The impact of Mergers and Acquisitions on the Productivity of U.S. Grain Marketing Cooperatives

This study examines the temporal effects of mergers and acquisitions (M&A) on the productivity of U.S. grain marketing cooperatives from 2004 to 2020. While prior research has explored the drivers and outcomes of M&A, limited attention has been paid to how the passage of time since an M&A event affects productivity, particularly in terms of total factor productivity (TFP). Using a system GMM model, we explore how M&A age, defined as the number of years since a cooperative’s most recent merger of acquisition, influences TFP. M&A age serves as a temporal measure of post-M&A experience, reflecting the integration period during which cooperatives absorb operational, managerial, and cultural changes. The results show that M&A age does not significantly impact productivity, suggesting that the integration and adjustment process may offset productivity gains in the short term. Secondary findings reveal that exporting cooperatives tend to have higher productivity, while those exiting the sector experience declines. These results highlight the need for cooperatives to develop long-term strategies to manage post M&A integration. This paper contributes to a deeper understanding of the temporal dynamics of M&A in agricultural cooperatives and offers insights for strategic decision-making within the sector.