Cooperative Services Branch
Top 100 Agricultural Cooperatives in 2020
Business volume drops slightly, but income and assets set records for the Top 100 agricultural cooperatives
November 19, 2021
Despite a relatively small drop of $336 million in total gross business revenue from $149.8 billion in 2019 to $147.4 billion in 2020, the nation’s 100 largest agricultural cooperatives reported a record $6.2 billion in net income. This reflected a $292 million increase, or 4.9 percent, from the previous record of $5.9 billion in 2019. The Top 100 ag co-ops also employed a record $70.6 billion in total assets in 2020. (See the charts below.)
The record net income reflects strong performance of the Top 100 co-ops who increased service and other operating income, patronage received from other cooperatives, and non-operating revenues. Of those items, non-operating revenues increased the most in 2020, up $220 million, or 22 percent, from 2019.
Total gross sales (sales from marketing commodities and selling supplies) was just under $143 billion, $636 million less than in 2019. Marketing revenues increased substantially (up $1.5 billion in net and $2.3 billion in gross marketing), while conversely, supply sales fell substantially, by $1.3 billion in net sales and by $2.9 billion in gross sales.
Wages, depreciation, and other expenses all increased in 2020, but interest expense dropped. Together these changes provided an increase of $1.2 billion in total expenses from 2019 to 2020.
The Top 100 ag co-ops had 73.4 percent of the total gross business revenues of the population of all ag co-ops in 2020, up from 72.8 percent in 2019. Total business revenues are comprised of gross sales, service and other operating income, patronage from other cooperatives, and non-operating income. Net income after taxes of the Top 100 was 75.1 percent of all ag co-ops.
The $70.6 billion in total assets of the Top 100 ag co-ops in 2020 was an increase of 4.5 percent from 2019. Member equity also increased, totaling $30.4 billion, of which 61.8 percent ($18.8 billion) was allocated equity. Total liabilities of the Top 100 ag co-ops increased by 3.9 percent to $40.2 billion in 2020 (long-term liabilities increased by $1.5 billion, or by 10.9 percent).
Total assets of the Top 100 were 69 percent of the total assets of all ag co-ops, while member equity was 64 percent of all co-op equity.
Profile of the Top 100
The nation’s 100 largest ag co-ops reported serving 652,782 members and employed 106,232 people in full- and part-time positions (both numbers slight increases over 2019). Compared to the entire population of the nation’s ag co-ops, the largest 100 served 34.9 percent of all ag co-op members and employed 57.3 percent of the people. These co-ops also operated 4,021 locations (51.5 percent of all co-op locations) in communities across the United States. Twenty-five Top 100 ag co-ops have been operating for more than 100 years, 35 for 75 to 99 years,17 for 50 to 74 years, and 23 for less than 50 years. The average size of the board of directors of Top 100 ag co-ops is 14, 6 more than the average size of the board of all ag co-ops (8).
Most of the Top 100 ag co-ops (51 of them) have diverse operations, noted as mixed type ag co-ops with varying combinations of commodities marketed and supplies sold. There were 16 co-ops in the Top 100 that marketed milk and milk products (dairy), 7 each that marketed sugar and fruits & vegetables. Five were supply co-ops, and 4 each were grain and oilseeds, and livestock. There were 6 co-ops in the other category (commodities including rice, cotton, biofuel, and nuts).
Iowa, California, and Minnesota had most Top 100 ag co-op sales
Sixty-eight of the 100 largest ag co-ops operate in more than one State. Iowa had 37 Top 100 ag co-ops operating within its borders that conducted $13.3 billion of net sales: a combination of $8.4 billion in net sales of commodities marketed and $4.9 billion in net sales of supplies. California had $10.7 billion in net sales conducted by 17 Top 100 ag co-ops, and 30 Top 100 co-ops had $9.4 billion in net sales in Minnesota.
When breaking out commodities marketed, California had the most marketing net sales of the Top 100 ag co-ops at $10.4 billion and Iowa followed with $8.4 billion. For supplies, the Top 100 ag co-ops had the most net sales in Iowa at $4.8 billion, followed by Illinois with $2.7 billion and Minnesota with $2.4 billion.
Net sales of the 100 largest ag co-ops totaled $121.3 billion, $92.5 billion from marketing commodities and $28.7 billion from selling supplies. These co-ops also conducted $21.7 billion in business between themselves, and when added to net sales, resulted in total gross sales of $143.0 billion for the Top 100.
CHS, Inc. tops the Top 100 ag co-op listing
CHS Inc., headquartered in Inver Grove Heights, Minnesota (an energy, farm supply, grain and food co-op), is the nation’s largest agricultural co-op (in fact, the largest U.S. co-op of any kind) and has held the top position for many years. In 2020, CHS had total gross business revenue of $28.6 billion and total assets of $16.0 billion. Dairy Farmers of America, a dairy co-op headquartered in Kansas City, Missouri, is in the 2nd position in the listing with total revenue of $17.9 billion and assets of $6.6 billion. Land O’Lakes of Saint Paul, Minnesota, a diverse supply, dairy, and food co-op is ranked third with $14.0 billion in total gross revenues and $9.2 billion in assets.
Tracking the Top 100
Tracking the Top 100 co-ops’ performance, year-to-year, provides insight into trends and economic forces impacting ag co-ops and their member owners. The various financial ratios discussed may also serve as a yardstick that all co-ops can compare their own status to. In 2020, the Top 100 co-ops employed record assets and had record net income. Even though they experienced slightly lower business revenue, these top co-ops showed significant financial and operational strength.
Strong performance allows co-ops to invest in additional or renewed operational assets, use funds to shore up their financial foundation, and to pay out patronage refunds and revolve member equity to members. The operations of the nation’s 100 largest agricultural cooperatives represent a wide diversity of agricultural businesses. As such, it is difficult to point to two or three reasons for the changes that occurred on the list in the past year. There are many reasons that a co-op’s rank, total business volume, revenue, expenses and income change on a year-to-year basis; these factors will vary depending upon the sector the cooperative operates within.
Total business revenue changes can be influenced by: cooperative-sector structural changes, e.g., mergers, acquisitions and dissolutions; prices and physical volume of commodities marketed and farm inputs sold; energy-sector performance; state and national trade and farm programs; food-price fluctuations; economic peaks and valleys; weather conditions; etc. It is important to keep such factors in mind when assessing the rank and performance of the Top 100 U.S. agricultural co-ops.
Finally, while this analysis focused on the largest 100 ag co-ops in the nation, it should not, by any means, diminish the importance of small- to mid-sized ag co-ops and their vast contributions. Co-ops of all sizes and types play a critical role in the food and fiber economy of the United States, as well as positively impact rural and urban communities, and consumers throughout the Nation. All co-ops operate to effectively serve members, striving to provide them with excellent services and greater economic benefits than they would otherwise experience without direct participation in cooperatives.
Full 2020 Top 100 Ag Co-ops Bulletin Complete with Tables is Available
This bulletin was developed from the information contained in a more comprehensive bulletin that is available in .pdf format. The full bulletin also contains 8 tables, including the listing of the individual Top 100 ag co-ops for 2020. To receive a copy of the full bulletin, please email your request to coopinfo@usda.gov.
Link to this bulletin: https://content.govdelivery.com/accounts/USDARD/bulletins/2fd0e09
Signup for USDA Rural Development email bulletins GovDelivery
Rural Development
Cooperative Services Branch
For questions or more information please email: coopinfo@usda.gov
|
