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Agricultural firm survival: The case of farmer cooperatives in the United States

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  • Jasper Grashuis

Abstract

The number of farmer cooperatives in the United States is declining, but empirical investigations of cooperative firm survival have been scarce. With demographic, financial, and strategic characteristics as possible explanations, we conduct survival analysis in relation to 950 U.S. farmers cooperatives for the 2005–2018 period. Following the results of our Cox proportional hazard regressions, we find (a) relatively young and old farmer cooperatives are more susceptible to exit; (b) the relationship of membership size to the survival rate of farmer cooperatives is U‐shaped; (c) farmer cooperatives with intangible asset portfolios have lower survival probabilities; and (d) the survival function of farmer cooperatives is not explained significantly by efficiency, leverage, or liquidity. Overall, we use our findings to inform recommendations in terms of cooperative firm behavior, in particular in relation to member heterogeneity and strategic orientation.

Suggested Citation

  • Jasper Grashuis, 2020. "Agricultural firm survival: The case of farmer cooperatives in the United States," Agribusiness, John Wiley & Sons, Ltd., vol. 36(1), pages 79-93, January.
    • Handle: RePEc:wly:agribz:v:36:y:2020:i:1:p:79-93
    DOI: 10.1002/agr.21612
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    1. Iotti, Mattia, . "Financial evaluation and credit access of agricultural firms," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 25(2).
    2. Jasper Grashuis & Jason R. V. Franken, 2025. "Why are there fewer and fewer cooperatives in the agricultural sector? A survival analysis within a competing risk framework," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 96(1), pages 5-21, March.
    3. Annemarie Groot-Kormelinck & Jos Bijman & Jacques Trienekens & Laurens Klerkx, 2022. "Producer organizations as transition intermediaries? Insights from organic and conventional vegetable systems in Uruguay," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 39(4), pages 1277-1300, December.
    4. Daniel Diakité & Lota D. Tamini & Simon Cornée & Sébastien Caillault & Damien Rousselière, 2025. "Factors affecting investments in environmental assets by agricultural machinery cooperatives (CUMAs): Evidence from France," Agricultural Economics, International Association of Agricultural Economists, vol. 56(2), pages 228-246, March.
    5. Roman Neyter & Oleg Nivievskyi, 2023. "Effect of subsidies on farms' exit decision," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 941-959, October.
    6. Ran Xu & Qiangsheng Mai, 2024. "Study on the Spatio-Temporal Patterns of Survival Dynamic Evolution of Specialized Farmers’ Cooperatives and the Influencing Factors of Underdeveloped Areas in China—Taking Yunnan Province as an Example," Sustainability, MDPI, vol. 16(24), pages 1-21, December.
    7. Goutam Sutar & Rakesh Arrawatia & Krantiraditya Dhalmahapatra & Ashish Garg & Deepak Kumar, 2023. "Performance assessment of Dairy Cooperative Societies (DCSs): an AHP based composite index approach," Annals of Operations Research, Springer, vol. 326(2), pages 751-782, July.
    8. Mattia Iotti, 2023. "Financial evaluation and credit access of agricultural firms," Economia agro-alimentare, FrancoAngeli Editore, vol. 25(2), pages 31-67.
    9. Ibrahima Barry & Damien Rousselière, 2022. "Do quality incentive payments improve cooperative performance? The case of small French agricultural cooperatives," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 938-948, September.
    10. Celina Martinez Georges & Jasper Grashuis & Silvia Morales de Queiroz Caleman & Guilherme Fowler de Avila Monteiro, 2025. "Communication, principal–agent alignment and performance: Evidence from Brazilian agricultural co‐operatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 96(2), pages 341-361, June.

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