What is the primary function of cooperatives in agriculture?

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The primary function of cooperatives in agriculture is to provide farmers with marketing and distribution services. Cooperatives are formed by farmers who come together to leverage their collective strength, allowing them to market their products more effectively. By pooling resources, cooperatives can negotiate better prices for supplies, improve access to new markets, and enhance their bargaining power compared to individual farmers.

In addition to marketing and distribution, cooperatives may also offer various services such as processing of agricultural products, access to financing, and shared resources like equipment. This collaboration reduces individual risks and enhances overall profitability.

The other options, while related to agricultural practices, do not encapsulate the primary focus of cooperatives. Increasing competition among farmers could undermine the cooperative's purpose, which is to unite them for mutual benefit. Reducing production costs is a potential benefit of cooperatives, but it is not their primary function. Establishing regulations is typically the role of government bodies rather than agricultural cooperatives, which instead focus on self-governance and support for their members.

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