Cooperatives
Overview
Individual farmers cannot consistently and reliably control the price they receive for their agricultural products or the price they pay for the inputs needed to produce those goods. Thus, farmers often form cooperatives so that they can enhance their economic market power. Although there is no universally accepted definition, a cooperative can be defined as a legal business entity created under state law that is owned and operated for the purpose of benefiting those individuals who use its services. A farmer cooperative can serve one or more functions including but not limited to providing loans to farmers, supplying information pertinent to agricultural production, selling inputs necessary to agricultural production, bargaining on behalf of its members, providing transportation services, and marketing agricultural products for its members.
Read the full overview.
Note: Recently added resources are posted at the top of the applicable sections.
Major Statutes
Capper Volstead Act, 7 U.S.C. §§ 291-292
Sherman Act, 15 U.S.C. §§ 1-11
Clayton Act, 15 U.S.C. §§ 12-17
Internal Revenue Code, 26 U.S.C. § 521
Internal Revenue Code, 26 U.S.C. §§ 1381-1388
Agricultural Fair Practices Act, 7 U.S.C. §§ 2301-2306
Cooperative Marketing Act, 7 U.S.C. §§ 451-457
Agricultural Marketing Act, 12 U.S.C. §§ 1141-1141j
Agricultural Adjustment Act, 7 U.S.C. §§ 601-659
Farm Credit Act, 12 U.S.C. §§ 2001-2279
Discrimination Against Farmers Cooperatives Associations by Boards of Trade, 15 U.S.C. §§ 431-433
Regulations
Internal Revenue Service Regulations, 26 C.F.R. §§ 1.1381-1.1388
Federal Register Rules Open for Comment
Center published Federal Register Digest
Case Law
Note: Recently summarized cases are listed and linked in Recent Postings.
Case Law Index for Cooperatives
Center Research Publications
Biofuels: Policy and Business Organization Issues (O'Brien, 2006)
The Farmer's Legal Guide to Producer Marketing Associations (O'Brien, Hamilton & Luedeman, 2006)
Hedge to Arrive Contracts: Futures or Forwards (Gokhalé, 2005)
Legal and Policy Considerations of Investor-Friendly Cooperatives (O'Brien, 2005)
An Overview of Organizational and Ownership Options Available to Agricultural Enterprises:
Part 1; Part 2 (Goforth, 2002)
Introduction to Federal Securities Laws (Goforth, 2002)
Reference Resources
USDA
Rural Business-Cooperative Service
Rural Cooperatives Magazine
Rural Cooperatives Publications Catalog
Rural Development 2002 Farm Bill
Problems and Issues Facing Rural Cooperatives (Gray and Kraenzle, RMS, 2002)
Income Tax Treatment of Cooperatives (Frederick, RBS, 2005 ed.)
Congressional Resources
Reports on Cooperatives (Government Accountability Office)
Other Federal Resources
Export Trading Company Act of 1982
Publications
Cooperatives: Principles and Practices in the 21st Century (Zeuli and Cropp. U. WI Extension, 2004)
Additional Resources
Center for Cooperatives (U. CA - Davis)
Center for Cooperatives (U. WI)
Committee for the Promotion and Advancement of Cooperatives
Cooperatives (Food and Agriculture Organization of the United Nations)
Database of Cooperative Law (International Labor Organization)
International Co-operative Agricultural Organisation
National Cooperative Business Association
National Council of Farmer Cooperatives
