Differential Economics Impacts for Cooperative Business Structures: Am Application to Farmer-Owned Cooperatives in New York State.
Schmit, T.M; Tamarkin, F.C.; Seversorn, R.M.
A comprehensive economic impact assessment using input-output methods is developed to account for localized spending activities and distributions of residual earning to member owners by cooperatives. The framework is applied to agricultural supply, service, marketing, farm credit, and rural electric cooperatives doing business in New York State. Detailed spending patterns from cooperative survey data reveal that agricultural cooperatives in the state have higher levels of localized spending when compared to average industry firms using aggregate industry data and equivalent levels of direct industry output. Accordingly, total economic impacts for these cooperatives; i.e., the direct, indirect, and induced effects, are larger. Overall, agricultural cooperatives contribute 7%, 3%, and 10% more total impact with respect to jobs, labor income, and output in New York State. Limitations to the enumeration of total impact to local economies are discussed and directions for future research that encompass more than current economic impacts are proposed.
This work was supported by the United States Department of Agriculture, National Institute of Food and Agriculture, Smith-Lever 2014-15-268. We are thankful to the Northeast Cooperative Council for their assistance in survey efforts and data collection, along with follow-up interviews with the responding cooperatives. The authors have no financial interest or benefit from the direct application of this research. The views expressed are the authors’ and do not necessarily represent the policies or views of any sponsoring firms or agencies. All errors remain our sole responsibility.
Economic impact; Cooperatives; Spending Patterns; Patronage Refunds; Input Output