The present study aims to identifying the performance degree of agricultural cooperatives under the Free Economic Policy. and the most important factors determined the degree of its performance. Another objective is identifying the obstacles facing the agricultural cooperatives. In order to achieve the objectives of the study. a sample of 50 agricultural cooperatives were selected out of the villages as the geographical field of the study in: "Banha district “ - Qalyoubiya Governorate. A questionnaire was fulfilled through various meeting with the chairmen of those agricultural cooperatives during the two months of Julie and August 2004. The questionnaire includes several questions regarding the performance degree of those cooperatives. as well as other independent variables related to the study. Then the data were tabulated and analyzed by using the step-wise regression. The results of the study indicated that up of 42% of the agricultural cooperatives have low level of performance and 36% of them had medium level of performance. It was also found that the most important factors affecting the degree of cooperatives performance were cooperative location, financing sufficiency. suitable number of cooperative employees, manager job involvement. manager job orientation, benefit from training courses. training courses attendance. number of training courses. These factors explained about 69% of the total variance of tne degree of cooperatives performance using the step-wise regression model.