This article intends to analyze the limitations and potentials of co-operative farming sector in Bangladesh under free market. It is now increasingly recognized that the co-operative system in Bangladesh has the capacity and potentiality to neutralize the adverse effects emerging from the process of globalization. After economic liberalization under the new economic environment, co-operatives at all levels are making efforts to reorient their functions according to the market demands. The failure of the public sector in several cases is a troublesome trend. Privatization has also failed to make an impact in the rural areas. Therefore there is great hope on the co-operative sector. The paper examines the performances of co-operative farming, failure reason of co-operative farming, and highlights the emerging role and challenges of the co-operative farming sector in Bangladesh. In comparison to the step-motherly treatment of the past, co-operatives are now considered an important plank of development. The co-operatives have inherent advantages in tackling the problems of poverty alleviation, food security and employment generation. Co-operatives are also considered to have immense potential to deliver goods and services in areas where both the state and the private sector have failed. The paper focuses on several pitfalls and shortcomings of previous experimented co-operative farming in Bangladesh, like: the shortage of godowns, lack of drying machines, pacca drain and threshing floor, poor infrastructure, lack of quality management, over-dependence on government, dormant membership, absence of professionalism, etc. It suggests evolving strong communication and public relations strategies which can promote the concept of co-operation among the masses. It should also push forward by developing effective strategies to overcome existing weaknesses and for continuing growth of the sector. The paper makes an assessment of the future prospects of the co-operative farming sector in Bangladesh.