LUBBOCK, TEXAS (RFD NEWS) — Long-standing agricultural cooperatives may need to adapt their structure and services to better align with the needs of younger producers entering the industry.
According to analysis from Oklahoma State University Extension economist Phil Kenkel, more than 23 percent of agricultural cooperatives are over 100 years old, while 77 percent have operated for more than 50 years. At the same time, about nine percent of U.S. farmers — nearly 300,000 producers — are under 35, representing a small but growing segment of the industry.
The traditional cooperative model offers advantages, including open membership and limited upfront investment through a revolving equity structure. However, that same structure can pose challenges for younger farmers, as equity payouts are deferred over multiple years and are not readily convertible to cash. That lack of liquidity may reduce the appeal for producers facing tighter financial constraints.
Participation at the governance level is another hurdle. While cooperatives often seek younger members for leadership roles, time demands from farm operations and off-farm work can limit involvement.
Despite these challenges, the relationship remains important. Younger producers often seek access to financing, markets, and new technologies, while cooperatives rely on new members to sustain growth and equity.
Farm-Level Takeaway: Cooperatives may need changes to attract younger producers.
Tony St. James, RFD NEWS Markets Specialist
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