IDEAS home Printed from https://ideas.repec.org/p/ags/aaea26/404769.html

The Production-Correlation Blind Spot in Grain Cooperative Mergers

Author

Listed:
  • Hassanizadeh, Behnam
  • Kenkel, Phil
  • Brorsen, Wade

Abstract

This study analyzes correlations in county-level grain production in Oklahoma and Kansas from 2013 to 2023 to evaluate risk diversification potential in cooperative mergers. Using ordinary least squares, and Bayesian regression, we model how spatial distance, crop composition, adjacency, and production scale affect production correlations. Results show modest county-level heterogeneity, with east–west distance consistently reducing production correlations. Overall, findings suggest that the distance between a cooperative and a potential merger partner is not a reliable predictor of the degree of correlation in grain receipts.

Suggested Citation

  • Hassanizadeh, Behnam & Kenkel, Phil & Brorsen, Wade, 2026. "The Production-Correlation Blind Spot in Grain Cooperative Mergers," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404769, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404769
    DOI: 10.22004/ag.econ.404769
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/404769/files/195301_196977_115232_Paper.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.404769?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jasper Grashuis, 2023. "Better performance after mergers and acquisitions? The case of US farmer cooperatives," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 83(3), pages 498-510, April.
    2. Brian C. Briggeman & Keri L. Jacobs & Phil Kenkel & Gregory Mckee, 2016. "Current trends in cooperative finance," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(3), pages 402-410, September.
    3. Brian C. Briggeman & Keri L. Jacobs & Phil Kenkel & Gregory Mckee, 2016. "Current trends in cooperative finance," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(3), pages 402-410, September.
    4. Kenkel, Philip L. & Spence, Becky & Gilbert, Amy, 2003. "Post Merger Financial Performance Of Oklahoma Cooperatives," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35023, Southern Agricultural Economics Association.
    5. Briggeman, Brian & Jacobs, Keri & Kenkel, Phil & McKee, Greg, 2016. "Current Trends in Cooperative Finance," ISU General Staff Papers 3560, Iowa State University, Department of Economics.
    6. Henehan, Brian M., 2002. "The Decision to Merge: A Case Study of U.S. Dairy Cooperatives," Working Papers 127329, Cornell University, Department of Applied Economics and Management.
    7. Fulton, Joan R. & Popp, Michael P. & Gray, Carolyn, 1996. "Strategic Alliance and Joint Venture Agreements in Grain Marketing Cooperatives," Journal of Cooperatives, NCERA-210, vol. 11, pages 1-15.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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).
    3. Meng-Fen Yen & Yuh-Yuh Li & Mario Miranda, 2025. "Leverage, Liquidity, and Agricultural Cooperative Profitability," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 31(1), pages 45-60, May.
    4. Eric Ofori & Elizabeth A. Yeager & Brian C. Briggeman, 2025. "Estimating potential gains from agricultural cooperative mergers," Agribusiness, John Wiley & Sons, Ltd., vol. 41(2), pages 505-520, April.
    5. Owusu Ansah, Michael & Skevas, Theodoros & Grashuis, Jasper, 2025. "The impact of Mergers and Acquisitions on the Productivity of U.S. Grain Marketing Cooperatives," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361178, Agricultural and Applied Economics Association.
    6. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    7. Jasper Grashuis, 2018. "An Exploratory Study of Cooperative Survival: Strategic Adaptation to External Developments," Sustainability, MDPI, vol. 10(3), pages 1-15, February.
    8. Jasper GRASHUIS & Ye SU, 2019. "A Review Of The Empirical Literature On Farmer Cooperatives: Performance, Ownership And Governance, Finance, And Member Attitude," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 77-102, March.
    9. Theodoros Skevas & Jasper Grashuis, 2023. "Evaluating dynamic productivity change of US farm supply cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1238-1253, October.
    10. Miranda, Mario J. & Chen, Meng-Fen, 2021. "Leverage, Liquidity and Agricultural Cooperative Profitability," 2021 Annual Meeting, August 1-3, Austin, Texas 314012, Agricultural and Applied Economics Association.
    11. Jasper GRASHUIS & Michael COOK, 2018. "An Examination Of New Generation Cooperatives In The Upper Midwest: Successes, Failures, And Limitations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(4), pages 623-644, December.
    12. Pokharel, Krishna & Archer, David W. & Featherstone, Allen M., "undated". "The Impact of Size and Specialization on the Financial Performance of Agricultural Cooperatives," 2018 Annual Meeting, August 5-7, Washington, D.C. 274109, Agricultural and Applied Economics Association.
    13. Ofori, Eric Makafui & Yeager, Elizabeth & Briggeman, Brian, "undated". "Agricultural Cooperative mergers and efficiency gains: An ex-ante analysis," 2020 Annual Meeting, February 1-4, 2020, Louisville, Kentucky 302323, Southern Agricultural Economics Association.
    14. Michael A. Boland & Brian C. Briggeman & Keri Jacobs & Phil Kenkel & Gregory McKee & John L. Park, 2021. "Research Priorities for Agricultural Cooperatives and their Farmer‐Members," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 573-585, June.
    15. Pokharel, Krisha Prasad & Featherstone, Allen M. & Archer, David W., . "Estimating Economic Efficiency Under Risk For Agricultural Cooperatives," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 7(2).
    16. Mattia Iotti, 2023. "Financial evaluation and credit access of agricultural firms," Economia agro-alimentare, FrancoAngeli Editore, vol. 25(2), pages 31-67.
    17. Juan Juliá-Igual & Elena Meliá-Martí & Gabriel García-Martinez, 2012. "Strategies developed by leading EU agrifood cooperatives in their growth models," Service Business, Springer;Pan-Pacific Business Association, vol. 6(1), pages 27-46, March.
    18. Elena MELIA-MARTI & Ana Maria MARTINEZ-GARCIA, 2015. "Characterization And Analysis Of Cooperative Mergers And Their Results," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 479-504, September.
    19. Holmlund, Mona & Fulton, Murray E., 1999. "Networking For Success: Strategic Alliances In The New Agriculture," Miscellaneous Publications 31769, University of Saskatchewan, Centre for the Study of Co-operatives.
    20. Sanjaya Fernando & Elena Garnevska & Thiagarajah Ramilan & Nicola Shadbolt, 2025. "Cooperatives’ level of vertical integration and farm financial performance amongst smallholder farmer‐members in Sri Lanka," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 96(1), pages 149-170, March.

    More about this item

    Keywords

    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea26:404769. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.