Returns from establishing closed (defined membership) cooperative owned by grain producers to produce hogs in Iowa are evaluated.
Using computer-simulated production model incorporating biological and price factors and statistical techniques, uncertainty of production
and the market environment are modeled. The returns to each farmer-member are analyzed, and the distributions of value added and total
payments for each operation are ranked using a stochastic dominance criteria. Additionally, the net present value of each cooperative is
computer and these are compared against each other.