Importance of Forming Farmers Cooperative

I have been opportune to be in several fora where calls were made to government to finance agriculture. One prominent issue most government officials at such forum has been hinging on is the issue of cooperatives, the needs for farmers to come together to form cooperatives, they made it known that government hardly grant loan to individual farmer because of the ability of such farmer to shoulder the risk. However, this does not mean an individual cannot successfully embark on farming without forming or joining a cooperative if the fund and resources is available.
This write up (an extract from a document) is to intimate farmers especially the young farmers on the need to setup a cooperative to chart their cause effectives

Although some cooperatives are established to take advantage of a business opportunity, most cooperatives are started by farmers for defensive reasons. Often this is in response to an economic problem that has a negative impact on them. The problem could be, for example, a lack of sufficient agricultural marketing outlets, non-availability of agricultural supply or storage services or the absence of credit facilities.
The farmers also realize that they share a problem that cannot be solved individually.

Advantages of working together
The most important feature of a cooperative is that farmers try to solve their problem or take advantage of an opportunity together, instead of trying to do this individually. A group of farmers has to first recognize the advantages of this, and they may subsequently discover that there is broad support in the region for their plan to work together.
Farmers may have several specific reasons for starting an agricultural cooperative:

1. To mobilize more resources than they can individually supply
2. To create attractive alternatives for purchasing goods and services
3. To operate a business more efficiently than can be done on an individual basis
4. To because they recognize that the benefits outweigh the duties of membership
5. To because they recognize that as members of a cooperative they are part owners and not only clients.

Sometimes farmers would like to take advantage of an opportunity that requires more resources or capital than they can individually supply.
This could be undertaking a new activity in the region, such as production of a new crop, that requires substantial investments or specialized production or storage activities that are not yet available. Examples are dairy production, cultivation of potatoes, setting up orchards and various processing activities.

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