The Role of Cooperatives in Agriculture: Historic Remnant or Viable Membership Organization?

Although cooperatives offer a viable organizational structure for many groups, economic theory suggests that the cooperative form of business should be preferred over a corporation only if special conditions are present. This paper identifies several conditions that may serve as justifications for cooperatives. Next, conditions limiting the performance of cooperatives are examined. Cooperative members are urged to examine their organization to discern whether its organizational structure provides the best vehicle for meeting group objectives