Journal of Agribusiness 22,1(Spring 2004):31S48 © 2004 Agricultural Economics Association of Georgia The Impact of Participation in Cooperatives on the Success of Small Farms

This study identifies and analyzes factors that contribute to the success of small farms. Particular attention is given to the effect of participation in marketing and supply cooperatives on the success of small farms. Using modified net farm income per dollar of assets and operator’s labor and management income as measures of success, results show participation in marketing and supply coop-eratives is positively correlated with success. Further, analysis findings indicate farm size, controlling for variable and fixed costs, type of ownership, management strategies used, working off the farm, and age of the operator are important factors that influence profitability (modified net farm income per dollar of assets and operator’s labor and management income) and success. Key Words: cooperatives, management strategies, marketing, small farms, success, supply cooperative Farmers routinely face considerable risk of income variability, and that income variability affects the financial performance of many farms. Particularly vulnerable are marginal operations with low production efficiency and small farms (farms wit