- -   AGRICULTURE CORE CURRICULUM   - -

(CLF1000)  Advanced Core Cluster:  AGRICULTURAL BUSINESS MANAGEMENT

    (CLF1500)  Unit Title:  COOPERATIVES

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    (CLF1502)  Topic:  AGRICULTURAL COOPERATIVES          Time        Year(s)
                       IN THE UNITED STATES               1 Hour       3 / 4
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           Topic Objectives:  Upon completion of this lesson the student
                              will be able to:

           Learning Outcome #:

                (M-1) - Describe the basis for the original formation of 
                        agricultural cooperatives and how they were organized.

           Special Materials and Equipment:  

           References:  Agricultural Council of California.  EXPLORING FARMER 
                          COOPERATIVES (Chapters 2 and 3).

                        Cobia, David W. (Ed.).  (1989).  COOPERATIVES IN  
                          AGRICULTURE.  Englewood Cliffs, NJ: Prentice-Hall.

           Resources:   GROWING GOLD, a 23-minute VHS tape describing the 
                          historical development of agricultural cooperatives 
                          in California.  Available from: Agricultural Council 
                          of California 1225 "H" St., Sacramento, CA  95814.

                        THE COOPERATIVE STORY: HISTORY, a 12-minute VHS tape 
                          describing the development of many kinds of 
                          cooperatives in the U.S.  Available from: California 
                          Farm Bureau, Ag in the Classroom Program, 1601 
                          Exposition Blvd., Sacramento, CA  95815.  
                          (916) 924-4380

           Evaluation:  Unit Exam

TOPIC PRESENTATION:  AGRICULTURAL COOPERATIVES IN THE UNITED STATES

A.  Why do farmers organize agricultural cooperatives?

    1.  Farmers organize agricultural cooperatives to fulfill their 
        mutual economic needs.

    2.  Farmers form agricultural cooperatives to gain more control over the 
        purchase of farm supplies, the  marketing of their commodities, and 
        other necessary services.

    3.  Producers organize agricultural cooperatives in hopes of increasing 
        their net farm income by acquiring farm supplies and marketing their 
        commodities at cost.

B.  Historical Development of Agricultural Cooperatives in the U.S.

    1.  Early Agricultural Cooperatives

        a.  The first formal agricultural cooperative was formed in the U.S. 
            in 1810 in Goshen, CN.  It produced and marketed butter.

        b.  In the 1850's, cooperatives were formed in the Midwest to market 
            hogs and grain. 

        c.  The first known supply cooperative was formed in 1863 to purchase 
            fertilizer at wholesale for farmers in New York.

    2.  Post-Civil War Development of Agricultural Cooperatives by National 
        Farm Organizations

        a.  Farmers discontent over economic conditions forced the National 
            Grange into organizing cooperatives in the 1860's and 1870's.  
            Many were formed and many failed; however, many farmers became 
            familiar with cooperative action as a solution to shared economic 
            problems.
  
        b.  In 1906, the American Society of Equity demonstrated the 
            effectiveness of pooling and market control by organizing tobacco 
            farmers.

        c.  The American Farm Bureau and the National Farmers' Union fostered
            the development of many of today's large agricultural 
            cooperatives.

C.  Encouragement of Agricultural Cooperatives by the U.S. Federal Government

    1.  During the 1920's and 1930's, the federal government passed important 
        legislation which encouraged the development of agricultural 
        cooperatives.

D.  Agricultural Cooperatives Today

    1.  There are over 5,000 agricultural cooperatives in the U.S. today.

        a.  About 61% of U.S. agricultural cooperatives are involved in 
            marketing and bargaining.

        b.  About 36% of U.S. agricultural cooperatives provide farm supplies
            to their members.

        c.  The remaining 3% of agricultural cooperatives provide various 
            services to their members. 

    2.  The total membership of agricultural cooperatives is over 4 million.

        a.  Many farmers belong to more than one agricultural cooperative.

        b.  The majority (51%) of cooperative members belong to cooperatives 
            purchasing supplies for their members.

    3.  The net annual business volume of U.S. agricultural cooperatives is 
        about $60 billion.

        a.  The majority (71%) of net volume is from the marketing of 
            agricultural products.

        b.  About 26% of net business volume is from supplies cooperatively 
            purchased.

E.  Agricultural Cooperative Trends

    1.  The number of agricultural cooperatives is declining, but their size, 
        measured by both number of members and business volume, is increasing.

    2.  The number of cooperative memberships is declining, but not as fast as 
        the number of farmers.

F.  Agricultural Cooperatives in California

    1.  According to the most recently published figures, there are 233 
        agricultural cooperatives headquartered in California.

    2.  Cooperative memberships in California total over 70,000.

    3.  The total net annual volume of California's agricultural cooperatives 
        is about $6 billion.

        a.  Over 93% of the net volume of agricultural cooperative business in 
            California is by marketing cooperatives.




12/12/91 GB/sg


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