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Abstract
Returns from establishing closed (defined membership) cooperatives owned by
grain producers to produce hogs in Iowa are evaluated. Using a computer-simulated
production model incorporating biological and price factors and statistical techniques,
uncertainty of production and the market environment are modeled. The returns to
each farmer-member are analyzed, and the distributions of value added and total
payments for each operation are ranked using a stochastic dominance criteria.
Additionally, the net present value of each cooperative is computed and these are
compared against each other.