Theses and Dissertations at Montana State University (MSU)
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Item The costs of cooperation: the effects of section 199 on basis for farm cooperatives in the midwest(Montana State University - Bozeman, College of Agriculture, 2019) Swanson, Andrew Chase; Chairperson, Graduate Committee: Anton BekkermanThe 2004 American Jobs Creation Act created Section 199, a tax provision for producers of domestic goods. During the ensuing decade, Section 199 became especially important for agricultural cooperatives, partly because of a series of favorable Internal Revenue Service private letter rulings for marketing cooperatives. I analyze the impacts of Section 199 on agricultural markets by assessing differential effects on the pricing behavior of grain marketing cooperatives and non-cooperatives in Nebraska and Kansas. I first develop a model for the agricultural cooperatives pricing behavior that incorporates a tax on the qualified patronage received by cooperative patrons. This model produces several testable predictions. First, Section 199 will lower the spot prices offered by cooperatives while increasing the spot prices offered non-cooperatives that compete with cooperatives for agricultural commodities. Second, the widening of prices between cooperatives and non-cooperatives will be mitigated by increased spatial competition. I empirically test the predictions of this model using a difference-in-difference empirical strategy and winter wheat basis data. The results indicate that the series of IRS letter rulings in 2008 widened the basis differential between cooperative and non-cooperative firms by almost 5 cents per bushel on average. Furthermore, these market distorting effects are greater for elevator locations that do not have a competing location within 10 miles of their location. While the benefits of Section 199 have been widely touted by cooperative lobbying groups, the results of this thesis show the importance of also considering the costs of policy interventions directed at specific agricultural firm types.Item Perceptions of agricultural producers towards services offered by farm supply cooperatives in three Montana counties(Montana State University - Bozeman, College of Agriculture, 1991) Thibault, Sandra Lee; Chairperson, Graduate Committee: C. Van ShelhamerThe purpose of this study was to determine the perceptions and attitudes of current agricultural member and non-member producers toward the services offered by their local Montana farm supply cooperatives in three chosen counties and provide necessary information for managers to target producer markets. Data for this study were gathered by mailed questionnaire sent to ten (10) percent of the agricultural producers in each of three (3) counties: Flathead, Gallatin and Pondera. Of the 217 surveys sent, 112 were returned for an approximate response rate of 52%. Data were gathered in four areas: (1) demographics, (2) sales and service (cooperative functions and pricing), (3) advertising methods, and (4) purchasing habits and distribution of income. Analysis of the data revealed that the majority of the respondents were over 50 years of age with no respondents under 30 years of age. There was even distribution by farm size with the exception of 55-99 acre operations which had only a small percent and all in one county. No noticeable differences were noted by farm size, based on gross farm sales, and respondents' perceptions of services offered by the local farm supply cooperative. Non-members were more supportive and loyal to cooperatives than were members in rating cooperative personnel and cooperative functions. Cooperatives handle a majority of fuel and fertilizer sales to producers but much less livestock feed and other equipment even in those areas displaying high volume potential. The data further reveal that cooperatives are educating consumers to new products and services offered by (a) visits to the store, (b) word of mouth, (c) direct newsletters, (d) advertising circulars, and (e) newspaper advertisements. At the same time, cooperatives need to increase direct calls by sales staff, scheduled visits by field representatives, newspaper advertisements, direct newsletters and radio. The data gathered for this study show many of the responses regarding sales and services gathered about the mean, which reveal a neutral response. However, data show that producers are price conscious and shop around for the best deals and that cooperative prices are more important than patron refunds.Item Membership relations of Montana farmer cooperatives(Montana State University - Bozeman, College of Agriculture, 1965) Saini, Hardial SinghItem The feasibility of beef feeding cooperatives in Montana(Montana State University - Bozeman, College of Agriculture, 1961) Tinnermeier, Ronald L.Item Urban consumer attitudes toward farm supply cooperatives(Montana State University - Bozeman, College of Agriculture, 1966) Barth, Glenn Richard