The Impact of Participation in Cooperatives on the Success of Small Farms
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This study identifies and analyzes factors that contribute to the success of small
farms. Particular attention is given to the effect of participation in marketing and
supply cooperatives on the success of small farms. Using modified net farm
income per dollar of assets and operator’s labor and management income as
measures of success, results show participation in marketing and supply cooperatives
is positively correlated with success. Further, analysis findings indicate
farm size, controlling for variable and fixed costs, type of ownership, management
strategies used, working off the farm, and age of the operator are important factors
that influence profitability (modified net farm income per dollar of assets and
operator’s labor and management income) and success.