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Patron Demand Deposit Account And Regional Patronage Financing Activities Of Agribusiness Cooperatives


  • Brueckner, Erica C.
  • Duft, Ken D.
  • McCluskey, Jill J.


This study investigates agribusiness cooperatives' reliance on patron demand deposit accounts (PDDAs) and regional patronage as sources of capital. Approximately 13% of cooperatives surveyed 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.

Suggested Citation

  • Brueckner, Erica C. & Duft, Ken D. & McCluskey, Jill J., 2000. "Patron Demand Deposit Account And Regional Patronage Financing Activities Of Agribusiness Cooperatives," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(3).
  • Handle: RePEc:ags:jloagb:14717

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