Cooperative Benefits and Limitations
Farmer Cooperatives in the United States
Cooperative Information Report 1 Section 3
United States Department of AgricultureRural Business
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Cooperative Service
CONTENTS
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How Cooperatives Benefit Farmers and the Public
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Benefits toFarmers
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Benefits toRural Communities
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Benefits toConsumers
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Benefits toPeople Overseas
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16
Limitations of Cooperatives
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Production Control
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16
Farming Based on Labor Input
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17
Price Fixing
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Middleman Functions
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19
Market Power
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19
Influence on Prices and Services
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20
Reserves Accumulation
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20
Restrictions by Inherent Characteristics
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20Cooperative Information Report 1, Section 3Issued April 1980Reviewed and Approved for Reprinting May 1990
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