Description

Farmer cooperatives built much of the grain marketing and input-delivery system that Kansas farmers rely on today—but what does that system look like now, and where is it headed? 
In this episode, host Aaron Harries sits down with Brian Briggeman, director of the Arthur Capper Cooperative Center at Kansas State University, to trace the cooperative story from railroad dominance and the Capper-Volstead Act all the way to today’s era of consolidation and creative new structures. 
Brian explains how farmer-owned co-ops use scale to negotiate better prices, provide agronomy services and energy, and keep profits and property taxes anchored in rural communities.

The conversation also tackles the tough questions directors and managers face: how to judge cooperative financial health, when to shed non-core services like tire shops, and how to invest in “speed and space” while still paying patronage and retiring equity. 
Brian breaks down the Kansas merger landscape, the importance of director education, and the pressures of drought, big crops with limited carry, and intense online price competition. 
Looking ahead, he highlights the impact of the Section 199A(g) tax deduction, the need for stronger trade policy to open markets for Kansas grain, and the growing challenge of finding operational labor—from truck drivers to elevator staff—in rural America.


Top ten takeaways

1. Farmer co-ops exist to restore market power. They were created so farmers could pool resources, negotiate better prices and serve as a “competitive yardstick” against more concentrated players like railroads and large buyers.
2. The Capper-Volstead Act is foundational. It provides limited antitrust exemptions that make it legal for farmers to jointly market their products through cooperatives—without being treated as colluding under Sherman antitrust law.
3. Kansas has far fewer co-ops, but bigger ones. The state went from 364 co-ops in 1952 to about 54 today, reflecting consolidation, scale economies and the need to attract and retain management talent.
4. Retiring managers often trigger merger decisions. Many modern mergers start when a long-tenured general manager announces retirement, forcing boards to weigh hiring new leadership versus partnering or merging with neighboring co-ops.
5. New structures help share talent and risk. Models like Alliance Ag and Grain’s management LLC or marketing alliances such as CoMark and Equity Alliance CEA let local co-ops retain ownership while sharing top-level talent and gaining scale in grain marketing.
6. Co-op health is about more than patronage. Boards and lenders look at cash flow, liquidity and working capital, alongside patronage and equity redemption, to judge whether the co-op can weather droughts, price swings and changing markets.
7. “Speed and space” still matter. Investing in faster dumping and more storage capacity remains a critical way co-ops provide value to farmers—especially when big crops meet limited export or domestic demand.
8. Loyalty is changing, but relationships still count. With smartphones and online bids, farmers can comparison-shop easily, yet co-ops can still win by being a trusted adviser, offering services, risk management and local knowledge—not just price.
9. Labor is a looming constraint. From truck drivers to elevator operators, co-ops are struggling to fill operational roles, making immigration and H-2A reform important policy issues for the cooperative system.
10. Policy wins like Section 199A(g) matter. The permanent tax deduction can support higher cash patronage, more timely equity redemptions, and needed capital investments—benefiting both co-ops and their farmer-members.
     

Segment Time Stamps

00:01 – 01:01 – Intro to Wheat’s On Your Mind and guest bio for K-State ag economist Brian Briggeman, including his background with the Federal Reserve Bank of Kansas City and role as director of the Arthur Capper Cooperative Center.

01:02 – 03:36 – What the Arthur Capper Cooperative Center is, why it was created during turbulent times in the 1980s, and how it supports co-ops through research and education. Explanation of who Arthur Capper was and how the Capper-Volstead Act gives limited antitrust exemptions to agricultural cooperatives.

03:36 – 08:14 – History and purpose of farmer co-ops: farmers banding together against railroad power, pooling acres for better prices, and using co-ops as a “competitive yardstick.” Discussion of grain, agronomy, energy, risk management and the deep community role of co-ops as employers, taxpayers and sponsors of local events.

08:14 – 13:18 – The merger trend in Kansas: from 364 co-ops in 1952 to 54 today. How retirements of long-time managers often trigger merger talks, with examples like Alliance Ag and Grain, Kansas and Farmers Cooperative of Cheney, and SEK Co-op with single-location co-ops in Yates Center.

13:18 – 16:32 – Different structural models: management LLCs like Alliance Ag and Grain, plus grain marketing alliances such as CoMark and Equity Alliance CEA. Emphasis on using these structures to access talent and economies of scale.

16:32 – 19:28 – Board education and director development. The role of the Kansas Cooperative Council and the Capper Center in new director training, strategy sessions and helping farmer-directors oversee multi-million-dollar businesses while improving their own farm management skills.

19:28 – 23:06 – How co-ops manage input price volatility and grain market risk: securing supply, matching inventory to farmer contracts and dealing with drought-driven low bushels versus big crops with limited carry. Focus on access to global markets and the importance of basis and spreads.

23:06 – 27:43 – Measuring co-op financial health: cash flow, liquidity, working capital, patronage, equity retirement and capital investment in “speed and space.” How co-ops decide whether to keep non-core services like tire shops and farm stores versus focusing on grain and inputs.

27:43 – 31:22 – Co-op loyalty and competition in an online world: more bids at farmers’ fingertips and pressure to shop around. Discussion of how co-ops can still win by being a trusted advisor and building relationships rather than always being the cheapest.

31:22 – 34:53 – Policy and outlook: the Section 199A(g) tax deduction becoming permanent law and how it supports patronage, equity retirement and CapEx. Importance of trade policy and export markets for revenue, and workforce challenges driving calls for immigration and H-2A reforms.

34:53 – end – The challenge of leadership transition and institutional knowledge as long-time managers retire, along with the need to adapt past practices to a rapidly changing co-op and ag economy. Closing appreciation of the cooperative model as a uniquely American way to strengthen rural communities.

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