An 'Agricultural cooperative' is a
cooperative where
farmers pool their resources in certain areas. There are two primary types of agricultural cooperatives:
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Agricultural supply cooperatives - purchase of supplies (seeds, fertilizers, etc.) and services,
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Agricultural marketing cooperatives - transformation, packaging, distribution and marketing of
produce.
The term should be distinguished from
collective farming, in which farmers pool nearly all resources, including
labor, land, or produce itself. Some economists consider collective farming to be a type of cooperative farming.
Origins
The first agricultural cooperatives were created in Europe in the second half of the
nineteenth century. They spread later to North America and the other continents. They have become one of the tools of agricultural development in emerging countries.
Also related are farmer's
credit unions (and
mutual farm insurance societies). They were created in the same periods, with the initial purpose to offer farm loans. Some became universal banks such as
Crédit Agricole or
Rabobank.