The Power of Cooperatives in Agriculture
Cooperatives don’t get talked about much unless something goes wrong. No one’s posting glamorous elevator photos on Instagram with a hashtag about agricultural economics. There’s no influencer campaign for the cooperative business model.
But here’s the truth…
If you farm, a cooperative is likely woven into your operation so tightly you barely notice it anymore.
And that’s exactly why this conversation matters.
On this episode of Field Good Life, I sat down with Dr. Keri Jacobs, Executive Director of the Graduate Institute of Cooperative Leadership. She’s spent her career in agricultural economics, and what she studies isn’t abstract theory — it’s the structure holding up rural communities.
And most of us don’t fully understand it.
Farmer-Owned Means Farmer-Responsible
Here’s the part we don’t always say out loud.
Being farmer-owned sounds good. It feels good. It looks good in a mission statement.
But it also means farmer-responsible.
Dr. Jacobs now leads the Graduate Institute of Cooperative Leadership, which exists to equip cooperative directors and cooperatives leaders with the knowledge and engagement needed to lead well.
“We contribute to that through various programs,” she said.
Because cooperative leadership is not ceremonial. It’s governance. It’s oversight. It’s long-term strategy. It’s deciding how millions, sometimes billions, in cooperative investment are stewarded.
That’s not something you learn by accident.
You cannot effectively serve on a cooperative board if you don’t understand the cooperative business model inside and out. Balance sheets matter. Patronage structures matter. Equity redemption plans matter.
You don’t have to be Wall Street. But you need to understand what you’re governing.
Engagement Is the Difference Between Thriving and Existing
How many of us treat our cooperative like just another vendor?
We shop price. We gripe at the counter. We show up once a year, maybe, for the annual meeting if there’s a decent meal involved.
But we forget: this isn’t just a store. It’s an ownership stake.
Thriving cooperatives don’t just operate. They engage.
They educate members about how the business model works. They invest in director education. They create space for questions. They communicate clearly, not in corporate fluff, but in language farmers understand.
Because disengaged members weaken the system.
And disengaged directors? That’s even riskier.
Dr. Jacobs emphasized that director education isn’t optional anymore. The complexity of modern agricultural economics — global markets, regulatory pressures, supply chain volatility, technology investments — requires sharp leadership.
We can’t govern today’s cooperative with yesterday’s playbook.
Representation Matters
Now here’s the uncomfortable truth.
“We need representation from all of our membership.”
That’s what Dr. Jacobs said when we talked about cooperative boards.
Diversity in cooperative leadership is lacking. Not as a political talking point. As a practical one.
If boards don’t reflect their membership — across age, gender, farm size, production type, background — then decision-making gets narrow.
And narrow thinking in a complex economy is dangerous.
Young producers see risk differently. Women in agriculture bring perspectives that have historically been overlooked. Minority farmers often navigate different barriers and opportunities.
If we say farmer-owned, then leadership should look like farmers. All of them.
That’s not a trend. That’s good governance.
Cooperative Investment Is Community Impact
Beyond the bushel, this gets bigger than just grain checks.
Cooperatives are often the backbone of rural communities.
They fund infrastructure.
They provide stable jobs.
They reinvest locally.
They help keep main streets alive.
Electric cooperatives keep the lights on. Credit unions finance equipment and homes. Ag co-ops create market access and supply chains that would otherwise bypass rural areas entirely.
That’s community impact.
Not because it’s charity, but because the cooperative business model ties success to the people it serves.
When profits cycle back to member-owners, that capital doesn’t disappear into distant shareholders. It circulates in town. It supports schools, healthcare, small businesses.
Agricultural economics becomes personal real fast when you realize your cooperative investment is also your community’s future.
What Thriving Cooperatives Understand
From my conversation with Dr. Jacobs, thriving cooperatives tend to share a few core characteristics:
They prioritize director education.
They actively engage their members.
They communicate clearly about the business model.
They seek broader representation in leadership.
They remember they are stewards of farmer-owned capital.
That last one matters most.
Stewardship.
Because this isn’t just about next quarter’s margins. It’s about whether the next generation will have infrastructure, market access, and opportunity in rural America.
Here’s the truth…
Cooperatives have been adapting for over a century. They’ve survived wars, depressions, trade battles, consolidation waves, and technology revolutions.
And if we want rural communities to thrive, not just hang on, cooperative leadership, education, and engagement aren’t optional.
Tune into the episode here:
🍎 https://podcasts.apple.com/us/podcast/the-power-of-cooperatives-in-agriculture/id1795513436?i=1000749612376
💚 https://open.spotify.com/episode/7DlWtYTWZd9tYM7419ML1M?si=43c8f35b2e5a4c52