Agricultural cooperatives are organizations formed by farmers and producers to collectively manage resources, share costs, and improve their market position. By pooling their efforts, members can access better prices for supplies, share equipment, and increase their bargaining power when selling their products. This collaboration helps small-scale farmers compete more effectively in the market. These cooperatives can take various forms, including dairy cooperatives, grain cooperatives, and credit unions for farmers. They often provide services such as marketing, processing, and distribution, allowing members to focus on their farming activities while benefiting from shared resources and expertise.