Farm co-ops finding new role in state

It was part of every farm kid's life.

When it came time to drive to town -- which was once or twice a week instead of every day like it is today -- one of the regular stops was the co-op.

There was gasoline and tires, oil and tractor fuel, a place to haul the corn after harvest, and a place to store it until the market was right. In the early spring, it was where you picked up the baby chicks, heat lamps and feed to give them a good start. And, when they were older, you might have even taken the eggs back there to sell, along with the cream from your small-time dairy operation.

Like the small farms they served, however, co-ops are consolidating and expanding, to the point that there are only about 40 co-ops in Nebraska, compared to more than 300 as recently as 30 years ago, Mike Turner, a retired ag economist for the University of Nebraska-Lincoln told the Kearney Hub.

Turner was contacted in connection with the planned Jan. 31 vote by patrons of the Heartland Co-op of Hastings and Midland Co-op of Funk on whether to join forces.

Like any business, co-ops can benefit from the economies of scale, and must also respond to changes, in this case, to cutbacks in single-line railroad service and overall farm consolidations.

And the ethanol industry is making itself felt in a big way in the Nebraska farm economy, and not just through high corn prices.

While ethanol plants often buy corn directly from farmers, who deliver directly to plants that operate year-round, there is still a role for farm co-ops, said Mark Friehe, branch manager for the McCook, Perry and Culbertson operations of the Frenchman Valley Co-op.

Ethanol plants need to keep running in spite of muddy roads or blizzards, and producers can't always deliver the corn directly from the farm when it is needed.

Plus, they don't always have adequate on-farm storage, and using cooperatives' capacity can allow the ethanol producers to lock in the prices they want, he said.

And cooperatives can still offer a bargain for member patrons who are looking for the best deal, and to receive share of the profits, as Frenchman Valley has been able to do for the past few years.

Yes, the mom-and-pop elevators are a thing of the past, as are, mostly, the small subsistence farms.

But as long as independent Nebraska farmers and ranchers are willing to work together for the benefit of themselves and their neighbors, farm cooperatives will have a role in our state.