David G. Barton

MEASURING X-EFFICIENCY AND SCALE EFFICIENCY FOR A SAMPLE OF AGRICULTURAL COOPERATIVES

This paper examines the efficiency of a sample of Great Plains grain marketing and farm supply cooperatives during 1988 to 1992. In general, larger cooperatives were more X-efficient and scale efficient. Labor tended to be under-utilized and capital over-utilized. Petroleum product sales and fertilizer sales were negatively related to overall efficiency. Sales of goods other than grain, fertilizer, agricultural chemicals, petroleum products, and feed was positively related to overall efficiency. Overall efficiency was significantly correlated with the rate of return to assets.

Evaluating the feasibility of local cooperative consolidations: A case study

Agricultural cooperatives have undergone significant consolidation in recent years. Identifying firms with a potential to improve performance via merging requires an examination of financial performance of those firms relative to firms of similar and larger sizes. This study develops a set of financial performance measures relative to firm size to identify cooperatives with the greatest potential to improve performance from merging. The suggested approach is applied in a case study for two pilot groups of Kansas cooperatives slated as merger candidates.

Determinants of Return on Equity in U.S. Local Farm Supply and Grain Marketing Cooperatives

Farm supply cooperatives are an important component of the retail agribusiness industry in the United States. The objective of this research is to identify financial variables that are determinants of return on equity in these cooperatives. Firm effects are important and their effect is the result of managerial decision making and director policy. The estimated coefficient on asset size was not statistically significant, suggesting that return on equity is invariant to size over this time period.