IDEAS home Printed from https://ideas.repec.org/p/ags/nddaer/23156.html
   My bibliography  Save this paper

Grain Marketing Cooperatives' Adjustments to Farm Programs

Author

Listed:
  • Gunn, Steven P.
  • Cobia, David W.

Abstract

A personal interview survey of 87 grain marketing cooperatives regarding the impact of changes in government programs and planned responses to the dilemma of excess capacity and loss of government storage income and related factors is reported. Government storage payment's impact on financial performance was ranked 77% more important than the second (other government programs) of 7 factors (e.g., interest rates). Government storage accounted for 20% of their net income. They acquired an average of 800,000 bu. of storage capacity in response to government programs. PIK and roll increased annual income an average of $39,000 in 1986-87. Participation in CCC weekly auctions averaged 51% and in catalog sales 87%. Most managers felt that government programs did not influence merchandising methods. Two of the major alternatives managers selected to enhance income (increase margins and the number of patrons) are unrealistic because of excess capacity, competitive pressures, and declining producer numbers. Becoming a low-cost provider, developing a market niche, and exploiting potential economies from mergers are the recommended strategies for survival. Strategies individual cooperatives selected should be adapted to each unique situation. Key Words: Cooperatives, marketing strategies, farm programs, grain marketing, country elevators

Suggested Citation

  • Gunn, Steven P. & Cobia, David W., 1992. "Grain Marketing Cooperatives' Adjustments to Farm Programs," Agricultural Economics Reports 23156, North Dakota State University, Department of Agribusiness and Applied Economics.
    • Handle: RePEc:ags:nddaer:23156
    DOI: 10.22004/ag.econ.23156
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/23156/files/aer291.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.23156?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
    ---><---

    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:nddaer:23156. 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.

    We have no bibliographic references for this item. You can help adding them by using 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/dandsus.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.