History of Cooperatives in the United States

The history of cooperatives in the United States is characterized by the formation of cooperative enterprises across various sectors to address economic and social needs.The purpose of this study is to give an overview of key milestones in the history of cooperatives in the United States.

History of Cooperatives in the United States

1. Table of Contents

   Toggle

   Early Agricultural Cooperatives (19th Century):

   •  Farmers faced challenges in accessing markets and credit. The Grange movement, starting in the 1860s, led to the creation of agricultural cooperatives to pool resources and improve farmers’ economic conditions.

2. Rochdale Equitable Pioneers Society (1844):

   • The Rochdale Equitable Pioneers Society in England served as a model for the cooperative movement in the U.S. The principles established by the Rochdale Society, including open membership, democratic control, and distribution of surplus based on patronage, influenced the development of American cooperatives.

3. Farmers’ Alliances and Agricultural Cooperatives (Late 19th Century):

   • Farmers’ Alliances emerged in the late 19th century, advocating for economic reforms. Cooperative enterprises, such as marketing cooperatives and purchasing associations, were formed to address issues like price manipulation by middlemen.

4. The Rise of Consumer Cooperatives (Late 19th Century):

   • Consumer cooperatives, particularly in the form of retail grocery stores, gained popularity in the late 19th century. Consumers sought alternatives to private enterprises, and cooperative stores were established to provide affordable and quality goods.

5. Credit Unions (Early 20th Century):

   • The credit union movement in the U.S. began with the establishment of St. Mary’s Cooperative Credit Association in Manchester, New Hampshire, in 1909. The credit union model, focused on providing financial services to members, grew over the decades.

6. New Deal and Rural Electrification (1930s):

   • The New Deal policies of the 1930s included support for the formation of rural electric cooperatives. The Rural Electrification Administration (REA) provided loans and support to rural communities to establish electric cooperatives, expanding access to electricity.

7. Post-World War II Growth (1940s-1950s):

   • The post-World War II era witnessed the growth of cooperatives in various sectors, including agriculture, housing, and consumer goods. The Cooperative League of the USA (now the National Cooperative Business Association) played a role in promoting and supporting cooperatives.

8. 1960s and 1970s:

   • The 1960s and 1970s saw increased interest in cooperatives as a means of addressing social and economic challenges. Worker cooperatives and community development cooperatives gained attention during this period.

9. International Year of Cooperatives (1982):

   • The United Nations declared 1982 as the International Year of Cooperatives, bringing global attention to the cooperative movement. In the U.S., this recognition contributed to increased awareness and support for cooperatives.

10. Contemporary Diversity of Cooperatives:

    • In the 21st century, cooperatives continue to thrive in diverse sectors, including agriculture, finance, housing, energy, and worker-owned enterprises. Consumer cooperatives, credit unions, and housing cooperatives remain prominent.

11. Impact of Digital Platforms:

    • The digital age has also witnessed the emergence of platform cooperatives, where workers or users collectively own and govern digital platforms, providing an alternative to traditional models.

The history of cooperatives in the United States reflects a commitment to democratic ownership, shared benefits, and addressing economic and social challenges through collective action. Cooperatives remain an important part of the U.S. economy, contributing to community development and fostering sustainable business practices.