A farmers’ cooperative is a type of organization that is also known as an agricultural cooperative. It is all about a group of farmers getting together to act as a pool. With all of the farmers working as one, they can pool resources together to accomplish a type of activity. There are a variety of farmers’ cooperatives out there and they could have to do with things like fueling, seeding, doing fertilizer, and more. So the question then is, so these types of farmers’ cooperative set-ups require an employer identification number?
As a farmers’ cooperative, it is essential that you obtain an employer identification number, and early on in the life of the organization. There are a lot of expenses that will be running through the cooperative, as well as income that will be passed through to offset the expenses of the pooled resources. When you take all of this into account you are meeting all of the criteria necessary to need to obtain that employer identification number and early on.