Equity Redemption: Issues and Alternatives for Farmer Cooperatives

David W. Cobia, Jeffrey S. Royer, Roger A. Wissman, Dennis Paul Smith, Donald R. Davidson, Stephen D. Lurya, J. Warren Mather, Phillip F. Brown and Kenneth P. Krueger

No 180969, Research Reports from United States Department of Agriculture, Rural Development

Abstract: Cooperatives are under increasing pressure to redeem the equities of former and overinvested patrons. This report discusses the issues concerning equity redemption and describes alternative equity redemption plans and methods that can be used to improve or facilitate redemption. Trade-offs between cash patronage refunds, redemption, and growth are examined, and methods for distributing cash benefits to patrons are compared. Legal and tax aspects and board responsibilities are reviewed, and the influences of federated cooperatives and lending institutions are considered. The impact of proposed mandatory redemption programs is evaluated, and procedures for adopting a voluntary redemption program are detailed.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 231
Date: 1982-10
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:urdbrr:180969

DOI: 10.22004/ag.econ.180969

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