Federal Member for Parkes Mark Coulton wants them to "see the opportunities co-operatives provide" by applying to be part of a pilot program.

The federal government's $13.8 million Farm Co-operatives and Collaboration Pilot Program aims to empower farmers to establish co-operatives and adopt innovative business models to boost their bargaining position in the market place.

Southern Cross University will deliver the nationwide pilot program as part of the government's commitment in its $4 billion Agricultural Competitiveness White Paper to promote "strong but fair competition" throughout the agricultural supply chain.

"This national pilot program is all about enabling farmers to come together, whether in co-operatives or less formal collaborations, and work to improve farmgate returns," Mr Coulton said.

"Agricultural co-operatives allow farmers to own and control more of the food supply chain themselves giving them greater bargaining power when negotiating with buyers of their produce.

"The further you can reach down the path to the consumer, the greater the returns. It's that simple. It is better for the farmer and our local community."

The pilot program will be rolled out over the coming months, delivering expert advice and information to up to 2000 farmers and 100 farmer groups across the nation.

It will run until mid-2018.

"There is $3.8 million earmarked for new farmer group projects, where groups of farmers submit proposals for new collaborations to a panel of industry experts, with successful applicants receiving funding support and a dedicated case worker to get their project off the ground," Mr Coulton said.

Interested people can register their details at www.agriculture.gov.au/ag-farm-food/farm-collaboration to receive updates on how they can be involved in the pilot.