Types of Membership

Open...

This form of membership is how most traditional agricultural cooperatives originated. It basically implies that anyone meeting the membership qualifications (is an agricultural producer, pays their membership/equity/fee/stock, etc.) can become a member.

Closed...

This form of membership is not that well known, but seems to be the predominant structure in recent decades. Farmers and ranchers who structure in this format are generally the larger producers of a community who want more of a voice in the affairs of the company without the interference of many smaller members—whose needs are much different. Membership is not usually based on biased or personal selection, rather the initial equity investment is set so high that membership becomes limited to the larger producers that can afford the initial investment required.