‘Working together is success’ for cooperatives

Annually, October is recognized as National Cooperative Month, focusing on raising awareness of cooperatives and their benefits to the communities they serve. The theme for 2024 is “The Future is Cooperative.”

The cooperative model dates back to 1844 when the Rochdale Principles were established in England. From that inception, the cooperative movement spread westward, eventually landing in Missouri as the foundation for the Missouri Farmers Association (MFA).  

The latest USDA Rural Development data (2022) shows 1,621 agricultural cooperatives nationally. This number peaked in 1929 at approximately 12,000. However, business volume continues to grow in the cooperative space (see the chart below). Challenging economic conditions and the drive for efficiencies have resulted in consolidations, with a corresponding reduction in the number of cooperatives. Of the agriculture cooperatives in business today, 77% are over 50 years old, 54% are over 75 years old, and 23% are over 100 years old. 

MFA led Missouri’s co-op movement, boasting some 400 farm clubs/exchanges in the late 1920s. Many of these are now part of our company-owned system. Current data shows 80 agriculture co-ops in Missouri with a membership of 125,000—the second-highest in the country. Such statistics reinforce our belief that cooperatives are important to providing food, fuel and fiber to a growing world. Five of the top 10 retail ag businesses are co-ops, according to a report by Crop Life.

Henry Ford, founder of Ford Motor Company, is known for many quotes on business and life. I think this one particularly speaks to the sustainability of the cooperative model: “Coming together is a beginning. Keeping together is progress. Working together is success.” 

MFA is in its 111th year of business. The coming together and keeping together have stood the test of time. Working together is an ongoing responsibility. We know you have options on where and with whom you do business. We want MFA to be your first option. 

How we work together will continue to change. We can’t be all things to all people, but we will continue to invest in ways that make it easy to do business with us. The size and speed of agriculture, particularly in row crops, continue to increase. We must keep up with that change. In recent years, MFA has focused on creating operational efficiencies to do just that. Unfortunately, that sometimes leads to location consolidations and closures, but with plans to continue serving the trade area—just in a different manner. These decisions aren’t taken lightly. Management develops the plans and collaborates with the Board of Directors to implement the strategy. The critical question is always: What is best for MFA and its members? 

Both management and the board aim to have an actively engaged membership. Earlier this year, we decided to change the format of this year’s annual meeting. We will hold eight regional meetings throughout our trade area. The goals are 1) to increase attendance by holding meetings closer to delegate body, 2) have fewer presentations by company staff, and 3) allow directors to lead a “town hall” discussion to get feedback from members. They will be held the week of Nov 18. More details are on page 7 of this edition.  

Agricultural cooperatives play a vital role in supporting the U.S. agricultural industry. Working together is success. Be safe during this busy fall harvest.

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Click here to view more articles from the October issue of Today's Farmer magazine.