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Abstract
Excerpts from the report: Members and patrons need a better understanding of the revolving fund method of financing and its use by farmer cooperatives. This report is designed to help meet that need. It is based on a study Farmer Cooperative Service made at the request of the National Council of Farmer Cooperatives and the American Institute of Cooperation. The facts developed in this report will shed light on, and will help to clarify, the concept of revolving fund financing as used by farmer cooperatives by answering such questions as: How many farmer cooperatives are using the revolving fund method of financing in some form? In what commodity fields or areas is revolving fund financing most widely used? Are the funds actually revolving? What is the length of the revolving fund period? What types of equity or membership capital are handled on a revolving fund basis? How is revolving fund capital acquired by the owners? What rates of return, if any, do the cooperatives pay on revolving equity capital? Are cooperatives using the revolving system faced with the same financial problems as cooperatives using other systems of financing?