Knowledge Management (KM) of Human Capital through Learning Organization (LO) of the Agricultural Cooperative Federation of Thailand Limited (ACFT) has been the most crucial strategy of human capital development. The research objective tried to investigate how knowledge management of human capital as factors affected the operational cost reduction of the ACFT. The study population was the members of the ACFT in the middle region of Thailand, with a total of 18,500 individuals of ACFT membership. Simple random sampling was applied as the sampling technique, having 1,850 individuals of ACFT membership as a sample size. The primary data were collected through a questionnaire. Data analysis, namely, Confirmatory Chi-square, Root Mean Square Error of (RMSEA), Non-Normed Fit Index (NNFI), Comparative Fit Index (CIF), and estimated parameters were calculated by Structural Equation Model (SEM) to measure the factors influencing the ACFT operational cost reduction. The research results showed that Chi-square, RMSEA, NNFI, and CIF were equal to 7,415.05, 0.0054, 0.9643, and 0.971, respectively. The estimated parameters calculated using SEM expressed two positive coefficients of exogenous variable---learning dynamic (β₁) = 0.399 and technology application (β₂) = 0.912 of human capital in ACFT, meaning that the learning dynamic and technology application had positive influencing factors on the operational cost reduction of the ACFT. Therefore, KM of the human capital of ACFT is the main strategy of human capital development. Two categories of KM in the ACFT comprising of 1) learning dynamic and 2) technology application had a significantly positive impact on operational cost reduction of the ACFT.