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Marketing cooperatives often commingle farm products in a common payment pool. A member’s receipts from a pool depend upon the method the cooperative uses for valuing raw product patronage. The present article examines alternative patronage valuation methods with particular regard to their effect on the distribution of pool income. Principles of distributive equity are discussed and conditions shown under which a valuation rule would be equitable in the senses defined. The discussion is illustrated with a pool consisting of snap beans and sweet corn. It is shown that valuation rules differ in the means and variance of subsidies that they induce across products.

Subject(s): Agribusiness

Issue Date: 1989

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/46218 Published in: Journal of Agricultural Cooperation, Volume 04 Page range: 29-40

Total Pages: 12

Record appears in: National Council of Farmer Cooperatives > Journal of Agricultural Cooperation





Autor: Buccola, Steven T. ; Cornelius, James C. ; Meyersick, Ron R.

Fuente: http://ageconsearch.umn.edu/record/46218?ln=en







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