AG CO-OP SALES
AND INCOME
SECOND HIGHEST
ON RECORD
Editor’s note: Information for this article was compiled by
the Cooperative Programs statistics staff of USDA Rural
Development: Katherine C. DeVille, Jacqueline E. Penn
and E. Eldon Eversull.
armer, rancher and fishery
cooperatives had their second highest
sales and income in 2009, trailing
only record 2008 levels. With lower
commodity and energy prices, gross
business volume of $170 billion in 2009 was down 11
percent from the record $192 billion in 2008. Sales
increased in 2009 for farm supplies, crop protectants,
seed and feed. There were also increased marketing
levels for rice, processed fruits and vegetables, sugar
and tobacco. All other sales of supplies and crop/livestock
marketing fell from the record levels of 2008.
Dairy products sales had the largest declines, down
more than $9 billion from 2008, followed by declines
in grain and oilseed marketing of almost $3 billion;
cotton sales declined by more than $1 billion. Dairy
products and grain/oilseed sales were lower due to
price declines, while cotton experienced lower prices
and a large decline in production. In the farm
supplies sector, petroleum products sales declined by
almost $7 billion due to a combination of lower
prices and demand.
Net income (before taxes) of $4.4 billion was also
the second best showing ever for farmer co-ops,
although down almost 9 percent from the record $4.8
billion in 2008. This minor downturn in net income
breaks the string of four consecutive years where the
nation’s agricultural cooperatives set a record for net
income.
“These sales and income figures for 2009, while
down slightly from records posted in 2008, show that
the nation’s agricultural cooperatives remain strong
and viable and are a crucial business structure in the
economy of rural America,” says Dallas Tonsager,
under secretary for USDA Rural Development.
“Dairy prices remain low in 2010, but livestock
prices are rebounding and the economy is moving
forward, pointing to increased sales.”
Net business volume hits $148 billion
Marketing of food, fiber, renewable fuels and
farm supplies by cooperatives in 2009 all declined by
about 11 percent from 2008 (table 1), according to
the Cooperative Programs office of USDA Rural
Development. Net business volume of $148 billion
(which excludes sales between cooperatives) was also
the second largest ever, halting a general upward
trend in sales that started in 2002 (figure 1 and table
2).
The value of cooperative assets fell in 2009,
mainly as a result of decreased inventories and
receivables due to lower prices of products marketed
and sold (figure 2). Liabilities fell by 19 percent
while equity capital held by cooperatives increased
almost 4 percent, to nearly $24 billion. Equity
capital still remains low but is 6 points higher than
last year and now represents 39 percent of all assets.
Patronage climbs 5 percent
Patronage income (refunds from other
cooperatives due to sales between cooperatives)
grew almost 5 percent, to $904 million, up from
$864 million in 2008.
Farmer, rancher and fishery cooperatives remain
one of the largest employers in many rural
communities, with 180,000 workers. The number of
full-time employees decreased slightly in 2009, to
123,000 (down 1,800 from 2008), while the use of
part-time and seasonal employees increased 7
percent, to 58,000.
Farm numbers continue to decline, with USDA
counting 2.2 million in 2009, losing less than 100
farms from 2008. The number of farmer
cooperatives also continues to decline — there are
now 2,389 farmer, rancher and fishery cooperatives,
down from 2,473 in 2008. Mergers account for most
of the drop, resulting in larger cooperatives.
Producers held 2.2 million memberships in
cooperatives in 2009, down 6 percent from 2008.
The number of U.S. farms and cooperative
memberships is now about equal, but this does not
mean that every producer is a member of an
agricultural cooperative. Previous studies have found
that many farmers and ranchers are members of up
to three cooperatives, so the decline in farm
numbers and cooperative memberships is not strictly
comparable.
