Generally, a sound agricultural development is one that realizes both increases in agricultural production and justice in its distribution (that is, growth with equity). To achieve this, particularly in the Third-World countries, there is a growing recognition that special attention has to be given to modernization of traditional small farmers so that their agricultural production can increase (Kahn, 1978). Consequently, there is need for a development strategy that can reach the small, traditional farmers. Along this line, the government of Sudan hopes that agricultural cooperatives can play this role; this is reflected in the emphasis on cooperatives in the government's agricultural development policy. Therefore, this study critically examined the success and failure of agricultural cooperatives in Northern Kordofan province of Sudan and their potential to be used as a means for agricultural development;The data used were collected through face-to-face interviews with a stratified, random sample of 183 agricultural cooperatives' members and nonmembers farmers in the Um Ruwaba area of Sudan. Contingency tables and path analysis were used to analyze the data;The empirical findings of this study indicate that, when designed properly (Peek, 1988), farmers' cooperatives can be used successfully as a means for sound agricultural development (i.e., to achieve growth with social justice). They can be used to ensure the inclusion of poor farmers in development projects and provide services such as credit, storage, marketing; to reduce the surplus value extracted; and to increase agricultural production;References. (1) Kahn, Joel S. 1978 "Marxist anthropology and peasant economics: A study of the social structures of underdevelopment." In J. Clammer (ed.), The New Economic Anthropology. New York (NY): St. Martin's. (2) Peek, Peter 1988 "How equitable are rural development projects?" International Labour Review 127:73-89.