Agricultural Cooperative Statistics Summary, 2021
This bulletin provides a brief summary of cooperative statistics from USDA’s annual survey of the Nation’s agricultural cooperatives for fiscal year 2021. For the longer, more comprehensive bulletin, please request at: coopinfo@usda.gov
November 2, 2022
Second highest revenue ever and co-ops again set asset and income records
USDA’s annual survey of the nation’s 1,699 farmer, rancher and fishery cooperatives shows that cooperatives achieved the fourth-highest revenue year on record and at $231.4 billion, achieved more than $230 billion for first time since 2014. Net income before taxes increased for the fourth straight year and hit a record $9.3 billion in 2021 (Figures 1 and 2). Some specific findings from the aggregated income statement for 2021 include:
- Marketing sales by co-ops increased 18.4 percent from 2020 to $149.5 billion, while supply sales increased from $67.1 billion to $74.9 billion, a jump of 11.6 percent. Service receipts and other operating income dropped by $888 million to $4.4 billion, but with all combined, gross operating revenue increased by 16 percent to $224.4 billion.
- Cost of goods sold increased 17.2 percent and when combined with gross operating revenue and service income, resulted in a 3.4 percent increase in net operating revenue to $29.6 billion.
- Total expenses increased by just under 2 percent with wages up 4.1 percent, depreciation up 5.5 percent, interest down 7.9 percent, and other expenses down 2.2 percent.
- Patronage received dropped by 11.5 percent, while non-operating income increased by 26.7 percent.
- All these factors resulted in a 10.5 percent increase in net income before taxes, to the record $9.3 billion. This net income is important as it allows co-ops to return earnings to members in patronage and equity redemption, and/or to invest further in operational assets for continued prosperity and service to members.
- Total gross business volume – the aggregation of sales, service receipts and other operating revenue, patronage received, and non-operating income – was $231.4 billion, up 15.2 percent from the $200.9 billion experienced in 2020 (Figure 1).
- Return on assets was 9.3 percent, similar to 2020 and return on member equity increased slightly from 2020 to 32.0 percent.
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The combined balance sheet for the Nation’s ag co-ops remained strong, with record assets of $111.0 billion and also record member equity of $50.4 billion in 2021 (Figure 3). Specifically, some aggregated balance sheet findings for 2021 include:
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- Assets increased by $8.6 billion (8.4 percent) and members equity increased $1.6 billion (3.4 percent). Investments in property, plant, and equipment (fixed assets) by ag co-ops – including grain elevators, warehouses, farm supply stores, petroleum/convenience stores, fertilizer and feed plants, major food and beverage processing plants, etc. – increased, to a record $31.5 billion, up $101 million from 2021.
- Total liabilities increased to $60.5 billion in 2021, up 10.3 percent, from $54.9 billion in 2020.
- In addition to record total member equity in 2021, allocated equity and retained earnings also increased, reaching $28.4 billion and $22.0 billion, respectively.
Ag co-op structural characteristics
The number of ag co-ops continues to decline. In 2021, USDA counted 1,699 farmer, rancher and fishery co-ops, down from 1,744 in 2020. In 2021, 870 co-ops (51.2 percent) predominantly marketed commodities, and the other 829 consisted of 715 farm supply co-ops (42.1 percent) and 114 service co-ops (i.e., those that provide storage, transportation or agronomy services).
While the numbers of ag co-ops have been dropping, those that remain continue to operate 9,531 locations across all 50 States. In addition to headquarters, ag co-ops had 7,832 other locations consisting of separate branch facilities, plants, elevators, c-stores, service centers, and other locations in 2021.
49 States hold co-op headquarter locations
Forty-nine States are home to at least one agriculture cooperative. Four States are home to the headquarters of more than 100 ag co-ops: Minnesota (147), Texas (146), North Dakota (109), and California (101).
In 2021, the number of ag co-ops reporting operations in two or more States was 189, while the remaining 1,510 operate within one State. Minnesota had 187 ag co-ops conducting business in the State, followed by Texas with 170, North Dakota with 130, California with 123, and Wisconsin117.
Minnesota was the leading state for co-op net business volume, at $20.8 billion (this includes income from all co-ops with operations in a State, not just those with headquarters there). Iowa ranked second with $20.5 billion, followed by California with $15.6 billion. Then comes Illinois ($13.9 billion), Nebraska ($10.4 billion), Wisconsin ($10.0 billion), and Washington ($8.3 billion).
Co-op jobs significantly increase; memberships dip slightly
Total employment in ag co-ops increased by 17,531 jobs (9.5 percent) in 2021. Full-time employment increased by 19,627 positions, while part-time or seasonal employment fell by 2,096 positions. Co-ops had 138,428 full-time employees in 2021 and 46,999 part-time or seasonal employees, for total employment of 202,988 people.
Producers held 1,845,183 memberships in cooperatives in 2021, a decrease of 1.3 percent from 2020. Not all farmers, ranchers or fishermen belong to a cooperative, but many producers belong to two or more co-ops. For instance, a dairy farmer may market milk through a dairy co-op while buying farm production supplies from a supply co-op, and services through a service co-op.
Co-ops an important mainstay in rural America
Agricultural cooperatives have been a mainstay in rural America since the early 1900s. in 2021, there are 337 co-ops (19.8 percent of all ag co-ops) that are 100 or more years old, 52.3 percent are more than 75 years old, and 77.3 percent are more than 50 years of age. Though fewer in number, co-ops remain an efficient and sound marketing channel for their members’ products, many adding value to products, further benefitting member-owners. Co-ops also continue to provide supplies and services members need to operate farms and ranches in an increasingly dynamic, challenging agricultural environment.
Overall, ag co-ops are well managed, efficient, and financially solid, helping to provide a strong foundation for the viability of the rural communities in which most producer-members live and where many of the thousands of co-op facilities are located. Ag co-ops also boost the economies of many less-rural cities where co-ops may have offices, plants, or other facilities. Co-ops are investing in their operations, as evidenced by the record fixed asset and total asset levels attained in 2021. The overall positive performance of ag co-ops in 2021 shows that the time-tested, member-owned and governed co-op business structure remains as important as ever to America’s producers and to its food and fiber system.
  
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