Pool Payment Equity in Agricultural Marketing Cooperatives

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):
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 created 2017-04-01, last modified 2017-08-25

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