WASHINGTON, D.C. — Iowa is leading the nation in the number of top 100 agricultural cooperatives with 16, up from 11 in 2004, according to a USDA Oct. 29 report.
"These statistics underscore what most Iowans already know – the state is extremely important to the nation’s agricultural economy," said USDA Secretary Tom Vilsack. "Farmer-owned co-ops play a major role in making it an agricultural powerhouse."
The USDA’s annual list of the top 100 agricultural cooperatives found Minnesota ranks second, with 13, followed by Nebraska with nine; Illinois and Wisconsin with five each; and California, Indiana, Kansas, Missouri and Ohio, all tied with four. In business volume alone, the report stated Minnesota ranks first among the states, with $68.8 billion; Missouri is second at $16.2 billion; and Illinois is third at $13.2 billion.
According to the USDA, the nation’s top 100 cooperatives also had a third consecutive year of record sales, reporting revenue of $174 billion in 2013 – an increase of almost 9 percent over the $166 billion reported in 2012.
In addition, net income after taxes remained virtually unchanged from 2012, at $3.5 billion, since the previous records for sales and net income were set in 2012.
Headquartered in Saint Paul, Minn., energy, farm supply, grain and food co-op CHS, Inc. has been the nation’s largest ag co-op during the past decade, holding No. 1 spot in 2013 with $44 billion in revenue, the report indicated. Land O’ Lakes, Inc., also in Saint Paul, followed with sales of $14 billion, and Dairy Farmers of America in Kansas City, Mo., had nearly $13 billion in revenue.
The largest Iowa cooperative is United Suppliers, Inc., headquartered in Eldora, a feed fertilizer and chemical supplier that celebrated 50 years in business in 2013.
The report said 23 cooperatives improved their ranking by double-digits, with six of these being mixed co-ops (those that handle grain and farm supply sales). Dairy and grain each had two co-ops make double-digit gains, while cotton, rice and sugar each had one co-op jump by at least 10 places.
In addition, grain cooperatives have experienced the largest increase in top 100 representation during the past decade, the report said, with 19 in the top 100 in 2004. That number rose to 41 in 2013.
However, dairy cooperative representation in the top 100 fell from 28 to 21 during the same period, while farm supply cooperatives increased from 13 to 16, the report stated.
According to the USDA, full-time co-op employment increased by almost 7,000 to 136,000, up 5 percent from 2012. What’s more, ag co-ops employ 191,000 part-time workers, with seasonal employee numbers only decreasing about 1,300.
"Agricultural cooperatives, which are owned and controlled by their producer-members, are a major economic force in rural America that benefits not only producers, but also their employees and communities," said Doug O’Brien, acting under secretary for USDA Rural Development, which administers programs that assist the nation’s cooperatives.
"Co-ops are the major employer in many rural towns, and the increased number of full-time jobs they created last year are one indication that this time-tested business structure is as relevant as ever."
