- They provide farmers with transport facilities hence encouraging massive production in the country.
- They provide financial assistance to the farmers in form of loans hence enabling them afford improved seeds and other farm inputs which helps to improve agricultural production.
- They provide farm inputs to the farmers like fertilizers and other inputs at subsidized prices hence encouraging massive production.
- They provide marketing facilities to the farmers output through setting up buying centers near the farmers hence improving on their incomes.
- They have helped to change the economy from subsistence sector to a monetary sector through buying the farmers produce.
- They eliminate wasteful competition and exploitation of farmers by some middle men who underpay them by giving farmers a fair price.
- They negotiate for better prices for the farmers produce since they have a high bargaining power than individuals.
- They provide employment opportunities to the people in certain areas like transport, marketing e.t.c
- They provide storage facilities to the farmers hence encouraging them to increase output.
- They help in uniting people from a diversified background which may be condusive for development.
They provide banking services to the members hence promoting a saving culture in the economy