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Type: Journal Article
Journal title: Journal of Agribusiness>Volume 18, Number 3, Fall 2000
Year of publication: 2000
Source:
AgEcon
Collected from:
AGRIS
Subject:
cooperatives
Description:This study investigates agribusiness cooperatives' reliance on patron demand deposit accounts (PDDAs) and regional patronage as sources of capital. Approximately 13% of cooperatives surveyed carry PDDAs, typically fruit cooperatives, of which over one-half have no financial protection against large unexpected withdrawals. Cooperatives with PDDAs must be concerned with potential legal conflicts regarding the handling of these accounts, as evidenced by a U.S. Supreme Court case classifying PDDAs as securities. Supply cooperatives are most likely to show investment in other cooperatives as a high percentage of total assets, which could generate insolvency issues for locals.
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