Kansas farm cooperative equity levels at historic highs

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

MANHATTAN, Kan. -- With rising incomes, Kansas grain, oilseed and farm supply cooperatives have boosted their total equity levels – or levels of net worth – to historical highs.

Equity generation and composition are important topics for any cooperative, said Brian Briggeman, director of the Arthur Capper Cooperative Center (ACCC) at Kansas State University. Generating equity capital is critical because it can be used to finance growth through capital investments, absorb business losses, and help secure a loan, as well as be used for other business purposes.

Equity represents the members' ownership interest in the total assets of the cooperative. Cooperative equity comes in two forms, allocated and unallocated, Briggeman explained. Allocated equity is the amount assigned, on a proportional basis, to each member.  Unallocated equity is not designated to specific member accounts.

The ACCC dives into this subject in a new fact sheet titled, “Equity Composition of Kansas Grain, Oilseed and Farm Supply Cooperatives,” that is available online at http://www.accc.ksu.edu/.

While equity levels and composition vary from cooperative to cooperative, some general trends have developed throughout the industry, and Kansas is not that different, Briggeman said. The first trend is higher equity levels for co-ops. Since 2003, Kansas co-ops’ total equity, along with total savings or total net income, has risen significantly.

Another trend is the rise in the percentage of total equity designated as unallocated equity or permanent equity capital on Kansas co-op’s balance sheets. One question that often arises is, what is the appropriate amount of unallocated equity within a cooperative? Answering this question is difficult because there is no one correct answer that fits all cooperatives, Briggeman said. However, the new fact sheet provides discussion points for a cooperative’s board of directors and management team to consider on this topic.


Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


X-TENDED REACH GRAIN CARTS

YOUR BEST HARVEST IS NOW WITHIN REACH J&M introduces their patented line of X-tended Reach grain carts, featuring a frontfolding single ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form