Degree Type
Dissertation
Date of Award
2002
Degree Name
Doctor of Philosophy
Department
Economics
First Advisor
Roger Ginder
Abstract
The objective of this paper is to determine if it is economically feasible to form a large-scale closed dairy cooperative in the upper Midwest. Simulations were performed for both price and biological variables to calculate the cash flows for a large-scale closed dairy cooperative over the 1st 10 years of operation. The cash flows were calculated using a farm level financial model that was developed to incorporate the biologically driven production process into the cash flow model. The distribution of returns for the cooperative members were estimated and reported for different starting equity levels and different production growth paths. In addition, the probability of the cooperative failing was estimated. A logit regression model was used to estimate the impact of key variables on the probability of failure for the closed dairy cooperative. Based on the results of this research, forming a large-scale closed dairy cooperative in the upper Midwest appears to be a feasible approach for adding value to corn produced by farmers in the upper Midwest.
DOI
https://doi.org/10.31274/rtd-180813-12074
Publisher
Digital Repository @ Iowa State University, http://lib.dr.iastate.edu
Copyright Owner
Marty James Dreischmeier
Copyright Date
2002
Language
en
Proquest ID
AAI3051459
File Format
application/pdf
File Size
156 pages
Recommended Citation
Dreischmeier, Marty James, "Expected returns from starting a large scale closed dairy cooperative under price and biological uncertainties " (2002). Retrospective Theses and Dissertations. 368.
https://lib.dr.iastate.edu/rtd/368
