Measuring the Performance of Agricultural Cooperatives
Carolyn Betts Liebrand
No 313040, Research Reports from United States Department of Agriculture, Rural Development
Abstract:
Extra value is calculated for 65 agricultural cooperatives by subtracting an interest charge on equity from net savings and also expressed as a percentage of operating capital. Cooperative performance is examined by type of agricultural cooperative—cotton, dairy, farm supply, fruit and vegetable, grain, sugar, and other—for 1992-96 and 2000-04. At least one cooperative of each type (except for sugar cooperatives) was able to show positive extra value when equity was assigned a charge 10 percent above the basic rate, while there were cooperatives of each type that showed negative extra value at the basic charge for member capital. Dairy cooperatives represented one-half of the top performers, while fruit and vegetable cooperatives represented one-half of those with negative extra value in both time periods. Results showed that cooperatives of all types can be very able performers but that some cooperatives may not be fully rewarding members for the use of their equity.
Keywords: Agribusiness; Crop Production/Industries; Financial Economics; Livestock Production/Industries; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 30
Date: 2007-12
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Citations: View citations in EconPapers (5)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:urdbrr:313040
DOI: 10.22004/ag.econ.313040
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