The U.S. Department of Agriculture has long been the 

leading advocate for cooperatives in rural America. 

The goal of the Cooperative Programs of USDA Rural 

Development is to promote understanding and use of 

the cooperative form of business. This is accomplished 

through education (including a large library of co-op 

publications and a bimonthly co-op journal), research 

and statistics, and technical assistance. USDA Rural 

Development also administers programs that provide 

financial support to co-ops. While agricultural marketing and supply cooperatives remain a primary focus of 

USDA’s efforts, Rural Development research and 

co-op educational products help all types of rural cooperatives.

What Is a Cooperative?

User-owned cooperatives process and market products, purchase production supplies or consumer

goods, provide housing and credit, build and operate 

rural utilities, and provide other services needed by 

rural residents. By working together for their mutual 

benefit in cooperatives, farmers, ranchers, and other 

rural residents are often able to reduce costs, obtain 

services that might otherwise be unavailable, and 

achieve greater returns for their products.

Cooperatives, both rural and urban, have played an 

important role in the American economy for more than 

100 years. A recent, USDA-sponsored study found 

that there are 29,000 U.S. cooperatives; nearly onethird of the population belongs to some type of cooperative. Application of the cooperative business structure 

in rural economies is virtually limitless.

Research

Cooperative Programs conducts research to provide a 

knowledge base to help cooperatives deal with changing markets and business trends. Studies include 

financial, structural, managerial, policy, member governance, legal, and social issues, as well as various 

other economic activities of cooperatives.

Research is designed to have direct application to current and emerging requirements of cooperatives. 

A major challenge is to analyze industry structure and 

cooperative operational practices to determine the 

changes required to maintain or achieve a produceroriented marketing system. Research studies have 

focused on capitalization plans used by cooperatives, 

identification of new niche markets for cooperatives, 

and opportunities and obstacles cooperatives face 

when exporting goods overseas.

Education and Information

The Cooperative Marketing Act of 1926 mandates that 

USDA “...promote the knowledge of cooperative principles and practices and cooperate in promoting such 

knowledge with educational and marketing agencies, 

cooperative associations, and others.” To meet this 

goal, USDA provides a wide range of cooperative education publications, materials, and programs. 

Cooperative Programs maintains a storehouse of information about cooperatives which it makes available to 

the public through more than 150 research reports, 

educational publications, and videos covering all 

aspects of cooperative operations. A bimonthly magazine, Rural Cooperatives, reports significant achievements by cooperatives and highlights of Cooperative 

Programs research, technical assistance, and educational activities. To access USDA’s co-op library, visit: 

http://www.rurdev.usda.gov/BCP_Coop_

LibraryOfPubs.htm.

Co-op Statistics 

Cooperative statistics are collected to detect growth 

trends and changes in structure and operations of the 

Nation’s farmer-owned cooperatives. Data help identify 

Cooperative Services

USDA Rural Development

Rural Business-Cooperative 

Programs

United States

Department of

Agriculture
and support research and technical assistance activities. This information is used extensively by legislative 

and executive branches of government in formulating 

agricultural and cooperative-related policy.

Co-op Development and Technical 

Assistance

 Cooperative Programs has limited staff at its national 

office and in some States that can provide help in the 

formation of new cooperatives and in providing other 

types of technical assistance to existing co-ops. It often 

makes referrals to other service providers in each 

State – including co-op development centers – that can 

offer this type of assistance. 

Financial Programs

Cooperative Programs also administers a number of 

grant programs that can provide financial help to cooperatives. These include: 

• Value-Added Producer Grants (VAPG). These 

grants may be used for planning activities and for 

working capital for marketing value-added agricultural products and for farm-based renewable energy. Eligible applicants are independent producers, 

farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producerbased business ventures. For more information, 

visit: http://www.rurdev.usda.gov/BCP_VAPG.html .

• Rural Cooperative Development Grant Program 

(RCDG). Rural Cooperative Development Grants 

are made for establishing and operating centers for 

cooperative development for the primary purpose 

of improving the economic condition of rural areas 

through the development of new cooperatives and 

improving operations of existing cooperatives. For 

more information, visit: http://www.rurdev.usda.gov/

BCP_RCDG.html.

• Small Socially-Disadvantaged Producer Grant 

(SSDPG). This program provides technical assistance to small, socially-disadvantaged agricultural 

producers through eligible cooperatives, co-op 

development centers, and associations of cooperatives. For more information, visit: http://www.rurdev.

usda.gov/BCP_SSDPG.html. 

• Rural Business Opportunity Grants (RBOG). Rural 

communities with acute needs can receive technical assistance aimed at promoting sustainable economic development through business development. Eligible applicants include cooperatives with 

members who are primarily rural residents. For 

more information, visit: http://www.rurdev.usda.gov/

BCP_RBOG.html. 

2

• Delta Health Care Services Grant Program. This 

program provides financial assistance to address 

the continued, unmet health needs in the 

Mississippi River Delta Region through cooperation 

among health care professionals, institutions of 

higher education, research institutions, and other 

entities in the Delta Region. For more information, 

visit: http://www.rurdev.usda.gov/BCP_

DeltaHealthCare.html

For More Information

For further information or assistance for cooperatives, 

contact:

USDA Rural Development

Cooperative Programs

Stop 3255

Washington, DC 20250-3255

Telephone: (202) 720-7558

FAX: (202) 720-4641

e-mail: coopinfo@rurdev.usda.gov website: http://www.

rurdev.usda.gov

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the bases of race, color, national 

origin, age, disability, sex, gender identity, religion, reprisal, 

and where applicable, political beliefs, marital status, 

familial or parental status, sexual orientation, or all or part 

of an individual's income is derived from any public assistance program, or protected genetic information in 

employment or in any program or activity conducted or 

funded by the Department. (Not all prohibited bases will 

apply to all programs and/or employment activities.)

If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination 

Complaint Form (PDF), found online at http://www.ascr.

usda.gov/complaint_filing_cust.html, or at any USDA 

office, or call (866) 632-9992 to request the form. You may 

also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, 

Director, Office of Adjudication, 1400 Independence 

Avenue, S.W., Washington, D.C. 20250-9410, by fax 

(202) 690-7442 or email at program.intake@usda.gov.

Individuals who are deaf, hard of hearing or have speech 

disabilities and you wish to file either an EEO or program 

complaint please contact USDA through the Federal 

Relay Service at (800) 877-8339 or (800) 845-6136 (in 

Spanish).

Persons with disabilities who wish to file a program complaint, please see information above on how to contact us 

by mail directly or by email. If you require alternative 

means of communication for program information (e.g., 

Braille, large print, audiotape, etc.) please contact USDA's 

TARGET Center at (202) 720-2600 (voice and TDD).