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Measuring X-Efficiency and Scale Efficiency for a Sample of Agricultural Cooperatives

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  • Ariyaratne, Chatura B.
  • Featherstone, Allen M.
  • Langemeier, Michael R.
  • Barton, David G.

Abstract

This paper examines the efficiency of a sample of Great Plains grain marketing and farm supply cooperatives during 1988 to 1992. In general, larger cooperatives were more X-efficient and scale efficient. Labor tended to be under-utilized and capital over-utilized. Petroleum product sales and fertilizer sales were negatively related to overall efficiency. Sales of goods other than grain, fertilizer, agricultural chemicals, petroleum products, and feed was positively related to overall efficiency. Overall efficiency was significantly correlated with the rate of return to assets.

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  • Ariyaratne, Chatura B. & Featherstone, Allen M. & Langemeier, Michael R. & Barton, David G., 2000. "Measuring X-Efficiency and Scale Efficiency for a Sample of Agricultural Cooperatives," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 198-207, October.
    • Handle: RePEc:cup:agrerw:v:29:y:2000:i:02:p:198-207_00
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    1. Ariyaratne, Chatura B. & Featherstone, Allen M. & Langemeier, Michael R. & Barton, David G., 1997. "An Analysis of Efficiency of Midwestern Agricultural Cooperatives," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35763, Western Agricultural Economics Association.
    2. Akridge, Jay T. & Hertel, Thomas W., 1992. "Cooperative and Investor-Oriented Firm Efficiency: A Multiproduct Analysis," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 7, pages 1-14.
    3. Thraen, Cameron S. & Hahn, David E. & Roof, James B., 1987. "Processing Costs, Labor Efficiency, and Economies of Size in Cooperatively Owned Fluid Milk Plants," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 2, pages 1-17.
    4. Ted C. Schroeder, 1992. "Economies of Scale and Scope for Agricultural Supply and Marketing Cooperatives," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(1), pages 93-103.
    5. Joseph W. Meador & Harley E. Ryan Jr., 1997. "Product Focus versus Diversification: Estimates of X-Efficiency for the US Life Insurance Industry," Center for Financial Institutions Working Papers 97-16, Wharton School Center for Financial Institutions, University of Pennsylvania.
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    3. Jasper Grashuis, 2019. "Spatial Competition in the Iowa Corn Market: Informing the Pricing Behavior of Corporate and Cooperative Grain Merchants," Sustainability, MDPI, vol. 11(4), pages 1-13, February.
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    5. Pokharel, Krisha Prasad & Featherstone, Allen M. & Archer, David W., 2019. "Estimating Economic Efficiency Under Risk For Agricultural Cooperatives," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 7(2), April.
    6. Pokharel, Krishna P & Featherstone, Allen M, 2016. "A Nonparametric Approach to Estimate Multiproduct and Product-specific Scale and Scope Economies for Agricultural Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236182, Agricultural and Applied Economics Association.
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    12. Barton, David G., 2004. "A Comparison of Traditional and Newly Emerging Forms of Cooperative Capitalization," 2004 Annual Meeting, November 2-3 31794, NCERA-194 Research on Cooperatives.
    13. Hailu, Getu & Goddard, Ellen W. & Jeffrey, Scott R., 2005. "Measuring Efficiency in Fruit and Vegetable Marketing Co-operatives with Heterogeneous Technologies in Canada," 2005 Annual meeting, July 24-27, Providence, RI 19507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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