University of Wisconsin Center for Cooperatives
Journal of Agricultural Cooperation

Title An Evaluation of Equity Redemption Alternatives in Centralized Cooperatives
Author(s) David G. Barton and Royce L. Schmidt
Series Volume 3
Issue Date 1988
Abstract Evaluations of five basic redemption alternatives are made for the distinct patron-cooperative economic relationship found in both regional and local centralized cooperatives. The five alternatives are the estate settlement, age-of-patron, revolving fund, percentage pool, and base capital plans. An empirically estimated economic like cycle is used to determine the pattern of patronage and investment by patrons. Redemptions are determined for several programs, each using estate settlement alone or in combination with another plan. Performance is measured using three criteria: flexibility, proportionality, and cash flow. Results vary significantly among alternatives.

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