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Abstract

Report Preface: Farmer Cooperative Service made this study in response to the need for current basic intelligence about farmer cooperatives’ equity redemption policies and practices. In addition to providing information about the status of cooperatives’ equity redemption programs, the study discusses various criteria that cooperatives may use in making decisions about such programs. The report seeks to answer such basic questions as: 1. To what extent are cooperatives using equity redemption programs? 2. How valid are commonly cited constraints inhibiting or influencing a redemption program? 3. Is there a rationale for an equity redemption program that accommodates the divergent capital needs of members and their cooperatives?

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