Losses Relating to Cooperatives

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2016-04-29
Authors
Harl, Neil
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Iowa State University Digital Repository
Abstract

As is becoming increasingly evident, the economic downturn with lower commodity prices is generating losses for farmers and, in some instances, cooperatives and other firms providing inputs for production.1 Cooperatives are particularly vulnerable inasmuch as many are capitalized at levels that make economic stress a more serious problem. Because the rules governing losses with cooperatives are somewhat different from the rules governing other types of firms, this article focuses on the uniquenesses of handling losses from a cooperative.

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