Types of Cooperatives
An example of a cooperative where members pool resources to produce and distribute feeder pigs.
Feeder pig cooperative
A type of cooperative that buys supplies in bulk and sells them to members at reduced prices
Supply cooperative
Profits are distributed to cooperative members based on their level of participation or business done with the cooperative.
Patronage dividend
Elected individuals are responsible for governing the cooperative and making major decisions.
Board of directors
The process of improving a community's economic, social, and environmental well-being is often supported by cooperatives.
Community Development
A cooperative owned by community members to provide essential services such as grocery stores or cafes in rural areas.
Community cooperative
A cooperative that markets the products of its members, often securing better prices than invidivudal farmers could on their own.
Marketing cooperative
The process by which cooperative shares can be redeemed, typically upon the member's death or under financial distress.
Stock redemption
The legal document that establishes a cooperative and outlines its structure and purpose.
Articles of incorporation
A democratic voting system used in cooperatives, where each member has a vote regardless of the number of shares owned.
one member-one vote
An organization owned and operated by a group of farmers to collectively market products, purchase supplies, or provide services.
Agricultural cooperative
A situation where a cooperative or its members are unable to meet financial obligations, impacting equity redemption.
Financial distress
Rules and procedures adopted by a cooperative to govern its internal management and operations.
Bylaws
A national cooperative bank that provides financial services to cooperatives and their members.
Co-Bank
A cooperative that processes and markets members' products to increase their value before sale
Value-added cooperative
The process by which cooperative members can cash in their shares, often upon retirement or death.
Equity redemption
Legal protection ensuring that cooperative members' personal assets are not at risk for cooperative debts and liabilities beyond their investment in the cooperative.
Limited liability.
A cooperative organized as a non-profit entity, where profits are reinvested into the cooperative or distributed as patronage dividends, but not as profit dividends.
Nonprofit cooperative
Profits are reinvested in the cooperative and credited to members' equity accounts instead of being paid out in cash.
Noncash patronage refund