WASHINGTON, DC, May 01, 2012 -- The nation's 100 largest agriculture cooperatives reported near-record revenue of $118 billion in 2010, USDA Rural Development Under Secretary Dallas Tonsager announced today. This was an increase of 4 percent over 2009 figures. Net income for the 100 top agriculture co-ops was also up more than 10 percent in 2010, reaching $2.39 billion, up from $2.16 billion in 2009.

"Farmer and rancher-owned cooperatives are a mainstay in the American economy, not only helping members market and process their crops, milk and livestock and creating jobs, but also helping producers keep more of the earnings derived from their products at home, in rural counties and communities," Tonsager said. "The end result is a huge net benefit for producers, their communities and the overall rural economy. Farmer co-ops also account for significant numbers of jobs and economic activity in many cities."

CHS Inc., a farm supply, grain and foods cooperative based in Saint Paul, MN, topped the list with 2010 revenue of $25.3 billion. Land O' Lakes, a dairy foods and farm supply co-op, also based in Saint Paul, ranked second, with revenue of $11.1 billion; Dairy Farmers of America, based in Kansas City, Mo., was third with $9.8 billion in 2010 revenue.

USDA's top 100 ag co-op list shows that 23 co-ops had 2010 revenue of more than $1 billion. Another 47 co-ops had revenue between $506 million and $1 billion. The 100th ranked co-op had sales of $276 million.

Leading the revenue increase from 2009 to 2010 were dairy cooperatives, which saw 2010 revenue climb more than 14.5 percent from the previous year, to $29.5 billion. Dairy cooperatives accounted for more than half of the revenue increase recorded by the top 100 ag co-ops in 2010.

Gross margins, as a percent of total sales, were up slightly, from 9 percent to 9.2 percent. The increase in gross margins partially covered higher expenses. Gross margins plus service revenue climbed to $684 million.

Total expenses for the top 100 ag co-ops were up $575 million in 2010. The largest cost increase was for labor, where expenses climbed by 7 percent, to $4.6 billion. On the other hand, lower interest rates and less debt caused interest expense to drop 11 percent.

"While it is encouraging to see the nation's largest farmer-owned cooperatives reporting strong revenue and income, it is also noteworthy that the nation is seeing a surge in the formation of small-farmer cooperatives and quasi-cooperatives that have been created to meet the growing demand for locally produced foods," Tonsager said.

The asset base for the top 100 ag co-ops grew by $2.3 billion between 2009 and 2010. Current assets accounted for nearly two-thirds of that increase. Fixed assets also showed an increase of $600 million.

For a complete list of the top 100 cooperatives, go to http://www.rurdev.usda.gov/SupportDocuments/rdTop100AgCoopList04-27-2012.pdf. For a more detailed look at the top 100 Ag Co-ops, see page 16 of the March-April issue of USDA's "Rural Cooperatives" magazine: http://www.rurdev.usda.gov/rbs/pub/openmag.htm.

USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an active portfolio of more than $165 billion in loans and loan guarantees. These programs improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural areas.

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Farm payment limit loopholes closed for first time

Lyons, NE - Today, the Center for Rural Affairs praised the Senate Agriculture Committee for closing loopholes in the farm payment limitation.

"We applaud the Senate Ag Committee for passing a Farm Bill that for the first time in a generation closes the gaping loopholes that have made a mockery of the farm program payment limitation," said Chuck Hassebrook of the Center for Rural Affairs. "Most of all, we thank Senator Chuck Grassley (R-IA) for his tireless advocacy for reducing subsidies for mega farms to drive family farms out of business."

According to Hassebrook, closing the loopholes is a critical step. And the next step is to apply those limits to uncapped premium subsidies for federal crop insurance, the most expensive element of the farm program. "If one corporation farmed every acre in America," said Hassebrook. "The federal government would pay 60 percent of its crop insurance premiums on every acre, every year."

"Crop insurance subsidies are highest in times of high prices - when they are needed least. That's because it costs more to insure $6 corn than $4 corn. Crop insurance costs have doubled in the last 5 years and quadrupled in the last 10 years," Hassebrook continued.

The Center for Rural Affairs also praised Senators Ben Nelson (D-NE) and Sherrod Brown (D-OH) for working to fund rural development programs through the farm bill. "If passed as it now stands," said Hassebrook, "this farm bill will be the first in a generation to include no funding for rural development." Brown and Nelson are pressing to change that before the bill comes before the full Senate.

The Center also praised Senators John Thune (R-SD), Ben Nelson (D-NE), Sherrod Brown (D-OH), and Mike Johanns (R-NE) for winning a sodsaver provision that will reduce federal crop insurance subsidy premiums for breaking out erosion prone native grasslands for crop production.

Washington, D.C. - Congressman Dave Loebsack today praised the U.S. Department of Labor (DOL) for withdrawing a proposed rule dealing with youth who work in agriculture. Last week, Loebsack met with the DOL to urge them to review Iowans' concerns that part of the proposal would limit activities children could perform on family farms and the effect the updates could have on student education programs in rural areas.

"Iowa farmers have a long and proud tradition of feeding the world," said Loebsack. "After hearing from concerned family farmers from across Iowa and the nation, I am pleased the Department of Labor has taken this step to help protect Iowa's way of life. When I met with the Department of Labor, I stressed the importance of better cooperation and outreach to the agriculture community and raised concerns about this rule. I applaud their commitment to working in a cooperative way to make our farms safer for kids."

In addition to meeting with the DOL, Loebsack wrote to the Secretary of Labor to urge the Department to ensure Iowa farmers and families had the opportunity to be heard regarding these proposals and urged the Department to reconsider the provisions relating to the parental exemption for children helping on the farm, which had already been withdrawn prior to today.

Thursday, April 26, 202

Senator Chuck Grassley, a member of the Senate Agriculture Committee, made the following statement after the committee passed "The Agriculture Reform, Food, and Jobs Act of 2012."  Grassley is one of the only working family farmers in the United States Senate.  Grassley voted for the bill.

The Chairwoman's legislation that was debated in the Agriculture Committee contained the most important parts of Grassley's efforts to limit farm program payments to small- and mid-size farmers.  The legislation that cleared the committee will limit farm payments under the proposed new commodity program to $50,000 for individuals and $100,000 for married couples.  The bill also includes a provision to begin closing the loopholes that allow people who aren't involved in farming to collect farm payments.  The provision prevents non-farmers from being able to use the management loophole in current law.  A person who doesn't provide labor for the farming operation will still be able to qualify for farm payments by helping manage the farm.  However, there can only be one individual per farming operation qualifying for payments based solely on their providing management.  This provision will help the Department of Agriculture crack down on the general partnerships that have multiple non-farmers trying to qualify for farm payments by exploiting the management loophole.  This will end some of the most egregious abuses of the farm program.