Tag: returns

Phil Kenkel

Bill Fitzwater Cooperative Chair, Oklahoma State University

One of the fundamental characteristics of a cooperative that distinguishes it from other forms of business is that the customers (patrons) are also the owners of the firm.  Members are really making a joint decision to invest in the cooperative as owners and to patronize the cooperative firm.  That creates the possibility that the member can benefit at both the farm level and at the cooperative level.  Farm level returns could …

Phil Kenkel

Bill Fitzwater Cooperative Chair, Oklahoma State University

Introduction

Chapter 12 laid the foundation of understanding and measuring cooperative returns.  It acknowledged the fact that a cooperative can provide returns at both the farm level and cooperative level and even generate a value simply through existence.  It also discussed the challenges in measuring the return on investment in a cooperative due to the multiple categories of returns and the fact that patrons can acquire equity without out-of-pocket investment. This …