North Dakota State University NDSU Extension Service New Generation Cooperative Membership: How Do Members Differ from Nonmembers? Extension Report No. 40 , March 1998 Frayne Olson, Assistant Director, Quentin N. Burdick Center for Cooperatives Theron F. Kibbe, Director of Marketing, Farm Credit Services, Batavia, NY Gary A. Goreham, Associate Professor, Department of Sociology/Anthropology Department of Agricultural Economics North Dakota Extension Service The number of new agricultural processing cooperatives, either under development or in operation, has grown rapidly in the Northern Plains. These new generation cooperatives (NGCs) are structured differently from the more traditional elevator and farm supply cooperatives. NGCs focus on the processing and marketing of agricultural products, rather than marketing raw commodities or supplying agricultural production inputs. Cooperative members are required to provide raw commodities for processing through marketing contracts. The amount each member is allowed to deliver is tied directly to the number of equity stock shares which are purchased. The total number of equity shares, and related contract delivery rights, is limited to the amount needed for the cooperative's financial stability and peak processing efficiencies. The combination of direct equity investment in the cooperative, and the related commodity delivery rights and obligations, has made the NGC membership decision more complex. These aspects also have raised several interesting questions about the differences in attitudes, perceptions, and characteristics between agricultural producers who have become members of the new cooperatives and those who have not. | |
|