There is the loss of local investment from locally-owned and locally-operated companies plus the patronage dollars that go to producers who do business with the cooperatives (although those are not guaranteed to members each year). Add to that the local control for the end-user or market for the grain. Cooperatives can and will work with local mills or value-added companies. Large corporations are usually vertically integrated in some way so the end-user for the grain is already pre-determined. But probably most importantly, cooperatives serve regions - not just specific communities - when those coops are removed from the market, many communities/counties/regions are left unserved because they are not attractive enough for private industry - but still need some kind of infrastructure or market for their grain. That puts the burden on farmers to either increase on-farm storage or haul grain to a market. We see this is Southeast Kansas. They have a very weak - almost non-existent in some counties - coop system. There are some private actors in the region but not enough. On-farm storage is much more common there and folks are trucking grain sometimes hundreds of miles to get it to a terminal or inland port. We also have to keep in mind that on-farm storage is not always insured so any kind of natural disaster can do major damage to storage facilities and decimate an entire crop.
I agree with your thoughts on the corporate "Goliaths" however, I would note - at least here in Central Kansas - agricultural cooperatives are facing a David vs Goliath fight with the bigs getting bigger and the small getting smaller. The disruptor is private industry offering the same products and services for customers - often with the added bonus of technology. This is not only pulling farmers from cooperatives, but is straining already tight labor markets. For those cooperatives that can step up to match corporate services and technologies, the future looks good. But too many cooperatives are failing or simply unable to match the private company options and are therefore losing customers and acres. I love the competition for my grain that has developed through a network of private companies and coops growing outside of their inherent territory, but I know someone or something will give. The smart farmer will take in all options and choose wisely and the smart coop will find opportunities to pivot and customize in ways large corporate players simply cannot.
There is the loss of local investment from locally-owned and locally-operated companies plus the patronage dollars that go to producers who do business with the cooperatives (although those are not guaranteed to members each year). Add to that the local control for the end-user or market for the grain. Cooperatives can and will work with local mills or value-added companies. Large corporations are usually vertically integrated in some way so the end-user for the grain is already pre-determined. But probably most importantly, cooperatives serve regions - not just specific communities - when those coops are removed from the market, many communities/counties/regions are left unserved because they are not attractive enough for private industry - but still need some kind of infrastructure or market for their grain. That puts the burden on farmers to either increase on-farm storage or haul grain to a market. We see this is Southeast Kansas. They have a very weak - almost non-existent in some counties - coop system. There are some private actors in the region but not enough. On-farm storage is much more common there and folks are trucking grain sometimes hundreds of miles to get it to a terminal or inland port. We also have to keep in mind that on-farm storage is not always insured so any kind of natural disaster can do major damage to storage facilities and decimate an entire crop.
I agree with your thoughts on the corporate "Goliaths" however, I would note - at least here in Central Kansas - agricultural cooperatives are facing a David vs Goliath fight with the bigs getting bigger and the small getting smaller. The disruptor is private industry offering the same products and services for customers - often with the added bonus of technology. This is not only pulling farmers from cooperatives, but is straining already tight labor markets. For those cooperatives that can step up to match corporate services and technologies, the future looks good. But too many cooperatives are failing or simply unable to match the private company options and are therefore losing customers and acres. I love the competition for my grain that has developed through a network of private companies and coops growing outside of their inherent territory, but I know someone or something will give. The smart farmer will take in all options and choose wisely and the smart coop will find opportunities to pivot and customize in ways large corporate players simply cannot.