Patron Demand Deposit Account and Regional Patronage Financing Activities of Agribusiness Cooperatives

Erica C. Brueckner, Ken D. Duft and Jill McCluskey

No 31810, 2000 Annual Meeting, December 12-13 from NCERA-194 Research on Cooperatives

Abstract: This paper investigates agribusiness cooperatives' reliance on patron demand deposit accounts (PDDAs) and regional patronage as sources of capital. Approximately 13% of cooperatives carry PDDAs, typically fruit cooperatives, of which over one-half have no financial protection against large unexpected withdrawals. Cooperatives with PDDAs must be concerned with potential legal conflicts regarding the handling of these accounts, as evidenced by a U.S. Supreme Court case classifying PDDAs as securities. Supply cooperatives are most likely to show investment in other cooperatives as a high percentage of total assets, which could generate insolvency issues for locals.

Keywords: Agricultural Finance; Agribusiness (search for similar items in EconPapers)
Pages: 24
Date: 2000
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/31810/files/cp00du29.pdf (application/pdf)

Related works:
Journal Article: PATRON DEMAND DEPOSIT ACCOUNT AND REGIONAL PATRONAGE FINANCING ACTIVITIES OF AGRIBUSINESS COOPERATIVES (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ncerze:31810

DOI: 10.22004/ag.econ.31810

Access Statistics for this paper

More papers in 2000 Annual Meeting, December 12-13 from NCERA-194 Research on Cooperatives Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().