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U.S. Agricultural Cooperative Survival Before, During, and After COVID-19

Author

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  • Franken, Jason
  • Cornett, Evan
  • Grashuis, Jasper
  • Mukembo, Stephen

Abstract

Given the decreasing number of cooperatives in the U.S. between 2017 and 2022, this study conducts a competing risk survival analysis on confidential data from the USDA1 to examine two exit types: mergers and acquisitions (M&A) and liquidations and dissolutions (L&D). By applying the Fine and Gray method and cumulative incidence analyses, the study incorporates two time scales—time-to-event and time-underobservation— to estimate determinants of the two exit pathways. This research demonstrates that failure in agricultural cooperatives is a complex process shaped by leverage, profitability, scale, and exogenous shocks. M&A represents a strategic decision for survival or growth, while L&D predominantly represents the failure of small and unprofitable cooperatives.

Suggested Citation

  • Franken, Jason & Cornett, Evan & Grashuis, Jasper & Mukembo, Stephen, 2026. "U.S. Agricultural Cooperative Survival Before, During, and After COVID-19," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404316, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404316
    DOI: 10.22004/ag.econ.404316
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