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Economic advantages of Cooperative Communes in the USA

In spite of some economic disadvantages, cooperatives are gaining tremendous popularity.  Besides increasing in number, these cooperatives also interact actively with capitalist ventures while other cooperatives only do business within their local communities. The increase in cooperatives mostly occurs in local communities where corporate interest threatens the livelihood of small farm owners and there the organizational infrastructure is firmly established to support cooperative ventures. These cooperatives are consistently established with sociological ideologies that encourage collective action among local farmers to establish their own businesses to compete with large corporations. In such localities, just the presences of such corporations create cooperative contestation which results in the mobilization of resources by the local farmers to establish cooperatives.

The persistent popularity of the cooperative as an alternative economy over the past several years is in sharp contrast to the total number of cooperatives according to the overall population of the locality This contradicts the contention that cooperatively is not economically feasible or interesting for communities at large The perception is very important since cooperatives are being established in greater numbers in industries such as dairy products, electricity, and foodstuff. The same trend is taking place in the Bio-ethanol industry. This industry expanded rapidly in the late on a corporate basis. This was countered by cooperatives which now account for around 40% of ethanol production in the United States and are spread all over the country.

The cooperative keep spreading despite strong economic drawbacks, especially in industries that require a large amount of capital investment. In some states, cooperative and corporations exist and compete for side by side there are many places where large corporations still dominate the business. Despite these cooperatives still, are being established and being run profitably in places where they have been established. However, no evidence has been produced or seems to be forthcoming regarding the illogical characterization of the literature on cooperatives. The overall view that cooperatives that produce goods are not economically cannot be borne out with the speedy dispersion of the concept and its sequential steadiness in many agricultural-based industries, especially ethanol.

It does not even explain why corporate funding is not similar in most states such as in states like Illinois and Ohio, cooperative ethanol plants do not exist, while in Minnesota and South Dakota there are more cooperative plants than commercial plants. Economic considerations are equally important for both cooperative and commercial organizations but so are nonfinancial objectives. An example is that several farm owners carried out their commitments to industries that ran on grass and dairy produce despite the very strong possibility of large financial losses.