An Economic Analysis of a Farmer Cooperative Using Linear Programming Models with Accounting Data

Authors

Larry D. Christensen, University of Nebraska-Lincoln

Date of this Version

4-1971

Document Type

Thesis

Citation

Thesis (M.S.)—University of Nebraska—Lincoln, 1971. Department of Agricultural Economics.

Comments

Copyright 1971, the author. Used by permission.

Abstract

Many small farmer cooperatives are presently suffering financial difficulties stemming from an over concentration of cooperatives in an area, high cost of facilities---inadequate financing, and lack of good management.Some of these problems may be alleviated if two or more cooperatives would merge in a given area.However, member support, management difficulties, ethnic considerations, lack of knowledge, and a host of other barriers have resulted in relatively few mergers taking place.The lack of knowledge barrier was the primary reason for this study.

The objectives were as follows:

1. To determine a proper interview form for interviewing farmer cooperative managers, so that budgets for each activity will be complete.

2. To determine which accounting data is needed for a budgetary analysis of a multi-enterprise firm.

3. To evolve methods for analyzing a firm’s accounting data, so that complete budgets for each activity can be derived.

4. To develop a method for adapting the accounting data budgets into a linear programming model.

5. To incorporate into the linear programming model, a method to increase the trade area of the cooperative.

6. To provide the means for future researchers to undertake complete and practical merger feasibility studies.

Advisor:Michael S. Turner