Agricultural Economics Department


Date of this Version

August 2002


Published in Cornhusker Economics, 08/07/2002. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.


Nebraska has about 80 farm supply and marketing cooperatives that provide over 75,000 member-producers with agricultural inputs and marketing services. As owners, these member-producers provide the equity to finance their local cooperative. Many of the local cooperatives in Nebraska are part of the federated cooperative system. That is, they invest in and become owners of regional cooperatives that offer grain merchandising services and supply wholesale inputs such as fertilizer, petroleum products and ag chemicals. As equity holders in regional cooperatives, local cooperatives are subject to both gains and losses on their investments in regionals. With the current bankruptcy reorganization of Farmland Industries, many local Nebraska cooperatives and their member-producers are preparing for a potential loss in their regional Farmland equity.