Food and agriculture: nonprofit cooperative associations.
The amendments presented in AB 2964 are primarily nonsubstantive changes, suggesting that the current framework for nonprofit cooperatives remains largely intact. This bill reaffirms the state's support for cooperative associations which play a key role in organizing collective efforts in agriculture. By allowing these groups to come together, it aims to facilitate a more structured approach to market production, drastically improving their operational capacity and allowing them to better address the challenges faced in the agricultural sector.
Assembly Bill 2964, introduced by Assembly Member Flora, proposes amendments to Section 54061 of the Food and Agricultural Code concerning nonprofit cooperative associations involved in food and agriculture. The bill outlines that a minimum of three natural persons, who are residents of California and engaged in the production of agricultural products, may form a nonprofit cooperative association for specified activities. These activities include production, marketing, selling, and handling of agricultural products, as well as the manufacturing of related machinery and supplies to support these efforts.
While the bill itself does not appear to introduce major contentious elements, the general context of agricultural cooperatives can often touch on issues related to local versus state control in agricultural policy. Some stakeholder groups may raise concerns regarding the ability of large cooperatives to overshadow smaller farming operations, which might lead to a less diverse agricultural market. However, since AB 2964 focuses on clarifying existing law rather than altering substantial statutory provisions, significant opposition is not anticipated.