Back to Our Roots: Farmers Union’s Rich Co-op History
By David Ketsenburg

The concept of a cooperative is variously defined as “a voluntary association of people for any desired economic end,” or as “a jointly-owned means of production or distribution of and services by the consumers for their mutual benefit.”

Democratic control of a co-op is based on one person, one-vote governance. This principle guided development of Agricultural Cooperatives across the United States and Canada. During its 100 year history, National Farmers Union has developed more cooperatives than any other entity, including everything from farm supply co-ops to rural electrics.

The first Farmers Union Cooperative action took place at Point, Texas, in early 1902, when members decided to market their cotton together. They brought 1,000 bales of cotton to an empty lot where it was kept while bids were taken on the sale of the entire lot. In addition to the difficulties encountered in the sale of their raw cotton, farmers also suffered from the excessive cost of ginning cotton. When negotiations with the ginners achieved nothing, producers went into the ginning business themselves.

In the first year Farmers Union gins saved producers $6000.00. As a result, scores of farmer-owned gins were established in Texas and Oklahoma and adjoining states.

In 1903 Farmers Union members began operating farmers’ buying clubs. Fertilizer was one of the most common items ordered by the carload. National Farmers Union President Charles Barrent and his associates purchased 600 acres of phosphate deposits in Union City, Georgia, and erected a processing plant. This plant was known as the Farmers Union Phosphate Company of Georgia and became the first farmer-owned mine-to-consumer fertilizer operation. In 1912 the Secretary of Farmers Union A.C. Davis said that due to the efforts of Farmers Union, fertilizer costs in other states dropped $5.00 per ton.

In 1915, Farmers Union members in North Dakota began handling petroleum products at a cost saving of 8 cent per gallon. Farmers Union then proceeded to build a chain of Bulk Stations for more cost saving for their members. These stations, originally named Farmers Union Central Exchange, are now known as Cenex or Ameripride, and have been in service for 70 years.

In 1933 the Tennessee Valley Authority was created. Farmers Union addressed a major need as it played a large role in this project as well as Rural Electrification in other states. When Franklin D. Roosevelt allocated $100 million for rural electrification in May of 1935, only 10% of U.S. farms had central station electrical power.

William Sanderson and George Lewis of Wisconsin Farmers Union cited the positive record of the TVA which led to Norris-Rayburn Act of 1936, creating the Rural Electrification Administration to provide low cost loans for power development. Charlie Talbotl president of North Dakota Farmers Union would serve on the advisory committee for REA.

In the 1950s Farmers Union members in Nebraska and Illinois were active in urging measures to encourage the development of gasohol(ethanol).

On a more local level, Missouri Farmers Union had co-ops in 1909 including 125 creameries and cooperative stores. By 1930 Missouri Farmers Union had established 12 livestock commission houses including a large one at St. Joseph that was managed by C.F. Emmert.

As seen by the examples given above, Farmers Union has had a very strong influence in cooperative development for a long time. Farmers Union members, either working through Farmers Union or working with other organizations, have accomplished much for the common good of all involved; the cooperatives created included supply and marketing co-ops, credit unions and electric co-ops.

This heritage continues today with the same enthusiasm as in earlier decades. The National Farmers Union and various state organizations work to help raise the value of members’ crops and livestock and are starting new service cooperatives such as housing co-op for senior citizens.