About Cooperatives

Definition of a Cooperative 

The U.S. Department of Agriculture (USDA) defines a cooperative as a user-owned, user-controlled business that distributes benefits on the basis of use. Member users, or patrons, own and democratically elect the board of directors, which provides oversight of the co-op. Net earnings are distributed on the basis of proportional use, or patronage, rather than on investment.

A broader definition of a cooperative has been developed by the International Alliance of Cooperatives (ICA), which describes a co-op as “an autonomous, voluntary association meeting common economic, social, and cultural needs through a jointly owned and democratically controlled enterprise.”

International Co-operative Alliance (ICA): 7 Cooperative Principles

  1. Voluntary and Open Membership
  2. Democratic Member Control
  3. Member Economic Participation
  4. Autonomy and Independence
  5. Education, Training and Information
  6. Cooperation among Cooperatives
  7. Concern for Community

Regional Cooperative Businesses

Agricultural Cooperatives

Financial Services

Retail Cooperatives

Wholesale or Purchasing Cooperatives

Health Care and Home Care

“Agricultural cooperatives are a driving force in the nation’s thriving farm economy. Because they are farmer-owned and operated businesses, the sales dollars and income generated are much more likely to be returned and spent in rural areas and communities.”  Tom Vilsack, U.S. Secretary of Agriculture, October 23, 2013