Cooperative have been and continue to be an important aspect of rural and farm communities through provision of services,credit,farm and home supplies,and markets or outlets for farm products many agricultural cooperative are small and lack sufficient economies of size and scale to effectively compete with the often larger sufficient economies of size and scale to effectively compete with the often larger investor-owned businesses .nevertheless,webb (1990,p.56) suggests that cooperative may be the single most cost-effective structure farmers can implement to improve thir economic status.in fact,numerous farmers are evaluating and forming cooperative to improve their economic plight .also,existing agricultural cooperative position