The economic nature of agricultural cooperatives is explained by means of a logical continuation of the organizational economics rationale for family farms. The traditional explanations of the importance of family farms is discussed, and embedded in a broader framework which considers their...

The value of membership of an agricultural producer cooperative to a farmer is universally understood to include market access, improved bargaining power, and reduced transaction costs. As a result of consolidation in agriculture, many farmers in developed countries have found themselves in...