Farm Supply Cooperatives Need to Rethink Business Model, Says Report
A new report from CoBank’s Knowledge Exchange, Field of Agronomic Dreams: Rethinking the Farm Supply Co-Op to Drive Value, suggests that it may be time for farm supply cooperatives to rethink their business model, in the face of current challenges. Price competition, manufacturer ability to sell direct to farmers, and large farms contracting directly for services that coops used to provide are all challenges facing farm supply cooperatives, according to the report. However, the report says farm supply cooperatives can create additional value by pursing economies of scale, diversifying product offerings and revenue sources, and simplifying operations. One opportunity could be partnerships with emerging tech companies to help guide farmers through digital transformation.