U.S. Agricultural Cooperatives - 1996 statistics

Farmer-owned cooperatives in the United States have set new business volume and net income records for the second consecutive year. According to Agriculture Under Secretary for Rural Development, Jill Long Thompson, the nation's 3,884 farmer cooperatives reported record net business volume of $106 billion for 1996, a 13 per cent increase from the previous record of $94 billion set in 1995. Cooperatives also enjoyed recorded net income of $2.37 billion, up from $2.33 billion in 1995.

Primarily the record business volume year for the nation's farmer cooperatives was due to increased prices for grains and oilseeds and farm supplies. Cooperative sales of grains and oilseeds increased $7.8 billion, or more than 39 percent, from 1995. Farm supply sales increased $2.4 billion, or more than 11 percent.

Total 1996 marketing sales by cooperatives climbed more than 14 percent, to $79 billion. Cooperative net business volume was up for all commodity groups except rice and cotton. Rice revenues were stable, while cotton revenues dropped more than six percent. Income from services provided by cooperatives and other miscellaneous income was down $192 million, or nearly six percent.

Cooperatives sold farm supplies worth nearly $24 billion in 1996. Increases in petroleum (nearly 21 percent) and fertilizer (nearly 11 percent) sales were primarily responsible for the augment in farm supply sales.

While net income for all cooperatives changed only slightly from 1995, the change was dramatic among some types of cooperatives. Net income for farm supply cooperatives -- those that primarily obtain fertilizer, crop protectants and other inputs for their members -- increased nearly 17 percent, from $808.2 million in 1995 to $942.7 million in 1996.

Marketing cooperatives -- those that primarily sell, bargain and/or process crops, livestock and livestock products for their members -- saw net income dip 5.6 percent. Sugar cooperatives' net income increased significantly, due to decreased losses in 1996. Fruit and vegetable cooperatives' net income decreased from $175.9 million in 1995 to $58 million in 1996, a drop of 67 percent. Depressed prices of certain vegetables was the major reason for the lower net income in this sector.

Combined assets of $42.6 billion were up $2.3 billion or nearly six percent. Total liabilities of $25.2 billion increased more than six percent. Net worth of $27.4 billion was nearly five percent.

There were 3,884 U.S. farmer cooperatives in 1996, 122 fewer than in 1995. Two of every five cooperatives removed from USDA's list of U.S. farmer cooperatives were due to mergers/consolidations. About the same ratio was removed because of discontinued operations. Twelve cooperatives were added to the list.

Memberships in farmer cooperatives totaled 3.6 million in 1996, down more than three percent. The number of memberships was larger than the number of farms because many farmers belong to and use the services of more than one cooperative.

Table 1--FARMER COOPERATIVES' NET BUSINESS VOLUME, 1996 AND 1995 ¹

Table 2--FARMER COOPERATIVES' NET INCOME, 1996 AND 1995 ¹

Table 3--FARMER COOPERATIVE NUMBERS AND MEMBERSHIPS, 1996 AND 1995 ¹