Development of new generation cooperatives in agriculture for renewable energy research, development, and demonstration projects

Any of several business structures may be used to operate a farm enterprise. Models have been developed showing advantages and disadvantages of sole proprietorships, partnerships, and corporations when applied as farm enterprises. In recent years, the farm cooperative business structure has taken on a different complexion, especially when faced with new crops and uses, mixed, multiple, and international markets, and cross-cutting market sectors. These new generation cooperatives have played a particularly strong role in developing renewable energy and agricultural enterprises, especially in the face of proposed new crop rotations, inclusion of perennial crops in these rotations, and different management scenarios based on agro-forestry principles. In this paper, we define conditions under which the farm cooperative is an appropriate business enterprise structure, and review and update the status of four of these new generation cooperative business structures in Minnesota, New York, and Iowa. We assess the status of development of these cooperatives and the market conditions needed for the agriculture, energy, and environmental sectors that comprise these cooperatives.