Revolving Fund May Provide Alternative for Nebraska Cooperatives

Authors

Jeffrey S. Royer, University of Nebraska-LincolnFollow
Tyler W. Gilkey, University of Nebraska-LincolnFollow
Darrell R. Mark, University of Nebraska-LincolnFollow

Date of this Version

April 2007

Comments

Published in Cornhusker Economics, 04/18/2007. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.
http://www.agecon.unl.edu/Cornhuskereconomics.html

Abstract

Most Nebraska marketing and farm supply cooperatives use age-of-patron plans for managing the investments their members make in the organizations. Under an age-of-patron plan, equity allocated to an individual member from retained patronage refunds is held in the cooperative until that member reaches a particular age, often 65 years. At that point, all the member’s equity is eligible for redemption.