Minnesota leads the nation in co-op business volume

Rural Cooperatives, Sept-Oct, 2003 by E. Eldon Eversull

Even with lower prices in many agricultural sectors, net business volume for the nation's farmer-owned cooperatives increased by almost 4 percent in 2001, to more than $103 billion. Leading the way once again was Minnesota with $9.9 billion in sales by farmer cooperatives (table 1). Minnesota took over the top spot for the first time in 1999.

Iowa, which was the leading state in 1997, was second in 2001, with cooperative net business volume of $9.2 billion. Wisconsin, at $8.7 billion, fell from second to third place. USDA has been collecting statewide cooperative data every other year since 1951 (figure 1).

[FIGURE 1 OMITTED]

Iowa had the largest gain in co-op sales since 1999, increasing $1.3 billion. Of that amount, $1.2 billion was from additional products marketed. Wisconsin had an additional $516 million in marketing sales while Minnesota's gain of $590 million was almost equally divided between marketing and farm supply sales. Cooperative sales increased in 34 states and the District of Columbia, while 16 states experienced a sales decline.

A breakdown by sale of individual products shows the following high lights for the leading co-op states from 1999 to 2001:

* Minnesota cooperatives increased sales of milk/milk products by $263 million; grains/oilseeds by $232 million and petroleum by $256 million.

* Wisconsin cooperatives increased milk/milk product sales by $356 million.

* Iowa cooperatives increased grain/oilseed sales by $648 million; livestock/poultry by $346 million and milk/milk products by $120 million.

Cooperatives in the 10 leading states increased their net business volume by about $2.5 billion in 2001 compared with 1999. These cooperatives account for 60 percent of total net cooperative business volume, 63 percent of marketing volume, 51 percent of farm supplies sold and 66 percent of total service sales.

Minnesota was the top state for marketing cooperative products; Iowa was tops for selling farm supplies and California had the highest service receipts for cooperatives. Minnesota led all states in cooperative marketing of sugar and in manufactured food products and was second in milk/milk products and grains/oilseeds.

Iowa was the top state for cooperative marketing of dry beans/peas and grains/oilseeds and was second for livestock and manufactured food products. Wisconsin was first for cooperative marketing of milk/milk products.

For cooperative Farm supply sales, Minnesota was the leader for petroleum and was second for feed and other miscellaneous farm supplies. Iowa was first for cooperative sales of feed, seed, fertilizer and crop protectants. Wisconsin was the top cooperative state for sales of miscellaneous farm supplies and was second for petroleum.

Leaders in number of cooperatives

Minnesota was home to the largest number of cooperative headquarters, with 293, followed by North Dakota with 239 and Texas with 238 (figure 2). The same three states also had the most cooperatives in 1999, 1997 and 1995. The top 10 states had 56 percent of all cooperative headquarters, 57 percent of all marketing cooperatives, 51 percent of farm supply cooperatives and 68 percent of service cooperatives.

[FIGURE 2 OMITTED]

Minnesota and North Dakota both had about the same number of marketing and farm supply cooperatives. Texas by far had the most service cooperatives.

By individual products, North Dakota had the most dry bean/pea, grain/oilseed and livestock cooperatives. Texas had the most cotton and rice cooperatives. California had the most fresh fruit/vegetable, nut, and poultry cooperatives. Minnesota had the most farm supply cooperatives.

Co-op membership leaders

Kentucky led the nation with 242,873 farmers with cooperative memberships, followed by Virginia and Wisconsin. The top 10 states for cooperative memberships are shown in figure 3. For the top 10 states, 54 percent of all cooperative memberships are in these states, 58 percent of all cooperative marketing memberships, 51 percent of farm supply and 48 percent of service.

[FIGURE 3 OMITTED]

Kentucky led all states in tobacco cooperative memberships. Virginia had the most nut cooperative memberships and was second in farm supply members. Wisconsin had the most milk/milk products and livestock memberships.

Individual state data for farmer cooperatives are collected every other year by USDA Rural Business-Cooperative Service. The survey asks for membership, sales and marketing data by state. The data from the 2001 survey were used to develop this report. A complete summary of state-by-state cooperative activity is available in the new USDA publication, Farmer Cooperative Statistics, 2001, RBS Service Report 61. To order, call (202) 720-8381, or e-mail jon.hall@usda.gov or download at www.rurdev.usda.gov/ rbs/pub/sr61.pdf.

Table 1--Farmer cooperative numbers, memberships, and net business
volume by State, 2001 (1,2)

                Cooperatives
                headquartered   Memberships    Net business
State              in state     in state (3)    volume (4)
                          Number                Million $

Alabama              62           42,222             950
Alaska                9            4,812              44
Arizona               9            2,710             608
Arkansas             52           55,431           1,671
California          171           49,553           7,573
Colorado             47           29,122           1,119
Connecticut           5            1,899             214
Delaware              3           43,430             104
Florida              40           29,753           2,414
Georgia              17           21,748           1,677
Hawaii               20              904              29
Idaho                37           20,259           1,422
Illinois            175          175,871           5,470
Indiana              46           66,818           2,071
Iowa                166          162,249           9,232
Kansas              133          129,576           4,794
Kentucky             42          242,873             708
Louisiana            47           13,032             736
Maine                26            7,922             225
Maryland             17           74,404             411
Massachusetts        12            4,573             637
Michigan             62           28,660           2,198
Minnesota           293          176,594           9,896
Mississippi          70          111,043           1,056
Missouri             66          109,134           4,611
Montana              65           33,066             719
Nebraska             95           84,834           4,721
New Jersey           16            7,052             388
New Mexico           10            2,705             507
New York             92           37,431           2,826
North Carolina       22           96,351             975
North Dakota        239          120,303           3,292
Ohio                 73           53,407           2,792
Oklahoma             81           65,640           1,562
Oregon               33           27,043           1,704
Pennsylvania         54           33,442           1,441
South Carolina        5            2,639             185
South Dakota        126           98,395           2,700
Tennessee            79          137,805             809
Texas               238          109,926           3,876
Utah                 17            9,354             512
Vermont               5            4,557             523
Virginia             57          193,470             847
Washington           78           31,664           3,331
West Virginia        26           83,051              99
Wisconsin           175          186,490           8,738
Wyoming              12            5,485             241
Other States          4            2,440             111
Foreign             --             2,765             500

United States     3,229        3,033,907         103,269

(1) Includes cooperatives with centralized, federated, and mixed
organizational structures.

(2) Data for states with fewer than three cooperatives combined
with other states. Totals may not add due to rounding.

(3) Includes farmer members entitled to vote for directors. There
are more members than U.S. farmers because many farmers belong
to more than one cooperative.

(4) Excludes inter-cooperative business.