AGRICULTURAL COOPERATIVE

An 'Agricultural cooperative' is a cooperative where farmers pool their resources in certain areas. There are two primary types of agricultural cooperatives:

★ Agricultural supply cooperatives - purchase of supplies (seeds, fertilizers, etc.) and services,

★ 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.

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Origins

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.