At Agfinity, we are a cooperative that strives to deliver exceptional value to its members and customers through quality products, outstanding service, and unmatched expertise. However, you might be wondering what a cooperative is and how it functions within the agricultural community. In this post, we’ll look at the basics of a cooperative and how it can benefit all involved.
Defining a Cooperative
In simple terms, a cooperative, or co-op, is an entity created under state law that is owned and operated with the intention of benefiting those who use its services. In agriculture, this can include farm loans, supply and sales information for agricultural production, and other resources. A co-op is owned by the members, and the net margin of profits is often distributed to members based on the proportion of their use of the co-op.
This is certainly the case here at Agfinity. We are proudly member-owned and locally run. Our patronage refund rate is based on the financial performance of each business unit at Agfinity. Patronage refunds are paid out in two ways, through patronage refunds and equity retirement.
The Benefits of a Cooperative
There are many benefits to joining a cooperative, but the three main advantages are supply, marketing, and service. A co-op may offer a combination of all three, or focus on one over the others, depending on the needs of the farmers, whether it be for crops or livestock. Supply co-ops can provide the resources a farm needs for agricultural production, such as fertilizers. With marketing, a co-op can help farmers sell their crops and products (or store their crops and products until the prevailing market conditions are more favorable). For service, the co-op can provide fuel and energy deliveries, as well as other services such as seed for the growing season.
The Agfinity Cooperative provides a wide array of products in supplies, marketing, and services in each of our divisions (Agronomy, Energy & Retail, and Feed & Grain) to meet the growing needs of our members.
Joining a Cooperative
In order to join a co-op, a farmer must often make an upfront investment to satisfy the membership requirements. Once that requirement is met, the member may utilize the cooperative’s resources and vote on any changes that are to be made to the co-op. The majority of co-ops around the nation have a “one member, one vote” principle.
Currently, we have two different membership options, including:
- Common Member
- Agriculture producer, one-time stock purchase of $500, eligible for annual equity retirement and patronage cash funds, Cooperative governance voting, and serving rights (if purchase a minimum of $3,000 of agricultural input goods and services during the company’s previous fiscal year).
- Participating Patron
- Non-agriculture producer, one-time stock purchase of $250, eligible for annual patronage cash funds.
Helping Rural America
Agriculture cooperatives were designed to help local farmers create a stronger community and pool resources to help each farm thrive. Co-ops have existed in some form for many decades, and their structure has changed in many ways over the years. They are a key part of rural America and can give farms the boost they need during an economic downturn or a particularly poor year of crop production.
Since 1905 agriculture has been the core of our Cooperative. This is our past, present, and future! If you’d like to learn more about cooperatives or Agfinity in general, please feel free to contact us today.
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