WASHINGTON,
Oct. 2, 2012 – The nation’s farmer-owned cooperatives posted record sales in
2011, surpassing the previous record sales year of 2008 by $10 billion while
besting the old income record by $500 million, according to Dallas Tonsager, USDA
under secretary for Rural Development. The 2,285 surveyed cooperatives had
sales of $213 billion, exceeding 2010 sales by more than $40 billion.
Net
income before taxes for all agricultural co-ops was a record $5.4 billion,
eclipsing the previous high of $4.9 billion, set in 2008. Net income was up
more than 25 percent, or $1 billion, from 2010.
USDA
also released its annual list of the nation’s 100 largest cooperatives today,
with CHS Inc., based in St. Paul, MN, once again topping the list with a
commanding $36.9 billion in sales.
"These
new cooperative sales and income records for 2011 underscore the strength and
productivity of the nation's farmer- and rancher-owned cooperatives, and the
vital role they play in the nation's economy," said Tonsager.
"Primarily because of mergers, the number of farm co-ops continued to
decline, but memberships and asset values are up."
USDA's
annual list of the nation's 100 largest
agricultural cooperatives, also released today, shows that they also had
record sales and income in 2011. The 100 largest ag co-ops reported revenue of
$148 billion in 2011, an increase of almost 30 percent over 2010, when revenue
totaled $113 billion. Net income for the 100 top co-ops was $3.17 billion, up
from $2.35 billion in 2010. The previous top 100 co-op records were $130
billion for sales and $2.42 billion for income, both marks set in 2008.
CHS
Inc., an energy, farm supply, grain and food co-op, was once again the nation's
largest ag co-op, with $36.9 billion in revenue in 2011. It was followed by
Dairy Farmers of America, Kansas City, Mo.; with $12.9 billion in revenue. It
traded places from 2010 with third-ranked Land O' Lakes Inc., St. Paul, Minn.,
a dairy, food and farm supply co-op, with $12.8 billion in revenue in 2011.
Tonsanger
told Agri-Pulse that cotton cooperatives scored some of the biggest gains in
income compared to prior years, due to sharply higher cotton prices in 2011. Carolinas
Cotton Growers Cooperative, Garner, N.C., made the largest jump, rising from
129 in 2010 to 71 on the 2011 list. It was followed by Calcot Ltd.,
Bakersfield, Calif., which climbed from 131 in 2010 to 85 in 2011. The next
eight biggest gainers on the list were all grain or mixed (grain and farm
supply) co-ops, due largely to high grain prices.
With
substantially higher input costs this year and a great deal of price
volatility, Tonsanger declined to predict how these same cooperatives would
fare in 2012, but noted that there would “probably be some bumps in the co-op
road” for 2012.
Looking
at the entire ag co-op sector, grain and oilseed sales by cooperatives climbed
by almost $14 billion in 2011, while dairy product marketing increased by $8
billion. Cotton sales increased more than $1.5 billion while livestock and
sugar sales both gained more than $600 million. Sales of farm supplies
increased by $10 billion, primarily due to increasing energy prices. Farm
supply co-ops recorded gains of more than $3 billion for petroleum products,
while sales were up by $1 billion for fertilizer, feed and crop protectants.
Iowa
is home to more of the leading cooperatives than any other state, with 14 of
the top 100 ag co-ops. It is followed by Minnesota with 13, Nebraska with 10,
California with 6 and Wisconsin with 5.
Marketing
of food, fiber, renewable fuels and farm supplies by cooperatives experienced
24 percent increases over the previous year, according to the annual survey
conducted by the Cooperative Programs office of USDA Rural Development. Gross
business volume of $213 billion was the largest ever, as was net income before
taxes.
The
value of cooperative assets in 2011 grew by about $13 billion, with liabilities
increasing by $11 billion and owner equity gaining $2 billion. Equity capital
remains low but is clearly showing an upward trend, with an 8 percent increase
over the previous year.
Patronage
income (refunds from other cooperatives due to sales between cooperatives) fell
by more than 11 percent, to $613 million, down from $674 million in 2010.
Farmer,
rancher and fishery cooperatives remain one of the largest employers in many
rural communities and also provide jobs in many cities. The total farm co-op
workforce of 184,000 was up slightly from 2010. While full-time jobs at co-ops
increased by 1,800, the number of part-time and seasonal employees declined by
1,600.
There
was a continued downward trend in farm numbers, with USDA counting 2.2 million
farms in 2011, down about 10,000 from 2010. The number of farmer cooperatives
continues to decline; there are now 2,285 farmer, rancher and fishery
cooperatives, down from 2,314 in 2010. Mergers account for most of the drop,
resulting in larger cooperatives.
For
more in-depth information about how the nation's agricultural cooperatives
performed in 2011, see the September-October issue of USDA's "Rural
Cooperatives" magazine at: http://www.rurdev.usda.gov/BCP_Coop_RurCoopMag.html.
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