What MFA Incorporated is and who it serves

MFA Incorporated is a farmer-owned cooperative based in Missouri that supplies agricultural inputs — seed, fertilizer, chemicals, and fuel — to member-farmers across the Midwest and South. Unlike a commercial supplier that sells to anyone, MFA is owned by the farmers who use it, meaning members share in the profits through patronage refunds and have a say in how the cooperative operates.

MFA has regional divisions and local cooperatives that operate under its umbrella. A farmer joins by purchasing a membership share, then buys supplies through the cooperative at member prices. The cooperative's revenue comes from the markup on products sold to members, and at year-end, any profit is returned to members based on how much they purchased — a practice called a patronage refund or dividend.

MFA serves row-crop farmers, livestock producers, and smaller agricultural operations. Membership is open to farmers in states where MFA operates, though the specific membership requirements and share cost vary by local cooperative.

Key Takeaways

  • MFA Incorporated is a farmer-owned cooperative that sells seed, fertilizer, chemicals, and fuel to member-farmers at member prices rather than retail prices.
  • Members purchase a share to join and then receive patronage refunds at year-end based on the total amount they spent through the cooperative.
  • MFA operates through regional divisions and local cooperatives, so the specific services, pricing, and membership terms depend on which local cooperative you join.
  • Members have voting rights in the cooperative's governance, meaning they can influence decisions about pricing, services, and operations.
  • Joining requires an initial membership share purchase, which costs vary by location but typically range from a few hundred to a few thousand dollars.

How membership works and what it costs

To become an MFA member, you purchase a membership share from your local MFA cooperative. The share cost is set by each local cooperative and is not uniform across all MFA locations. Some cooperatives charge a few hundred dollars; others may charge more. This share gives you ownership in the cooperative and the right to vote on cooperative matters at annual meetings.

Once you hold a share, you can purchase supplies at member prices, which are typically lower than retail prices at commercial suppliers. You are not required to buy exclusively through MFA, but the more you purchase through the cooperative, the larger your patronage refund at year-end.

Some local MFA cooperatives offer financing options for large purchases or membership shares, though terms vary. You should contact your local cooperative directly to learn what financing is available in your area.

Patronage refunds and how profit-sharing works

At the end of each fiscal year, MFA calculates its profit. Rather than keeping all profit or paying it to outside shareholders, the cooperative returns it to members in the form of a patronage refund. The refund is based on how much each member purchased during the year — a farmer who spent $50,000 receives a larger refund than one who spent $10,000.

The refund is typically paid in cash or applied as a credit to the member's account. Some cooperatives offer the option to reinvest the refund as additional equity in the cooperative, which increases your ownership stake. The size of the refund depends on the cooperative's profitability that year, so it varies year to year.

This structure means that as a member, you benefit directly from the cooperative's success. If the cooperative negotiates better prices from suppliers or operates efficiently, those savings flow back to you as a larger refund.

Voting rights and member governance

MFA members have the right to vote on cooperative matters, typically at an annual meeting. Each member usually has one vote regardless of how many shares they hold, though some cooperatives use a different voting structure — you should confirm the voting rules at your local cooperative.

Members vote on issues such as the election of the board of directors, approval of the annual budget, and major policy changes. The board of directors is made up of farmers elected by members and sets the strategic direction of the cooperative.

If you are a member, you receive notice of the annual meeting and can attend in person or by proxy. Attending gives you the chance to ask questions about the cooperative's performance and future plans.

Products and services MFA offers

MFA supplies the core inputs that farmers need: seed (corn, soybeans, and other crops depending on region), fertilizer, crop protection chemicals, and fuel. Many MFA locations also offer agronomic information, soil testing, and equipment services.

The specific product lineup and services vary by local cooperative. Some larger MFA locations offer custom process services — for example, explore fertilizer or chemicals to your fields — while smaller locations may focus on product sales only. A few MFA cooperatives also offer grain handling and storage services.

You can learn what your local MFA cooperative offers by visiting their location or calling directly. Many cooperatives have websites listing current products and services.

How MFA compares to commercial agricultural suppliers

The main difference between MFA and a commercial supplier is ownership and profit distribution. A commercial supplier is owned by investors or a corporation, and profit goes to those owners. MFA is owned by farmers, and profit returns to members as patronage refunds.

This means member prices at MFA are often lower than retail prices at commercial suppliers, especially over time as refunds accumulate. However, MFA may not have the same breadth of products or services as a large national supplier, depending on your location.

MFA also tends to have stronger ties to the local farming community because the cooperative is run by farmers in that region. Some members value this local connection and the ability to influence how the cooperative operates through voting.

Finding and joining your local MFA cooperative

MFA Incorporated operates through local cooperatives in multiple states, primarily in the Midwest and South. To find the cooperative nearest you, visit the MFA Incorporated website or search for "MFA cooperative" plus your state or county name.

Once you locate your local cooperative, contact them directly to learn the membership share cost, current member prices, and what products or services they offer. They can walk you through the membership process and answer questions specific to your operation.

Some farmers join MFA to take advantage of member pricing on a few key inputs, while others use it as their primary supplier. There is no minimum purchase requirement, so you can start small and increase your involvement over time.

Frequently Asked Questions

Do I have to buy everything through MFA once I join?

No. Membership gives you the right to buy at member prices, but you are not required to purchase exclusively through MFA. Many farmers use MFA for some inputs and other suppliers for others. Your patronage refund is based only on what you actually purchase through MFA.

What happens to my membership share if I stop farming or move away?

You can sell your membership share back to the cooperative or transfer it to another farmer. The process and any restrictions vary by local cooperative, so ask your cooperative about their share redemption or transfer policy.

Are patronage refunds taxable income?

Patronage refunds are generally treated as taxable income by the IRS. MFA will issue you a form documenting the refund amount for tax purposes. You should consult a tax professional about how to report it on your return, as the treatment can depend on your specific situation.

Can I join MFA if I rent my land rather than own it?

Yes. MFA membership is open to farmers who operate land, whether they own it or rent it. You do not need to own land to join, only to be actively farming.

What if there is no MFA cooperative in my area?

MFA operates in specific regions, primarily the Midwest and South. If there is no MFA cooperative near you, you may have other farmer-owned cooperatives in your area that operate similarly. Contact your state's department of agriculture or a local farm bureau to learn what cooperatives serve your region.