Overview of the Cooperative Sector in United States
The United States has a robust and diverse cooperative sector with over 30,000 cooperatives generating more than $650 billion in revenue annually and holding over $3 trillion in assets. With more than 350 million memberships (counting overlaps), cooperatives are embedded in almost every sector of the American economy — from rural electric utilities to grocery stores to credit unions to agricultural marketing.
US cooperative law is primarily state-based, with each state maintaining its own Cooperative Corporations Act or equivalent legislation. This decentralized framework means that the specific governance rights, tax treatment, and regulatory requirements for cooperatives vary by state, though federal programs — particularly through the USDA's Rural Development Cooperative Programs — provide significant support for rural and agricultural cooperatives.
The electric cooperative sector is particularly distinctive: 832 electric distribution cooperatives serve 42 million Americans in 47 states through the NRECA (National Rural Electric Cooperative Association), providing power to rural communities where investor-owned utilities historically did not operate. Agricultural cooperatives like Dairy Farmers of America ($18B revenue), Land O'Lakes, and Ocean Spray operate at massive scale, giving farmers collective bargaining power in global commodity markets.
Types of Cooperatives in United States
Agricultural Cooperatives
Farm supply, marketing, and processing cooperatives handling dairy, grain, cotton, fruit, and vegetables. USDA estimates over 2,000 agricultural cooperatives with combined revenue exceeding $200 billion.
Electric Cooperatives
832 distribution cooperatives (plus 65 generation and transmission co-ops) serving 42 million Americans in 47 states, collectively the largest distribution network in the US electric power sector.
Credit Unions
Over 4,700 federally insured credit unions with 140 million members and $2.2 trillion in assets, regulated by the National Credit Union Administration (NCUA). Legally classified as nonprofit financial cooperatives.
Housing Cooperatives
Approximately 1.5 million families live in housing cooperatives, concentrated in New York City (over 300,000 co-op apartments), Chicago, and other major metros.
Retail and Consumer Cooperatives
Including REI (21 million members, outdoor gear), over 300 food cooperatives (via National Cooperative Grocers), and hardware store cooperatives such as Ace Hardware (5,000+ member retailers).
Notable Cooperatives in United States
Dairy Farmers of America (DFA)
Dairy / AgriculturalThe largest US dairy cooperative with approximately $18 billion in annual revenue, representing over 10,000 family farms across all 50 states. DFA processes and markets milk, cheese, butter, and dairy ingredients globally.
REI Co-op
Retail / ConsumerWith 21 million members and over $3.7 billion in annual revenue, REI is one of the largest consumer cooperatives in the world, selling outdoor gear and clothing. Members receive a patronage dividend (REI dividend) each year.
Land O'Lakes
Agricultural / DairyA farmer-owned cooperative with approximately $15 billion in revenue, offering dairy products (butter, cheese), animal nutrition, and crop inputs. One of the oldest US agricultural cooperatives, founded in 1921.
Ocean Spray
AgriculturalFarmer-owned cranberry and citrus cooperative with roughly 700 member growers and over $2 billion in annual revenue. Controls approximately 65% of the world's cranberry supply.
National Rural Electric Cooperative Association (NRECA)
Electric Utilities (Apex)The national trade association for the 832 electric distribution cooperatives and 65 G&T cooperatives serving 42 million Americans. NRECA advocates for cooperative policy at the federal level.
Regulatory Framework
| Primary Legislation | State Cooperative Corporations Acts (varies by state); Capper-Volstead Act 1922 (agricultural antitrust exemption); Federal Credit Union Act 1934; Rural Electrification Act 1936 |
| Regulator | State Secretaries of State / Cooperative Regulators; NCUA (credit unions); USDA Rural Development (agri cooperatives); FERC (electric co-ops) |
| Key Year | 1922 (Capper-Volstead); 1936 (REA) |
| Notes | The Capper-Volstead Act grants agricultural cooperatives a limited antitrust exemption, allowing farmers to jointly market their products. USDA Rural Development provides loans and grants through the Rural Cooperative Development Grant Program. |
How to Form a Cooperative in United States
- 1
Identify the appropriate state and locate that state's Cooperative Corporations Act (e.g., Wisconsin, Minnesota, Iowa have historically strong cooperative statutes)
- 2
Draft Articles of Incorporation specifying the cooperative name, purpose, membership classes, and patronage allocation method
- 3
Prepare bylaws defining governance structure, board elections, member voting rights, and patronage dividend policies
- 4
File Articles of Incorporation with the state Secretary of State and pay filing fee (typically $50–$200)
- 5
Hold an organizational meeting, elect directors, adopt bylaws, and issue membership certificates
- 6
Obtain an Employer Identification Number (EIN) from the IRS
- 7
Consider Subchapter T tax status: agricultural marketing cooperatives may qualify for single-tax treatment under IRS rules
- 8
Register with USDA Rural Development if seeking cooperative development assistance
Frequently Asked Questions — Cooperatives in United States
How many cooperatives are there in the United States?
There are approximately 30,000 cooperatives in the US, with over 350 million memberships (including overlaps — many Americans are members of multiple cooperatives). They generate more than $650 billion in annual revenue.
Are credit unions considered cooperatives in the US?
Yes. Credit unions are legally structured as nonprofit financial cooperatives owned and controlled by their members. There are over 4,700 federally insured credit unions with 140 million members regulated by the NCUA.
What is the Capper-Volstead Act?
The Capper-Volstead Act of 1922 grants agricultural producers a limited exemption from federal antitrust law, allowing farmers to form cooperatives to collectively process, prepare, handle, and market their products without violating the Sherman Antitrust Act.
Which US state has the strongest cooperative law?
Wisconsin, Minnesota, and Iowa are traditionally considered to have the most favorable and sophisticated cooperative statutes. Wisconsin's Cooperative Associations Act has served as a model for other states and offers clear rules on governance, patronage dividends, and member liability.
Learn More
Cooperatives in United States — In-Depth Guide
History, legislation, notable organisations, and sector breakdowns.
Find Cooperatives in United States
Browse 26,000+ cooperatives by sector, country, and size in our free directory.