This study examines the factors affecting choice of pricing and payment practices by traditional marketing and new generation co-operatives for commodities delivered by their members. These factors include the demographic variables related to type of co-operative organization, level of competition in commodity market, and risk-return perceptions of members and co-operatives.Data for the analysis were obtained through a mail survey. Questionnaires were sent to one hundred and ninety-five (195) co-operatives in mid-west states of the U.S.A. and Canada. Altogether 93 co-operatives responded to the survey. Mean score analysis, factor analysis and multinomial logit analysis were done.The results indicate that traditional marketing co-operatives are more likely to choose spot market cash price, while new generation co-operatives are more likely to choose pooling practices. Traditional marketing co-operatives appear to be concerned about the members cash flow needs and members uncertainty of return; they are also more responsive to increased competitive level in commodity market. Where as new generation co-operatives are more concerned with avoiding the risk of co-operatives operating deficits and survival of co-operatives.