Agricultural cooperatives are formed to help farmers enhance their economic market power. There are three main types of farmer cooperatives: supply, marketing, and service.

• Supply cooperatives provide inputs necessary for agricultural production, such as fertilizers and pesticides. These co-ops purchase inputs in bulk to secure lower prices and then sell them directly to members at a reduced cost compared to individual purchases.

• Marketing cooperatives assist members in selling their agricultural products. They may either buy members’ products at prevailing market prices or act as pooling agencies, holding goods until a more favorable price is available.

• Service cooperatives offer various services to their members, including housing, financing, and transportation.