An analysis of operations of 18 member locals and two Midwestern regional cooperatives shows that local use of regionals , management practices, and cooperative competition can affect operating relationships of local and regional cooperatives. Findings in this report are based on a series of personal interviews with regional managers and managers of nine member locals of each regional. Information contained in the report reflects cooperative organization and structure, business and financial operations, management policies and practices, cooperative and other competition, and cooperative services to farmers. The focus of efforts in the two systems was found to be in ways to improve overall system efficiency and control.