​The 1920s and early 1930s was a period of significant growth in agricultural cooperatives in the United States. Three key factors contributed to what is now the GROWMARK System:

1. The passage of the Capper-Volstead Act in 1922, often referred to as the "Magna Carta of Cooperation,"
2. The market environment in rural America, and
3. The vital leadership of the Illinois Agricultural Association (IAA).

Capper-Volstead

This piece of legislation provided limited antitrust exemption to associations of producers, thereby legally permitting reduction of competition among farmers when they join and act in the marketplace, in effect, as one farmer. This act was passed to allow marketing cooperatives (milk, eggs, fruits, vegetables, etc.) but has been broadly interpreted to allow other cooperatives (associations) as well to act for the benefit of their producer members. This bill was passed by the 67th Congress and signed by President Warren Harding on February 18, 1922.

Market Environment

The post World War I age saw the combustion engine and tractor introduced in farming in the Midwest. This established the need for dependable petroleum fuels and lubricants for farmers. Petroleum sources were irregular, fuel quality was uneven, and business practices were lax. These conditions created a void or market opportunity which provided fertile ground for local cooperatives to develop.

Role of the Illinois Agricultural Association (IAA)

There were 10 Farm Supply cooperatives operating in Illinois in 1926 showing how farmers could work together. Interest in this new business model was high throughout the state and county Farm Bureaus and their members were anxious for information and help.

The IAA played a key leadership role in this endeavor by:

• Holding a series of informational meetings across the state,
• Creating a model set of articles of incorporation which met the requirements of the Illinois cooperative law,
• Studying existing cooperative ventures in Minnesota,
• Offering to provide complete service and advice to counties interested in the formation of such farm supply cooperatives, and
• Deciding to set up a wholesale business to supply the county companies already in operation.

On March 7, 1927, the Illinois Farm Supply Company was chartered under the State of Illinois Cooperative Marketing Act of 1923. Nine county farm supply cooperatives were the original investors: Marshall-Putnam Oil Company, Knox County Oil Company, Ford County Service Company, McLean County Service Company, Edgar County Farm Supply Company, Coles County Supply Company, Menard County Farmers Supply Company, Montgomery County Farmers Oil Company, and the DeKalb County Agricultural Association. Five additional companies were served by the new wholesale company, but were not yet investors.

And so it began. Illinois Farm Supply (now GROWMARK, Inc.) was created as a wholesale distributor of petroleum and lubricant products. From the beginning, IAA and Farm Supply leaders insisted on clean-cut business practices, top-grade service, and enforceable contracts between Illinois Farm Supply and member cooperatives.