In it for the Long Haul: Long-Term Profitability

Since the inception of the cooperative business structure, long-term profitability has been a key advantage to grower-owners who participate in their local and regional cooperatives. As agriculture ebbs and flows over the seasons and years, co-ops remain strong and steady to provide in lean times as well as in those of abundance.

Grower-owner Rance Dunn said it best:

“Being part of a co-op keeps my business secure because we all know the markets crash and fail, but being part of the co-op, we know that they are selling all year long,” he said. “We might not always get top dollar but we won’t ever get the low dollar. Being in the co-op really protects you in that aspect.”

Through various avenues of support, cooperatives are there for their grower-owners. Vertical integration plays a role in long-term profitability as well, providing farmers additional opportunities to add value to their bottom lines at every level of the supply chain.

The unique business model of cooperatives has helped keep family farms operating for generations because they were founded by farmers, for farmers, who knew that the land they farmed did not just belong to them, but also to future generations. The Co-op Advantage® regional co-sponsors are prime examples, as they have been serving farmers for decades, seeing many generations of farm families pass through their membership.

Among other cooperatives, PCCA, PYCO, and FCC all provide their grower-owners opportunities for long-term profitability and keep farmers their highest priority. CEO of PYCO Industries, Inc., Robert Lacy, emphasized this point.

“The regional cooperatives and the co-op gins, they work together in order to funnel as much money back to the farmers’ pocketbook as possible because we know that in West Texas, without the farmer growing cotton, there is no need for the rest of us.”

Simply stated, cooperatives provide the opportunity for your long-term profitability because like you, they are in it for the long haul and for the future generations of your family farming operation.

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