For a long period of time within different political systems cooperative societies have served as farmer organizations to give credit and to disseminate agricultural inputs in order to attain increased production and productivity of smallholders. However, dissemination of agricultural technologies were forcibly transferred using top-down approaches with minimum participation and giving less emphasis to the priority needs of the farmers. This study examines farmer perceptions on the effectiveness of cooperatives in disseminating agricultural technologies with emphasis on major factors that limit technology dissemination in selected primary cooperatives in Adea district in Ethiopia. The study is based on literature review, interviews and collecting data using semi-structured questionnaire. A cross-sectional survey method was employed for the study. From the sample frame, six cooperatives were selected purposively by setting specific criteria. From each cooperative society 15 members and 5 non members were selected randomly and purposively, respectively. In the study descriptive statistics like frequencies, mean, percentage, chi-square test, correlation and t-test were employed to analyze the data using Statistical Package for Social Sciences (SPSS). The main finding of this study show that cooperative have a serious shortage of working capital, work seasonally and focuses mainly on input distribution during planting time and purchasing agricultural products from farmers living in respective cooperative areas during harvesting time. This limitation is due to poor planning and management, lack of credit, irregular extension service, loose linkage with stakeholders, and lack of market information. Furthermore, survey results revealed that empowerment of farmers through farmer organizations and farmer’s priority needs were given less attention. Therefore, from the findings of the study it is recommended and insists that policy makers and concerned institutions should design a system that can enable cooperative to work all year round, improve market information, credit system, extension service based on regular program, and priority needs of the farmers.