Understanding the Cooperative Association of Producers: A Legal Overview

Q: Do all members have equal voting rights in a cooperative?

Typically, each member has one vote, but specific rules may vary by cooperative.

Q: Can a cooperative association of producers operate outside of agriculture?

No, it specifically pertains to organizations controlled by agricultural product producers.

Definition & Meaning

A cooperative association of producers is an organization that is primarily owned or controlled by agricultural product producers. To qualify, at least seventy-five percent of the association must be owned in good faith by these producers. This type of cooperative must also comply with specific legal requirements set forth in the Act of February 18, 1922. The term encompasses various forms of cooperative associations, including those that represent groups of such associations. However, any business conducted with the United States or its agencies does not count towards the membership criteria for determining compliance with the law.

Table of content

Legal Use & context

The term "cooperative association of producers" is primarily used in agricultural law and business law. It is relevant in contexts where producers collaborate to market their products, share resources, or negotiate better prices. Legal forms and templates related to cooperative associations can help users establish or manage such entities effectively, ensuring compliance with applicable laws.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

1. A group of local dairy farmers forms a cooperative association to collectively market their milk products. This association is structured to meet the ownership requirements outlined in the law.

2. A hypothetical example: A cooperative of fruit growers combines resources to purchase equipment and negotiate better prices for their produce, ensuring that at least seventy-five percent of the association's ownership is held by the growers themselves.

Relevant laws & statutes

The primary legal reference for cooperative associations of producers is the Act of February 18, 1922, which outlines the requirements and definitions pertinent to these organizations. Specific sections include:

7 U.S.C. § 291 - Definitions related to agricultural cooperatives.
7 U.S.C. § 292 - Regulations governing the operations of such cooperatives.

Comparison with related terms

Term	Definition	Key Differences
Cooperative	An organization owned and operated for the benefit of its members.	Can include various types of businesses, not just agricultural producers.
Producer	A person or entity that grows or creates agricultural products.	Refers specifically to individuals or entities involved in production, not the organizational structure.

Common misunderstandings

What to do if this term applies to you

If you are involved in agriculture and considering forming a cooperative association, it is advisable to:

Review the ownership and control requirements to ensure compliance.
Consult legal resources or templates available through US Legal Forms to help establish your cooperative.
Seek professional legal assistance if your situation is complex or if you have specific questions about compliance.

Find the legal form that fits your case

Browse our library of 85,000+ state-specific legal templates.

This field is required

Quick facts

Attribute	Details
Ownership Requirement	At least seventy-five percent by agricultural producers
Legal Compliance	Must comply with the Act of February 18, 1922
Exclusions	Business with the U.S. government does not count towards membership

Key takeaways

Frequently asked questions

What is the main purpose of a cooperative association of producers?

Its primary purpose is to enable producers to work together for mutual benefit, such as better pricing and resource sharing.