Agricultural Economics Department
Date of this Version
2022
Citation
Royer, Jeffrey S. 2022. “Comparative Performance of Cooperative Equity Retirement Plans,” Journal of Cooperatives 36: 1–37.
Abstract
This paper compares the performance of revolving fund, percentage-of-all-equities, and base capital plans, and special plans for redeeming equity held by estates or based on member age. It also examines how the performance of the base capital plan is affected by changes in the base period, relaxing the equity requirements for underinvested members, and a variable cash patronage refund program. The base capital plan performs better than other systematic plans but places financial burdens on young members. Two modifications can mitigate that problem with only a slight diminution in performance. Special plans benefit cooperatives operating revolving fund plans the most.
Included in
Agribusiness Commons, Agricultural Economics Commons, Benefits and Compensation Commons, Finance and Financial Management Commons
Comments
Copyright and all rights therein are retained by author. Readers may make verbatim copies of this document for noncommercial purposes by any means, provided that this copyright notice appears on all such copies.