Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-25T14:17:10.612Z Has data issue: false hasContentIssue false

Business Models and Producer-Owned Ventures: Choices, Challenges, and Changes

Published online by Cambridge University Press:  28 April 2015

Phil Kenkel
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater, OK
John Park
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, TX

Abstract

Producer-owned business models are rapidly evolving. Producer-owned, value-added ventures face a number of organizational challenges, including capital acquisition, security exchange registration, antitrust exemption, borrowing eligibility, and operational flexibility. This paper examines the success of evolving producer-owned business models in addressing these challenges. The need for uniform criteria to distinguish producer-owned business from other business forms throughout the complex structure of policies and laws affecting value-added ventures is highlighted.

Type
Invited Paper Sessions
Copyright
Copyright © Southern Agricultural Economics Association 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, C.C., Devffle, K.C., Penn, J.E., and Eversull, E.E.. Farmer Cooperative Statistics 2003. Report 64. Washington, DC: U.S. Department of Agriculture, Rural Development Service, April 2006.Google Scholar
Bradford, S.Transactions Exemptions in the Security Act of 1933: An Economic Analysis.Emory Legal Journal 45(1996):591-99.Google Scholar
Chaddad, F.R., and Cook, M.L.. “The Emergence of Non-Traditional Cooperative Structures: Public and Private Issues.” Paper presented at NCR-194 Research on Cooperatives Annual Meeting, Kansas City, MO, October 29, 2003.Google Scholar
Chaddad, F.R., and Cook, M.L.."Understanding New Cooperative Models: An Ownership-Control Rights Typology.Review of Agricultural Economics 26,3(2004):348–60.CrossRefGoogle Scholar
Cook, M.L.The Future of U.S. Agricultural Cooperatives: A Neo-Institutional Approach.American Journal of Agricultural Economics 77(December 1995): 1153–59.CrossRefGoogle Scholar
Cook, M.L., and Iliopoulos, C.. “Ill-Defined Property Rights in Collective Action: The Case of U.S. Agricultural Cooperatives.” Menard, C. ed. Institutions, Contracts and Organizations. London: Edward Elgar Publishing, 2000.Google Scholar
Crooks, T., and Dunn, J.. I.T. Having Major Impact on Farmer Owned Ethanol Plants. Rural Cooperatives, Volume 72, No. 6. Washington, DC: U.S. Department of Agriculture Rural Development, November 2005.Google Scholar
Goforth, C.R. “An Overview of Organizational and Ownership Options Available to Agricultural Enterprises.” University of Arkansas: The National Agricultural Law Center, July 2002.Google Scholar
Hackman, D.What is a New Generation Cooperative.Innovations (newsletter of the Ag Innovation Center, Jefferson City, MO), November/December 2001.Google Scholar
Hanson, M.J.Starting a Value-Added Agribusiness: The Legal Perspective.” Malcomb, Illinois: Illinois Institute of Rural Affairs, January 2000.Google Scholar
Hanson, M.J.Building a Biofuel Facility: Structuring the Business.” Presentation at the Ohio/Michigan Biofuels Conference, Perrysburg, OH, December 9, 2002.Google Scholar
Hanson, M.J.Challenges Arising from Legal Restrictions on Cooperatives.” Presentation for Agriculture and Food Cooperatives in Rural Development, Washington, DC, June 17, 2004.Google Scholar
Hazen, P.President and CEO of National Cooperative Business Association. Testimony at Hearing to Examine New Generation Cooperatives and Strategies to Maximize Farm and Ranch Income. Committee on Agriculture, U.S. House of Representatives, October 16, 2003.Google Scholar
Hensley, R., and Swanson, D.. Minnesota Legislature Adopts New Cooperative Association Act: Coops Should Carefully Review Options to Avoid Pitfalls. News Alert Dorsey and Whitney LLP Agribusiness Cooperation and Rural Electric Group. Internet site: www.dorsey.com. Accessed June 15, 2007.Google Scholar
Jaeger, A.Proposal to Broaden CoBank Lending Gets Boost.Cooperative Business Journal 17,9(November 2003):2331.Google Scholar
Kenkel, P.Traditional Agricultural Cooperatives.” Commentary and Overview of the Tennessee Processing Cooperative Law. Knoxville: University of Tennessee Extension Publication PB 1748, November 2004.Google Scholar
Mather, J.W., DeVille, K.C., Gessner, A.L., and Adams, C.C.. Revised 1998. Cooperative Historical Statistics. Washington, DC: U.S. Department of Agriculture, Cooperative Information Report 1, Section 26. Internet site: www.rurdev.usda.gov/rbs/pub/cirls26.pdf.Google Scholar
Merrett, C.D., Holmes, M., Eggert, J., and Garrett, B.. Directory of Closed-Membership Producer Cooperatives: New Generation Cooperatives and Limited Liability Companies in the United States and Canada. Illinois Institute of Rural Affairs, April 2003. Internet site: www.iira.org/pubsnew/publications/IVARD-C_Reports_578.pdf.Google Scholar
National Corn Growers Association. Taking Ownership of Grain Belt Agriculture. Internet site: nega.com/public_policy/takingOwnership/index.htm.Google Scholar
Nelson, B.Non-Patron Equity Capital in Cooperatives and the Changing Definition of Cooperatives. Burdick Center for Cooperatives. Internet site: www.ag.ndsu.nodak.edu/qbcc/AboutQBCC/Non%20Patron%20Equity.htm.Google Scholar
O'Brian, D.Legal and Policy Implications of Investor Friendly Cooperatives. National Agricultural Law Center, January 2005. Internet site: www.nationalaglawcenter.org/assets/articles/obrien_cooperatives.pdf.Google Scholar
Renewable Fuels Association. Ethanol Industry Statistics. 2007. Internet site: www.ethanolrfa.org/industry/statistics/.Google Scholar
Royer, J.S.Cooperative Principles and Equity Financing: A Critical Discussion.Journal of Agricultural Cooperation 4(1992):4153.Google Scholar
Sykuta, S.E., and Cook, M.L.. “A New Institutional Approach to Contracts and Cooperatives.American Journal of Agricultural Economics 83,5(2001): 1273–79.CrossRefGoogle Scholar
Urbanchuk, J.M.Economic Impact on the Farm Community of Cooperative Ownership of Ethanol Plants. National Corn Growers Association, September 2006. Internet site: www.ncga.com/ethanoVpdfs/2006/FarmerOwnedEthanolEconomicImpact.pdf.Google Scholar
U.S. Department of Agriculture, Rural Cooperative Business Service. Agricultural Cooperatives in the 21st Century. Cooperative Information Report 60. Washington, DC: U.S. Department of Agriculture, 2002.Google Scholar
Zeuli, K., and Cropp, R.. “Cooperative Principles and Practices in the 21st Century.” Madison: University of Wisconsin Extension Publication R-08-2004, 2004.Google Scholar