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2012 IYC: National Council Farmer Coops
Farmer owned cooperatives are essential for America’s farmers and ranchers to provide food, fuel and fiber to the world’s growing population. Chuck Conner, President and CEO of the National Council of Farmer Cooperatives says a traditional farm co-operative benefits the average American farmer. “On average,” he says, “a farmer that belongs to a supply co-op and is able to take advantage of those volume sales and the ability of volume purchase has on average $5,500 higher income than a similary farmer who does not belong to the co-op.”
Many co-ops were formed out of necessity. Conner says farmer co-operatives are no different and that’s part of the reason why the business model is successful. Another reason, he says is because the entire ownership structure “has skin in the game”.
NCFC is an organization made up of approximately 60 farmer owned cooperatives and some state co-operative councils. They represent those co-ops on issues from farm policy to taxation. Conner says most importantly though, is their ensuring the co-operative has the right to exist through what is known as the Capper-Volstead Act. He says the Capper-Volstead Act provides very limited anti-trust immunity from the anti-trust laws in the United States that enable co-ops to exist. Conner notes they also enable farmers to come together collectively to do things that otherwise might be called into question under some of the anti-trust rules.
Conner says he feels the importance of farmer owned cooperatives is growing.
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