Annual/Termination Reports:

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Report Information

Participants

Brief Summary of Minutes

2003-04 Annual Report
NCR-194 Research on Cooperatives
September, 2004

Administrative Advisor:
Sarahelen (Sally) Thompson
Department of Agricultural Economics
Purdue University
West Lafayette, IN 47907

Chair:
Evert Van der Sluis
Department of Economics
South Dakota State University
Brookings, SD 57007

Vice Chair
Michael Boland
Department of Agricultural Economics
Kansas State University
Manhattan KS 66506

Secretary
Phil Kenkel
Oklahoma State University
Department of Agricultural Economics
516 Ag Hall
Stillwater OK 74078-6026

Treasurers:
Michael Boland and David Barton
Department of Agricultural Economics
Kansas State University
Manhattan KS 66506

2003-04 Annual Report
NCR-194 Research on Cooperatives

Agriculture continues to change rapidly, creating challenges for farmers and residents of rural communities. Farm numbers continue to fall, the number of rural residents keeps declining in many rural counties, and concentration in all sub-sectors of agriculture is increasing. Cooperatives are an important means for agricultural producers to remain competitive in an increasingly industrialized agricultural economy, because they allow the producers to maintain ownership and a voice in decision-making processes.

The loss of business in rural communities was identified as an important issue for rural development when this committee was organized in 1998 and remains an important concern today. Cooperatives ? whether as farm input suppliers, first handlers of farm products for agricultural producers, or credit and utility institutions ? serve as major economic drivers in local communities, and are important component of the rural infrastructure in rural areas.

Across the United States and Canada, several university faculty and government researchers identify cooperatives as their primary responsibility and area of interest. Many of these individuals have ongoing working relationships with cooperatives, which enhances the relevance of their work, and the speed at which research results are disseminated and utilized. The role of NCR-194 is to facilitate and enhance these efforts by improving coordination among its members.

The remainder of this report focuses on the achievements of the committee during the past year. We will outline progress made towards each of the originally stated objectives and procedures of the committee.

Accomplishments

Objective 1.<br /> To promote and coordinate timely research on cooperatively owned business organizations for agricultural marketing, agricultural input supply, vertical coordination through value added processing, and rural services.<br /> <br /> Accomplishments during 2003-04<br /> The establishment of NCR-194 has greatly facilitated collaboration and interaction among individuals conducting research on cooperatives. NCR-194 members continue to be actively involved in joint research projects and cooperative agreements between USDA, Cooperative Services and the Land Grant institutions. <br /> <br /> NCR-194 members are making full use of the committee?s infrastructure to communicate the results of their research to each other. During 2003-04 NCR-194 members disseminated research results during the annual meeting. NCR-194 members also used the NCR-194 web page and the list serve (described in more detail below) to communicate with each other. <br /> <br /> NCR-194 members, as well as others interested in cooperatives, accessed the selected papers presented at the each all meetings from the web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/Default.htm . Members also made use of the List Server (ncr-194-net@macc.wisc.edu) to facilitate communications among members. Messages sent to the list server are forwarded to all NCR-194 participants.<br /> <br /> Objective 2.<br /> To serve as a forum for industry and government decision makers in management and staff research positions to interact with land grant researchers and extension specialists to share research results and discuss implications for cooperative business organizations, their producer members, farm structure, efficiencies in food production and distribution, the environment and economic well being of rural communities.<br /> <br /> Accomplishments during 2003-04<br /> The 2003 annual meeting of the NCR-194 was held in the Fairmont Hotel in Kansas City on October 29, 2003, immediately following the Farmer Cooperatives Conference. Attendance included 45 registered individuals and four walk-ins, an all time record for NCR-194 attendance. Thirty NCR-194 members were in attendance.<br /> <br /> The 2003 annual meeting consisted of a one-day forum, attended by industry and government representatives as well as representatives from universities. Industry representatives from Farmland Industries, Cenex Harvest States, Land O?Lakes, and the National Council of Farmer Cooperatives attended the conference and other represented the government sector. The meeting also included university faculty from western Canadian provinces, providing international linkages in today?s global market place. Additionally, one of our members, Chris Petersen, serves on the board of directors for CoBank.<br /> <br /> The representation from academics, industry and government, enabled strong and positive interaction between academics and others. Among the individuals attending, approximately 64% worked at academic institutions (including those working for one of the nation?s cooperative centers, as well as those with extension, research and teaching appointments, and students), 21% were employed at federal (U.S. Department of Agriculture) or state government institutions (Kansas Department of Commerce), 13% were from abroad (mainly Canada, but also Greece), and 2% had an industry background. <br /> <br /> Several NCR-194 members in attendance were members of other national research projects such as WCC-72, NE-165, National Society of Accountants for Cooperatives and other complimentary groups. Through their participation these members worked to coordinate NCR-194 member research with that of other complimentary projects.<br /> <br /> Nine research papers were presented at the meeting along. Five other research projects were presented during a poster session. Full text versions of all of the research papers and posters were posted on the NMCR-194 web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/Default.htm Topics of papers presented at the meeting included, but were not limited to, traditional and innovative ways to finance agricultural cooperatives, policy aspects related to investments in cooperatives, a international comparison of cooperative models, the impacts of Farmland?s bankruptcy on local cooperatives, current legal issues related to agricultural cooperatives, implications of identity preservation for cooperatives, and future viability of the Federated cooperatives. <br /> <br /> Topics of poster presented included, but were not limited to, assessing drivers of economic behavior in cooperatives, an analyses of the financial performance of cooperatives after engaging in mergers, and comparing alternative ways in which agricultural cooperatives? directors are selected.<br /> <br /> The one-day meeting was concluded with a banquet, held jointly with the Farmer Cooperatives group. The banquet speaker was Mr. Steven Hunt, CEO of US Premium Beef. The banquet served to facilitate a high degree of interaction between academics, industry representatives, and individuals working on government. <br /> <br /> Another important objective of NCR-194 is to attract young individuals to cooperative development. Progress toward this objective was achieved during 2003-04 through the successful pursuit of scholarships to enable a small number of students and/or early career faculty members to participate in both the NCR-194 meeting and the Farmers Cooperative Conference. NCR-194 member Mr. William Nelson, representing the Cooperative Foundation, was instrumental in making scholarship funds available. The availability of the these scholarship funds further serve as an indication of the successful working relationships between NCR-194 members working in industry and in academic settings.<br /> <br /> <br /> <br /> Summary<br /> During 2003-04, NCR-194 demonstrated numerous measurable outcomes consistent with its stated purpose and objectives. Notable accomplishment included the annual meeting attended by 49 researchers and industry professionals, presentations on 14 research projects which were also disseminated in full text form on the NCR-194 web site and active use of the NCR-194 list server to coordinate and facilitate on-going member research. NCR-194 continues to be an important vehicle for individuals of diverse backgrounds from across North America and elsewhere to meet and explore ways in which research, education and outreach activities can enhance the development and survival of rural cooperatives. As discussed above, the group continues to make excellent progress in this regard.

Publications

Presented Papers and Posters, NCR-194 2003 Annual Meeting, Kansas City <br /> <br /> <br /> Fabio R. Chaddad and Michael L. Cook, "The Emergence of Non-Traditional Cooperative Structures: Public and Private Policy Issues" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Constantine Iliopoulos, "Long-term Financing in US and European Agricultural Co-operatives: Emerging Methods for Ameliorating Investment Constraints" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> David Trechter, "A Neo-Institutional Assessment of Cooperative Evolution: Comparing the Australian Wheat Board and the Fonterra Dairy Group" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> David Barton, "Can Local Cooperatives Survive the Impact of Farmland's Bankruptcy?" hhttp://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Dave Hahn, JoAnne Paynter and Tom Sporleder, "Mutual Funds as Potential Source of Equity Capital for Traditional Ag Co-ops" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> James Baarda, "Current Law and Economics Debates: Tools for Assessing Fundamental Cooperative Changes?" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Peter Goldsmith and Karen Bender, "Ten Conversations About Identity Preservation: Implications for Cooperatives" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Bruce Anderson and Brian Henehan, "What Gives Cooperatives a Bad Name?" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Kim Zeuli, Elizabeth Howard, Brian Gould and Bob Cropp, "The Future Viability of the Federated Structure" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Julie Hogeland, "How Culture Drives Economic Behavior in Cooperatives" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Phil Kenkel, "Post Merger Financial Performance of Oklahoma Cooperatives" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> James Pritchett and Sue Hine, "A Warehouse Expansion for Potato Marketing Cooperatives" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Bruce Reynolds, "Selection and Compensation of Farmer Cooperative Directors - A Statistical Analysis" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br /> <br /> <br /> Joan Fulton, "Producer Investment in Value-Added Business" http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm<br />

Impact Statements

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Report Information

Participants

Barton, David
Kansas State University
Department of Agricultural Economics
305 Waters Hall
Manhattan, KS
phone: 785-532-1522
fax: 785-532-6925
E-mail David Barton;;

Boland, Michael
Kansas State University
Dept. of Ag Economics
305 Waters Hall
Manhattan KS 66506
phone: 785-532-4449
fax: 785-532-6925
E-mail Michael Boland
Brooks, Harvey
University of Alberta
E-mail Harvey Brooks;;

Cook, Michael L.
University of Missouri-Columbia
125C Mumford Hall
Columbia MO 65211
phone: 573-882-0127
fax: 573-882-3958
E-mail Michael Cook;;

Anthony Crooks
USDA, Rural Development
Washington, D.C.
anthony.crooks@usda.gov;;


Fulton, Joan
Purdue University
Dept. of Ag Economics
1145 Krannert
West Lafayette IN 47907
phone: 765-494-0594
fax: 765-494-9176
E-mail Joan Fulton;;

Ginder, Roger
Iowa State University
460 Heady Hall
Ames IA 50011
phone: 515-294-6260
fax: 515-294-1700
E-mail Roger Ginder;;

Goldsmith, Peter
University of Illinois at Urbana-Champaign
1301 W Gregory Dr
Urbana IL 61801
phone: 217-333-5502
fax: 217-333-5502
E-mail Peter Goldsmith;;

Guebert, Steven
phone: 703-883-4068
E-mail Steven Guebert;;

Hardesty, Shermain
Director
University of California - Center for Cooperatives
One Shields Avenue
Davis CA 95616
phone: 530-752-2408
fax: 530-752-5451
E-mail Shermain Hardesty;;

Henehan, Brian
Cornell University
203 Warren Hall
Ithaca NY 14853
phone: 607-255-8800
fax: 607-255-9984
E-mail Brian Henehan;;

Hine, Sue
Colorado State University
Dept. of Ag and Resource Economics
Fort Collins CO 80523-1172
phone: 970-491-7370
fax: 970-491-2067
E-mail Sue Hine;;

Kenkel, Phil
Professor
Oklahoma State University
Dept. of Agricultural Economics
516 Ag Hall
Stillwater OK 74078-6026
phone: 405-744-9818
fax: 405-744-9835
E-mail Phil Kenkel;;



Nelson, William J.
Cenex Harvest States
PO Box 64089, MS 470
St. Paul MN 55164-0089
phone: 651-451-5481
fax: 651-451-5073
E-mail William J. Nelson;;

Olson, Frayne
North Dakota State University
Burdick Center for Cooperatives
Morrill Hall, Room 301G
Fargo ND 58105
phone: 701-231-7688
E-mail Frayne Olson;;

Peterson, Chris
Michigan State University
Dept. of Ag Economics
2A Agriculture Hall
East Lansing MI 48824
phone: 517-355-1813
fax: 517-432-1800
E-mail Chris Peterson;;

Pflueger, Burton
South Dakota State University
Economics Dept
114 Scobey Hall Box 504
Brookings SD 57007
phone: 605-688-4141
fax: 605-688-6386
E-mail Burton Pflueger;;

Van der Sluis, Evert
South Dakota State University
Dept. of Economics
105 Scobey Hall, Box 504A
Brookings SD 57007-0895
phone: 605-688-4872
fax: 605-688-6386
E-mail Evert Van der Sluis;;


Zeuli, Kimberly
Assistant Professor
Dept. of Agriculture and Applied Economics
University of Wisconsin-Madison
225 Taylor Hall
Madison WI 53706-1503
phone: 608-263-3981
fax: 608-262-3251
E-mail Kimberly Zeuli;;

Other Individuals Attending:

Georgeanne Artz

Alena Bosse

Molly Chambers

Trent Craddock

Vernon Eidman

Elaine Farmer

Mary Holmes

RaNae Isaak

John Jones

Jennifer Keeling

Fredy Kilima

Fabiona Lastoria

Juan Liu

Chris Merrett

Bradley Plunkett

Leslie Shuler

Judy Turpin

Donald Waltz

Barbara Whitelaw

Christopher Wilson

Brief Summary of Minutes

Minutes of the Business Meeting of NCR-194, Research on Cooperatives
Tuesday, November 2, 2004
Fairmont Hotel
Kansas City, Missouri


Administrative Advisor:
Sarahelen (Sally) Thompson
Department of Agricultural Economics
Purdue University
West Lafayette, IN 47907

Chair
Evert Van der Sluis
Department of Economics
South Dakota State University
Brookings, SD 57007

Vice-Chair
Michael Boland
Department of Agricultural Economics
Kansas State University
Manhattan KA 66506

Secretary
Phil Kenkel
Department of Agricultural Economics
Oklahoma State University
Stillwater OK 74075

Treasurers
Michael Boland and David Barton
Department of Agricultural Economics
Kansas State University
Manhattan KA 66506

Members in Attendance:
David Barton
Michael Boland
Michael Cook
Anthony Crooks
Joan Fulton
Roger Ginder
Peter Goldsmith
Steve Guebert
Shermain Hardesty
Brian Henehan
Roger Herman
Susan Hine
Phil Kenkel
William Nelson
Frayne Olson
H. Christopher Peterson
Burton Pflueger
Evert Van der Sluis
Kim Zeuli


Other Individuals Attending:
Georgeanne Artz
Alena Bosse
Molly Chambers
Trent Craddock
Vernon Eidman
Elaine Farmer
Mary Holmes
RaNae Isaak
John Jones
Jennifer Keeling
Fredy Kilima
Fabiona Lastoria
Juan Liu
Chris Merrett
Bradley Plunkett
Leslie Shuler
Judy Turpin
Donald Waltz
Barbara Whitelaw
Christopher Wilson

Call to Order
Chairman Evert Van der Sluis called the meeting to order at 4:30 p.m.

Approval of minutes from the 2003 Annual Meeting
Secretary Phil Kenkel distributed the 2003 meeting minutes. A motion to approve the minutes was made by Kim Zeuli and seconded by Joan Fulton. Motion carried.

Nominating Committee Report
Jim Baarda, Roger Ginder and Kim Zeuli gave the nominating committee report. The committee recommended an officer slate consisting of: Mike Boland-Chair, Phil Kenkel-Vice Chair and Sue Hine-Secretary. There were no further nominations from the floor. A motion to elect the recommended slate of officers by acclamation was made by Chris Peterson and seconded by Burton Pflueger. Motion carried.

Treasurers Report
Mike Boland presented the financial report. Prior to the meeting expenses, the organization had a balance of $5,823. Mike reported that NCR-194 had received $2,000 for student scholarships from the CHS Foundation and dispersed approximately $4,000 in total scholarships. The projected balance after the 2004 meeting expenses was $1,541. A motion to approve the financial report was made by Chris Peterson and seconded by Phil Kenkel. Motion carried.

Reauthorization Report
Evert Van der Sluis reported on communications received from NCR-194 Administrative Advisor Sally Thompson on the new nomenclature for projects. This requires NCR-194 to designate itself as either a Coordinating Committee (NCCC-194) or an Education/Extension & Research Activity (NCERA-194).

The description for a Coordinating Committee is activities that provide a mechanism for addressing critical regional issues where multistate coordination or information exchange within a function (research, extension or education) have expected outcomes, convey knowledge and our peer reviewed.

The description of an Education/Extension Research Activity is Activities that serve to integrate education (academic and/or extension) and research on a particular topic where multistate coordination or information exchange within a function (research, extension or education) have expected outcomes, convey knowledge and our peer reviewed.

The NCR-194 executive committee recommended the NCERA designation because the committees activities include research, extension and education. A lengthy discussion ensued. A motion was made by Chris Peterson and seconded by David Barton that the group pursue the NCERA designation contingent upon further investigation by the executive committee to confirm that the committees outcomes are consistent with the requirements of the NCERA designation. Motion carried.

Annual Report
Joan Fulton passed on information from Administrative Advisor, Sally Thompson, that the committee needed to complete and file an annual report on the NMIS system. Mike Boland volunteered to coordinate and draft the report. Evert Van der Sluis recommended that each committee member provide Mike Boland with a short paragraph on their activities.

2005 Annual Meeting
Evert Van der Sluis led a discussion on the time, place and format for the 2005 annual meeting. Mike Boland reported that the current format appears to offer sufficient time for sharing research results. Thirteen papers were submitted for the 2004 meetings and all submissions were presented, 10 as papers and 3 as poster presentations. William Nelson commented that the ability for students to attend both the annual Farmer Cooperatives Conference and NCR-194 meeting helped justify the scholarship support from the CHS Foundation. The consensus of the members present was to continue coordinating the NCR-194 Annual Meeting with the Farmers Cooperative Conference. The group expressed a preference for timing the NCR-194 meeting following the Farmer Cooperatives Conference and for a combined time format of either Monday through Wednesday or Wednesday through Friday. Kim Zeuli reported that the 2005 Farmer Cooperatives Conference was tentatively planned for Minneapolis, MN.

Student Registration Fees and Financial Support
Evert Van der Sluis and Mike Boland reported on student scholarships for the Farmer Cooperatives Conference and the NCR-194 meeting. Evert commented on problems with student requests past the deadline and encouraged the group to do a better job of alerting students of the opportunity and application deadline. William Nelson commented that it would be appropriate for NCR-194 to charge registration fees for students receiving scholarships if the student registration waivers would adversely impact NCR-194s finances. Kim Zeuli commented that two individuals who had registered for the Farmer Cooperatives Conference but were unable to attend, had asked that their registration fees be used to fund students.

Resolution of Appreciation
A motion thanking the CHS Foundation and the Ralph K. Morris Foundation for their support of the meeting and thanking CALS Outreach for facilitating the registration process was made by Joan Fulton and seconded by Chris Peterson. Motion carried.

Journal of Cooperatives
Roger Ginder reported that the 2003 edition of the Journal of Cooperatives was being published and that the journal was accepting articles to complete the 2004 edition. Several committee members commented on the lengthy review process (over one year in some cases). Roger reported that NCFC was interested in being the copyright home for the journal and assisting with distribution.




Student Research Recognition
William Nelson reported that NCFC Education Committee is interested in bringing back the student research recognition and that NCR-194 may be able to manage the process. Mike Boland will follow up with NCFC and William Nelson and report back to NCR-194.

Coop Text Book
Dave Barton reported on the cooperative text book project. Dave Barton suggested that a conference be held to revise and complete the project. Dave and Mike expressed optimism that the project could be completed in the coming year.

Other Business
Randy Torgerson encouraged the group to lobby for research funds from USDA RD.

A motion thanking Evert Van der Sluis for his dedicated service as chair was made by Phil Kenkel and seconded by Brian Henehan. The motion was approved.

The meeting adjourned at 5:45 p.m.

Accomplishments

Objective 1.<br /> To promote and coordinate timely research on cooperatively owned business organizations for agricultural marketing, agricultural input supply, vertical coordination through value added processing, and rural services.<br /> <br /> Accomplishments during 2004<br /> The establishment of NCR-194 has greatly facilitated collaboration and interaction among individuals conducting research on cooperatives. NCR-194 members continue to be actively involved in joint research projects and cooperative agreements between USDA, Cooperative Services and the Land Grant institutions. <br /> <br /> NCR-194 members are making full use of the committees infrastructure to communicate the results of their research to each other. During 2004 NCR-194 members disseminated research results during the annual meeting. NCERA-194 members also used the NCERA-194 web page and the list serve (described in more detail below) to communicate with each other. <br /> <br /> NCERA-194 members, as well as others interested in cooperatives, accessed the selected papers presented at the each all meetings from the web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/Default.htm . Members also made use of the List Server (ncr-194-net@macc.wisc.edu) to facilitate communications among members. Messages sent to the list server are forwarded to all NCERA-194 participants.<br /> <br /> Objective 2.<br /> To serve as a forum for industry and government decision makers in management and staff research positions to interact with land grant researchers and extension specialists to share research results and discuss implications for cooperative business organizations, their producer members, farm structure, efficiencies in food production and distribution, the environment and economic well being of rural communities.<br /> <br /> Accomplishments during 2004<br /> The 2004 annual meeting of the NCERA-194 was held in the Fairmont Hotel in Kansas City on November 2, 2004, immediately following the Farmer Cooperatives Conference. Attendance included nineteen NCERA-194 members and 20 non-members.<br /> <br /> The 2004 annual meeting consisted of a one-day forum, attended by industry and government representatives as well as representatives from universities. Industry representatives from Farmland Industries, Cenex Harvest States, Land O?Lakes, and the National Council of Farmer Cooperatives attended the conference and other represented the government sector. The meeting also included university faculty from western Canadian provinces, providing international linkages in today?s global market place. Additionally, one of our members, Chris Petersen, serves on the board of directors for CoBank.<br /> <br /> The representation from academics, industry and government, enabled strong and positive interaction between academics and others. Among the individuals attending, approximately 64% worked at academic institutions (including those working for one of the nation?s cooperative centers, as well as those with extension, research and teaching appointments, and students), 21% were employed at federal (U.S. Department of Agriculture) or state government institutions (Kansas Department of Commerce), 13% were from abroad (mainly Canada, but also Greece), and 2% had an industry background. <br /> <br /> Several NCERA-194 members in attendance were members of other national research projects such as WCC-72, NE-165, National Society of Accountants for Cooperatives and other complimentary groups. Through their participation these members worked to coordinate NCERA-194 member research with that of other complimentary projects.<br /> <br /> Ten research papers were presented at the meeting and three research projects were presented during a poster session. Full text versions of all of the research papers and posters were posted on the NCERA-194 web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/Default.htm. Topics of papers presented at the meeting included, but were not limited to, traditional and innovative ways to finance agricultural cooperatives, policy aspects related to investments in cooperatives, a international comparison of cooperative models, the impacts of Farmlands bankruptcy on local cooperatives, current legal issues related to agricultural cooperatives, implications of identity preservation for cooperatives, and future viability of the Federated cooperatives. <br /> <br /> Topics of poster presented included, but were not limited to, assessing drivers of economic behavior in cooperatives, an analyses of the financial performance of cooperatives after engaging in mergers, and comparing alternative ways in which agricultural cooperatives? directors are selected.<br /> <br /> The one-day meeting was concluded with a banquet, held jointly with the Farmer Cooperatives group. The banquet speaker was Mr. Steven Hunt, CEO of US Premium Beef. The banquet served to facilitate a high degree of interaction between academics, industry representatives, and individuals working on government. <br /> <br /> Another important objective of NCR-194 is to attract young individuals to cooperative development. Progress toward this objective was achieved during 2004 through the successful pursuit of scholarships to enable a small number of students and/or early career faculty members to participate in both the NCERA-194 meeting and the Farmers Cooperative Conference. NCERA-194 member Mr. William Nelson, representing the Cooperative Foundation, was instrumental in making scholarship funds available. The availability of the these scholarship funds further serve as an indication of the successful working relationships between NCERA-194 members working in industry and in academic settings.<br /> <br /> <br /> <br /> Summary<br /> During 2004, NCERA-194 demonstrated numerous measurable outcomes consistent with its stated purpose and objectives. Notable accomplishment included the annual meeting attended by 39 researchers and industry professionals, presentations on 14 research projects which were also disseminated in full text form on the NCERA-194 web site and active use of the NCERA-194 list server to coordinate and facilitate on-going member research. NCERA-194 continues to be an important vehicle for individuals of diverse backgrounds from across North America and elsewhere to meet and explore ways in which research, education and outreach activities can enhance the development and survival of rural cooperatives. As discussed above, the group continues to make excellent progress in this regard.<br />

Publications

PUBLICATIONS: NCREA-194 2004 ANNUAL MEETING<br /> <br /> David Barton. "A Comparison of Traditional and Newly Emerging Forms of Cooperative Capitalization" paper<br /> <br /> David Barton. "A Comparison of Traditional and Newly Emerging Forms of Cooperative Capitalization" presentation<br /> <br /> Phil Kenkel and Amy Hagerman. "Impact of the Farmland Bankruptcy on Oklahoma Cooperatives" paper<br /> <br /> Phil Kenkel and Fredy Kilima. "Optimal Fertilizer Warehousing and Distribution for Farm Supply Cooperatives" presentation<br /> <br /> Phil Kenkel and Fredy Kilima. "Optimal Fertilizer Warehousing and Distribution for Farm Supply Cooperatives" paper<br /> <br /> Shermain Hardesty and Vikas D. Salgia. "Comparative Financial Performance of Agricultural Cooperatives and Investor-Owned Firms" paper<br /> <br /> James Baarda. "'Outside' Cooperative Equity: Obligations, Trade-Offs, and Fundamental Cooperative Character" paper<br /> <br /> Michael A. Cook, Brad Plunkett, Frayne Olson, Fred Parker, Molly Chambers, Elaine Farmer and Kristi Livingston (GICL Team A). "Capital Formation in Cooperatives. Economic Analysis of State Incorporation Initiatives: A Pilot Framework" presentation<br /> <br /> Christopher Merrett. "The Political Economy of Scale: The Role of Closed-Membership Cooperatives in Rural Development" presentation<br /> <br /> Jennifer Keeling."Lessons in Cooperative Failure: The Rice Growers Association Experience" paper<br /> <br /> Kim Zeuli and Mark Rickenbach. "Incentives to Join Forestry Cooperatives" presentation<br /> <br /> Anthony Crooks."The Horizon Problem and New Generation Cooperatives: another look at Minnesota Corn Processors" paper<br /> <br /> Sue Hine and Jim Pritchett."A Sweet Deal? Real Options Analysis of A Thick Juice Plant in Western Colorado" poster<br /> <br /> Julie Hogeland."Family Farm or Factory Farm? How Cooperatives Struggled with Member and Co-op Identity in the Pork Industry" poster paper<br /> <br />

Impact Statements

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Report Information

Participants

NCERA-194 Members in Attendance:
David Barton, Kansas State University
Michael Boland, Kansas State University
Jennifer K. Bond, Colorado State University
Paul G. Christ, Land O Lakes
Anthony Crooks, USDA
Robert Cropp, University of Wisconsin-Madison
Joan Fulton, Purdue University
Shermain D. Hardesty, University of California-Davis
Brian M. Henehan, Cornel University
Phil Kenkel, Oklahoma State University
William Nelson, CHS Foundation
Brian Oleson, University of Manitoba
Chris Peterson, Michigan State University
Anne Reynolds, University of Wisconsin-Madison Center for Cooperatives
Bruce Reynolds, USDA Cooperative Services-Cooperative Programs
Sarahelen (Sally) Thompson, Purdue University (Administrative Advisor)
Evert Van der Sluis, South Dakota State University
Kim Zeuli, University of Wisconsin-Madison

Other Individual Attending
Andrea Bentancor, University of Wisconsin-Madison
Vernon Eidman, University of Minnesotat
Brenda Forman, SD Assn. Of Cooperatives
Rodney Holcomb, Oklahoma State University
Nikolaos Kalogeras, University of Illinois
Colotte Lebel. La Coop Fédérée
Larry Leistritz, North Dakota State
Robert Ludwig, The Hale Group
Gregory Mckee, University of California, Davis
Lovisa Nilsson, Swedish Agricultural University
Gerald Ortmann, Universtity of Kwazulu-Natal
Pablo Pincheira, University of Wisconsin-Madison
Amanda L. Scheurer, University of St. Thomas
Adam Schwatz, NCBA
Cathy Statz, Wisconsin Farmers Union
Doug Weinbrenner, Golden Heritage Foods, LLC

Brief Summary of Minutes

Minutes of the Business Meeting of NCR-194, Research on Cooperatives
Tuesday, November 8, 2005
Hyatt Regency Hotel
Minneapolis Minnesota


Administrative Advisor:
Sarahelen (Sally) Thompson
Department of Agricultural Economics
Purdue University
West Lafayette, IN 47907

Chair
Michael Boland
Department of Agricultural Economics
Kansas State University
Manhattan KA 66506

Vice-Chair
Phil Kenkel
Department of Agricultural Economics
Oklahoma State University
Stillwater OK 74075

Secretary
Sue Hine
Department of Agricultural and Resource Economics
Colorado State University
Fort Collins, CO 80523-1172

Treasurers
Michael Boland and David Barton
Department of Agricultural Economics
Kansas State University
Manhattan KA 66506

Attendance:.
There were 35 individuals in attendance, 19 NCERA-194 members and 16 other individuals (graduate students, industry representatives, guests)

NCERA-194 Members in Attendance:
David Barton, Kansas State University
Michael Boland, Kansas State University
Jennifer K. Bond, Colorado State University
Paul G. Christ, Land O Lakes
Anthony Crooks, USDA
Robert Cropp, University of Wisconsin-Madison
Joan Fulton, Purdue University
Shermain D. Hardesty, University of California-Davis
Brian M. Henehan, Cornel University
Phil Kenkel, Oklahoma State University
William Nelson, CHS Foundation
Brian Oleson, University of Manitoba
Chris Peterson, Michigan State University
Anne Reynolds, University of Wisconsin-Madison Center for Cooperatives
Bruce Reynolds, USDA Cooperative Services-Cooperative Programs
Sarahelen (Sally) Thompson, Purdue University (Administrative Advisor)
Evert Van der Sluis, South Dakota State University
Kim Zeuli, University of Wisconsin-Madison

Other Individual Attending
Andrea Bentancor, University of Wisconsin-Madison
Vernon Eidman, University of Minnesotat
Brenda Forman, SD Assn. Of Cooperatives
Rodney Holcomb, Oklahoma State University
Nikolaos Kalogeras, University of Illinois
Colotte Lebel. La Coop Fédérée
Larry Leistritz, North Dakota State
Robert Ludwig, The Hale Group
Gregory Mckee, University of California, Davis
Lovisa Nilsson, Swedish Agricultural University
Gerald Ortmann, Universtity of Kwazulu-Natal
Pablo Pincheira, University of Wisconsin-Madison
Amanda L. Scheurer, University of St. Thomas
Adam Schwatz, NCBA
Cathy Statz, Wisconsin Farmers Union
Doug Weinbrenner, Golden Heritage Foods, LLC

Call to Order
Chairman Mike Boland called the meeting to order at 4:30 p.m.

Approval of minutes from the 2003 Annual Meeting
Vice-Chair Phil Kenkel distributed the 2004 meeting minutes. A motion to approve the minutes was made by Brian Henehan and seconded by Joan Fulton. Motion carried.

Nominating Committee Report
Dave Barton gave the nominating committee report. The committee recommended an officer slate consisting of: Phil Kenkel-Chair, Sue Hine-Vice Chair and Shermian Hardesty-Secretary. There were no further nominations from the floor. A motion to elect the recommended slate of officers by acclamation was made by Chris Peterson and seconded by Evert Van de Sluis. Motion carried.

Treasurers Report
Mike Boland presented the financial report. Prior to the meeting expenses, the organization had a balance of $4,027. Mike reported that 34 paid registrants for the 2005 meeting. The projected balance after meeting expenses was expected to be very close to the balance at the beginning of the year of $1,500. A motion to approve the financial report was made by Chris Peterson and seconded by Phil Kenkel. Motion carried.

Administrative Advisors Report
Sally Thompson reported that the committee had been doing a good job of entering information into the NMIS system. She complimented the committee on it productivity in coordinating timely research and encouraging cross-state interaction. Mike Boland thanked Dr. Thompson for her efforts in advising NCERA-194.

Cooperative Text Book Project
Dave Barton led a discussion on the cooperative text book project. The NCRERA-194 members in attendance were polled concerning there use of the working copy version. Strategies for completing a final version of the text book were discussed along with needed revisions. Various members also discussed needs for additional chapters or modules. Dave Barton observed that while the current version contained a chapter on international role of cooperatives the text chiefly reflects a U.S. perspective. Chris Peterson discussed whether the text needed more of an industrial organization perspective. A suggestion was made that a working session with all of the authors in attendance was needed to try and move the book to completion. There was a consensus to pursue that strategy. David Barton agreed to investigate possible dates and venues.

Cooperative Economic Impact Study
Mike Boland reported on the plans of the National Council of Farmers Cooperatives and the Cooperative Business Association to provide a $500,000 grant for a national study of the economic impact of cooperatives. A discussion of the role of NCRERA-194 members in the project incurred. The need for the project to be offered on a competitive basis was emphasized. The importance of involving researchers with both modeling expertise and an understanding of cooperative business structures was also pointed out. The group agreed that NCERA-194 members would collaborate on a proposal for the economic impact study once the request for proposals was officially announced.

2006 Meeting Format
The format for the 2006 NCERA-194 Annual Meeting was discussed. The group was in agreement with continuing to link the conference with the Farmers Cooperative Conference. The general consensus was that holding NCRERA-194 immediately after the Farmers Cooperative Conference was preferable to before the conference. Chris Peterson suggested having a keynote speaker. Joan Fulton and Mike Boland discussed the concept of organized symposiums. The concept of identifying the best selected paper was also discussed. A committee chaired by Chris Peterson and with members Joan Fulton and Evert Van de Sluis was formed to identify a keynote speaker and to manage the Best Selected Paper competition.

Student Registration Fees and Financial Support
Mike Boland reported that $3,000 of scholarship funding was received from the CHS foundation. Mike reported that 8 individuals received scholarships: Nikolaos Kalogeras, University of Illinois, Pablo Pincheira, University of Wisconsin-Madision, Andrea Bentancor, University of Wisconsin-Madision, Lovisa Neilsson, Swedish Agricultural University & University of Missouri, Gerald Ortmann, University of Kwazula-Natal/University of Minnesota, Cathy Statz, University of Wisconsin, Gregory McKee, University of California, Davis, and Amanda Scheurer, University of St, Thomas, St. Paul Mn.

Resolution of Appreciation
A motion thanking the CHS Foundation and the Ralph K. Morris Foundation for their support of the meeting and thanking CALS Outreach for facilitating the registration process was made by Joan Fulton and seconded by Chris Peterson. Motion carried.

A motion thanking Mike Boland for his dedicated service as chair was made by Phil Kenkel and seconded by Brian Henehan. The motion was approved.

The meeting adjourned at 5:45 p.m.

Accomplishments

NCERA-194<br /> Annual Report<br /> 2005<br /> <br /> <br /> Objective 1.<br /> To promote and coordinate timely research on cooperatively owned business organizations for agricultural marketing, agricultural input supply, vertical coordination through value added processing, and rural services.<br /> <br /> Accomplishments during 2005<br /> The establishment of NCERA-194 has greatly facilitated collaboration and interaction among individuals conducting research on cooperatives. NCERA-194 members continue to be actively involved in joint research projects and cooperative agreements between USDA, Cooperative Services and the Land Grant institutions. <br /> <br /> NCERA-194 members are making full use of the committees infrastructure to communicate the results of their research to each other. During 2005 NCERA-194 members disseminated research results during the annual meeting. NCERA-194 members also used the NCERA-194 web page and the list-server (described in more detail below) to communicate with each other. <br /> <br /> NCERA-194 members, as well as others interested in cooperatives, accessed the selected papers presented at the each all meetings from the web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm. Members also made use of the List Server (ncr-194-net@macc.wisc.edu) to facilitate communications among members. Messages sent to the list server are forwarded to all NCERA-194 participants.<br /> <br /> Specific examples of collaboration include:<br /> Director Education programs organized by NCERA members Dave Barton and Mike Boland (KSU). Workshops were conducted in Montana, Wyoming, Missouri, Indiana, Illinois, Ohio and Michigan. in collaboration with NCERAS members Sue Hine and James Pritchett (Colorado State University), and Joan Fulton (Purdue University) The programs focused on strategic thinking, finance, governance, and mergers. Original research through case studies was done on various co-ops to help provide content for the program.<br /> <br /> David Barton (Kansas State University) is leading an effort to develop a co-op textbook for use in college and university courses on cooperatives. Mike Boland submitted grant applications to various foundations to help provide support for a retreat to help complete the textbook. Seven NCERA-194 members have completed preliminary drafts of 21 chapters of the textbook.<br /> <br /> NCERA member Mike Boland and The Arthur Capper Cooperative Center (Kansas State University) have organized a co-op study tour in four South American countries. Case studies were written on co-ops in each country to provide support for the curriculum used in the three credit class. 32 Students from Colorado, Kansas, Missouri, and North Dakota are participating in the class and tour.<br /> <br /> NCERA members Mike Boland (Kansas State University) and Gary Brester (Montana State University) completed a case study on a Native American Indian Cooperative in Montana. They also completed a case study on Mountain States Lamb Cooperative.<br /> <br /> Resource Material on value added cooperatives were developed by Oklahoma State University, Kansas State University and Iowa State University in conjunction with the Agricultural Marketing Resource Center<br /> <br /> Equity Management Survey organized by Dave Barton and Mike Boland (KSU) in collaboration with Darrell Mark in Colorado and Nebraska. <br /> <br /> Objective 2.<br /> To serve as a forum for industry and government decision makers in management and staff research positions to interact with land grant researchers and extension specialists to share research results and discuss implications for cooperative business organizations, their producer members, farm structure, efficiencies in food production and distribution, the environment and economic well being of rural communities.<br /> <br /> Accomplishments during 2005<br /> The 2005 annual meeting of the NCERA-194 was held in the Hyatt Regency Hotel in Minneapolis Minnesota on November 8-9, 2005, immediately following the Farmer Cooperatives Conference. Attendance included nineteen NCERA-194 members and 16 non-members.<br /> <br /> The 2005 annual meeting consisted of a one-day forum, attended by industry and government representatives as well as representatives from universities. Industry representatives from Cenex Harvest States, Land OLakes, South Dakota Association of Cooperatives, La Coop Fédérée (Canadian Federation of Cooperatives), The Hale Group, National Cooperative Business Association, Wisconsin Farmers Union, Golden Heritage Foods, LLC, attended the conference. Graduate students and visiting scholars from Swedish Agricultural University, University of Kwazulu-Natal, University of St. Thomas were also in attendance. Additionally, one of our members, Chris Petersen, serves on the board of directors for CoBank. The representation from academics, industry and government, enabled strong and positive interaction between academics and others. Several NCERA-194 members in attendance were members of other national research projects such as WCC-72, NE-165, National Society of Accountants for Cooperatives and other complimentary groups. Through their participation these members worked to coordinate NCERA-194 member research with that of other complimentary projects.<br /> <br /> Twelve research papers were presented at the meeting. Full text versions of all of the research papers and posters were posted on the NCERA-194 web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/Default.htm. Topics of the papers presented included cooperative education, cooperative finance, risk management, and new cooperative formation. <br /> <br /> NCERA members also collaborated on research with other organizations and regional committees. Sanjib Bhyuan (Rutgers) participated in an organized symposium on the Role of Cooperatives in Rural Economic Development at the 2005 Annual NAREA meetings, Providence, RI. NCERA member Phil Kenkel collaborated with the NC 1016 and WCERA-72 on a study of Co-mingling of Wheat in the Hard Red Winter Wheat Marketing System which was presented at the WCERA-72 Annual Meeting in Las Vegas NV. <br /> <br /> Another important objective of NCR-194 is to attract young individuals to cooperative development. Progress toward this objective was achieved during 2005 through the successful pursuit of $3,000 in scholarships to eight students and/or early career faculty members to participate in both the NCERA-194 meeting and the Farmers Cooperative Conference. NCERA-194 member Mr. William Nelson, representing the Cooperative Foundation, was instrumental in making scholarship funds available. The availability of the these scholarship funds further serve as an indication of the successful working relationships between NCERA-194 members working in industry and in academic settings.<br /> <br /> Summary<br /> During 2005, NCERA-194 demonstrated numerous measurable outcomes consistent with the organizations stated purpose and objectives. Notable accomplishment included the annual meeting attended by 36 researchers and industry professionals, presentations on 12 research projects which were also disseminated in full text form on the NCERA-194 web site, the active use of the NCERA-194 list server to coordinate and facilitate on-going member research and five specific multi-state research/educational efforts. NCERA-194 continues to be an important vehicle for individuals of diverse backgrounds from across North America and elsewhere to meet and explore ways in which research, education and outreach activities can enhance the development and survival of rural cooperatives. As discussed above, the group continues to make excellent progress in this regard.<br />

Publications

Amanor-Boadu, V., M.A. Boland, and D. Barton. Welch Foods In Cases in Strategic Management, Seventh edition, Houghton Mifflin Company, February 2006.<br /> <br /> Bhuyan, S. 2004. The People Factor In Cooperatives: Does Members' (Negative) Attitude Affect Their Participation? Paper presented at the Principal Paper session (Session organizer: Professor Ellen Goddard, University of Alberta) entitled What's Happening in the Cooperative Sector? at the 2004 Canadian Agricultural Economics Society (CAES) annual meetings, Halifax, Nova Scotia, Canada, June 20-23, 2004.<br /> <br /> Bhuyan, S., 2005. Role of Cooperatives in Economic Development: What Have We Learned So Far? presented at the organized symposium Role of Cooperatives in Rural Economic Development: Myth or Reality? presented at 2005 Annual NAREA meetings, Providence, Rhode Island, July 24-27, 2005. <br /> <br /> Boland, Michael. Status of Cooperative Classes in the U.S. presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November, 9 2005.<br /> <br /> Boland, M.A., and T. Marsh. Input Quality in the Sugar Beet Industry Journal of Agricultural and Resource Economics 31, 1 (2006):<br /> <br /> Bond, Jennifer Keeling. Linkages Between Cooperative Performance and Board of Director Characteristics: A Quantitative Equity Drives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005.<br /> <br /> Boyd, Scott, M.A. Boland, and David Barton. Analyzing Determinants of Profitability and Persistence of Profitability in Local Grain Marketing and Farm Supply Cooperatives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005.<br /> <br /> Crooks, T. The Role of Information Technology in the Fuel Ethanol Industry presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/TonyCrooks.pdf<br /> <br /> Crooks, Anthony and John Dunn, Ethanol marketing/contracting, Rural Cooperatives, Vol. 72, No. 5.<br /> <br /> Crooks, Anthony and John Dunn,Farmer-owned ethanol and the role of information technology, Rural Cooperatives, Vol. 72, No. 5.<br /> <br /> Crooks, Anthony and John Dunn, IT having major impact on farmer-owned ethanol plants, Rural Cooperatives, Vol. 72, No. 6.<br /> <br /> Crooks, Anthony and John Dunn, Fuel ethanol industry, past & present, Rural Cooperatives, Vol. 72, No. 6.<br /> <br /> Fox, J.A., M.A. Boland, and L. Perez. Grassfed Certification: The Case of Uruguyan Beef. Agricultural Issues Center, University of California, May 2005, 21 pages.<br /> Hardesty, Shermain. Impacts of the Conversion of Diamond Walnut Growers presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November, 9 2005.<br /> <br /> Hine, Susan, and James Pritchett. Opportunities and Insights for Cooperative Board Education presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005.<br /> <br /> Holland, Steven J., Robert P. King. Co-op Stock Exchange: Why choice of training rules matters for new-generation co-op stockholders, Rural Cooperatives Vol. 72, No. 1, January/February 2005, pp. 12-14, 2005.<br /> <br /> Holland, Steven J., Robert P. King. Trading Mechanisms for New-Generation Cooperative Stock: The Architecture of Organizational Formation and Demise, American Journal of Agricultural Economics, Vol. 86, No. 5, December 2004, pp. 1262-1268.<br /> <br /> Kenkel P. and R. Holcomb. Energizing a Cooperative Class with Cooperative Feasibility Software presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis MN, November 9, 2005. www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/KenkelandHolcombpaper.pdf<br /> <br /> Holcomb, R. and P. Kenkel. The Thrill of Victory and the Agony of Defeat: A Comparison of Two Cooperative Equity Drives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005.<br /> www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/HolcombandKenkel.pdf<br /> <br /> Kalogeras, N., Pennings, J.M.E Dijk van G., and I.A. van der Lan. Modeling the Effects of Heterogeneity on Producers Preferences presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005.<br /> <br /> Kenkel P. and S. Henneberry, An Economic Analysis of Unit Train Facility Investment Mexican Journal of Agribusiness (Revusta Mexicana de Agronegocios), Spring 2006.<br /> <br /> Kenkel, P., and R.B. Holcomb. Feasibility Templates for Value-Added Manufacturing Businesses. Journal of Food Distribution Research 36, 1(March 2005):232-235.<br /> <br /> Kenkel P. and R. Holcomb. Energizing a Cooperative Class with Cooperative Feasibility Software presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005. www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/KenkelandHolcombpaper.pdf<br /> <br /> Kenkel, P. Evolving Credit Needs of Cooperatives and Producer-Owned Businesses invited paper for Farm Credit System Publication: Serving the Changing Financial Needs of American Farmers and Ranchers, 2005  2016 February 2005.<br /> <br /> Ortmann, Gerald F., and Robert P. King, Small-scale farmers in South Africa: can agricultural cooperatives facilitate access to input and product markets? University of Minnesota, Department of Applied Economics, St. Paul, Minnesota, 2005<br /> <br /> Pritchett, James, and Susan Hine. Financial Characteristics of Top Performing Cooperatives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minneapolis, November 9, 2005. <br /> <br /> Pincheira P. and K. Zeuli. Cooperatives and Area Wide Yield Insurance: A Theoretical Analysis presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005.<br /> www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/PabloandZeuli.pdf<br /> <br /> Reynolds, B. A Property Rights Approach to Preserving Subsidized Multifamily Rural Housing with Cooperatives presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9, 2005.<br /> http://www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/Reynoldspaper3.pdf<br /> <br /> Zeuli K. and A. Bentancor The Effects of Cooperative Competition on Member Loyalty presented at NCERA-194 Regional Research on Cooperatives Annual Meeting, Minneapolis, Minnesota, November 9 2005.<br /> http://www.agecon.ksu.edu/accc/ncr194/Events/2005meeting/ZeuliandAndrea.pdf<br />

Impact Statements

1. Education of cooperative boards of directors improved through jointly organized education programs conducted by NCERA members.. Workshops were conducted in Montana, Wyoming, Missouri, Indiana, Illinois, Ohio and Michigan. The programs focused on strategic thinking, finance, governance, and mergers. Original research through case studies was done on various co-ops to help provide content for the program.
2. Cooperative undergraduate instruction improved through the development of a cooperative textbook for use in college and university courses developed by NCERA-194 members. Seven NCERA-194 members have completed preliminary drafts of 21 chapters of the textbook. NCERA-194 member Mike Boland has submitted grant applications to various foundations to help provide support for a retreat to help complete the textbook.
3. International understanding of cooperatives improved through the organization of a cooperative study tour in four South American countries organized by NCERA-194 members. Case studies were written on co-ops in each country to provide support for the curriculum used in the three credit class. 32 Students from Colorado, Kansas, Missouri, and North Dakota are participating in the class and tour.
4. Understanding of success factors of value-added cooperatives were improved through the development of case studies on a Native American Indian Cooperative in Montana and Mountain States Lamb Cooperative by NCERA-194 members in Kansas and Montana.

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Report Information

Participants

" Chair: Phil Kenkel Department of Agricultural Economics Oklahoma State University Stillwater OK 74075

" Vice-Chair & Secretary: Shermain Hardesty Department of Agricultural and Resource Economics University of California Davis, CA 95616

" Treasurer: Michael Boland Department of Agricultural Economics Kansas State University Manhattan KA 66506

" Attendance: There were 19 individuals in attendance, 15 NCERA-194 members and 4 other individuals (graduate students, guests)

" NCERA-194 Members in Attendance: Michael Boland, Kansas State University Dennis Conley, University of Nebraska Shermain D. Hardesty, University of California-Davis Brian M. Henehan, Cornell University Brent Hueth University of Wisconsin-Madison Phil Kenkel, Oklahoma State University Rob King University of Minnesota Gregory McKee North Dakota State University Brian Oleson, University of Manitoba Chris Peterson, Michigan State University Ron Rainey University of Arkansas Anne Reynolds, University of Wisconsin-Madison Center for Cooperatives Bruce Reynolds, USDA Cooperative Services-Cooperative Programs Todd Schmit, Cornell University, Evert Van der Sluis, South Dakota State University

" Other Individual Attending Stephen Davis, Southwestern Minnesota State University, Tyler Gilkey, University of Nebraska, Kathy Lang, University of Saskatchewan, Lynn Pitman, University of Wisconsin-Madison

Brief Summary of Minutes

NCERA194: Improving the management and effectiveness of cooperatively owned business organizations

Project/Activity Number: NCERA194

Project Title: Improving the management and effectiveness of cooperatively owned business organizations.

Period Covered: January 1, 2006 to December 31, 2006

Date of This Report: March 5, 2007

Annual Meeting Dates: Tuesday, November 2, 2006
Participants:
" Chair: Phil Kenkel Department of Agricultural Economics Oklahoma State University Stillwater OK 74075

" Vice-Chair & Secretary: Shermain Hardesty Department of Agricultural and Resource Economics University of California Davis, CA 95616

" Treasurer: Michael Boland Department of Agricultural Economics Kansas State University Manhattan KA 66506

" Attendance: There were 19 individuals in attendance, 15 NCERA-194 members and 4 other individuals (graduate students, guests)

" NCERA-194 Members in Attendance: Michael Boland, Kansas State University Dennis Conley, University of Nebraska Shermain D. Hardesty, University of California-Davis Brian M. Henehan, Cornell University Brent Hueth University of Wisconsin-Madison Phil Kenkel, Oklahoma State University Rob King University of Minnesota Gregory McKee North Dakota State University Brian Oleson, University of Manitoba Chris Peterson, Michigan State University Ron Rainey University of Arkansas Anne Reynolds, University of Wisconsin-Madison Center for Cooperatives Bruce Reynolds, USDA Cooperative Services-Cooperative Programs Todd Schmit, Cornell University, Evert Van der Sluis, South Dakota State University

" Other Individual Attending Stephen Davis, Southwestern Minnesota State University, Tyler Gilkey, University of Nebraska, Kathy Lang, University of Saskatchewan, Lynn Pitman, University of Wisconsin-Madison
Brief summary of minutes of annual meeting:
Minutes of the Business Meeting of NCERA-194, Research on Cooperatives
Tuesday, November 2, 2006, Sheraton Bloomington Hotel, Minneapolis, Minnesota
" Call to Order: Chairman Phil Kenkel called the meeting to order at 4:30 p.m.

" Approval of minutes from the 2005 Annual Meeting: Chair Phil Kenkel distributed the 2005 meeting minutes. A motion to approve the minutes was made by Brian Henehan and seconded by Shermain Hardesty. Motion carried.

" Nominating Committee Report: Michael Boland gave the nominating committee report. The committee recommended an officer slate consisting of: Shermain Hardesty-Chair, Gregory McKee-Vice Chair and Brent Hueth-Secretary. There were no further nominations from the floor. A motion to elect the recommended slate of officers by acclamation was made by Michael Boland and seconded by Evert Van de Sluis. Motion carried.

" Treasurers Report: Mike Boland presented the financial report. Prior to the meeting expenses, the organization had a balance of $3176. Mike reported that 16 paid registrants for the 2006 meeting. He projected the balance after meeting expenses to be very close to the balance at the beginning of the year of $1,500. A motion to approve the financial report was made by Chris Peterson and seconded by Phil Kenkel. Motion carried.

" Administrative Advisors Report: There was no Administrative Advisors Report since Sally Thompson was unable to attend.

" Status of Journal of Cooperatives: Phil Kenkel led a discussion on the status of the Journal of Cooperatives. The proposed journal will be published electronically. It will be funded through page charges. Articles will be published as they come in; the journal needs to establish a consistent publication record to draw quality articles. Areas for articles include: research, case studies and teaching articles. Archived articles will be available through the NCERA-194 web site and JSTOR at no charge.

Currently, there are four reviewed manuscripts awaiting publication. As editor, Phil plans to rely heavily on the NCERA194 membership for reviewers.
Access to back issues of Journal of Cooperatives is uncertain; NCFC holds the copyright. Numerous back issues of American Cooperation are also stored on an old server.

" Cooperative Text Book Project: Mike Boland led a discussion on the cooperative text book project. The Farm Foundation and the CHS Foundation and The Cooperative Foundation have agreed to provide a total of $13,000 for the publication. Nationwide Foundation will also be asked to provide support. Dave Barton has agreed to hammer out the revisions by holding a two day retreat. He has approached individuals to fill in the holes and is looking for more volunteers. The revisions will be forwarded to the reviewers. A Teachers Manual is also being developed. Mike Boland has agreed to edit the chapters into a more textbook-like style.

" Student Registration Fees and Financial Support: Mike Boland reported that $2,000 of student participation funding was received from the CHS Foundation. Mike reported that 2 individuals received scholarships, Tyler Gilkey--University of Nebraska and a student from Texas who attended only the Farmer Cooperatives Conference.

" Resolution of Appreciation: A motion thanking the CHS Foundation for their support of the meeting was made by Phil Kenkel and seconded by Shermain Hardesty. Motion carried.

" 2007 Meeting Format: The format for the 2007 NCERA-194 Annual Meeting was discussed. After considering the possibility of linking the meeting with CHSs annual meeting, the group agreed to continue to link the conference with the Farmers Cooperative Conference. The general consensus was that holding NCRERA-194 immediately after the Farmers Cooperative Conference was preferable to before the conference.

There was discussion about the low attendance at this years meeting, which was attributed to lack of travel funding for USDA staff and schedule conflicts for several NCERA 194 members and their graduate students. Shermain Hardesty agreed to get the group list-serve updated and to expand the list.

There was discussion about participating in the combined meetings of the International Cooperative Alliance Committee on Cooperative Research, Canadian Association for Studies in Cooperation and the Association for Cooperative Educators in Saskatoon, Saskatchewan, Canada in May. However, there was general consensus that land grant universities would not fund travel to Canada.

" A motion thanking Phil Kenkel for his dedicated service as chair was made by Evert Van der Sluis and seconded by Mike Boland. The motion was approved.

" The meeting adjourned at 5:45 p.m.

Accomplishments:

Objective 1. To promote and coordinate timely research on cooperatively owned business organizations for agricultural marketing, agricultural input supply, vertical coordination through value added processing, and rural services.
Accomplishments during 2006:
" NCERA-194 has continued to facilitate collaboration and interaction among individuals conducting research on cooperatives. NCERA-194 members continue to be actively involved in joint research projects and cooperative agreements between USDA, Cooperative Services and the Land Grant institutions.

" NCERA-194 members are making full use of the committees infrastructure to communicate the results of their research to each other. During 2006 NCERA-194 members disseminated research results during the annual meeting. NCERA-194 members also used the NCERA-194 web page and the list-server (described in more detail below) to communicate with each other. NCERA-194 members, as well as others interested in cooperatives, can access the selected papers presented at the each all meetings from the web page, which can be found at: http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm.
Members also made use of the List Server (ncr-194-net@macc.wisc.edu) to facilitate communications among members. Messages sent to the list server are forwarded to all NCERA-194 participants.

" A major effort for the NCERA-194 Committee was the preparation and submission of a research proposal for USDA, Rural Business Cooperative Services for a national study of the economic impact of cooperatives. The proposal was a joint effort of NCERA-194 members Phil Kenkel (Oklahoma State), Gregory McKee (North Dakota State) and Brian Henehan (Cornell University). The project led to a selected paper session and open forum discussion at the NCERA-194 2006 Annual Meeting.

" Brent Hueth, the new Director of the Center for Cooperatives at University of Wisconsin-Madison, also utilized the NCERA-194 List Server to communicate with members on a proposal for the same USDA grant. He was recently awarded $.7 million for this project; other NCERA-194 participants are expected to be involved in this project.

" NCERA member Michael Boland was awarded two grants from foundations to help provide support for a retreat to help complete the textbook. Seven NCERA-194 members have completed preliminary drafts of 21 chapters of the textbook.

" Another major effort of the NCEAR-194 Committee was the re-activation of the Journal of Cooperatives. With the support of several NCERA-194 members, out-going NCERA-194 Chair Phil Kenkel arranged for the re-activation of the Journal of Cooperatives as an electronic journal and agreed to serve as its editor.

" Other specific examples of collaboration include:

o Research and case study initiated by Michael Boland at Kansas State on the economics of creating ethanol from sugar beet pulp with Gregory McKee at North Dakota State University.

o Case studies written by Michael Boland on three local cooperatives in Kansas as well as Mountain States Lamb Cooperative (with Gary Brester at Montana State University), Sun-Maid Growers (with Dan Sumner at University of California), and Sunkist (California). The case study on Mountain States Lamb Cooperative is forthcoming in the Review of Agricultural Economics and the Sun-Maid Growers case is in review.

Objective 2. To serve as a forum for industry and government decision makers in management and staff research positions to interact with land grant researchers and extension specialists to share research results and discuss implications for cooperative business organizations, their producer members, farm structure, efficiencies in food production and distribution, the environment and economic well being of rural communities.
Accomplishments during 2006:

" There were numerous collaborations among NCERA 194 members on education programs for cooperative directors. Member Mike Boland (Kansas State) collaborated with NCERA-194 member Phil Kenkel (Oklahoma State) by presenting his research on factors influencing the persistence of profits in local farm supply and marketing cooperatives at the Oklahoma Agricultural Cooperative Councils CEO and Board Retreat in Pottsboro Texas.

" NCERA-194 members Phil Kenkel (Oklahoma State) and John Park (Texas A&M) helped organize an Invited Paper Session for the 2007 Southern Agricultural Economics Association Annual Meeting in Mobile Alabama, Feb 5-6, 2007. Drs. Kenkel and Park will author an invited paper Business Models and Producer Owned Ventures: Choices, Challenges and Changes.

" Mike Boland and The Arthur Capper Cooperative Center (Kansas State University) conducted director development programs in Colorado, Indiana, Kansas, Michigan, Missouri, Montana, Ohio, and Wyoming. They conducted individual meetings for directors in North Dakota and Oklahoma.

" Other Director Education programs were organized by NCERA members Joan Fulton (Purdue) and Susan Hine (Colorado State University) and James Pritchett (Colorado State University). Joan Fulton and Susan Hine have been developing materials for a new Director Training program for the Colorado Cooperative Council. After consultation with Susan Hine, member Shermain Hardesty (University of California) organized an education program for directors of agricultural cooperatives regarding opportunities for cooperatives created by Chinas economic growth. Member Joan Fulton (Purdue) conducted a one-day director training session for multi-state Mid America Cooperative Council in Indianapolis.

" NCERA-194 member Shermain Hardesty (University of California) collaborated with USDA Cooperatives Specialist Julie Hoagland at the AAEA Annual Meeting on an Organized Symposium, "Cheating, Staying, Leaving: Cooperative Options.

" The 2006 annual meeting of the NCERA-194 was held in the Sheraton Bloomington Hotel in Minneapolis, Minnesota on November 2-3, 2006, immediately following the Farmer Cooperatives Conference. Several NCERA-194 members served on the planning committee for the Farmer Cooperatives Conference, which is targeted at board members of agricultural cooperatives. This interaction strengthens relationships between academics and industry. Also, one of our members, Chris Petersen, serves on the board of directors for CoBank.

" Attendance at NCERA-194s annual meeting included 19 individuals, 15 NCERA-194 members and 4 nonmembers. It consisted of a one-day forum, attended by USDA representatives as well as representatives from universities.

" Seven research papers were presented at the meeting. Full text versions of all of the research papers and presentation slides were posted on the NCERA-194 web page which can be found at: http://www.agecon.ksu.edu/accc/ncr194/Default.htm. Topics of the papers presented included cooperative finance, new cooperative formation, characteristics of successful cooperatives and the economic impact of cooperatives.

" Member Brian Henehan presented a paper, "Small-Scale Grower Cooperatives in the Northeast", summarizing the findings of a USDA Rural Business Service funded project and USDA RBS Research Report 210.

" Another important objective of NCR-194 is to attract young individuals to cooperative development. Progress toward this objective was achieved during 2006 through the successful pursuit of $2,000 in scholarships to two students to participate in both the NCERA-194 meeting and the Farmers Cooperative Conference. NCERA-194 member Mr. William Nelson, representing the CHS Foundation, was instrumental in making scholarship funds available. The availability of the these scholarship funds further serves as an indication of the successful working relationships between NCERA-194 members working in industry and in academic settings.
Summary:

During 2006, NCERA-194 demonstrated numerous measurable outcomes consistent with the organizations stated purpose and objectives. Notable accomplishments included the annual meeting attended by 19 researchers and industry professionals, presentations of 7 research projects which were also disseminated in full text form on the NCERA-194 web site, the active use of the NCERA-194 list server to coordinate and facilitate on-going member research, specific multi-state research/educational efforts, revitalization of the Journal of Cooperatives and continuing development of a textbook on cooperatives. NCERA-194 continues to be an important vehicle for individuals of diverse backgrounds across North America to meet and explore ways in which research, education and outreach activities can enhance the development and survival of rural cooperatives.
Impacts:
" Education of cooperative boards of directors improved through jointly organized education programs conducted by NCERA members. Various members collaborated to conduct workshops in California, Colorado, Indiana, Kansas, Michigan, Missouri, Montana, Ohio, Oklahoma, Texas, and Wyoming. The programs focused on strategic thinking, finance, governance, and mergers.

" Research proposals regarding cooperatives were facilitated; members developed two research proposals to USDA Rural Development for a national study of the economic impact of cooperatives.

" Continuing development of a cooperative textbook for use in college and university courses was supported. Seven NCERA-194 members have completed preliminary drafts of 21 chapters of the textbook. NCERA-194 member Mike Boland was awarded funding from foundations to support a retreat to complete the textbook.

" Committee members are reactivating the peer-reviewed journal, Journal of Cooperatives, under the leadership of the 2006 Committee Chair, Phil Kenkel.

Publications:
Anderson, B.L. and B. Henehan, "What Gives Agricultural Co-operatives a Bad Name?"
International Journal of Co-operative Management. Vol. 2, No. 2. University of Leicester, Leicester, UK. December, 2005.

Baarda, J. Current Issues in Cooperative Finance and Governance: Background and Discussion Paper (April, 2006) 196pp.

Baarda, J. USDA/Co-op Partnership Aids Producer Quest for Market Power, Rural Cooperatives (July\August 2006)
[Available at http://www.rurdev.usda.gov/rbs/pub/openmag.htm]

Baarda, J. Needs and Justification for Supportive Cooperative Statutes. Memorandum. Response to inquiry on legal issues in Indian cooperative law, Mr. Rama Reddy, Hyderabad, Andreh Pradish, India (April 4, 2006)

Barton, D. "Midway Co-op, Inc." Unpublished case study, Arthur Capper Cooperative Center, Kansas State University, (2006).

Barton, D. "Farmers Cooperative Grain Association." Unpublished case study, Arthur Capper Cooperative center, Kansas State University, 2006.

Barton, D. "Midland Co-op." Unpublished case study, Arthur Capper Cooperative center, Kansas State University, 2006.

Boland, M.A. "Sun-Maid Growers." Review of Agricultural Economics, Resubmitted for 2nd review)

Boyd, S., M.A., K. Dhuyvetter, and D. Barton. "The Persistence of Profitability in Local Farm Supply and Grain Marketing Cooperatives." Journal of Agricultural and Applied Economics, 2007

Boland, M.A., A.M. Bosse, and G.W. Brester. "Mountain States Lamb Cooperative." Review of Agricultural Economics, 29,1(2007):157-169.

Boland, M.A. and T. Marsh. "Input Quality in the Sugar Beet Industry." Journal of Agricultural and Resource Economics 31,1(2006): 114-128.
Boland, M.A. and David Barton. "Good-to-Great Local Farm Supply and Grain Marketing Cooperatives" NCERA-194 2006 Meeting presentation. November, 2006.
Boland, M.A. "Agency Problems in Food Processing Firms and Cooperatives" NCERA-194 2006 Meeting presentation. November, 2006.
Fulton, Murray and Kathy Lang. "Declining Economic Linkage: SWP Share Conversion Story" NCERA-194 2006 Meeting presentation. November, 2006.
Gilkey, Tyler, Jeffrey Royer and Darrell Mark. "Equity Redemption in Cooperatives: Transitioning to a Revolving Fund" NCERA-194 2006 Meeting presentation. November, 2006.
Gilkey, Tyler W., Jeffrey S. Royer, and Darrell R. Mark. "Equity Redemption in Cooperatives: Transitioning to a Revolving Fund Plan." Submitted to Agricultural Finance Review November 18, 2006.
Hardesty, S.D. Alternative State Co-op Laws Broaden Investment Capital Sources. Rural Cooperatives Review, September 2006.

Hilchey, D. Gillespie, and B. Henehan. "Small-Scale Grower Cooperatives in the Northeast", USDA RBS Research Report 210 August, 2006 Wash, DC

Hueth, Brent. "Marketing Specialty Hogs: A Comparative Analysis of Two Firms from
Iowa," with Maro Ibarburu and James Kliebenstein, Forthcoming, Review of Agricultural Economics, 2007.

Hueth, Brent. "Information Sharing and Oligopoly in Agricultural Markets: The Role
of Bargaining Associations," with Philippe Marcoul, Amer. J. Agri. Econ, 88(4), 2006.

Hueth, Brent. "Information Transmission in Cattle Markets: A Case Study of the
Chariton Valley Beef Alliance," with John Lawrence, 2006. J. of Agribusiness

Kenkel, P. and R. B. Holcomb. Challenges to Producer Ownership of Ethanol and Biodiesel Production Facilities Agricultural and Applied Economics, Vol. 38, No. 2 July 2006.

Kenkel, P. Evolving Credit Needs of Cooperatives and Producer-Owned Businesses invited paper for Farm Credit System Publication: Serving the Changing Financial Needs of American Farmers and Ranchers, 2005  2016 Feb. 2006.

Kenkel P. and R. Holcomb, Feasibility of a Cooperative Winery selected paper at NCERA-194 2006 Annual Meeting, Minneapolis Mn.
http://www.agecon.ksu.edu/accc/ncr194/Events/2006meeting/Winery06.pdf
Kenkel, P. and R. Holcomb. "Feasibility of a Cooperative Winery" presentation. November, 2006.

Mark, Darrell R., Jeffrey S. Royer, and Rik R. Smith. University of Nebraska-Lincoln Cooperative Analytical Simulation Tool (NebCAST): NebCAST Program with Instruction Guide. CD13. University of Nebraska-Lincoln Extension, 2006.
McKee, G., P. Kenkel and B. Henehan. Challenges in Measuring the Economic Impact of Cooperatives selected paper at NCERA-194 2006 Annual Meeting, Minneapolis Mn.
http://www.agecon.ksu.edu/accc/ncr194/Events/2006meeting/Challenges.pdf

Gregory McKee, Phil Kenkel and Brian Henehan. "Challenges in Measuring the Economic Impact of Cooperatives" presentation. November, 2006.

Pozo, V. and M.A. Boland. "Sunkist Growers." Review of Agricultural
Economics, Submitted for review.

Royer, Jeffrey S. "Cooperative Forward Integration in Oligopsonistic Markets: A Simulation Analysis of Incentives and Impacts" In Vertical Markets and Cooperative Hierarchies, edited by Jerker Nilsson and Kostas Karatininis. Springer, forthcoming.

Royer, Jeffrey S., and Darrell R. Mark. "A New Tool for Analyzing Cooperative Equity Plans." Cornhusker Economics, April 19, 2006.

Royer, Jeffrey S., and Darnell B. Smith. "Patronage Refunds, Producer Expectations, and Optimal Pricing by Agricultural Cooperatives." Journal of Cooperatives, forthcoming.


Authorization: Electronic signature.

Accomplishments

Publications

Anderson, B.L. and B. Henehan, "What Gives Agricultural Co-operatives a Bad Name?"<br /> International Journal of Co-operative Management. Vol. 2, No. 2. University of Leicester, Leicester, UK. December, 2005.<br /> <br /> Baarda, J. Current Issues in Cooperative Finance and Governance: Background and Discussion Paper (April, 2006) 196pp. <br /> <br /> Baarda, J. USDA/Co-op Partnership Aids Producer Quest for Market Power, Rural Cooperatives (July\August 2006) <br /> [Available at http://www.rurdev.usda.gov/rbs/pub/openmag.htm] <br /> <br /> Baarda, J. Needs and Justification for Supportive Cooperative Statutes. Memorandum. Response to inquiry on legal issues in Indian cooperative law, Mr. Rama Reddy, Hyderabad, Andreh Pradish, India (April 4, 2006)<br /> <br /> Barton, D. "Midway Co-op, Inc." Unpublished case study, Arthur Capper Cooperative Center, Kansas State University, (2006).<br /> <br /> Barton, D. "Farmers Cooperative Grain Association." Unpublished case study, Arthur Capper Cooperative center, Kansas State University, 2006.<br /> <br /> Barton, D. "Midland Co-op." Unpublished case study, Arthur Capper Cooperative center, Kansas State University, 2006.<br /> <br /> Boland, M.A. "Sun-Maid Growers." Review of Agricultural Economics, Resubmitted for 2nd review)<br /> <br /> Boyd, S., M.A., K. Dhuyvetter, and D. Barton. "The Persistence of Profitability in Local Farm Supply and Grain Marketing Cooperatives." Journal of Agricultural and Applied Economics, 2007<br /> <br /> Boland, M.A., A.M. Bosse, and G.W. Brester. "Mountain States Lamb Cooperative." Review of Agricultural Economics, 29,1(2007):157-169.<br /> <br /> Boland, M.A. and T. Marsh. "Input Quality in the Sugar Beet Industry." Journal of Agricultural and Resource Economics 31,1(2006): 114-128.<br /> Boland, M.A. and David Barton. "Good-to-Great Local Farm Supply and Grain Marketing Cooperatives" NCERA-194 2006 Meeting presentation. November, 2006.<br /> Boland, M.A. "Agency Problems in Food Processing Firms and Cooperatives" NCERA-194 2006 Meeting presentation. November, 2006.<br /> Fulton, Murray and Kathy Lang. "Declining Economic Linkage: SWP Share Conversion Story" NCERA-194 2006 Meeting presentation. November, 2006.<br /> Gilkey, Tyler, Jeffrey Royer and Darrell Mark. "Equity Redemption in Cooperatives: Transitioning to a Revolving Fund" NCERA-194 2006 Meeting presentation. November, 2006.<br /> Gilkey, Tyler W., Jeffrey S. Royer, and Darrell R. Mark. "Equity Redemption in Cooperatives: Transitioning to a Revolving Fund Plan." Submitted to Agricultural Finance Review November 18, 2006.<br /> Hardesty, S.D. Alternative State Co-op Laws Broaden Investment Capital Sources. Rural Cooperatives Review, September 2006.<br /> <br /> Hilchey, D. Gillespie, and B. Henehan. "Small-Scale Grower Cooperatives in the Northeast", USDA RBS Research Report 210 August, 2006 Wash, DC<br /> <br /> Hueth, Brent. "Marketing Specialty Hogs: A Comparative Analysis of Two Firms from<br /> Iowa," with Maro Ibarburu and James Kliebenstein, Forthcoming, Review of Agricultural Economics, 2007.<br /> <br /> Hueth, Brent. "Information Sharing and Oligopoly in Agricultural Markets: The Role<br /> of Bargaining Associations," with Philippe Marcoul, Amer. J. Agri. Econ, 88(4), 2006.<br /> <br /> Hueth, Brent. "Information Transmission in Cattle Markets: A Case Study of the<br /> Chariton Valley Beef Alliance," with John Lawrence, 2006. J. of Agribusiness<br /> <br /> Kenkel, P. and R. B. Holcomb. Challenges to Producer Ownership of Ethanol and Biodiesel Production Facilities Agricultural and Applied Economics, Vol. 38, No. 2 July 2006.<br /> <br /> Kenkel, P. Evolving Credit Needs of Cooperatives and Producer-Owned Businesses invited paper for Farm Credit System Publication: Serving the Changing Financial Needs of American Farmers and Ranchers, 2005  2016 Feb. 2006.<br /> <br /> Kenkel P. and R. Holcomb, Feasibility of a Cooperative Winery selected paper at NCERA-194 2006 Annual Meeting, Minneapolis Mn. <br /> http://www.agecon.ksu.edu/accc/ncr194/Events/2006meeting/Winery06.pdf<br /> Kenkel, P. and R. Holcomb. "Feasibility of a Cooperative Winery" presentation. November, 2006.<br /> <br /> Mark, Darrell R., Jeffrey S. Royer, and Rik R. Smith. University of Nebraska-Lincoln Cooperative Analytical Simulation Tool (NebCAST): NebCAST Program with Instruction Guide. CD13. University of Nebraska-Lincoln Extension, 2006.<br /> McKee, G., P. Kenkel and B. Henehan. Challenges in Measuring the Economic Impact of Cooperatives selected paper at NCERA-194 2006 Annual Meeting, Minneapolis Mn. <br /> http://www.agecon.ksu.edu/accc/ncr194/Events/2006meeting/Challenges.pdf<br /> <br /> Gregory McKee, Phil Kenkel and Brian Henehan. "Challenges in Measuring the Economic Impact of Cooperatives" presentation. November, 2006.<br /> <br /> Pozo, V. and M.A. Boland. "Sunkist Growers." Review of Agricultural<br /> Economics, Submitted for review.<br /> <br /> Royer, Jeffrey S. "Cooperative Forward Integration in Oligopsonistic Markets: A Simulation Analysis of Incentives and Impacts" In Vertical Markets and Cooperative Hierarchies, edited by Jerker Nilsson and Kostas Karatininis. Springer, forthcoming.<br /> <br /> Royer, Jeffrey S., and Darrell R. Mark. "A New Tool for Analyzing Cooperative Equity Plans." Cornhusker Economics, April 19, 2006.<br /> <br /> Royer, Jeffrey S., and Darnell B. Smith. "Patronage Refunds, Producer Expectations, and Optimal Pricing by Agricultural Cooperatives." Journal of Cooperatives, forthcoming.<br /> <br />

Impact Statements

1. " Education of cooperative boards of directors improved through jointly organized education programs conducted by NCERA members. Various members collaborated to conduct workshops in California, Colorado, Indiana, Kansas, Michigan, Missouri, Montana, Ohio, Oklahoma, Texas, and Wyoming. The programs focused on strategic thinking, finance, governance, and mergers.
2. " Research proposals regarding cooperatives were facilitated; members developed two research proposals to USDA Rural Development for a national study of the economic impact of cooperatives.
3. " Continuing development of a cooperative textbook for use in college and university courses was supported. Seven NCERA-194 members have completed preliminary drafts of 21 chapters of the textbook. NCERA-194 member Mike Boland was awarded funding from foundations to support a retreat to complete the textbook.
4. " Committee members are reactivating the peer-reviewed journal, Journal of Cooperatives, under the leadership of the 2006 Committee Chair, Phil Kenkel.

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Report Information

Participants

Michael Boland, Kansas State University :mboland@ksu.edu; Dennis Conley, University of Nebraska: dconley1@unl.edu; Shermain D. Hardesty, University of California-Davis: shermain@primal.ucdavis.edu; Brian M. Henehan, Cornell University: bmh5@cornell.edu; Brent Hueth University of Wisconsin-Madison: hueth@wisc.edu; Phil Kenkel, Oklahoma State University:phil.kenkel@okstate.edu; Rob King University of Minnesota: rking@umn.edu; Gregory McKee North Dakota State University; gregory.mckee@ndsu.edu; Chris Peterson, Michigan State University: peters17@msu.edu; Anne Reynolds, University of Wisconsin-Madison Center for Cooperatives: reynolds@aae.wisc.edu; Bruce Reynolds, USDA Cooperative Services-Cooperative Programs: bruce.reynolds@usda.gov; Evert Van der Sluis, South Dakota State University: evert.vandersluis@sdstate.edu;Randall Torgerson, Retired USDA Cooperative Services, William Nelson, CHS Foundation, James Baarda, USDA Rural Development: James.Baarda@usda.gov; David Barton, Kansas State University: dbarton@ksu.edu, Julie Hogeland, USDA Rural Development: julie.hogeland@ wdc.usda.gov;, Sally Thompson, Purdue University: sallyt@purdue.edu;, Michael L. Cook, University of Missouri: cookml@missouri.edu; Burton Pflueger, South Dakota State University: pflueger.burton@ces.sdstate.edu; Jennifer Bond, Colorado State University: jennifer.keeling@colostate.edu;, Curt Stofferahn, University of North Dakota: curtis_stofferahn@und.nodak.edu;, Paulo de Brito, Colorado State University, Frayne Olson, Iowa State University: frayneo@iastate.edu;, and Jong-Ick Jang, University of Missouri: jjnnd@mizzou.edu;

Brief Summary of Minutes

Minutes of the Business Meeting of NCERA-194, Research on Cooperatives
Tuesday, November 5, 2007
Crown Plaza-Riverfront, Saint Paul, Minnesota

Administrative Advisor:
Sarahelen (Sally) Thompson Department of Agricultural Economics Purdue University West Lafayette, IN 47907

Chair:
Shermain Hardesty Department of Agricultural and Resource Economics University of California Davis, CA 95616

Vice-Chair:
Brent Hueth Department of Agricultural and Applied Economics, University of Wisconsin, Madison, Madison, WI 53706

Secretary:
Gregory McKee Department of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58105

Treasurer:
Michael Boland Department of Agricultural Economics, Kansas State University, Manhattan KA, 66506

Attendance
There were 23 individuals in attendance, 19 NCERA-194 members and 4 other individuals (graduate students, guests)

NCERA-194 Members in Attendance:
Michael Boland, Kansas State University Dennis Conley, University of Nebraska Shermain D. Hardesty, University of California-Davis Brian M. Henehan, Cornell University Brent Hueth University of Wisconsin-Madison Phil Kenkel, Oklahoma State University Rob King University of Minnesota Gregory McKee North Dakota State University Chris Peterson, Michigan State University Anne Reynolds, University of Wisconsin-Madison Center for Cooperatives Bruce Reynolds, USDA Cooperative Services-Cooperative Programs, Evert Van der Sluis, South Dakota State University, Randall Torgerson, Retired USDA Cooperative Services, William Nelson, CHS Foundation, James Baarda, USDA Rural Development, David Barton, Kansas State University, Julie Hogeland, USDA Rural Development, Sally Thompson, Purdue University, Michael L. Cook, University of Missouri, Burton Pflueger, South Dakota State University, Jennifer Bond, Colorado State University,

Other Individuals Attending
Curt Stofferahn, University of North Dakota, Paulo de Brito, Colorado State University, Frayne Olson, Iowa State University, and Jong-Ick Jang, University of Missouri

Call to Order:
Vice-chairman Brent Hueth called the meeting to order at 4:15 p.m.
Approval of minutes from the 2006 Annual Meeting
Vice-chair Brent Hueth distributed the 2006 meeting minutes. A motion to approve the minutes was made by Michael Boland and seconded by Phil Kenkel. Motion carried.

Nominating Committee Report
Brent Hueth gave the nominating committee report. The committee recommended an officer slate consisting of: Brent Hueth-Chair, Gregory McKee-Vice Chair and Todd Schmidt-Secretary. There were no further nominations from the floor. A motion to elect the recommended slate of officers by acclamation was made by Phil Kenkel and seconded by David Barton. Motion carried.

Treasurers Report
Mike Boland presented the financial report. $3,000 was received from the CHS Foundation and $1,000 from The Cooperative Foundation to support travel scholarships. These funds were disbursed to the scholarship recipients. The account balance on November 2, 2007 was $1,000.71. A motion to approve the financial report was made by Chris Peterson and seconded by Phil Kenkel. Motion carried.

Administrative Advisors Report
The Administrative Advisor indicated that the membership needed to submit a proposal for renewal of the project. All members will need to file Appendix E with their state experiment station in order to continue membership. Impacts of the group also need to be reported.
Cooperative Text Book Project
Mike Boland led a discussion on the cooperative text book project. Revisions of chapters still need to be forwarded to the reviewers. Suggestions for alternative methods of publishing material from the text include as special submissions to the Journal of Cooperatives.

Status of Journal of Cooperatives
Phil Kenkel led a discussion on the status of the Journal of Cooperatives. The journal has been published electronically. It is funded through page charges. Articles will be published as they come in; the journal needs to establish a consistent publication record to draw quality articles. As editor, Phil plans to rely heavily on the NCERA194 membership for reviewers. Areas for articles include: research, case studies and teaching articles. Archived articles will be available through the NCERA-194 web site and JSTOR at no charge. A presentation was made by representatives of the AgEcon Search service to suggest publishing the journal there as well. A motion by Christopher Peterson and seconded by Jim Baarda was made in support of publishing the journal on AgEcon Search.
Access to back issues of Journal of Cooperatives is uncertain; NCFC holds the copyright. Phil inquired with the NCFC to obtain permission. Permission pending. Numerous back issues of American Cooperation have been scanned and will be posted once copyright permission is obtained.

Student Registration Fees and Financial Support
Mike Boland reported that student participation funding was received from the CHS Foundation. Students from Colorado State University and from University of Missouri were able to attend because of support funding.

Resolution of Appreciation
A motion thanking the CHS Foundation for their support of the meeting was made by Phil Kenkel and seconded by Christopher Peterson. Motion carried.
A motion thanking Phil Kenkel and Roger Ginder for their work on the Journal of Cooperatives was made.
A motion thanking Shermain Hardesty for her administration of the group was made.
A motion thanking Sally Thompson for her services as administrative advisor was made.

2008 Meeting Format
The format for the 2008 NCERA-194 Annual Meeting was discussed. The group agreed to continue to link the conference with the Farmers Cooperative Conference. The general consensus was that holding NCRERA-194 immediately after the Farmers Cooperative Conference was preferable to before the conference.
The meeting adjourned at 5:00 p.m.

Accomplishments

Objective 1. To promote and coordinate timely research on cooperatively owned business organizations for agricultural marketing, agricultural input supply, vertical coordination through value added processing, and rural services. <br /> <br /> Accomplishments during 2006: NCERA-194 has continued to facilitate collaboration and interaction among individuals conducting research on cooperatives. NCERA-194 members continue to be actively involved in joint research projects and cooperative agreements between USDA, Cooperative Services and the Land Grant institutions. <br /> <br /> NCERA-194 members are making full use of the committees infrastructure to communicate the results of their research to each other. During 2007 NCERA-194 members disseminated research results during the annual meeting. NCERA-194 members also used the NCERA-194 web page and the list-server (described in more detail below) to communicate with each other. NCERA-194 members, as well as others interested in cooperatives, can access the selected papers presented at the each all meetings from the web page, which can be found at: http://www.agecon.ksu.edu/accc/ncr194/ncr%20publications.htm. Members also made use of the List Server (ncr-194-net@macc.wisc.edu) to facilitate communications among members. Messages sent to the list server are forwarded to all NCERA-194 participants. <br /> <br /> Eric Thor assisted with the formation of five major cooperatives in the Southwest. <br /> <br /> Phil Kenkel assisted in the establishment of a new oilseed processing cooperative Plains Oilseed Products in Oklahoma. The cooperative is partnering with an existing cottonseed processing cooperative. The cooperative is installing over $8M of canola processing equipment and is contracting canola acreage for 2008 delivery. At full production the new cooperative will process over 150,000 tons of canola generating over $39M of revenue for its producer members<br /> <br /> Brent Hueth wrote a successful grant proposal to continue funding of research on the national economic impact of cooperative business. This, the second, phase of research funded by Rural Development-Cooperative Programs at USDA will develop and implement a longitudinal business survey across all sectors where the cooperative business model is used. Brent Hueth also competed successfully for a USDA NRI grant to compare governance practices in cooperative firms, relative to their investor-oriented counterparts in the agricultural sector.<br /> <br /> Phil Kenkel serves as editor of the Journal of Cooperative which resumed publication in 2007 as an electronic Journal hosted on the NCERA-194 website. The journal published 5 articles in 2007, three of which were authored by NCEAR-194 members. All ten members of the Journals editorial board are NCERA-194 members.<br /> <br /> Other specific examples of collaboration include: <br /> Mike Boland and Dave Baron and The Arthur Capper Cooperative Center (Kansas State University) conducted director development programs in California, Colorado, Illinois, Indiana, Kansas, and Montana<br /> <br /> Mike Boland woreked with Greg McKee at NDSU on economics of making ethanol from sugar beets and we has a draft of a case in review. <br /> <br /> Mike Boland is also working with Dan Sumner at UCDavis on case studies of Sun-Maid Growers (forthcoming) and Sunkist and with Mykel Taylor at Washington State on a case study of Tree Top Growers.<br /> <br /> Jenifer Bond participated in a project funded by CHS, administered through Rocky Mountain Farmers Union. She has completed 5 cooperative case studies and has three more in progress.<br /> <br /> Phil Kenkel completed a Risk Management Agency funded project examining the feasibility of machinery templates. Project output includes a feasibility template available at http://www.agecon.okstate.edu/coops/files/machinery_cooperative_feasibility_template_7-15-2007.xls <br /> and three publications.<br /> <br /> Objective 2. To serve as a forum for industry and government decision makers in management and staff research positions to interact with land grant researchers and extension specialists to share research results and discuss implications for cooperative business organizations, their producer members, farm structure, efficiencies in food production and distribution, the environment and economic well being of rural communities. <br /> <br /> Accomplishments: <br /> Attendance at NCERA-194s annual meeting included 23 individuals, 19 NCERA-194 members and 4 nonmembers. It consisted of a one-day forum, attended by USDA representatives as well as representatives from universities. <br /> Thirteen research papers were presented at the meeting. Topics of the papers presented included cooperative finance, new cooperative formation, characteristics of successful cooperatives and the economic impact of cooperatives. <br /> <br /> Another important objective of NCR-194 is to attract young individuals to cooperative development. Progress toward this objective was achieved during 2006 through the successful pursuit of $2,000 in scholarships to two students to participate in both the NCERA-194 meeting and the Farmers Cooperative Conference. NCERA-194 member Mr. William Nelson, representing the CHS Foundation, was instrumental in making scholarship funds available. The availability of the these scholarship funds further serves as an indication of the successful working relationships between NCERA-194 members working in industry and in academic settings. <br /> <br /> Continuing development of a cooperative textbook for use in college and university courses was supported. Seven NCERA-194 members have completed preliminary drafts of 21 chapters of the textbook. NCERA-194 member Mike Boland was awarded funding from foundations to support a retreat to complete the textbook. <br />

Publications

Barton, D. and M.A. Boland South Dakota Soybean Processors. Prepared for Farmer Cooperatives 2007, St. Paul, MN, November 3, 2007. <br /> <br /> Barton, D. and M.A. Boland FC Stone. Prepared for Farmer Cooperatives 2007, St. Paul, MN, November 3, 2007. <br /> <br /> Barton, D. and M.A. Boland Goldkist. Prepared for Farmer Cooperatives 2007, St. Paul, MN, November 3, 2007. <br /> <br /> Boland, M.A. book review: Truman Torgensen: Straight from the Shoulder Journal of Cooperatives, Vol. 20, 2007 p 64.<br /> <br /> Boyd, S., M.A. Boland, K. Dhuyvetter, and D. Barton. The Persistence of Profitability in Local Farm Supply and Grain Marketing Cooperatives. Journal of Agricultural and Applied Economics 59,1(2007):201-210. <br /> <br /> Boland, M.A., A.M. Bosse, and G.W. Brester. Mountain States Lamb Cooperative. Review of Agricultural Economics, 29,1(2007):157-169. <br /> <br /> Briggeman, B. and P. Kenkel. Farm Credit Employees Perceptions of Loan Business Relative to Different Types of Borrowers selected paper, SAEA 2006 Annual Meeting, Mobile Alabama, Feb 4-7, 2007<br /> <br /> Hardesty SD, Salgia VD. Most West Coast agricultural cooperatives are financially space competitive. California Agriculture, October-November 2007 61(4):1726.<br /> <br /> Hogeland, Julie A., "The Role of Culture and Social Norms in Theories of Institutional Change: The Case of Agricultural Cooperatives," in Alternative Institutional Structures, Nicholas Mercuro and Sandra S. Batie (eds.). Part of the book series, The Economics of Legal Relationships. Routledge, forthcoming, 2008<br /> <br /> Hogeland, J.A. (2007) An interpretation of the competitive yardstick model using critical discourse analysis, Journal of Cooperatives, 20, 34-48. <br /> <br /> Hogeland, J.A. (2006) The economic culture of U.S. agricultural cooperatives, Culture & Agriculture, 28:67-79.<br /> <br /> Kenkel, P. and R. Park. Business Models and Producer-Owned Ventures: Choices, Challenges and Changes,  Agricultural and Applied Economics, Vol. 39, No. 2 July 2007<br /> <br /> Kenkel, P and G. Long. Options for Joint Machinery Ownership OSU Department of Agricutlural Economics AE07041, July 2007<br /> <br /> Kenkel, P and G. Long. Organizing a Machinery Cooperative OSU Department of Agricutlural Economics AE07042, July 2007<br /> <br /> Kenkel, P and G. Long. Feasibility of a Shared Machinery Cooperative OSU Department of Agricutlural Economics AE07042, July 2007<br /> <br /> Kenkel P., R. Holcomb and T. Bowser. Feasbility of a Producer Owned Winter Canola Processing Venture Proceedings, National Value Added Conference, Lexington KY June 4, 2007<br /> <br /> Long G. and P. Kenkel Feasibility Of Machinery Cooperatives In The Southern Plains Region, selected paper, SAEA 2006 Annual Meeting, Mobile Alabama, Feb 4-7, 2007<br /> <br /> Royer, J.S. and Darnell B. Smith. "Patronage Refunds, Producer Expectations, and Optimal Pricing by Agricultural Cooperatives" , Journal of Cooperatives, Vol 20, 2007 pp 1-16. <br />

Impact Statements

1. 1. Education of cooperative boards of directors improved through jointly organized education programs conducted by NCERA members. Various members collaborated to conduct workshops in California, Colorado, Indiana, Kansas, Michigan, Missouri, Montana, Ohio, Oklahoma, Texas, and Wyoming. The programs focused on strategic thinking, finance, governance, and mergers.
2. 2. Research proposals regarding cooperatives were facilitated; members developed a research proposal to USDA Rural Development for a national study of the economic impact of cooperatives
3. 3. Continuing development of a cooperative textbook for use in college and university courses was supported. Seven NCERA-194 members have completed preliminary drafts of 21 chapters of the textbook. NCERA-194 member Mike Boland was awarded funding from foundations to support a retreat to complete the textbook
4. 4. Committee members are reactivating the peer-reviewed journal, Journal of Cooperatives, under the leadership of the 2006 Committee Chair, Phil Kenkel

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