The Production-Correlation Blind Spot in Grain Cooperative Mergers

Behnam Hassanizadeh, Phil Kenkel and Wade Brorsen

No 404769, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: This study analyzes correlations in county-level grain production in Oklahoma and Kansas from 2013 to 2023 to evaluate risk diversification potential in cooperative mergers. Using ordinary least squares, and Bayesian regression, we model how spatial distance, crop composition, adjacency, and production scale affect production correlations. Results show modest county-level heterogeneity, with east–west distance consistently reducing production correlations. Overall, findings suggest that the distance between a cooperative and a potential merger partner is not a reliable predictor of the degree of correlation in grain receipts.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 22
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404769

DOI: 10.22004/ag.econ.404769

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