for farm supplies purchased, and $3.6 billion for services performed and

from other income. The total net figure (the difference

between gross and net business volumes), which

excludes intercooperative business, equaled the $106.2

Table 5- Cooperatives’ gross and net business VOlUfWS by commodity, 1997 l

Commodity Gross volume Net volume

Products marketed:

Beans and peas (dry edible)

Cotton

Dairy

Fruits and vegetables

Grains and oilseeds excluding cottonseed

Livestock

Nuts

Poultry3

Rice

Sugar

Tobacco

Wool and mohair

Miscellaneous 4

Total farm products

Supplies purchased:

Crop protectants

Feed

Fertilizer

Petroleum

Seed

Other supplies 5

Total farm supplies

Services provided:

Trucking, cotton ginning,

storage, grinding, locker

plants, misc. 8

Total business

Million dollars Percent Million dollars Percent

189.0

3,074.3

26,278.0

9,837.l

28,782.7

7,483.5

880.3

2,118.O

931.5

2,231.8

592.9

18.9

3.335.0

85.753.1

0.1 189.0

2.4 3,003.g

20.8 23,374.l

7.8 9,268.2

22.8 24,639.2

5.9 7,460.3

.7 880.3

1.7 2,118.O

0.7 930.2

1.8 2,087.3

0.5 597.9

(‘) 11.3

2.6 3,091.J

67.8 77,646.2

4,350.8 3.4 3,125.5 2.9

8,147.l 6.4 5,988.0 5.6

8,861.3 7.0 5,371 .o 5.0

10,592.o 8.4 6,756.i 6.4

925.4 0.7 707.4 0.7

4.199.1 3.3 3,237.J 3.0

37,075.7 29.3 25.180.6 23.7

3,647.3 2.9

126,476.2 100.0

3.6472

106,474.2

0.2

2.8

22.0

8.7

23.1

7.0

.8

2.0

0.9

2.0

Fj”

2.9

72.9

3.4

100.0

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

* Less than 0.05 percent.

3 Includes eggs, turkeys, ratite, squab, and related products.

4 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 includes manufactured food products and resale items marketed by

cooperatives.

5 Includes building materials. containers and packaging supplies, farm machinery and equipment, meats and qroceries, automotive supplies,

hardware, chicks, and other supplies not separately classified.

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

13
billion record set in 1996. However, adjusting for price

change, net business volume actually increased 3 percent3, due largely to lower commodity prices in 1997,

especially for food and feed grains.

Gross volume of farm products marketed by

cooperatives decreased 5 percent, from $90.3 billion in

1996 to $85.8 billion in 1997, due mainly to a 15.1-percent decrease in grain and oilseed marketings. The net

volume of farm products marketed was $77.6 billion,

or 72.9 percent of the total net volume of all cooperatives, down 2.2 percent from $79.4 billion in 1996.

Figure 8 illustrates the leading products marketed by cooperatives based on net marketing business

volume. Grains and oilseeds (excluding cottonseed)

led with 31.7 percent, followed by dairy (milk and

milk products) with 30.1 percent, and fruits and vegetables with 11.9 percent.

Gross volume of all farm supplies handled by

cooperatives was $37.1 billion, up 6.8 percent from

$34.7 billion in 1996. Net farm supply volume of nearly

3 Deflated 1997 cooperative business volume was $109.4 billion, up 3

percent from the actual $106.2 billion in 1996. The $109.4 billion was

derived by deflating farm products marketed by indices of prices

received for all farm products and farm supplies (inputs) and service

income by the index of prices paid by farmers for production items.

$25.2 billion, up 6.5 percent from $23.7 billion, accounted for 23.7 percent of the total net business volume.

The leading supplies handled by cooperatives in

terms of net farm supply business volume were petroleum, 26.8 percent; feed, 23.8 percent; and fertilizer,

21.3 percent (figure 9). Sales of all farm supply categories were up in 1997, except for “other” supplies,

which was down 1.3 percent.

Receipts for services provided by marketing,

farm supply, and related-service cooperatives, plus

other income, amounted to $3.6 billion, up 17.6 percent. Service receipts and other income represented 3.4

percent of total net business volume.

Table 6 shows gross and net business volume by

State. Sales were allocatect to the States in which the

product marketed was originated and the farm inputs

were sold. Iowa was the leading State in total gross

and net business volume, with $12.6 billion and $10.9

billion, respectively. Minnesota was second, with $11.9

billion in gross business and $9.8 billion in net business volume. In 1995, California led all States in net

business volume with nearly $8.9 billion.

In 1997, Iowa was also the leading State in net

sales of farm supplies, hot h gross and net, with $4 billion and $2.7 billion, respectively. Figure 10 shows the

Figure 8- Relative Importance of Farm Products Marketed by Cooperatives, 1997

GraiIns & Oilseeds 31 .i‘% -

Fruits 8. Vegetables 11

Milk & Milk Products 30.I%-

Rice 1

Tobacco 0.8% -

.2% -

.9% -

Nuts 1 .I%

Livestock 9.6%

Poultry 2.7%

Sugar 2.7%

Other l 4.3%

Cotton 3.9%

Percent based on a net marketing business volume of $77.6 billion.

1 Includes dry beans and peas, wool and mohair, fish, and miscellaneous marketings.

1 4
Figure 9- Relative Importance of Farm Supplies Handled by Cooperatives, 1997

Other Supplies’ 12.9%

Seed 2.8%

Petroleum 26.8%

.- Crop Protectants 12.4%

-- Feed 23.8%

- Fertilizer 21.3%

Percent based on a net farm supply business volume of $25.2 billion.

1 Includes building materials: tires, batteries and accessories; equipment; animal health products; pet food; semen; hardware; food; clothing; etc.

Figure 1 o- Cooperatives’ Net Business Volume, Leading States, 1997

Billion dollars

12

10

8

Services

Farm Supplies

Marketlngs

IA MN CA WI IL NE KS MO TX ND

15
Table 6COOperatiVeS’ business Volume’ by commodity and State, 1997*

State

Business volume

Gross Net

State

Business volume

GmsS Net

1,000 dollars

PRODUCTS MARKETED:

BEANS AND PEAS, DRY EDIBLE

California

Other States

89,081

99,910

188,991

89,081

99,910

United States 188,991

CO-I-TON

California

Mississippi

Texas

Other States

862,564 607,335

384,484 371,889

940,528 939,974

1 vO86.781 1,084,688

United States 3,074,337 3,003,886

DAIRY

California

Illinois

Iowa

Massachusetts

Michigan

Minnesota

Missouri

New York

North Dakota

Ohio

Oregon

Pennsytvania

Texas

Virginia

Wisconsin

Other States

3,107,394 2,945,132

1,195,595 975,839

1 ,164,679 1,026,053

58,125 55,772

705,268 686,999

2,700,430 2,281,830

1,136,673 967,669

1,648,294 1,171,879

194,963 163,812

981 ,016 930,480

303,227 258,790

1 ,170,426 976,137

902,972 851,742

121,115 112,589

4,438,688 3,982,844

6.449.093 5,986,703

United States 26,277,957 23,374,069

FRUITS AND VEGETABLES

Arizona 152,410

Arkansas 1,337

California 3,673,516

Colorado 18,056

Florida 1,228,521

Georgia 16,701

Hawaii 24,190

Maine 25,400

133,225

1,337

3,367,469

18,056

1(190,207

12,344

24,190

25,400

1,000 dollars

FRUITS AND VEGETABLES (Continued)

Massachusetts 530,847 530,847

Michigan 594,750 483,638

Minnesota 3,522 3,522

Mississippi 11,926 11,478

New Jersey 204,968 204,968

New York 310,519 285,781

North Carolina 29,270 27,751

North Dakota 10,887 10,887

Ohio 6,241 6,241

Oregon 795,955 794,784

Pennsylvania 334,682 324,706

Texas 49,879 16,394

Washington 867,920 862,568

Other States 930,553 917,304

Foreign 3 15,091 15,091 - -

United States 9837,141 9,268,189

GRAINS AND OILSEEDS EXCLUDING COTTONSEED

Arkansas 296,682 258,326

Colorado 282,053 268,666

Idaho 42,165 42,071

Illinois 2679,085 2,516,121

Indiana 732,323 712,298

Iowa 4,808,129 4,647,143

Kansas 2,055,805 1,857,357

Michigan 136,923 130,162

Minnesota 4,279,883 3,446,416

Mississippi 152,100 150,267

Missouri 978,608 811,773

Montana 392,483 262,009

Nebraska 2,369,748 2,156,557

North Dakota 1,978,376 1,635,018

Ohio 867,857 842,806

Oklahoma 314,118 289,403

Oregon 557,137 395,410

South Dakota 1,489,032 1,25&l 25

Texas 1,224,510 697,949

Washington 753,804 655,433

Other States 1,008,756 843,188

Foreign 3 1.383.168 770,665

United States 28,782,746 24,639,161

16
Table 6- Cooperatives’ business volume l by commodity and State, 19972 (continued)

State

Business volume

Gross Net

State

Business volume

Gross Net

LIVESTOCK

Alabama

Hawaii

Idaho

Illinois

Indiana

Kentucky

Michigan

Mississippi

Missouri

North Dakota

Ohio

Virginia

West Virginia

Wisconsin

Other States

Foreign 3

61,039 61,039

23,172 23,172

66,304 66,304

628,659 627,249

277,997 277,869

77,629 77,629

397,759 397,759

86,523 86,523

551,673 551,673

123,308 120,214

314,034 314,034

27,956 27,956

2,402 2,402

448,197 444,975

4,305,890 4,290,556

90,995 90,995

United States 7,483,538 7,460,349

NUTS

California

Other States

United States

694,469 694,469

185,807 185,807

880,276 880,276

POULTRY ’

California

Utah

Other States

United States

36,334 36,334

134,246 134,246

1,947,438 1,947,438

2,118,017 2,i 18,017

RICE

California

Louisiana

Texas

Other States

United States

228,822 227,488

18,115 18,115

57,046 57,046

627,505 627,505

931,487 930,154

1,000 dollars 1,000 dollars

SUGAR

Idaho

Louisiana

Michigan

Minnesota

Montana

Wyoming

Other States

Foreign 3

United States

TOBACCO

Kentucky

North Carolina

Tennessee

Virginia

Other States

United States

WOOL AND MOHAIR

Idaho

Montana

North Dakota

Ohio

Pennsylvania

Utah

Virginia

Wyoming

Other States

Foreign

United Slates

423,762

293,726

31,740

633,023

61,700

19,625

762,940

5,294

- -

2,231,810

286,023

231,176

68,695

3,406

3,575

- -

592,876

50

680

60

8,429

220

1,776

85

563

6,772

297

- -

18,931

MISCELLANEOUS MARKETING0

Alaska 11,583

California 46,862

Florida 39,469

Georgia 7,253

Hawaii 30,430

Maine 33,286

Michigan 73,720

Minnesota 767,117

303,805

293,726

31,740

633,023

61,700

19,625

738,370

5,294

2,087,283

286,023

231,176

68,695

3,406

3,575

592,876

50

680

60

804

220

1,776

85

563

6,772

297

11,306

11,583

46,862

39,469

7,253

30,430

33,286

73,720

645,972

Continued

17
Table 6 Cooperatives’ business volume l by commodity and State, 1997* (continued)

State

Business volume

Gross Net

State

Business volume

Gross Net

7,000 dollars

MISCELLANEOUS MARKETlNG5(Continued)

Mississippi 144,061 143,437

North Dakota 100,785 100,785

Oregon 101,860 101,860

Washington 149,787 149,787

Other States 1,716,949 1,595,347

Foreign 3 111,870 111,870

United States 3,335,031 3,091,660

TOTAL FARM PRODUCTS MARKETED

Alabama

Alaska

Arizona

Arkansas

California

Colorado

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

820,882 817,312

11,583 11,583

705,295 665,186

1,424,071 1,376,465

8,709,783 8,184,912

576,596 559,816

2,184,453 2,138,103

1,064,144 1,047,963

100,080 100,080

1,097,314 972,364

4,558,569 4,171,689

1,534,292 1,450,553

8,296,195 7,949,780

2,987,577 2,748,145

655,674 644,407

701,620 621,869

109,676 108,270

243,747 218,023

596,489 594,136

1,990,801 1,854,659

8,732,932 7,351,470

851,757 836,278

2,799,992 2,463,685

527,995 397,511

4,005,238 3,730,378

256,916 250,928

562,203 550,215

2,312,397 1,811,043

615,232 596,992

2,760,878 2,383,274

2,405,401 2,292,388

738,379 702,335

1,837,384 1,618,486

1,605,305 1,401,041

208,984 208,4 16

2,008,297 1,692,889

1,000 dollars

TOTAL FARM PRODUCTS MARKETED (Continued)

Tennessee 180,388 177,321

Texas 3,349,485 2,735,390

Utah 466,043 454,676

Vermont 356,839 324,532

Virginia 223,407 207,334

Washington 2694,166 2,724,088

West Virginia 80,015 75,315

Wisconsin 5583,838 5,085,983

Wyoming 36,558 36,452

Other States 377,552 308,267

Foreign3 1606,715 994,212

United States 85,753,138 77,646,216

FARM SUPPLIES PROVIDED:

CROPPROTECTANTS

Alabama 46,546

Arkansas 185,726

California 36,945

Colorado 41,214

Florida 17,743

Georgia 147,832

Idaho 36,551

Illinois 563,760

Indiana 264,648

Iowa 589,118

Kansas 128,587

Kentucky 57,850

Louisiana 61,324

Maryland 18,847

Massachusetts 2,448

Michigan 38,006

Minnesota 412,151

Mississippi 39,065

Missouri 119,168

Montana 51,750

Nebraska 230,430

New York 38,958

North Carolina 48,455

North Dakota 178,660

Ohio 101,787

Oklahoma 28,768

Oregon 49,122

Pennsylvania 32,577

South Dakota 183,596

45,146

93,832

26,644

29,068

15,138

144,807

17,468

308,900

175,371

442,091

105,675

49,668

28,434

16,785

2,448

26,905

339,159

38,505

89,936

33,404

179,219

36,076

31,187

140,063

89,950

17,808

35,178

32,577

145,805

Continued
Table 6- Cooperatives’ business volume l by commodity and State, 1997* (continued)

State

Business volume

Gross Net

State

Business volume

Gross Net

1,000 dollars 1.000 dollars

CROP PROTECTANTS (Continued)

Tennessee 121,576 63,593

Texas 72,520 61,396

Utah 17,115 6,815

Virginia 27,983 23,849

Washington 57,496 39,351

West Virginia 3,536 3,162

Wisconsin 185,899 134,394

Wyoming 12,998 2,943

Other States 62,632 50,741

Foreign 3 37,433 1,989

United States

FEED

Alabama

Arkansas

California

Colorado

Florida

Georgia

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

4,350,820 3,125,481

338,793 315,798

158,530 92,611

187,196 126,481

72,726 51,488

128,822 126,750

458,719 456,231

41,137 15,256

359,625 265,816

370,372 165,264

1 ,154,985 796,087

276,163 201 ,158

58,440 49,681

59,495 36,196

44,966 40,815

20,830 20,830

63,111 57,524

761,391 544,895

55,658 44,760

299,859 205,005

15,559 15,326

268,865 174,314

141,070 133,055

125,152 110,381

69,785 56,579

144,594 144,217

113,456 81,950

118,597 26,758

123,139 122,613

256,153 208,874

212,035 116,438

230,737 177,780

95,528 93,694

FEED (Continued)

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign 3

United States

FERTILIZER

Alabama

Arkansas

California

Colorado

Florida

Georgia

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

126,285

115.187

23.354

503.268

6.743

352.867

193,883 - -

8,147,076

112,767

39,378

20,292

325,145

6,743

304,629

104,385

5,987,963

140.551 97,491

226.377 115,427

137.921 116,222

129.841 87,280

121.903 40,698

123.844 119,788

63.479 30,265

923,191 465,614

581,176 294,916

965.166 630,753

401.188 300,44 1

115,867 101,826

57.725 28,130

30.097 26,865

3.906 3,906

66.579 40,663

742.113 455,242

60.176 58,824

359.335 258,577

139.104 76,387

493.719 337,351

55.256 55,256

64.028 53,976

447.229 266,509

193.072 130,025

152.297 97,i 09

82.853 55,591

51.059 51,059

294.118 187,741

243.241 111,736

261.030 163,351

50.156 28,457

75.620 68,443

70.275 49,647

8.766 7,867

Continued

19
Table 6 Cooperatives’ business volume l by commodity and State, 19972 (continued)

State

Business volume

Gross Net

State

Business volume

Gross Net

1.000 dollars 1,000 dollars

FERTILIZER (continued)

Wisconsin

Wyoming

Other States

Foreign 3

345,208 204,306 Wisconsin

27,012 5,313 Wyoming

115,513 90,104 Other States

441,353 57,844 Foreign3

United States 8,861,348 5,371,OOl United States

PETROLEUM

Alabama

Arkansas

California

Colorado

Florida

Georgia

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

40,951 4,865

203,445 96,019

6,525 6,525

359,301 195,946

11,778 9,734

81,302 15,802

147,369 85,963

677,455 478,585

517,681 298,128

1 ,018,391 644,873

1,246,265 393,733

1 go,51 4 115,747

23,793 12,729

73,838 66,808

15,964 15,964

149,385 72,226

649,378 553,430

20,348 19,171

598,669 456,450

195,483 146,099

652,116 413,551

245,760 244,944

20,714 17,753

357,469 275,332

143,449 119,272

306,110 131,932

170,484 121,359

225,325 224,828

358,376 254,895

171,580 73,270

233,786 134,318

83,524 19,389

229,668 144,610

180,282 136,616

22,966 20,885

SEED

Alabama

Arkansas

California

Colorado

Florida

Georgia

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

PETROLEUM (continued)

544,859

115,456

142,604

159,628 - -

10.591,991

462,117

70,425

141,695

60,098

6,756,086

32,394 20,878

43,703 26,839

22,195 22,195

2,540 2,540

6,302 5,650

15,592 15,433

16,787 9,497

80,013 49,319

48,825 24,130

67,446 45,695

11,371 11,371

28,322 25,363

21,296 10,172

10,584 9,431

1,339 1,339

10,165 9,951

53,603 45,510

18,708 18,655

57,319 27,945

7,189 5,621

12,807 10,251

23,328 23,328

14,668 12,363

35,156 32,755

26,245 26,245

4,200 4,200

11,508 11,470

17,520 17,520

17,815 14,932

66,640 39,971

19,079 19,026

3,072 3,072

25,757 23,260

24,248 23,252

4,032 3,648

Continued

20
Table 6- Cooperatives’ business volume1 by commodity and State, 19972 (continued)

State

Business volume

Gross Net

State

Business volume

Gross Net

1,000 dollars

SEED (Continued)

Wisconsin

Wyoming

Other States

38,583

752

20,425

Foreign3 3,835

United States 925,384

MISCELLANEOUS SUPPLIES6

Alabama 177,796 78,006

Arkansas 133,948 92,393

California 125,649 96,002

Colorado 59,185 45,900

Florida 102,041 59,157

Georgia 90,330 69,199

Idaho 47,014 39,178

Illinois 144,296 86,622

Indiana 69,488 53,202

Iowa 228,635 165,002

Kansas 127,735 93,563

Kentucky 73,472 61,590

Louisiana 47,297 33,846

Maryland 37,771 33,930

Massachusetts 9,877 9,877

Michigan 107,729 93,698

Minnesota 269,417 220,755

Mississippi 60,783 60,783

Missouri 99,029 59,329

Montana 64,558 59,404

Nebraska 115,054 95,068

New York 161,401 139,200

North Carolina 48,801 36,697

North Dakota 107,468 98,070

Ohio 105,967 87,222

Oklahoma 45,369 32,198

Oregon 141,584 136,818

Pennsylvania 107,723 107,558

South Dakota 90,354 77,517

Tennessee 206,677 111,438

Texas 102,734 82,174

Utah 48,096 41,981

Virginia 172,187 136,895

Washington 127,128 95,932

West Virginia 32,559 29,509

28,478

733

19,962

349

702,351

1,000 dollars

MISCELLANEOUS SUPPLIES6 (Continued)

Wisconsin

Wyoming

Other States

244,176

39,896

168,112

228,306

37,643

139,319

Foreign3 57,806 12,766

United States 4,199,141

TOTAL FARM SUPPLIES

Alabama 777,030 562,184

Arkansas 951,729 517,121

California 516,431 394,068

Colorado 664.808 412,221

Florida 388.589 257,128

Georgia 917,619 821,261

Idaho 352,337 197,628

Illinois 2,748,339 1,654,856

Indiana 1,852,190 1,011,Oll

Iowa 4,023.742 2,724,501

Kansas 2,191.310 1 ,105,942

Kentucky 524.467 403,875

Louisiana 270.930 149,507

Maryland 216,103 194,635

Massachusetts 54,364 54,364

Michigan 434.975 300,967

Minnesota 2,888.053 2,158,991

Mississippi 254.737 240,698

Missouri 1,533.379 1,097,241

Montana 473.643 336,242

Nebraska 1,772.992 1,209,755

New York 665.772 631,857

North Carolina 321.818 262,356

North Dakota 1 ,I 95.766 869,309

Ohio 715.115 596,930

Oklahoma 650.201 365,199

Oregon 574.149 387,174

Pennsylvania 557,344 556,156

South Dakota 1,200.412 889,764

Tennessee I,0213748 516,447

Texas 919.886 638,045

Utah 297.492 193,408

Virginia 657.499 509,823

Washington 574,617 384,177

3,237,745

Continued

21
Table 6- Cooperatives’ business volume l by commodity and State, 19972 (continued)

State

Business volume

Gross Net

State

Business volume

Gross Net

1,000 dollars 1,000 dollars

TOTAL FARM SUPPLIES (Continued)

West Virginia 95,213

Wisconsin 1,861,993

Wyoming 202,858

Other States 862,152

Foreign3 893,937

United States 37,075,740

SERVICES PROVIDED:’

Alabama 23,784 23,784

Arizona 26,320 26,320

Arkansas 89,i 00 a9,i 00

California 529,691 529,691

Hawaii 8,354 8,354

Illinois 207,262 207,262

Iowa 266,655 266,655

Kansas I 15,498 I I 5,498

Louisiana 20,141 20,141

Michigan 73,527 73,527

Minnesota 260,313 260,313

Mississippi 97,423 97,423

Nebraska 136,561 136,561

New Mexico 6,015 6,015

New York 152,576 152,576

North Carolina 25,966 25,966

North Dakota 48,603 48,603

Ohio I 08,826 I 08,826

Oklahoma 35,753 35,753

Pennsylvania 26,177 26,177

Texas 295,661 295,661

Washington 162,380 162,380

Wisconsin 80,522 80,522

Other States 850,227 850,227

United States 3,647,334 3,647,334

TOTAL:

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

1,621,696 1403,279

124,698 64,651

786,643 737,821

2,464,900 I ,982,686

9,755,905 9,108,671

1,273,093 I ,003,727

266,727 205,367

I 08,920 98,417

2,663,194 2,485,382

2,012,445 I ,899,906

85,364

I ,382,745

123,799

746,450

237,431

25,180,628

TOTAL: (Continued)

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

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Other States

Foreign3

130,603 114,572

I ,460,338 1 ,180,679

7.514,170 6,033,807

3,464,785 2,539,867

12.586,592 10,940,936

5.294,385 3,969,564

1.210.076 1,078,2I7

992,690 791,516

2i8,I 17 216,711

463,990 416,798

657,492 655,138

2.499,303 2,229,153

I I ,aai,299 9,770,774

1.203,917 I,174,399

4.490,879 3,718,435

1 ,OI 0,645 742,759

5.914,790 5,076,693

356,512 345,035

621,939 608,117

3.130,745 2,595,476

963,015 885,314

4.005,248 3,301 ,I 86

3.229,342 2,998,144

1.424,333 1,103,286

2.457,569 2,051,697

2,Iaa,a27 I ,983,374

387,962 377,563

3.451,889 2,825,833

1.230,059 721,691

4.565,032 3,669,096

806,244 690,794

429,234 396,927

905,881 742,131

3,631,163 3,270,645

176,530 161,980

7,526,352 6,549,250

24 1,654 162,489

173,738 162,559

2,500,652 1,231,643

U.S. 126.476.212 106,474,177

See footnotes next page

22
Footnotes to Table 6.

* Data covering operations of cooperatives whose business years ended during calendar 1997. Includes independent local cooperatives,

federations, centralized regional cooperatives, and cooperatives with mixed organizational structures. The volume of products marketed was

allocated to the State in which they were originated and the volume of farm supplies is allocated to the State in which they were sold; service

volume and other income was 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 while net business volume excludes sales. States listed had more than two

cooperatives handling the commodity or farm supply or where disclosure was 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 eggs, turkeys, ratite, squab, and related products.

5 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.

8 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.

7 Income from services related to marketing and purchasing activities but not included in the volumes reported for these activities.

10 leading States in terms of co-op net business volume,

which accounted for 58.4 percent of total net business

volume in 1997, compared with 57.8 percent in 1995.

Net Income

Total net income (adjusted for losses and before

taxes) for all cooperatives in 1997 was $2.31 billion,

including intercooperative dividends and refunds

(table 7). Cooperatives operating strictly on a pooling

basis were excluded. Net income was up 3 percent

from the $2.25 billion in 1996 and near the 1995 record

of $2.36 billion. Patronage refunds received from other

cooperatives reached $685.2 million, down 3.8 percent

from a record of $711.9 million in 1996.

Marketing cooperatives’ net income of $1,313.3

million was up 11.2 percent from the $1,181 million

generated in 1996. Grains and oilseeds (18.9 percent),

milk and milk products (16 percent), fruits and vegetables (8.2 percent), and livestock and poultry (8.3 percent) together accounted for most (90.4 percent) of

marketing cooperatives’ net income and a majority

(51.3 percent) of total net income (figure 11).

Farm supply cooperatives accounted for 36.1 percent of cooperatives’ total net income in 1997, compared with 41.9 percent in 1996. Income from their

own operations was $500.2 million, down 18.3 percent

from $612.4 million in 1996. However, refunds from

other cooperatives were up 1.6 percent, to $334.3 million in 1997 from $329 million in 1996.

Farmer cooperatives’ net income from own operations in 1997 totaled $1,629.2 million, up 6.1 percent

from $1,535.6 million. Nearly 29.6 percent, or $685.2

million, of total net income was generated by other

cooperatives, down 31.7 percent from $711.9 million in

1996. Marketing cooperatives’ net income from other

cooperatives totaled $317.2 million and accounted for

24.2 percent of their total. Grain cooperatives’ net

income from other cooperati\.es totaled $212.2 million

or 48.6 percent of their total.

Income before adjusting for losses was $2,477.2

million. Losses by an estimated 506 cooperatives

totaled $162.8 million in 1997, down from $187.8 million in 1996. Number of cooperatives with losses was

also lower, 506 versus 530.

Balance Sheet

Combined assets for all farmer cooperatives

totaled nearly $44 billion in 1997, up 3.3 percent from

$42.6 billion in 1996 (table 8). Assets of cooperatives,

excluding intercooperative investments, were up 2.3

percent to $40.1 billion, compared with $39.2 billion in

1996.

Total liabilities were $25.5 billion, up only 1 percent from $25.2 billion in 1997. Net worth, or member

and patron equity, was $18.5 billion, up 6.6 percent

from $17.4 billion in 1996. The proportion of total

assets financed by member arld patron equity

increased from 40.8 percent to 42.1 percent.

Net worth, or member and patron equity, for all

marketing cooperatives totaled $11.8 billion, up 6.4

percent from 1996. Marketing cooperatives accounted

for 63.5 percent of farmer cooperatives’ combined net

worth, down slightly from 63.6 percent in 1996. The

net worth figure for farm supply cooperatives was 33.5

percent of the total, up from 33.3 percent. For marketing cooperatives, the highest percentage of total assets

represented by net worth shown in figure 12 (46.8 percent) was for those primarily marketing “other” products. The lowest, 28.1 percent, was for cooperatives

primarily marketing sugar and sugar products.

23
Figure I I- Net Income or Loss by Cooperative Type, 1997

Sugar

Rice

Other Marketing l

Cotton

Service

Fruit & vegetable

Livestock & Poultry

Dairy

Grain & Oilseed

Farm Supply

-100 0 100 200 300 400 500 600 700 800 900

Million dollars

l Includes dry bean and pea, nut, tobacco, wool and mohair, fishery,

and other miscellaneous marketing cooperatives.

Table 7-Cooperatives’ net income, 1997 I

Principal product(s)

marketed and

major function

Products marketed:

Cotton

Dairy

Fruits & vegetables

Grains and oilseeds

excluding cottonseed

Livestock and poultry

Rice

Sugar

Other products3

Total marketing

co-ops

Number

16

236

259

1,014

108

18

51

239

1,941

Total Income Income

net from own from other

income operations co-ops 2

__________ Mj//j‘,n&,//c,rs __________

67.7 66.7 1 .o

369.7 296.4 73.2

189.7 183.2 6.4

437.0 224.8 212.2

191.4 177.8 13.6

7.3 7.3 -

-2.0 -5.4 3.4

52.5 45.2 7.3

I,31 3.3 996.1 317.2

Total farm supply 1,386 834.6 500.2 334.3

Total related-service 464 166.5 132.9 33.7 -_

Combined total 3,791 2,314.4 1,629.2 685.2

1 Number of cooperatives includes those operating on a pooling rather than a net margin basis. Totals may not add due to rounding.

2 Excludes patronage refunds from CoBank and Bank for Cooperatives.

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

2 4
Figure 12- Percentage of Cooperatives’ Assets Financed by Net Worth, by Cooperative Type, 1997

Sugar

Livestock & Poultry

Fruit & vegetable

Dairy

Rice

Cotton

Grain & Oilseed

Other Co-opsl

Farm Supply

Service

0 10 20 30 40 50 60 70

Percent

I Includes dry bean and pea, nut, tobacco, wool and mohair, fishery,

and other miscellaneous marketing cooperatives.

Table e- Combined balance sheet data for farmer cooperatives, 1997 1

Principal product(s) marketed

and major function

Products marketed:

Cotton

Dairy

Fruits & vegetables

Grains and oilseeds

excluding cottonseed

Livestock and poultry

Rice

Sugar

Other products*

Total marketing

cwps

Number

16

236

259

1,014

108

18

51

239

1,941

Total assets Total liabilities Net worth

__________ Mi/ti~nd&rs ______ ----

831.5 448.0 383.5

6,244.g 3,784.4 2,460.5

5,183.5 3,542.3 1,641.2

7,994.8 4,299.2 3,695.6

4,390.3 3,013.4 1,376.g

603.6 359.7 243.9

2,005.3 1,441 .o 564.3

3,003.2 1,597.3 1,405.g

30,257.l 18,485.3 11,771.8

Total farm supply 1,386 12,867.3 6,658.8 6,208.5

Total related-service 464 871.7

Combined total 3,791 43,996.i

1 Totals may not add due to rounding.

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

314.9 556.8

25,459.0 18,537.l

2 5
Marketing and farm supply cooperatives had 38.9 percent and 48.3 percent, respectively, of their assets

financed by net worth.

Of the $44 billion in total assets, marketing cooperatives accounted for $30.3 billion, up 1.2 percent

from 1996. Cooperatives primarily handling grains

and oilseeds (excluding cottonseed) had total assets of

$9.4 billion in 1996 and $8 billion in 1997, down 15.4

percent. Among the marketing cooperatives, those

with primarily grain also maintained the largest proportion of their assets as investments in other cooperatives in both 1997 (13 percent) and 1996 (11.4 percent).

Dairy cooperatives had 8.8 percent of their assets

invested in other cooperatives (table 9).

Assets of marketing cooperatives, excluding

investments in other cooperatives, were $28.3 billion,

up 0.7 percent from 1996.

Farm supply cooperatives had total assets of $12.9

billion, compared with $11.8 billion in 1996, up 8.6 percent. Excluding intercooperative investments, assets

were up 6.7 percent from 1996 to $11 billion in 1997

Selected Financial Ratios

Financial ratios express relationships between

items in the financial and income statements of a business operation and help in analyzing a cooperative’s

economic and financial situation.

Financial ratios can indicate problem areas. While

they cannot be used to solve problems, they can serve as

guidelines for planning purposes and aid in formulating

actions. Care must be taken in their use because both

items used to calculate a ratio are subject to considerable

variation. Ratio interpretation is largely subjective.

Five financial ratios were selected to give some

indication of cooperative performance or financial condition-return on assets, net worth-to-assets, return on

sales, total sales-to-assets, and the current ratio.

The return on assets and return on sales ratios

indicate profitability. The net worth-to-assets ratio

gives a clue to a cooperative’s ability to meet longterm 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 short-run

obligations.

Table 10 lists the values of these ratios for the

cooperatives reporting to RBS. Extreme values (highs

and lows) were excluded so that the ratios would be

more representative of the cooperatives reporting.

Ratios are also shown by selected asset category for the

predominant types (dairy, fruit and vegetable, grain,

and farm supply). These ratios offer cooperative leaders a general barometer to use in comparing their operTable 9- Combined aSS& of farmer cooperatives, 1997 I

Principal product(s)

marketed and

major function

co-ops

Assets of own investments in Total

operations other co-ops assets

Investments in

other co-ops as

percent of total

Products marketed:

Cotton

Dairy

Fruits & vegetables

Grains and oilseeds

excluding cottonseed

Livestock and poultry

Rice

Sugar

Other products3

16 828.4 3.1 831.5 0.4

236 5,696.3 548.6 6,244.g 8.8

259 5,105.o 78.5 5,183.5 1.5

1,014

108

18

51

239

Total farm products 1,941

Total farm supplies 1,386

Total selected services 464

Number ----------Mi~~~~~d~~~~r~ _______ ___ Percent

Combined total 3,791

6,954.g 1,039.g 7,994.8

4,133.6 256.7 4,390.3

603.6 (? 603.6

1,992.8 12.5 2,005.3

2,981.6 21.6 3,003.2

28,296.l 1,961 .O 30,257.l

11,033.o 1,834.2 12.867.3

780.6 91.0 871.7

- -

40,109.8 3,886.3 43,996.l

13.0

;;”

.6

.7

-

6.5

14.3

10.4

-

8.8

1 Totals may not add due to rounding.

2 Less than $5,000 or .05 percent.

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

2 6
Table IO- Selected financial ratios of cooperatives, 1997 l

Type of co-op Return Net worth Return Sales Current

and asset group (mil. dol.) on assets * to assets 3 on sales 4 to assets 4 ratio 5

--- -- Number-----

Dry beans and peas 3.6 36.9 1.5 2.4 1.3

Cotton 8.3 46.7 2.2 3.7 1.6

Dairy 7.4 40.2 1.6 4.7 1.3

$0.5e 17) 32.0 1.6

$0.5 - $.99 5.9 74.3 1.1 5.2 3.1

$1 .o - $2.49 6.7 47.1 1.0 7.0 1.4

$2.5 - $24.99 11.0 49.0 1.2 9.1 1.3

$25.0 - $99.99 6.7 41.4 1.4 4.7 1.3

$100.0 and more 7.1 40.0 1.8 3.8 1.3

Fruit and vegetable 3.6 31.6

Less than $0.5 -.9 51.2

$0.5 - $.99 1.6 42.0

$1 .o - $2.49 2.5 55.7

$2.5 - $24.99 10.2 39.5

$25.0 - $99.99. 3.4 33.6

$100.0 - $499.99 2.9 32.6

$500.0 and more 3.3 28.8

1.9

-. 1

.5

.5

3.2

1.9

1.4

2.2

1.9 1.4

6.9 1.4

3.0 1.4

4.9 1.8

3.2 1.1

1.8 1.2

2.1 1.3

1.5 1.6

Grain and oilseeds 5.6 46.1 1.4 3.9 1.3

Less than $0.5. -14.9 48.3 -3.7 4.0 2.0

$0.5 - $.99 -1.2 75.2 -.3 4.3 2.7

$l.O-$2.49 4.1 63.5 1.0 4.2 1.8

$2.5 -$24.99 5.7 51.4 1.7 3.4 1.3

$25.0- $99.99 5.1 37.5 1.8 2.9 1.2

$lOO.Oand more 6.0 38.1 0.9 6.5 1.2

Livestock 5.4 29.7 1.3 4.1 1.2

Nut 2.2 42.7 1.0 2.2 2.0

Poultry 1.7 31.6 .6 2.9 1.5

Rice 1.3 41.3 .6 2.3 1.3

Sugar -.2 28.0 -.2 .9 1.1

Tobacco IO.6 85.8 .8 13.4 5.8

Misc. marketing .6 40.6 .2 2.2 .7

Fishery -15.5 34.2 -5.1 3.0 1.1

Farm supply 6.4 46.6 3.3 2.0 1.5

Less than $0.5 2.0 73.3 .5 3.8 2.8

$0.5 : $.99 4.3 68.8 1.8 2.4 2.0

$1 .o - $2.49 5.9 68.5 2.7 2.2 2.0

$2.5 - $24.99 7.3 58.1 3.2 2.3 1.5

$25.0 - $99.99 5.0 41.4 2.3 2.2 1.4

$100.0 - $499.99 3.8 41.5 1.6 2.4 1.3

$500.0 and more 7.2 40.2 4.7 1.5 1.4

Service 8.8 68.6 7.4

19.2

1.2

1.4

2.2

Cotton gins 27.8 63.0 1.5

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

dividing. The same cooperatives were included in each group to calculate all five ratios. 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 book 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, 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.

5 The current ratio was derived by dividing current assets by current liabilities. These data were taken from annual reports where provided.

6 Includes bargaining cooperatives.

7 Less than .05 percent.

8 Excludes cottonseed.

27
ations with others of the same type (and/or size).

The return on assets (net income/assets) varied

considerably. It was negative for fishery and small

grain cooperatives with losses. The ratio was highest

for cotton ginning cooperatives. By size group, the

largest return on assets was shown by cooperatives

with assets in the range of $2.5 million to $24.9 million.

This was true for dairy, fruit and vegetable, and farm

supply cooperatives.

The net worth-to-assets ratio ranged from a low of

28 percent for sugar cooperatives to a high of 85.8 percent for tobacco cooperatives. Generally, as cooperatives become larger and/or do more processing, a

declining percentage of their assets is financed by

members, resulting in a lower net worth-to-assets ratio.

The return on sales (net income/total sales)

ranged from a negative 5.1 percent for fishery cooperatives to a high of 19.2 percent for cotton ginning cooperatives. The return on sales is generally below 2 percent (table 10).

The sales-to-assets ratio ranged from a high of 32

for the small dairy cooperatives to a low of 0.9 for

sugar cooperatives. Among dairy, fruit and vegetable,

and grain 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

farm supply cooperatives did not vary much with size

of the cooperative. Most of these cooperatives are less

involved in manufacturing or processing than 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 a low of 0.7 for miscellaneous marketing cooperatives to 5.8 for the tobacco cooperatives.

Tobacco cooperatives’ current assets are generally high

because of tobacco inventories. Current ratios tended

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

Ill-Cooperative Trends, 1988-97

Although the number of cooperatives has

decreased during the past decade, their business volume has increased. Cooperatives continue to adjust to

the changing economic environment through dissolution, merger, consolidation, acquisition, and the sale of

assets. In some cases, farmers have organized new

generation cooperatives to become involved in valueadded activities. In 1988, the net business volume of

4,937 cooperatives totaled $66.4 billion. A decade later,

net business volume generated by 3,791 cooperatives

was $106.5 billion.

Number of Cooperatives

The total number of marketing, farm supply, and

related-service cooperatives declined from 4,937 in

1988 to 3,791 in 1997 (table 11 and figure 13).

Marketing cooperatives declined from 2,988 to 1,941

and farm supply cooperatives from 1,836 to 1,386.

Number of service cooperatives, however, increased

from 113 to 464, due primarily to reclassifying cotton

ginning cooperatives, livestock shipping associations,

and rice driers from marketing to service.

From 1988 through 1997,1,804 cooperatives, or

about 180 per year, were removed from RBS’ list of

farmer cooperatives. Of those, 40.2 percent were dissolved, 30.1 percent resulted from merger or consolidation, 16.1 percent were acquired by other cooperatives

or investor-owned firms, and the remaining 13.6 percent were removed for other reasons (figure 14).

Even while some cooperatives are disappearing

from RBS’ list, new ones or ones not previously on the

list are added. From 1988 through 1997,486 cooperatives, or an average of ne.uly 49 per year, were added

to the list.

Grain and Farm Supply Branches

USDA began reporting number of branch locations opera ted by grain and farm supply cooperatives

Table 1 i- Number of farmer COOperatiVeS, 1988-97

Period 1 Marketing Farm supply Service Total

1988 2,988

1989 2,550

1990 2,519

1991 2,384

1992 2,218

1993 2,214

1994 2,173

1995 2,074

1996 2,012

1997 1,941

Number

1,836 113 4,937

1,803 446 4,799

1,717 427 4,663

1,689 421 4,494

1,618 479 4,315

1,547 483 4,244

1,496 505 4,174

1,458 474 4,006

1,403 469 3,884

1,386 464 3,791

1 For years before 1988, see Cooperative Historical Sfatisfics, CIR

1, Section 26, USDA, Revised April 1998. Cotton ginning

cooperatives, livestock shipping associations, and rice drying

cooperatives were reclassified from marketing to service in 1989,

1992, and 1993, respectively.

28
Figure 1s Farmer Cooperatives in the United States, 1988-97

Number

3000

2500

2000

1500

1000

500

0

Marketing

Farm Supply

Service

I I I I I I I I I I

1988 89 90 91 92 93 94 95 96 97

Figure 14- Cooperatives Removed from RBS’ List, 1988-97

Number

125 ,

25

1988 89 90 91 92 93 94 95 96 97

Dissolution

Merger

Acquisition

Other

Based on a list of U.S. farmer cooperatives maintained by RBS. Mergers also include consolidations. Other includes cooperatives

dropped due to activity and unknown and miscellaneous reasons.

29
in 1992. That year, 2,861 grain and farm supply cooperatives had an estimated 4,644 branches, 1,618 owned

by grain cooperatives and 2,777 by farm supply cooperatives. In 1997, number of grain and farm supply

cooperatives had dropped to 2,400, but number of

branches had increased to 5,433.

The trends in number of grain and farm supply

cooperatives and branches during this six-year period

is shown in table 12 and figure 15. Average number of

branches per cooperative was 1.6 in 1992 compared

with 2.3 in 1997. Table 12 shows the larger cooperatives accounted for the most branches, particularly

among the farm supply cooperatives. For cooperatives

with assets of $25 million or more in 1997,23 farm supply cooperatives had an estimated 1,576 branches and

47 grain cooperatives had 706 branches.

Memberships

Memberships in farmer cooperatives, 4.2 million

in 1988, dropped to 3.2 million in 1997 (table 13 and

figure 16). The long-term decline, in part, reflects the

decreasing number of farms and farmers in the United

Table iz- Memberships in marketing, farm supply,

and service cooperatives, 1988-97

Period 1 Marketing Farm supply Service Total

1,000

1988 1,912 2,142 141 4,196

1989 1,856 2,035 243 4,134

1990 1,882 2,006 232 4,119

1991 1,842 2,025 191 4,059

1992 1,839 2,020 212 4,072

1993 1,830 1,977 216 4,023

1994 1,805 1,936 245 3,986

1995 1,712 1,846 210 3,767

1996 1,682 1,795 187 3,664

1997 1,498 1,558 183 3,239

1 For years before 1988, see Cooperative Historical Statistics, CIR

1, Section 28, USDA, Revised April 1998. Cotton ginning

cooperatives, livestock shipping associations, and rice driers

were reclassified from marketing to service in 1989, 1992 and

1993, respectively.

Table 12- Estimated number of branches operated by grain and farm supply cooperatives, 1992-97

Asset Group (million dollars)

Year

1992

1993

1994

1995

1996

1997

1992

1993

1994

1995

1996

1997

1992

1993

1994

1995

1996

1997

1992

1993

1994

1995

1996

1997

Less than 5 5 - 9.9 10 - 24.9 25 or more Total

Number of Grain Cooperatives

902 211 114 1 6 1,243

808 233 131 21 1,193

772 226 138 2 4 1,159

658 223 174 3 5 1,090

618 229 176 4 3 1,066

616 196 155 4 7 1,014

Number of Branches

441 480 529 417 1,867

410 479 688 488 2,065

408 535 674 424 2,041

399 440 756 577 2,172

387 505 743 691 2,326

364 463 717 706 2,250

Number of Farm Supply Cooperatives

1,381 176 4 5 1 6 1,618

1,286 183 6 4 1 4 1,547

1,203 199 7 6 1 9 1,496

1,134 211 9 7 1 6 1,458

1,064 213 109 1 7 1,403

1,022 232 109 2 3 1,386

Number of Branches

724 482 208 1,363 2,777

642 455 297 1,320 2,714

610 468 344 1,335 2,787

571 502 460 1,396 2,929

542 523 526 1,438 3,029

481 579 576 1,576 3,183

30
Figure is- Grain and Farm Supply Cooperatives and Branches, 1992-97

Thousand

3_

1

-

01 I I I I I I

1992 93 94 95 96 97

Branches

Cooperatives

Figure I&- Cooperatives Memberships by Function, 1988-97

Million

Service

Farm Supply

Marketing

1988 89 90 91 92 93 94 95 96 97

31
States. Many farmers are members of more than one Member classification depends on the type of

cooperative and each membership is counted. cooperative used and may not be related to the memConsequently, number of memberships exceeds the ber’s product(s) marketed or supplies purchased. For

number of farmers. Total membership duplication can- example, a member may use a cooperative to market

not be eliminated with current reporting methods. only one of the farm products handled by the cooperaFigure 17- Cooperatives’ Net Business Volume, 1989-97

Billion dollars

110,

80

501 ’

I I I I I I I I I

1988 89 90 91 92 93 94 95 96 97

1 Actual sales were adjusted for price change based on 1988 = 100.

Actual

Real i

Table 14-Cooperatives’ use of full-time employees, 1994-97

Commodity

1994

Full-time Employees

1995 1996 1997

Cotton 2,105 2,136 1,787 1,995

Dairy 31,261 29,828 27,621 28,323

Fruits & vegetables 21,201 24,944 26,456 22,847

Grains & oilseeds 24,759 24,811 25,981 23,538

Livestock, & poultry 26,408 28,635 28,453 26,399

Rice 2,796 2,785 2,636 2,713

Sugar 3,264 3,422 3,482 3,473

Other products 5,795 7,590 7,109 9,191

Marketing 117,589 124.151 123,525 118,479

Farm supply 50,524 45,302 45,566 47,870

Total

6,906 5,946

175,019 175,399

5.704 5.850

174,795 172,199

32
tive, or a member may use a cooperative classified in

the marketing group to purchase one or more production items. 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

classifying cooperatives in this report). The membership, however, will be included arbitrarily in that classification.

Employees

Farmer cooperatives had an estimated 172,199

full-time employees in 1997, the smallest number in

the past four years. The largest number, 175,399, was

reported in 1995 (table 14). It appears that the number

of full-time employees may be declining for marketing

cooperatives and increasing for farm supply cooperatives.

From 1994 to 1997, marketing cooperative

employees totaled 124,151 in 1995 but decreased to

118,479 in 1997. Overall, total number of full-time

employees decreased 2,820 from 1994 to 1997. The

major change during this period was the significant

increase in number of full-time employees by the miscellaneous marketing cooperatives, from 5,795 in 1994

to 9,191 in 1997.

Business Volume

Net cooperative business, unadjusted for price

change, increased from $66.4 billion in 1988 to $106.5

billion in 1997 (table 15). Adjusted for price change,4

net cooperative business totaled $94 billion in 1997 (figure 17). Consequently, the difference between actual

and real net business volume in 1997 was $12.5 billion.

Four major commodity groups-dairy; grains

and oilseeds, excluding cottonseed; fruits and vegetables; and livestock-increased slightly from 82.3 percent of all marketing sales in 1988 to 83.4 percent in

1997. In 1988, dairy net volume was the largest commodity group ($17.8 billion), followed by grains and

oilseeds ($12.6 billion). But in 1997, grains and oilseeds

was the leading commodity group, with $24.6 billion

in net business volume, with the dairy group second

with $23.4 billion.

Trends in cooperatives’ sales of these major commodity groups for 1988-97 are shown in figure 18.

Grains and oilseeds sales show the strongest upward

trend during this period.

4 Marketing sales was deflated by the index of producer prices

received for “all farm products” (1996 = 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 (1996 = 100).

In the farm supply group, petroleum, feed, and

fertilizer were especially important. They accounted

for 72.6 percent of cooperatives’ total farm supply

sales in 1988 and 71.9 percent in 1997. The slight drop

reflected increased sales of crop protectants. In 1988,

they accounted for 8.7 percent of farm supply sales

versus 12.4 percent in 1997.

During 1988-97, cooperative sales of petroleum,

feed, fertilizer, and crop protectants trended upward,

while seed sales remained fairly stable (figure 19).

Net marketing of farm products totaled $49.1 billion in 1988 and increased every year except in 1991

Table 15- Cooperatives’ net business volume,

1988and1997l

Function

Net Volume

1988 1997

Products marketed:

Products marketed:

Beans and peas (dry edible)

Cotton

Dairy

Fruits and vegetables

Grains and oilseed+

Livestock

Nuts

Poultry

Rice

Sugar

Tobacco

Wool and mohair

Other products

142.1 I 89.0

1,876.4 3,003.g

17,792.7 23,374.l

6,604.O 9,268.2

12,628.5 24,639.2

3,338.5 7,460.3

793.9 880.3

I ,027.a 2,i 18.0

787.5 930.2

i ,a71.5 2,087.3

747.7 592.9

24.9 11.3

1.431.3 3 3.091.7

Total farm products 49,066.g

Supplies purchased:

Crop protectants

Feed

Fertilizer

Petroleum

Seed

Other supplies

Total farm supplies

1,339.2 3,125.5

3,807.o 5,988.o

2,976.8 5,371 .o

4,416.l 6,756.l

540.0 702.4

2,345.3 3,237.7

15,424.4 25,160.6

Services provided:

Trucking, cotton ginning,

storage, grinding, locker

plants, mist

Total business

1,939.i 3,647.3

66,430.4 106,474.2

Million dollars

77,646.2

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

3 Includes value of processed oilseeds.

3 3
Figure 18- Cooperatives’ Net Sales of Selected Commodities, 1988-97

Billion dollars

3c

25

20

15

10

5

0

If-

, -

I _

Grains & Oilseeds

Milk & Milk Products

Fruits CL Vegetables

Livestock

I I I I I I I I I I

1988 89 90 91 92 93 94 95 96 97

Figure NJ-- Cooperatives’ Net Sales of Selected Farm Supplies, 1988-97

Billion dollars

7,

Petroleum

Feed

Fertilizer

Crop Protectants

OL ’

I I I I I I I I I

1988 89 90 91 92 93 94 95 96 97

34
and 1997. In 1997, net business volume of farm products marketed decreased from the 1996 record of $79.4

billion (table 16). Aggregate farm supply sales

increased every year, from $15.4 billion in 1988 to $25.2

billion in 1997. Service receipts increased from $1.9 billion in 1988 to $3.6 billion in 1997. Beginning in 1990,

service receipts were expanded to include other

income and revenue.

Gross business volume was $82.1 billion in 1988

and reached a record $128.1 billion in 1996 before dropping to $126.5 billion in 1997. The biggest year-to-year

increase in business volume ($15.9 billion) was in 1996

due mainly to higher prices for grains and oilseeds.

Net Income

Since the 1998 level of $1.68 billion, net income

has been fluctuating and finally set a record at $2.36

billion in 1995. After a decline in 1996, net income rose

again, to $2.31 billion in 1997 (table 17 and figure 20).

Net income from own operations and other cooperatives varied, but reflected better economic times in

Table 17- Net income of farmer co-ops, 198847 l

Year

From own

operations

From other

cooperatives *

Million dollars

Total

i 988 1,532 148 1,680

i 989 1,543 308 i ,851

1990 1,110 330 1,440

1991 1,189 381 1,570

1992 i ,084 356 1,440

1993 1,041 318 I ,358

1994 1,628 335 1,963

1995 i ,820 544 2,363

1996 1,536 712 2,248

1997 1,629 685 2,314

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.

Table 16 Cooperatives’ gross and net business volumes, 198847 1

Gross volume Net volume

Farm Farm Farm Farm

Period 2 products supplies Services 3 Total products supplies Services 3 Total

Billion dollars

1988 56.2 24.0 1.9 82.1 49.1 15.4 1.9 66.4

I 989 60.3 25.8 2.0 88.1 53.2 16.9 2.0 72.1

1990 64.1 26.3 2.3 92.7 57.8 17.1 2.3 77.3

1991 61.4 26.8 2.5 90.8 56.2 17.9 2.5 76.6

1992 63.8 27.0 2.6 93.4 58.2 I a.5 2.6 79.3

1993 66.8 28.2 2.7 97.7 60.9 19.2 2.7 82.9

1994 72.1 30.4 3.0 105.5 65.5 20.8 3.0 89.3

1995 77.9 31 .o 3.3 112.2 69.3 21.2 3.3 93.8

1996 90.3 34.7 3.1 128.1 79.4 23.7 3.1 106.2

1997 85.8 37.1 3.6 126.5 77.6 25.2 3.6 106.5

Percent

I 988 68.4 29.2 2.4 100 73.9 23.2 2.9 100

I 989 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

1994 68.4 28.8 2.8 100 73.4 23.3 3.3 100

1995 69.5 27.6 2.9 100 73.9 22.6 3.5 100

1996 70.5 27.1 2.4 100 74.8 22.3 2.9 100

1997 67.8 29.3 2.9 100 72.9 23.7 3.4 100

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

* For years prior to 1988, see Cooperafive Historical Statistics, CIR 1, Section 26, USDA, Revised April 1998. 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.

35
Figure 2o- Cooperatives’ Net Income, 1988-97

Billion dollars

2.5

2

1.5

1

0.5

0

From Other

Cooperatives

From Own

Operations

1988 89 90 91 92 93 94 95 96 97

Figure 21- Cooperatives’ Net Worth and Liabilities, 1988-97

Billion dollars

50

40

3 0

2 0

10

0

1988 89 90 91 92 93 94 95 96 97

36
agriculture in the late 1990s compared with the economic conditions in the late 1980s and early 1990s. In

1988, refunds from other cooperatives totaled $148 million, or 8.8 percent of total net income. It reached a

high of 31.7 percent in 1996 before slipping to 29.6 percent of total net income, or $685 million, in 1997.

IV-Other Service Cooperatives

Other types of service cooperatives were operating in 1997 besides those directly related to marketing

and purchasing.

Balance Sheet Farm Credit System

From 1988 through 1993, farmer cooperatives

financed 43.8 percent to 44.3 percent of their assets

through member and patron equity. After a 1996

decline to 40.8 percent, the figure rose to 42.1 percent

in 1997 (table 18 and figure 21). This increase, the first

one since 1991, should help to strengthen cooperatives’

financial position.

Investments in other cooperatives as a percentage

of total assets was 9.4 percent in 1988, increased to 9.6

percent in 1990, but varied in succeeding years before

reaching 8.8 percent in 1997. In dollar terms, the

amount was $2.8 billion in 1988 and nearly $3.9 billion

in 1997.

The Farm Credit System (FCS) is a nationwide

network of financial cooperatives that lend to agriculture and rural America. 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, rural utilities, and to certain foreign or

domestic entities in connection with international

transactions.

FCS opened 1998 by representing 48 Federal

Land Bank Associations (FLBAs); 31 Federal Land

Credit Associations (FLCAs); 64 Production Credit

Associations (PCAs); 1 Agricllltural Credit Bank

Table 1% Combined balance sheet data of farmer cooperatives, 1988-97

Year

Assets Investments

from own in other

operations co-ops

Total Total Net

assets liabilities worth

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

1994 33,304 2,656 35,960 20,339 15,621

1995 37,314 2,960 40,274 23,643 16,631

1996 39,193 3,395 42,588 25,195 17,392

1997 40,110 3,886 43,996 25.459 18,537

1988 90.6 9.4 100 56.2 43.8

1989 91.3 8.7 100 55.1 44.9

1990 90.4 9.6 100 55.2 44.8

1991 92.0 8.0 100 55.1 44.9

1992 92.4 7.6 100 55.6 44.4

1993 92.2 7.8 100 55.7 44.3

1994 92.6 7.4 100 56.6 43.4

1995 92.6 7.4 100 58.7 41.3

1996 92.0 8.0 100 59.2 40.8

1997 91.2 8.8 100 57.9 42.1

Million dollars

Percent of total assets

37
(ACB), (CoBank, ACB); 60 Agricultural Credit

Associations (ACAs); 6 Farm Credit Banks (FCBs); and

1 Bank for Cooperatives (BC) (table 19).

The combined assets of FCS for 1997 totaled $78.1

billion-up 4.3 percent from $74.9 billion in 1996 (table

20). Net worth was nearly $11.7 billion, up 9 percent from

1996, and net income was $1.3 billion, up 5.5 percent.

The FLBAs originate and service long-term loans

made by FCBs. Loan proceeds are used to purchase

agricultural real estate and rural homes and refinance

agricultural real estate and rural home mortgages.

Of the 31 FLCAs operating on Jan. 1,1998,19 were

in AgriBank, 11 in Western, and one in Ag America districts. FLCAs were authorized by the Agricultural

Credit Act of 1987. FLCAs are former FLBAs that were

given direct-lending authority by FCBs.

PCAs provide farmers and ranchers short- and

intermediate-term loans for various purposes, such as

operating expenses, farm equipment and livestock purchases, and farm buildings and other capital improvements. Of the 64 PCAs, 18 were located in the AgriBank,

FCB, district and 18 in the FCB of Wichita territory

ACAs resulted from the merger of FLBAs or

FLCAs with PCAs. ACAs offer both long- and shortterm loans. Of the 60 ACAs operating on Jan. 1,1998,

39 of them were in AgFirst, FCB, territory and 11 in the

AgriBank, FCB, district.

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

districts. Combined assets of the six FCBs, one ACB,

and one BC totaled $71.1 billion in 1997, up from $68.6

billion in 1996 (table 21). Net worth in 1997 was $6.1

billion and net loans totaled $58.5 billion. Net income

grew from $622 million in 1996 to $692 million in 1997.

St. Paul Bank for Cooperatives, the sole BC, is

based in Minnesota. It offers a complete line of credit

and related financial services to agricultural cooperatives, rural utilities, and other eligible customers

nationwide. It also finances U.S. agricultural exports

and imports.

Table 20- Farm Credit System’s combined assets, net

worth, and net income, 1993-97’

Year Assets Net worth Net income

Million dollars

1993 64,798 8,312 1,217

1994 66,376 8,980 1,005

1995 71,438 9,863 1,165

1996 74,917 10,729 1,201

1997 78,144 11,694 1,267

1 Farm Credit System, Annual Information Statements, 1997

Federal Farm Credit Banks, Funding Corporation, Jersey City,

NJ., Feb., 1998. p.p. 3.

Table 21- Farm Credit Banks’ combined assets, net

worth, net loans, and net income, 1993-97 1

Year Assets Net worth Net loans Net income

Million dollars

1993 60,508 5.348 50,327 605

1994 61,305 5,377 50,763 468

1995 65,754 5,629 54,525 555

1996 68,550 5,798 56,571 622

1997 71,122 6,069 58,502 692

1 As of December 31 of each year. Includes six Farm Credit Banks,

one Agricultural Credit Bank, and one Bank for Cooperatives.

Source: Farm Credit Administration, Repoti on fhe Financial

Condition and Performance of the Farm Credit System, 1997,

McLean, VA, p. 41.

Table 1% Farm Credit Association structure, Jan. 1, 1998 I

District or bank affiliation FLBA PCA ACA FLCA ACB FCB BC

CoBank, ACB*

AgFirst FCB

AgriBank, FCB

FCB of Wichita

FCB of Texas

Western FCB

AgAmerica, FCB

St. Paul BC

Total

1

18

22 18

26 16

10

1

- -

48 64

Number

4 1

39 1

11 19 1

1

1

5 11 1

1 1 1

- - - - 1

60 31 1 6 1

= No bank affiliation.

1 FLBA = Federal Land Bank Association; PCA = Production Credit Association; ACA = Agricultural Credit Association; FLCA = Federal Land

Credit Association; ACB = Agricultural Credit Bank; FCB = Farm Credit Bank: and BC= Bank for Cooperatives

2 CoBank, ACB serves cooperatives nationwide and ACAs in the former Springfield District.

Source: Farm Credit Administration, Report on the Financial Condition and Performance of the Farm Credit System, 1997 McLean, VA, p. 34.

38
farmer cooperatives, rural utilities, ACAs, and other

businesses serving rural America. CoBank also finances

U.S. agricultural exports and provides international

banking services for farmer cooperatives.

The combined assets of the St. Paul Bank and

CoBank increased from $20.8 billion in 1996 to $21.3

billion in 1997. Net worth totaled $1.7 billion. As of

Dec. 31,1997, the two banks had net loans of $16.8 billion and net income of $176 million (table 22).

Rural Telephone Cooperatives

As of Dec. 31,1997, the Nation had 229 rural telephone cooperatives borrowing from the Rural

Electrification Administration (REA), with revenues of

$1,264 million and 1,476,OOO subscriber members. Iowa

had the most cooperatives, 32, or 14 percent of the

total. South Carolina accounted for the most subscriber

members (11.7 percent) of any State (table 23). Texas

led all States in revenue, with $134 million, or 10.6 percent of the total.

CoBank, ACB, provides short-, intermediate-, and

long-term credit to agricultural cooperatives, rural utility

systems, and other rural businesses nationwide. It also

provides credit to the Farm Credit Associations serving

agricultural producers in the Northeast. CoBank, ACB, is

owned by about 2,300 stockholders, consisting of U.S.

Table 22- Combined assets, net worth, net loans, and

net income of St. Paul Bank for

Cooperatives and CoBank, ACB, 1993-97 1

Year Assets Net worth Net loans Net income

Million dollars

1993 18,533 1,358 14,729 181

1994 18,225 1,355 14,954 142

1995 21,326 1,488 17,553 175

1996 20,837 1,571 16,871 156

1997 21,282 1,674 16,821 176

1 As of December 31 of each year. Source: CoBank, ACB, CoSank

1997 Annual Repoti Financial Information: Rural America’s

Cooperative Bank, Englewood, CO, and St. Paul Bank, 7997

Annual Report, St. Paul, MN.

Table23- Number, participation, and level of activity of rUral telephonelco-ops by State, Dec. 31, 1997*

State Cooperatives

Members

(subscribers) Revenue State

Members

Cooperatives (subscribers) Revenue

Number 1,000

3 26

7 63

1 4

2 9

Mil. dol.

19

71

7

9

Number 1,000 Mil. dol.

Alabama

Alaska

Arizona

Arkansas

California

Nevada

New Hampshire

New Jersey

New Mexico

New York

Colorado

Delaware

Florida

Georgia

Idaho

9

4 34 23

2 10 7

North Carolina 9 146 81

North Dakota 10 59 58

Ohio 5 5 4

Oklahoma 1 10 15

Oregon 7 37 29

Illinois 7 24 23 Pennsylvania

Indiana 8 36 27 South Carolina

Iowa 32 65 60 South Dakota

Kansas 10 63 78 Tennessee

Kentucky 8 100 68 Texas

Louisiana

Maine

Maryland

Michigan

Minnesota 19 81 60

Utah

Vermont

Virginia

Washington

West Virginia

Mississippi

Missouri

Montana

Nebraska

8 50 49

7 57 68

5 10 8

Wisconsin

Wyoming

United States

5 53

6 172 109

12

7

18

2

5

46

143

117

8

19

44

88

134

10

13

4

33

2

2

11

1

-

229

4

45

1

1,476 1,264

- = None reported in the State.

1 Source: Rural Utilities Service, USDA.

2 Totals may not add due to rounding.

3 9
Rural Electric Cooperatives

The Nation’s 744 rural electric cooperatives had 11.1

million consumer members and revenue of $23.4 billion

(table 24). Texas led all States, with 49 associations, or 6.6

percent of the total, while Georgia led with the most consumer members, 1,049, or 9.5 percent, and largest revenue, $2,465 million, or 10.5 percent of the total.

Rural Credit Unions

The 633 rural credit unions reported nearly 4 million members and savings of $15.9 billion. Wisconsin

led all States in number of associations, with 68, or 10.7

percent of the total, while California led in number of

members, with 997,000, or 25.2 percent of the total.

California also led all States in credit union savings,

with $4.8 billion, or 30.1 percent, of the $15.9 billion

(table 25), up from $4.2 billion, or 27.6 percent in 1996.

Dairy Herd Improvement Associations

Dairy Herd Improvement Associations (DHIA)

had 38,920 memberships in 1997 (table 26), down from

41,277 in 1996. The DHIAs tested 4.45 million cows in

1997, down from 4.52 million in 1996. Wisconsin

(10,634), Pennsylvania (5,026), Minnesota (4,638), and

New York (3,055) combined accounted for 60 percent

of total members, up slightly from 58.2 percent in 1996.

About 862,400, or 19.4 percent, of the cows tested were

in California, up from 18.7 percent.

Table 24- Number, participation, and level of activity of rural electric lco-ops by State, Dec. 31, 1997 2

State Cooperatives

Members

(subscribers) Revenue State

Members

Cooperatives (subscribers) Revenue

Alabama 22

Alaska 11

Arizona 5

Arkansas 18

California 3

Colorado 21 317 857 North Carolina

Delaware 1 54 59 North Dakota

Florida 14 578 1,246 Ohio

Georgia 39 1,049 2,465 Oklahoma

Idaho 6 45 57 Oregon

Illinois 17 138 248 Pennsylvania

Indiana 27 288 612 South Carolina

Iowa 36 143 384 South Dakota

Kansas 31 154 418 Tennessee

Kentucky 28 631 1,580 Texas

Louisiana 11 279 766 Utah

Maine 3 14 15 Vermont

Maryland 2 151 251 Virginia

Michigan IO 198 153 Washington

Minnesota 38 344 772 West Virginia

Mississippi 19 456 929

Missouri 44 529 1,397

Montana 23 94 131

Nebraska 2 8 17

1,000 Mil. dol.

433 783

80 221

119 209

386 994

15 21

Nevada

New Hampshire

New Jersey

New Mexico

New York

Wisconsin

Wyoming

United States

Number

1

1

1

17

4

25

23

22

24

9

12

22

31

21

49

1

I

12

6

1

20

IO

-

744

1,000

5

69

11

172

15

666

115

282

316

62

190

538

122

778

614

7

9

344

33

6

149

56

11,063

Mil. dol.

27

96

13

383

13

1,465

869

335

538

85

207

1,156

220

1,019

1,345

9

8

502

47

5

327

122

23,378

1 Source: Rural Utilities Service, USDA.

2 Totals may not add due to rounding.

40
Table 2% Number, participation, and level of activity of rural credit unions l

by State, Dec. 31, 19972

State Cooperatives Members Savings State Cooperatives Members Savings

Alabama 10

Alaska 1

Arizona 4

Arkansas 3

California 58

1,000

22

20

16

7

997

75 Montana 11

89 Nebraska 16

40 Nevada 6

23 New Hampshire 2

4,792 New Jersey 6

1,000

54

14

49

1

12

189

40

284

1

19

Colorado 15 20 72 New Mexico 3 37 151

Connecticut 1 1 1 New York 29 168 676

Delaware 1 3 9 North Carolina 14 33 74

Florida 15 97 376 North Dakota 32 100 532

Georgia 11 33 82 Ohio 12 39 60

Hawaii 17 97 554 Oklahoma 5 8 35

Idaho 9 15 38 Oregon 10 79 296

Illinois 11 60 231 Pennsylvania 21 32 72

Indiana 17 68 488 Rhode Island 3 59 476

Iowa 7 8 19 South Carolina 3 8 50

Kansas 17 77 223 South Dakota 8 11 27

Kentucky 7 31 75 Tennessee 8 14 35

Louisiana 9 15 38 Texas 34 111 354

Maine 10 24 88 Utah 9 14 42

Maryland 5 54 237 Vermont 3 18 44

Massachusetts 5 IO 21 Virginia 6 44 144

Michigan 26 401 1,155 Washington 15 151 654

Minnesota 35 201 776 West Virginia 3 4 9

Mississippi 4 12 33 Wisconsin 68 583 2,075

Missouri 6 18 52 Wyoming 2 2 5

Number Mil. dol.

United States

Number

-

633

Mil. dol.

3,953 15,929

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

* Totals may not add due to rounding.

41
Table 26 Number, participation, and level of activity of dairy herd improvement associations l

by State, Dec. 31, 1997 *

State

Members cows

(herds) tested State

Members cows

(herds) tested

Number 1,000 Number 1,000

Alabama 80 13.2 Montana 67 7.9

Alaska 2 P) Nebraska 310 33.1

Arizona 6 1 67.4 Nevada 23 9.7

Arkansas 93 9.0 New Hampshire 122 10.6

California 1,224 862.4 New Jersey 102 8.6

Colorado 104 40.6 New Mexico 30 34.6

Connecticut 130 15.2 New York 3,055 320.7

Delaware 33 4.5 North Carolina 279 44.8

Florida 120 62.7 North Dakota 99 8.3

Georgia 241 56.7 Ohio 1,513 118.0

Hawaii 7 2.9 Oklahoma 157 18.5

Idaho 413 101.6 Oregon 283 51.7

Illinois 803 61.4 Pennsylvania 5,026 332.1

Indiana 608 49.4 Rhode Island 7 .5

Iowa 1,647 117.0 South Carolina 95 18.4

Kansas 403 37.5 South Dakota 364 30.6

Kentucky 332 28.1 Tennessee 326 39.1

Louisiana 160 20.9 Texas 420 187.7

Maine 176 15.3 Utah 300 52.2

Maryland 494 42.4 Vermont 587 56.2

Massachusetts 145 11.9 Virginia 583 74.4

Michigan 1,317 140.2 Washington 362 91 .o

Minnesota 4,638 320.1 West Virginia 83 8.5

Mississippi 96 15.9 Wisconsin 10,634 701 .o

Missouri 583 48.7 Wyoming 5 1.1

- -

United States4 38,920 4,446.5

1 Source: Agricultural Research Service, USDA.

* Totals may not add due to rounding.

3 Fewer than 500.

4 Includes Puerto Rico and the Virgin Islands with 178 members and 42,344 cows tested.

42
Appendix Figure I- Cooperatives’ Net Business Volume, 1973-97

Billion dollars

8 0

6 0

1973 75 77 79 81 8 3 8 5

1 Total includes value of related services and other income.

8 7 8 9 91 9 3 9 5 9 7

Total ’

Marketing

Farm Supply

Appendix Figure 2- Cooperatives’ Gross and Net Business Volumes, 1973-97

Billion dollars

14cl12cI -

100I -

80I -

6 0I -

4 0I -

2 0I -

0-

Gross I

Net2

I I I I I I I I I I I I I I I I I I I I I I I I I

197375 77 79 81 83 85 87 89 91 9 3 9 5 9 7

1 includes intercooperative business. *
Appendix Figure 3--- U.S. Farms and Farmer Cooperative Memberships, 1973-97

Million

7

6

0”“““““““““““’

1973 75 77 79 81 83 85 87 89 91 93 95 97

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

Memberships1

Farms

Appendix Figure 4- Distribution of Farmer Cooperatives by Type, 1997

Grain & Oilseed 26.7%

Cotton 0.4%

Livestock 2.3%

Service 12.3%

Nut 0.5%

Dairy 6.2%

Poultry 0.5%

Fruit & Vegetable 6.8%

Other Marketing I 7%

Tobacco 0.7%

Farm Supply 36.6%

Percent based on 3,791 cooperatives.

1 Includes dry bean and pea, wool and mohair, rice, sugar, and miscellaneous marketing cooperatives,
Appendix Figure 5- Distribution of Net Income by Type of Cooperative, 1997

Dairy 16%

Grailn & Oilseed 18.9%

Cotton 2.9%

Service 7.2%

Farm Supply 36%

.- Other Marketing 1 2.5%

Livestock & Poultry 8.3%

Fruit & Vegetable 8.2%

Percent based on net income of $2.31 billion.

1 Includes dry bean and pea, nut, wool and mohair, tobacco, rice, sugar, fishery, and other miscellaneous marketing cooperatives.

Appendix Figure 6- Distribution of Losses by Type of Cooperative, 1997

Farm SupplyI 23.6%

Other Marketing I 32.5%

Grain & Oilseed 18‘.l%

Service 3%

Fruit & Vegetable 1

Dairy 9.5%

Livestock & Poultry 0.1%

Sugar 11.6%

.6%

Percent based on losses of $163 million.

1 Includes dry bean and pea, nut, wool and mohair, tobacco, rice, fishery, and other miscellaneous marketing cooperatives.

45
Appendix Figure 7- Distribution of Net Worth by Type of Cooperative, 1997

Dairy 13.3%

Cotton 2.1%

Grain & Oilseed 19.9%

Service 3%

Fruit & Vegetable 8.9%

Livestock & Poultry 7.4%

Rice 1.3%

Sugar 3%

Other Marketing l 7.6%

Farm Supply 33.5%

Percent based on net worth of $18.5 billion.

i Includes dry bean and pea, nut, wool and mohair, tobacco, fishery, and other miscellaneous marketing cooperatives.

Appendix Figure 8- Distribution of Full-Time Employees by Type of Cooperative, 1997

Livestock &Poultry 15.3%

Farm Supply 27.8%

Dairy 16.4%

Sugar 2%

Fruit & Vegetable 13.3%

Service 3.4%

Grain & Oilseed 13.7%

Cotton 1.2%

Other Marketing l 5.3%

Rice 1.6%

Percent based on 174,795 full-time employees.

1 Includes dry bean and pea, nut, wool and mohair, tobacco, fishery, and other miscellaneous marketing cooperatives.
Appendix Figure 9- Assets Per Full-Time Employee by Type of Cooperative, 1997

Sugar

cotton

Grain & Oilseed

Other Co-ops 1

Farm Supply

Fruit & Vegetable

Rice

Dairy

Livestock & Poultry

Service

0 300

Thousand

’ includes dry bean and pea, nut, tobacco, wool and mohair, fishery,

and other miscellaneous marketing cooperatives.

Appendix Figure lo- COOperatiVeS’ hvestments in Other Cooperatives, 1988-97

Billion dollars

2.5

1988 89 90 91 92 93 94 95 96 97

47
U.S. Department of Agriculture

Rural Business-Cooperative Service

Stop 3250

Washington, D.C. 20250-3250

Rural Business-Cooperative Service (RBS) provides research,

management, and educational assistance to cooperatives to

strengthen the economic position of farmers and other rural

residents. It works directly with cooperative leaders and

Federal and State agencies to improve organization,

leadership, and operation of cooperatives and to give guidance

to further development.

The cooperative segment of RBS (1) helps farmers and other

rural residents develop cooperatives 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. RBS also publishes research and

educational materials and issues Rural Cooperatives magazine.

The U.S. Department of Agriculture (USDA) prohibits

discrimination in all its programs and activities on the basis of

race, color, national origin, gender, religion, age, disability,

political beliefs, sexual orientation, and marital or family

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 USDA’s TARGET Center at

(202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director,

Office of Civil Rights, Room 326-W, Whitten Building, 14th and

Independence Avenue, SW, Washington, D.C. 20250-9410 or

call (202) 720-5964 (voice or TDD). USDA is an equal

opportunity provider and employer.