United States

Department of

Agriculture

Rural Business–

Cooperative

Service

RBS Research

Report 199

Financial Profile of the

100 Largest Agricultural

Cooperatives, 2001
Preface Cooperative board rooms were very busy places in 2001. While mergers and acquisitions dominated the scene in the 1990s, joint ventures and limited liability companies

were the focus of activity among the nation’s largest cooperatives at the start of the

new millennium. 

Several of the larger cooperatives merged some of their operations into new businesses. It had a negative impact on their sales (now counted under the new business entity). Other cooperatives, striving to provide additional high-return marketing options for

members’ products, formed ventures with non-cooperatives to operate value-added

processing facilities. Any net margins generated by these ventures were added to the

cooperative’s bottom line as non-operating revenue.

Total revenue for the Top 100 cooperatives climbed 3.8 percent, to $74.2 billion in

2001, while net margins increased nearly 10 percent, to more than $502 million. Still,

most cooperatives found 2001 a difficult year, with 2002 not showing much of an

improvement. Indeed, two of the nation’s largest cooperatives (Farmland and Agway)

filed to reorganize under Chapter 11 bankruptcy in 2002, and several other major ones

are facing serious financial stress.

However, most cooperatives should come out of these trying times stronger. To compete, cooperatives will need to rely less on debt and more on member equity. A

stronger equity position provides a cushion when the economy dictates a prolonged

down cycle, as we currently are experiencing.

Cooperatives also need to determine their long-range goals and try to focus on their

individual strengths. There are many ways a cooperative can get distracted from its

mission, especially during these hard times. Everyone is looking for ways to bring in

extra revenue. Cooperatives should resist the urge to be all things to all members and

focus on areas where they have a greater competitive advantage.

August 2003

i
Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i

Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iv

Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Diversified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Fruit & Vegetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Farm Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Grain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Poultry & Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Rice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Diversified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Fruit & Vegetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Farm Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Grain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Poultry & Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Rice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Performance measurements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Diversified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

ii
Fruit & Vegetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Farm Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Grain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Poultry & Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Rice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

iii
Highlights The combined total revenue of the largest 100 agricultural cooperatives jumped from

$71.5 billion in 2000 to $74.2 billion in 2001. The 4-percent increase is due mostly to

higher revenues for dairy cooperatives. Total revenues for the last 2 years were as follows:

____________________________

Year Total Operating Revenue

Billion dollars

2000 71.5

2001 74.2

____________________________

Total revenue was not the only area showing promise; gross margins improved 3

percent, to $6.6 billion in 2001. The average gross margin as a percent of total operating revenue is illustrated below:

____________________________

Year Gross Profit Margins

Percent

2000 14.9

2001 15.2

____________________________

While sales and gross margins were up by more than 3 percent, net operating margins

nearly doubled that, increasing by more than 6 percent, to $957 million in 2001. A

lower growth in operating expenses in relation to revenue supported higher net operating margins.

____________________________

Year Net Operating Margins

Million dollars

2000 899.4

2001 957.1

____________________________

With higher operating margins, total net margins were up 10 percent, to $502.5

million in 2001. Higher income from other non-operating sources supported the bottom

line. Net margins for the last 2 years are shown below:

____________________________

Year Net Margins

Million dollars

2000 457.1

2001 502.5

____________________________

iv
Combined assets for the 100 largest agricultural cooperatives were valued at

$29.9 billion, unchanged from 2000. However, the change in various categories fluctuated.

____________________________

Year Total Assets

Billion dollars

2000 29.9

2001 29.9

____________________________

Total liabilities also remained fairly steady in 2001. Short-term debt was down 11

percent while long-term debt increased by 9 percent.

____________________________

Year Short-term Long-term

Debt Debt

Billion dollars

2000 3.8 6.5

2001 3.3 7.1

____________________________

Member equity also remained unchanged. Unallocated equity fell by 5.6 percent,

to end 2001 at $1.5 billion while member equity was up 1 percent. Sources of member

equity are:

____________________________

Year 2000 2001

Billion dollars

Preferred Stock 1.8 1.8

Common Stock 0.7 0.7

Certificates and

Credit 6.0 6.1

Unallocated 1.6 1.5

Total 10.1 10.1

____________________________

The liquidity for the largest 100 agricultural cooperatives also remained fairly

steady. This is illustrated in the current and quick ratios.

v
____________________________

Year Current Quick

Ratio

2000 1.37 0.75

2001 1.38 0.75

____________________________

Cooperatives increased their leverage slightly in 2001. This was mostly due to

larger changes in liabilities. The slight increase in leverage and unchanged liquidity

would indicate that operations are continually being financed by debt rather than by the

operations themselves.

____________________________

Year Debt-to-Asset Long-term

Debt-to-Equity

Percent Ratio

2000 61 .59

2001 62 .62

____________________________

Some activity ratios held steady with the increase in revenue while others

increased along with higher revenues. Lower fixed asset purchases boosted the fixed

asset turnover.

____________________________

Year Local Asset Fixed Asset

Turnover Turnover

Percent

2000 2.9 14.5

2001 2.9 15.3

____________________________
Cooperative board rooms were very busy places

in 2001. While mergers and acquisitions dominated the

scene in the 1990s, joint ventures and limited liability

companies were the focus of activity among the

nation’s largest cooperatives at the start of the new

millennium.

Several of the larger cooperatives merged some

of their operations into new businesses. It had a negative impact on their sales (now counted under the new

business entity). Other cooperatives, striving to provide additional high-return marketing options for

members’ products, formed ventures with non-cooperatives to operate value-added processing facilities.

Any net margins generated by these ventures were

added to the cooperative’s bottom line as non-operating revenue.

Total revenue for the Top 100 cooperatives

climbed 3.8 percent, to $74.2 billion in 2001, while net

margins increased nearly 10 percent, to more than $502

million. Still, most cooperatives found 2001 a difficult

year, with 2002 not showing much of an improvement.

Indeed, two of the nation’s largest cooperatives

(Farmland and Agway) filed to reorganize under

Chapter 11 bankruptcy in 2002, and several other

major ones are facing serious financial stress.

However, most cooperatives should come out of

these trying times stronger. To compete, cooperatives

will need to rely less on debt and more on member

equity. A stronger equity position provides a cushion

when the economy dictates a prolonged down cycle, as

we currently are experiencing.

Cooperatives also need to determine their longrange goals and try to focus on their individual

strengths. There are many ways a cooperative can get

distracted from its mission, especially during these

hard times. Everyone is looking for ways to bring in

extra revenue. Cooperatives should resist the urge to

be all things to all members and focus on areas where

they have a greater competitive advantage.

Operations

Total revenue for the Top 100 cooperatives

jumped $2.7 billion, to $74.2 billion, in 2001 (table 1).

Dairy cooperatives, with an increase of $2.8 billion in

revenue, accounted for most of the advances. Prices

earned and volume handled both increased for dairy

cooperatives in 2001. Poultry & livestock, fruit & vegetable and sugar cooperatives also saw revenue

increases in 2001. Revenue from farm supply sales for

Top 100 cooperatives declined 2.1 percent, to $18.4 million. But cooperatives that sell only farm supplies

(excluding diversified supply/grain cooperatives) saw

revenue increase $621 million. Higher demand pushed

up prices for energy products, which prompted much

of the increase in farm supply sales.

Gross margins were up for the Top 100 cooperatives, however, not all cooperatives faired well in this

area. Farm supply cooperatives ended 2001 with lower

gross margins, mostly due to higher cost of raw materials. Not all could pass along this price increase to

their members.

Operating expenses for the Top 100 were up 2.5

percent, to $5.6 billion, in 2001. Farm supply, grain,

poultry & livestock, rice and sugar cooperatives all

posted higher operating expenses, which pushed up

operating expenses for all of the largest cooperatives.

In these sectors, all but poultry & livestock cooperatives reported higher labor expenses. Cotton, diversified, dairy and fruit & vegetable cooperatives reported lower labor expenses, which helped keep their total

operating expenses below 2000 levels.

1

Financial Profile of Largest 100

Agricultural Cooperatives

David Chesnick

Economist

USDA/RBS Cooperative Services
2

Table 1—Consolidated Statement of Operations, 2000-01, Top 100 Cooperatives

Percent

2001 2000 Difference Change

$ thousand

Revenues

Marketing 54,991,765 51,893,235 3,098,530 6.0

Farm Supply 18,418,734 18,818,592 (399,858) -2.1

_________________________________________________________________________

Total Sales 73,410,499 70,711,827 2,698,672 3.8

Other Operating Revenues 773,525 796,729 (23,204) -2.9

_________________________________________________________________________

Total Operating Revenues 74,184,024 71,508,556 2,675,468 3.7

Cost of Goods Sold 67,613,430 65,132,847 2,480,583 3.8

_________________________________________________________________________

Gross Margin 6,570,594 6,375,709 194,885 3.1

Expenses

Operating Expenses 5,613,542 5,476,282 137,260 2.5

_________________________________________________________________________

Net Operating Margins 957,052 899,427 57,625 6.4

Other Revenues (Expenses)

Interest Expense (810,127) (754,924) (55,203) 7.3

Interest Revenue 94,232 94,276 (44) 0.0

Other Income 323,153 260,288 62,865 24.2

Other Expenses (92,227) (114,055) 21,828 -19.1

Patronage Revenue 43,457 34,855 8,602 24.7

_________________________________________________________________________

Net Margins from Operations 515,540 419,867 95,673 22.8

Non-Operating Rev. (Exp.) (13,084) 37,184 (50,268) -135.2

_________________________________________________________________________

Net Margins 502,456 457,051 45,405 9.9

Distribution of Net Margins

Cash Patronage Dividends 241,038 220,146 20,892 9.5

Retain Patronage Dividends 368,529 210,548 157,981 75.0

Nonqualified Noncash Patronage 16,112 19,021 (2,909) -15.3

Dividends 39,029 47,279 (8,250) -17.4

Unallocated Equity (105,846) (24,643) (81,203) 329.5

Income Tax (56,406) (15,300) (41,106) 268.7

_________________________________________________________________________

Total Distribution 502,456 457,051 45,405 9.9
Net operating margins were up 6.4 percent for

the Top 100 in 2001. However, not all sectors performed well. Most farm supply and marketing cooperatives had lower margins, and a few were hit hard by a

combination of lower gross margins and higher

expenses. This caused substantial losses from operations in 2001. Diversified (supply/grain), fruit & vegetable, grain and poultry & livestock cooperatives had

substantial increases in their net operating margins.

These increases pulled up the net operating margins

by nearly 10 percent for the overall Top 100. Each sector had a unique situation that contributed to

improved operations for all cooperatives.

Interest revenue and expense, income and losses

from subsidiaries, rent, patronage refunds and other

items not directly related to operations are included in

"other revenue and expense." Revenues and expenses

not directly related to operations resulted in $442 million in expenses, $38 million less than in 2000. Most of

this decline in this account is due to other income from

dairy and poultry & livestock cooperatives. Income

from subsidiaries for these commodity groups, as well

as one-time policy changes, helped push up other

income by $63 million. Other income not directly related to operations reached $323 million in 2001. Interest

revenue was flat compared with 2000 while revenues

from patronage refunds were up about $9 million.

For the largest cooperatives, interest expense was

by far the biggest expense not directly tied to operations. Nearly all cooperative sectors had higher interest expenses in 2001, which jumped $55 million to a

record high of $810 million. Diversified cooperatives

accounted for 40 percent of the total increase in interest

expense. Only grain and sugar cooperatives lowered

their interest expense.

Net margins from operations were up $96 million, to finish 2001 at $516 million. Leading this

increase were poultry & livestock cooperatives. Dairy,

diversified, fruit & livestock and grain cooperatives

also increased their net margins from operations.

On the other hand, cotton, farm supply, rice and

sugar cooperatives all had lower net operating margins. Farm supply and sugar cooperatives ended the

year with larger net losses than in 2000.

Non-operating revenue and expenses include

extraordinary gains/losses, discontinued operations or

accounting changes. In 2001, this equaled a net

expense of $13 million for the Top 100, with diversified

cooperatives accounting for the majority of the

expense. Farm supply and dairy cooperatives were the

only sectors that had non-operating revenue.

The bottom line: the largest cooperatives ended

2001 with net margins of $502 million, up $45 million

from 2000. The leading sector was dairy. While net

margins were up for the largest cooperatives, so too

were net losses. Fifteen of the Top 100 suffered net

losses in 2001, down from 17 in 2000. However, total

losses amounted to $350 million, up from $254 million

in 2000.

Cash payments to members were up nearly 10

percent in 2001. For those cooperatives that had net

margins to distribute, 28 percent was allocated cash

payments. This compares with 31 percent in 2000.

Seventy-five percent of net margins were allocated

back to members in cash and qualified allocated equity, compared with 70 percent in 2000.

With more margins being allocated back to members in 2001, non-qualified non-cash patronage refunds

and dividends were down 15 percent, to $16 million.

Dividends paid to share holders fell 17 percent, to $39

million.

The 15 cooperatives that suffered a net loss in

2001 deducted some of that from deferred patronage,

but most took it from the unallocated account. Losses

also generate a net tax benefit, which was again

greater than the total amount of taxes paid in 2001 for

all 100 cooperatives. Tax benefits in 2001 reached $57

million.

Cotton

While the volume of cotton produced in the

United States was up, lower per-bale prices pushed

overall values down (appendix table 1). This, in turn,

hurt revenues for the largest cotton cooperatives.

According to USDA’s National Agricultural Statistics

Service, total volume for all cotton produced in the

United States was up 17 percent from 2000. However,

prices were down 32 percent, which suppressed total

value of cotton produced by 21 percent. The largest

cotton cooperatives did not fare as poorly, with marketing revenues declining only14 percent in 2001.

Lower prices received by the cooperatives also

pushed down payments to members. Whether by

choice or design, cotton cooperatives did not pass the

full decline in prices along to their members.

Several of the cotton cooperatives were able to

cut operating expenses, which dropped 3 percent to

$87 million. Much of this decline can be attributed to

lower labor costs. Those cooperatives reporting labor

expenses indicated a 22 percent savings in wages and

benefits. Despite lower operating expenses, declining

3
revenues pushed net operating margins down 62 percent to $25 million. This was the lowest operating margin cotton cooperatives experienced since 1993.

What helped cotton cooperatives in 2001 were

increases in other operating revenues, which reached

$14 million. Higher operating loans pushed interest

expense up to $25 million. Cotton cooperatives usually

average less than $2 million in non-operating income.

If a $6 million loss from discontinued operations is

deducted, the cotton cooperatives finished 2001 with

net margins of $9 million to distribute.

Despite the lower margins, cotton cooperatives

paid a substantial amount of cash back to members in

the form of cash patronage and dividends. These cash

payments reached $30 million. The $21 million difference between net margins and cash distributed was

deducted from their retained patronage account and

unallocated equity.

Dairy

Dairy cooperatives enjoyed a good year in 2001.

With an increase of $2.8 billion in revenue, they

accounted for most of the increase for all the largest

cooperatives (appendix table 2). Prices earned and volume handled both increased for dairy cooperatives in

2001.

Not only did the cooperatives enjoy higher revenues, but they also passed these revenues on to the

producers. The dairy cooperatives paid a higher cost of

goods sold, which was reflected in higher patronage.

These cooperatives paid 95 percent of their revenues in

cost of goods sold in 2001 compared with 94 percent in

2000. Gross margins remained steady from 2000 to

2001 at $968 million.

Operating expenses were down $2 million to $791

million, attributed to lower labor costs. Reported

wages, salaries and benefits were down nearly $2 million in 2001. Interest expense was up 7 percent to $57

million. This matches the increase in overall debt.

Interest revenue was down $1 million to $11 million.

Other income, net of expense, was up 77 percent or $93

million from 2000. Much of this increase can be attributed to joint ventures in dairy processing. Dairy cooperatives added 19 percent to their bottom line, ending

2001 with net margins of $241 million.

Dairy cooperatives not only improved their net

margins from 2000, but also allocated more to their

members. Cash payments of $102 million were the

largest returned to members since 1993. Not only were

cash payments one of the largest, but allocated patronage also reached record levels at $185 million, or a186-

percent increase from 2000. On the other hand, unallocated equity was drawn down $75 million to pay for

taxes and the higher cash and non-cash allocations.

Diversified

Diversified supply/grain cooperatives suffered

the largest decline in operating revenues, with a drop

of $942 million from 2000 (appendix table 3).

Diversified cooperatives ended the year with total

operating revenues of $27 billion. Part of this can be

attributed to large cooperatives moving some operations to a joint venture with other cooperatives and

investor-owned firms (IOFs). In a case such as this,

sales (for this survey) are no longer attributed to the

cooperative, although a share of net margins from the

joint venture is allocated back to the cooperative.

Cost of goods sold also fell by 4 percent to $26

billion. This was mostly caused by the loss of farm

supply sales. However, their marketing revenues were

strong enough to provide a 4-percent increase in their

gross margins, which finished the year at $1.7 billion.

Expenses were held in check in 2001 at $1.4 billion. This allowed a 24-percent jump in net operating

margins. Diversified cooperatives ended 2001 with net

operating margins of $304 million.

A large increase in long-term debt pushed up

interest expense 14 percent to $309 million. Interest

revenue was up 11 percent but other income was down

while other expenses had a huge decline. The net effect

of these other revenues/expenses was an increase in

expenses of $23 million.

Net margins from operations were up 45 percent

or $113 million from 2000. Higher gross margins were

able to absorb the higher expenses from operations.

However, there was a net loss from outside sources in

2001. The majority were losses from joint ventures.

These non-operational losses pushed net margins

down 33 percent to $88 million, the lowest level since

1993.

Despite lower net margins, the diversified cooperatives allocated a substantial amount of cash patronage back to members. Cash patronage dividends

totaled $68 million in 2001, up 4 percent from 2000.

Retained patronage was down 71 percent to $37 million while $30 million was added to the unallocated

equity account. What helped the diversified cooperatives with allocation was a net $54 million tax benefit

generated from net losses and deferred losses.

Fruit & vegetable

Production of most fruits and vegetables was

down in 2001 from 2000. On the other hand, nut pro4
duction was higher. The value of fruit and vegetables

produced was mixed. However, these cooperatives

had $6.7 billion in total operating revenues in 2001, up

3 percent from 2000 (appendix table 4).

Cost of goods sold also jumped 3 percent to $5.0

billion. This left gross margins up 4 percent at $1.7 billion. With operating expenses unchanged, net operating margins jumped 37 percent to end 2001 with $266

million, the highest amount since 1993.

An interesting note in 2001, interest expense

increased 5 percent while overall debt fell 11 percent.

However, the drop in total debt is attributed almost

exclusively to fewer short-term loans. The sum of

other income and expenses was down. Non-operating

expenses were also down. An accounting change

caused a substantial write-off in 2000, which was not

present in 2001. Overall, the total net margins for fruit

& vegetable cooperatives jumped a whopping 252 percent in 2001 to $106 million.

Fruit & vegetable cooperatives allocated little of

their net margins back to their members in 2001,

instead adding most to a deferred equity account to be

allocated at a later date. Members also received less

cash payments combined in the form of cash patronage and dividends.

Farm supply

In contrast to general farm supply sales for the

top 100, those cooperatives selling predominately farm

supplies had a 10-percent increase in sales, resulting in

an overall 9-percent increase in total operating revenues of $7.6 billion (appendix table 5). Despite higher

revenues, the cost of production supplies rose faster,

resulting in higher cost of goods sold. Gross margins

fell 6 percent to $741 million.

Not only did the cost of inputs rise, but operating

expenses jumped 8 percent to $770 million in 2001.

Part of this increase can be attributed to higher labor

costs, which jumped 9 percent. The higher costs and

expenses eroded any gain made by higher revenues,

producing operating losses of $29 million.

Interest expense was up 6 percent to $108 million.

Other income and patronage revenue were up 25 percent to $37 million, while other expenses were up 10

percent to $22 million. Net margins from operations

dropped $98 million in 2001, ending the year with a

$100 million loss. Non-operating revenues help soften

the loss by $18 million. They were accounting changes

that took effect in 2001. The result was net margins

falling from $400,000 to a net loss of $82 million in

2001.

While these losses sound like a lot, they were

caused by a relatively few cooperatives. If the two

cooperatives with net losses are dropped, the farm

supply cooperatives as a whole would end 2001 with

net margins of $60 million. Therefore, we see an

increase in the distribution of cash patronage as well

as retained patronage.

Cash patronage was up 19 percent to $417 million. Retained patronage was nearly doubled to $34

million. The unallocated equity account absorbed the

net losses from operations. Unallocated equity fell $54

million, which totaled a $79 million deduction. These

losses also generated tax benefits of $59 million.

Grain

Most Top 100 grain cooperatives enjoyed higher

revenue in 2001, due mostly to higher commodity

prices (appendix table 6). Crop volume remained

steady. However, a few cooperatives had substantial

declines in grain sales, and their losses caused revenue

for the overall grain sector to remain relatively flat at

$5.1 billion in 2001.

Large grain cooperatives cut their cost of goods

sold by 1 percent. Stagnant sales along with lower cost

of goods sold implies grain cooperatives were paying

their members a smaller percentage of their sales to

cover higher operating expenses. In fact, gross margins

were up 16 percent to $522 million.

Operating expenses were up 8 percent to $412

million. Reported labor costs jumped 19 percent,

which would account for a majority of the higher operating expenses. However, the increase in gross margins

absorbed the higher operating expenses, resulting in a

66-percent jump in net operating margins which ended

2001 at $111 million.

Interest expenses were down despite higher

short-term debt levels. Interest expense fell 18 percent

to $36 million. The sum of other income and expenses

was also down 28 percent, which negated the savings

from lower interest expense. However, overall net

margins from operations were up 54 percent to $109

million from 2000.

Nearly three-quarters of the net margins from

operations were retained by the cooperatives either

through retained patronage or unallocated equity.

Cash payments to members were up only 4 percent to

$19 million.

Poultry & livestock

Total revenues for poultry & livestock cooperatives were up 15 percent to $2.5 billion in 2001 (appendix table 7) mostly due to acquisitions from a livestock

5
cooperative. Cost of goods sold increased by 13 percent to $2.4 billion. As a percent of total sales, cost of

goods sold fell from 72 percent to 69 percent. This

implies that they were paying their members a smaller

percentage of their sales to cover higher operating

expenses and to recover net losses from 2000. Gross

margins were up 85 percent to $146 million.

Operating expenses jumped 21 percent and

ended 2001 at $118 million. Despite higher operating

expenses, reported labor costs fell 1 percent.

Net operating margins were up $47 million. In

2000 poultry & livestock cooperatives ended the year

with net losses of $19 million. By 2001, they turned the

operations around to post net operating margins of $28

million.

Interest expense was up 11 percent to $46 million.

However, the biggest change in the other

revenue/expense category was in other income. This

reached $44 million in income in 2001 compared with a

net expense of $2 million in 2000. Net margins for 2001

netted $38 million for poultry & livestock cooperatives.

Most net margins were retained in the unallocated equity account, which replenished the loss that was

deducted from there in the prior year.

Rice

Rice production levels were up but the price

received fell substantially, causing revenues to fall 3

percent for rice cooperatives (appendix table 8).

Similar to a few other commodity groups, rice cooperatives paid out less as a percentage of sales to their

members in terms of cost of goods sold. Cost of goods

sold represented 69 percent of total sales in 2001 compared with 72 percent in 2000. Therefore, despite

declining sales, gross margins were boosted 6 percent

to $322 million in 2001.

Higher gross margins were not able to cover the

additional operating expenses for rice cooperatives.

Operating expenses jumped 8 percent to $307 million

due partly to higher labor costs. Reported labor

expenses increased 3 percent in 2001. This jump in

operating expenses left net operating margins down 17

percent at $15 million.

Despite lower debt, interest expense increased $1

million in 2001. Rice cooperatives, for instance, paid $4

million. Higher interest caused a decline in net margins of 42 percent to $8 million in 2001.

Despite lower net margins, rice cooperatives paid

out 9 percent more in cash patronage. Eighty-nine percent of net margins were paid out in cash versus 48

percent in 2000. With higher cash payments, there was

less unallocated equity distributed. Unallocated equity

was down 85 percent with less than $1 million distributed to that account. There was a $1 million tax credit.

Sugar

Total revenues for sugar cooperatives were up 7

percent to $1.7 billion (appendix table 9). Despite

lower yields and prices for most sugar cooperatives,

one increased its sugar production 10 percent and

pulled up revenues for all the sugar cooperatives in

the top 100. Cost of goods sold also increased by 8 percent to $1.3 billion. A few of the sugar cooperatives

returned more of their revenues to members in the

form of cost of goods sold. So it pushed down gross

margins by 1 percent to $404 million.

Unfortunately, higher expenses also took a bite

out of net operating margins. Operating expenses

increased 5 percent, partly due to higher labor costs.

Reported labor increased 1 percent. These higher costs

pushed down net operating margins 26 percent to $61

million.

Declining debt levels lowered interest expense 8

percent to $61 million. Other expenses were down 24

percent to $20 million. These other expenses were loss

allocations from subsidiaries. Net losses for the largest

sugar cooperatives were up nearly 200 percent to $15

million.

The losses from a few of the cooperatives were

deducted from the unallocated equity account. Those

cooperatives, with net margins at the end of 2001, allocated $20 million to their members in cash and

retained patronage, the highest amount since before

1993.

Financial position

Assets for Top 100 cooperatives remained steady,

at $30 billion, in 2001 (table 2). However, the makeup

of those assets has changed. Current assets fell by $363

million, due to declining accounts receivable and

inventories. Most occurred in the diversified and farm

supply sectors. Cash balances for the largest cooperatives were up 25 percent, mainly due to dairy and

diversified cooperatives.

Total investment reached $4.3 billion, up 6 percent from 2000. Most of the $244 million increase was

attributed to non-cooperative investment, which

increased $199 million. Most of the increase in these

investments was concentrated in joint ventures and

other partnership arrangements between cooperatives

and non-cooperative businesses. However, other

investments declined, which kept the non-cooperative

investment below the $200 million mark. Other invest6
7

Table 2—Consolidated Balance Sheet, 2000-01, Top 100 Cooperatives

Percent

2001 2000 Difference Change

$ thousand

Assets

Cash 880,360 704,462 175,898 25.0

Accounts Receivable 5,778,956 6,106,753 (327,797) -5.4

Inventory 5,865,377 6,228,431 (363,054) -5.8

Other Current Assets 1,379,382 1,227,134 152,248 12.4

______________________________________________________________________

Total Current Assets 13,904,075 14,266,780 (362,705) -2.5

Investment

Bank of Cooperatives 346,715 351,921 (5,206) -1.5

Other Cooperatives 1,822,865 1,771,951 50,914 2.9

Other Investments 2,082,937 1,884,236 198,701 10.5

______________________________________________________________________

Total Investments 4,252,517 4,008,108 244,409 6.1

Net Property Plant & Equipment 8,700,579 8,770,000 (69,421) -0.8

Other Assets 3,058,603 2,808,338 250,265 8.9

______________________________________________________________________

Total Assets 29,915,774 29,853,226 62,548 0.2

Liabilities

Current Liabilities

Total Short-Term Debt 3,341,825 3,775,334 (433,509) -11.5

Accounts Payable 3,585,340 3,574,155 11,185 0.3

Member Payables 551,684 487,388 64,296 13.2

Patron and Pool Liabilities 1,434,194 1,470,407 (36,213) -2.5

Other Current Liabilities 1,755,716 1,984,672 (228,956) -11.5

______________________________________________________________________

Total Current Liabilities 10,668,759 11,291,956 (623,197) -5.5

Long-Term Debt

Less Current Portion 7,083,163 6,490,032 593,131 9.1

Other Liabilities and Deferred

Credits 1,137,885 1,054,019 83,866 8.0

______________________________________________________________________

Total Noncurrent Liabilities 8,221,048 7,544,051 676,997 9.0

______________________________________________________________________

Total Liabilities 18,889,807 18,836,007 53,800 0.3

Minority Interest 899,995 891,504 8,491 1.0

Member Equity

Preferred Stock 1,794,562 1,790,651 3,911 0.2

Common Stock 733,063 731,369 1,694 0.2

Equity Certificates and Credits 6,050,674 5,964,779 85,895 1.4

Unallocated Capital 1,547,673 1,638,916 (91,243) -5.6

______________________________________________________________________

Total Equity 10,125,972 10,125,715 257 0.0

______________________________________________________________________

Total Liabilities and Equity 29,915,774 29,853,226 62,548 0.2
ments include notes receivable, property held for sale,

marketable securities, and leases receivable. Dairy and

diversified cooperatives had the largest increase in

non-cooperative investment, at $256 million.

Cooperative investment, excluding investment in

CoBank, increased 3 percent. Most of this increase was

concentrated in the diversified and farm supply cooperatives, which accounted for 87 percent. CoBank

investment declined by $5 million.

Net fixed assets fell 1 percent in 2001. With the

exception of dairy and diversified cooperatives, all

other sectors had less fixed assets. This indicates sales

of fixed assets and depreciation were greater than new

purchases.

As was the case with assets, total liabilities

remained relatively unchanged in 2001, yet their makeup changed substantially. Current liabilities fell 6 percent, due to reduced short-term debt along with other

accrued payables.

Short-term debt was down 12 percent, to $3.3 billion. Leading the decline were diversified, fruit & vegetable, poultry & livestock and sugar cooperatives.

These sectors used $903 million less short-term debt in

2001. Conversely, cotton, farm supply and grain cooperatives required $463 million in additional operating

loans than in 2000. Most of this funding came from

CoBank loans.

Account and member payables and pooled liabilities owed to member patrons increased 1 percent. This

is interesting, given that inventory levels fell 6 percent.

Usually, inventory levels reflect payments for those

products. For example, as expected, farm supply cooperatives had lower accounts payable with lower inventory levels. On the other hand, cotton and grain cooperatives had higher levels of inventories but lower

member payables. This would indicate cooperatives

might be using operating loans to pay for unsold

members’ products. In fact, short-term debt was higher for both of these sectors.

Dairy cooperatives had a 16-percent increase in

member payables due to a $270 million jump in member and pool liabilities. It appears likely this would be

the payment members will receive for the successful

year dairy cooperatives had in 2001.

Long-term debt, less amounts currently due,

increased $593 million. However, most of this increase

was concentrated within the diversified cooperative

sector. Large, diversified cooperatives increased their

use of commercial banks, as well as issuing their own

notes.

The value of Top 100 agricultural cooperatives’

minority interest in joint ventures was up 1 percent, to

$900 million in 2001. Dairy cooperatives were the driving force due to some new joint-venture processing

facilities. Most of the other sectors ended up with

lower minority interest.

The amount of member equity for the largest 100

cooperatives ended 2001 virtually unchanged.

However, there was some movement between unallocated and allocated equity. There were also substantial

changes within each sector. Farm supply cooperatives,

for instance, used unallocated equity to absorb some of

the net losses during 2001. Conversely, diversified,

grain and poultry & livestock cooperatives replenished

their unallocated equity accounts while revolving

member equity. This shifted their equity structure from

allocated funding to unallocated funding. Dairy cooperatives provided the impetus for higher allocated

equities among the overall Top 100.

Cotton

Current assets for cotton cooperatives jumped 50

percent to $585 million in 2001 (appendix table 10) due

to higher accounts receivable and other current assets

along with inventory. Inventory jumped 37 percent to

$271 million. Accounts receivable jumped $29 million

to $157 million while other receivables hit a whopping

304 percent to $153 million. Cash, on the other hand,

fell 86 percent to $4 million.

Total investments fell 2 percent to $54 million.

However, investments in other cooperatives were up 7

percent. Higher loans from cooperative banks caused

equity investment in them to increase 5 percent to $23

million. Other investments--short-term investments

and assets held for sale and investments in non-cooperative businesses--were down 9 percent to $29 million.

Net plant property and equipment remained

largely unchanged from 2000 at $197 million for the

largest cotton cooperatives. However, purchases of

fixed assets of $13 million in 2001 were down from $27

million in 2000. Other assets jumped 70 percent to $37

million because of higher long-term receivables.

Current liabilities jumped 77 percent to $507 million. The largest increase occurred in short-term debt,

which increased $269 million to $436 million in 2001. A

majority of the funds were provided by cooperative

banks, with the remainder coming from Government

programs and commercial banks.

Accounts payable increased 26 percent to $19 million. Member and pooling liabilities totaled $29 million, dropping $47 million from 2000. It appeared that

8
in 2000 cotton cooperatives were using member liabilities to help fund operations but reversed course and

borrowed the funds to pay back the members in 2001.

Long-term debt increased 9 percent to $89 million, 90 percent of it provided by cooperative banks.

Overall, total liabilities jumped 61 percent.

Member equity fell 7 percent. Allocated equity in

the form of equity certificates increased 1 percent to

$262 million. However, unallocated equity fell 73 percent to $8 million.

Dairy

Current assets for dairy cooperatives increased 9

percent and ended 2001 at $2.3 billion (appendix table

11). However, unlike cotton cooperatives, the largest

increase was in their cash account, which jumped 117

percent to $349 million. Accounts receivable, which

makes up more than one-half of total current assets,

actually decreased 4 percent to 1.2 billion. Inventory

levels were up 6 percent to $588 million.

Investments were up 21 percent to $1.2 billion in

2001, largely because of joint ventures with non-cooperative businesses. Most were investments in processing facilities helping to add value to member’s raw

product.

Fixed assets increased 4 percent to $1.2 billion.

The average dairy cooperative purchased $10 million

worth of fixed assets in 2001. Total assets reached a

record of $4.8 billion in 2001, up 10 percent from 2000.

Total liabilities also reached record amounts in

2001. They jumped 12 percent to $2.7 billion mostly

due to current liabilities which jumped 14 percent to $2

billion. More specifically, member liabilities were the

main reason for the increase. They jumped 33 percent

to $1 billion. The remaining current liabilities declined

1 percent. It would appear that a lot of dairy cooperatives’ investment was financed by liabilities owed to

members.

Long-term debt increased 7 percent to $599 million. Most of the increased debt was through selffinancing and non-financial institutions.

Minority interest jumped 25 percent to $378 million, illustrating the investments dairy cooperatives

are making in joint venture processing businesses.

Much of the asset growth was financed through

member liabilities. Equity financing played a minimal

roll. Total equity grew at 3 percent in 2001 and ended

the year with a total of $1.7 billion. Although the overall growth was relatively small, patron’s equity

expanded significantly. Allocated equity certificates

and credits jumped 11 percent to $1.3 billion.

Unallocated capital dropped 19 percent to $324 million.

Diversified

Diversified cooperatives had an interesting year

in 2001. While overall assets, liabilities and equity

remained steady, the composition of each account

changed substantially (appendix table 12). Total assets

were unchanged at $10.7 billion. However, current

assets fell 9 percent to $4.8 billion.

The main causes of this decline were falling

accounts receivable and inventory levels. Accounts

receivable fell 12 percent to $2.3 billion and inventory

dropped 17 percent to $1.7 billion. On the other hand,

cash balances jumped 204 percent to $245 million.

Investments increased 6 percent to $1.5 billion,

both within the cooperative and with outside noncooperative businesses. Cooperative investment

increased 4 percent to $991 million and non-cooperative business investment jumped 13 percent to $443

million.

The net value of fixed assets was up 4 percent to

$2.7 billion. While purchases of new property, plant

and equipment were lower than in prior years, diversified cooperatives purchased fixed assets worth more

than $300 million.

Other assets were up 19 percent to $1.7 billion,

many of them intangible assets as well as goodwill. It

will be interesting to see how this group of assets will

be affected by some new accounting rulings.

Again, total liabilities remained steady but the

categories of liabilities changed dramatically. Current

liabilities were $3.8 billion, down 15 percent. Shortterm debt dropped 34 percent to $1 billion while other

current liabilities remained fairly constant from 2000.

Long-term debt was up 24 percent to $3.1 billion,

in part because diversified cooperatives transferred

their debt from current to long-term. Most of the

increase was from commercial banks and bonds issued

by the cooperatives.

Minority interest declined for the diversified

cooperatives, dropping 23 percent to $180 million, due

to some acquisitions from minority shareholders.

Total equity held by members fell 1 percent to

$2.8 billion. This was replaced by an increase of 11 percent in unallocated equity, which ended 2001 at $310

million. Total equity was similar to 2000 at $3.1 billion.

Fruit & vegetable

Total assets for the largest fruit & vegetable cooperatives fell 4 percent to $4.1 billion in 2001 (appendix

9
table 13), the largest, $72 million, being current assets.

Inventory levels were down 3 percent to $1.3 billion.

Accounts receivable were up 1 percent to $635 million.

Investments, although a small component for

fruit & vegetable cooperatives, were down 12 percent

to $157 million in 2001. In 2001, total investments represented less than 4 percent of their total assets compared with a little more than 14 percent for all cooperatives in the top 100.

Fixed assets fell 5 percent to $1.3 billion. The

amount of plant, property and equipment purchased

in 2001 was half of that purchased in 2000. It appears

that fruit & vegetable cooperatives used their higher

earnings to pay off debt levels rather then invest in

fixed assets. Other assets also fell 3 percent to $528 million, due mostly to amortization of goodwill.

Current liabilities are down thanks to lower

working capital loans. Short-term debt was down 39

percent to $335 million, the lowest amount since 1997.

Accounts payable held steady at $394 million.

Amounts due members in the form of memberpayable and pool liabilities were up 10 percent, totaling $314 million. Total current liabilities fell 13 percent

to $1.3 billion.

Long-term debt remained constant at $1.3 billion,

although the sources of debt changed some. Fruit &

vegetable cooperatives moved their debt from cooperative banks to notes issued by the cooperative and

commercial banks. Fruit & vegetable cooperatives

ended 2001 with total liabilities at $2.9 billion.

Total equity was up 2 percent in 2001 to $1.2 billion, much of it in the unallocated capital account.

Unallocated equity was up 4 percent to $253 million.

Total equity directly owned by members was up 1 percent to $942 million.

Farm supply

Total assets for farm supply cooperatives fell 7

percent to $3.9 billion (appendix table 14), triggered by

current assets, which dropped 17 percent to $1.6 billion. Every category of current assets declined. The

largest hit was the cash balance. Cash on hand fell 63

percent to $68 million. Inventory was reduced by 14

percent and ended 2001 with an $817 million inventory

level.

Investments were up 2 percent to $753 million,

the majority in other cooperatives, which represent 79

percent of the total.

Fixed assets fell 4 percent to $1.4 billion, with

new purchases steadily declining since 1997. Other

assets were up 25 percent to $246 million, mostly due

to deferred taxes from a few of the larger farm supply

cooperatives.

Total current liabilities fell 13 percent to $1.2 billion despite a 23-percent jump in short-term debt. It

reached $486 million, the highest since before 1993.

Accounts payable, member and pool liabilities and

other liabilities were down 28 percent to $678 million.

Long-term debt fell 6 percent to $755 million,

much of it caused by lower levels of cooperative bank

borrowings and bonds issued by cooperatives. Other

liabilities and deferred credit fell 12 percent to $153

million. Despite the large increase in short-term debt,

total liabilities owed by farm supply cooperatives fell

10 percent to $2.1 billion.

Total equity for farm supply cooperatives was

down 4 percent to $1.9 billion. Losses suffered from

some were absorbed by unallocated equity, which fell

14 percent to $331 million.

Grain

Total assets were up 3 percent to $2.3 billion

(appendix table 15), led by current assets which

jumped 16 percent to $1.2 billion. Inventory and

accounts receivable provided the bulk of the increase.

Inventory levels increased too, jumping 20 percent to

$647 million. Accounts receivable was up $58 million

to $407 million.

Investments in cooperatives were up 5 percent to

$221 million while non-cooperative investment fell 13

percent to $56 million. These changes left total investments for grain cooperatives up 1 percent at $278 million. Purchases of new property, plant and equipment

were down from 2000, which helped fixed assets fall 7

percent to $736 million.

Short-term debt was up 31 percent to $437 million, pushing total liabilities higher in 2001. The majority of these working capital loans were provided by

cooperative banks and accounted for 78 percent of

short-term loans outstanding. Accounts payable were

down 4 percent to $204 million. Member-payable liabilities were down 25 percent to $187 million while

other liabilities were up 15 percent to $133 million. The

cumulative effect pushed current liabilities up 9 percent to $961 million.

Long-term debt held constant at $339 million. A

drop in other liabilities and deferred credit of 22 percent to $23 million pushed down total noncurrent liabilities 2 percent. Total liabilities were up 6 percent to

$1.3 billion, due mostly to the higher working capital

loans.

10
Total equity was down 1 percent to $918 million

due to declining member capital accounts. Member

equity fell 4 percent to $679 million. On the other

hand, unallocated equity was up 11 percent to $240

million.

Poultry & livestock

Current assets for poultry & livestock cooperatives grew at 5 percent to $520 million (appendix table

16). However, this increase is attributed to a reclassification of an investment to a current account. The total

cash, accounts receivable, and inventory levels were

down 9 percent to $409 million. Total investments were

down 26 percent to $127 million.

Fixed assets fell 4 percent to $254 million.

However, new purchases of property, plant and equipment held steady from prior years. Overall, total assets

fell 4 percent to $1 billion.

Total liabilities fell 8 percent to $727 million

thanks to declining levels of working capital loans.

Short-term debt fell 30 percent to $196 million. The

largest drop was with commercial banks, which fell 35

percent to $98 million. Accounts payable were up 9

percent to $102 million.

Long-term debt was up 10 percent to $286 million. The majority came from bonds issued by the

cooperatives, which jumped 83 percent to $98 million.

However, commercial banks still held 44 percent of

total long-term debt followed by bond issues at 32 percent. Other liabilities and deferred credit fell 30 percent to $56 million, which kept total non-current liabilities to almost no change.

Equity held by members fell 3 percent to $214

million. However, unallocated equity was up 39 percent to $99 million. After absorbing losses from the

prior year, poultry & livestock cooperatives replenished the unallocated equity with net margins generated in 2001. Total equity held in the cooperatives was

up 7 percent to $313 million.

Rice

Asset values for rich cooperatives declined in

nearly all asset categories (appendix table 17), led by

current assets. They ended 2001 with $243 million, a 7-

percent decline. Cash balances, receivables and inventory levels were all down.

Similar to those in cotton, fruit & vegetable and

sugar, rice cooperatives are not heavily invested in

cooperatives or other outside businesses. Total investments represent only 7 percent of total assets. Despite

their minor importance, investments were down 4 percent to $33 million mostly with non-cooperative

investment.

Fixed assets were the only category to show an

increase, up 3 percent to $194 million. Total assets fell 3

percent to $472 million, the lowest amount since 1995.

Liabilities also shrunk in 2001. Current liabilities

fell 9 percent, with a decline in every major liability

category. Short-term debt levels fell 7 percent to $74

million. Accounts payable were down 8 percent to $30

million. Member-payable and pool liabilities had a

substantial decrease of $6 million or 15 percent.

Long-term debt fell 6 percent to $66 million. The

result was a drop of 8 percent in total liabilities, ending

the year with $224 million.

Along with declining levels of debt, increased

equity should help bolster the financial strength of rice

cooperatives. Total equity was up 2 percent to $248

million. Member-held equity was up 1 percent to $165

million, levels not seen since 1993. Unallocated equity

reached a record $83 million, up 2 percent from 2000.

Sugar

Cash balances as well as inventory levels were

drained, causing a 9-percent drop in current assets

(appendix table 18). Cash balances were down 83 percent to $13 million, while inventories were down 12

percent to $259 million. Increased accounts receivable

of 30 percent to $186 million kept current assets from

falling even further. Current assets ended 2001 at $484

million.

Investments were up 2 percent to $89 million,

mostly due to a $2 million increased equity position in

a joint venture. Investments in fixed assets fell over the

past few years. This, in turn, resulted in a lower value

for net fixed assets. Plant, property and equipment

were down 3 percent to $855 million. Lower current

and fixed assets pulled down the value of total assets 4

percent to $1.7 billion.

The loan value of sugar under the Commodity

Credit Corporation (CCC) loan program pushed down

short-term debt. Loans under the CCC program fell 71

percent to $40 million. Total short-term debt fell 34

percent to $177 million.

Accounts payable and member pool liabilities

jumped 28 percent, with pool liabilities increasing the

most at 41 percent to $100 million. Accounts payable

was up 17 percent to $104 million. Overall, current liabilities fell 12 percent to $405 million.

Long-term debt fell 5 percent to $488 million.

Most were loans from banks. Loan amounts from

cooperative and commercial banks fell 43 percent, with

11
substantial amounts of the decline coming from cooperative banks. However, bonds issued by the sugar

cooperatives jumped 127 percent to $164 million. Total

liabilities fell 7 percent to $969 million, the lowest level

since 1997.

Total equity remained unchanged at $511 million.

However, the amount of equity held by members was

up 6 percent to $613 million. Unallocated equity, which

is used to absorb losses, showed further deterioration,

with a negative balance of $101 million.

Performance measurements

Performance measurements, based on the average ratio calculated for the largest cooperatives, are

presented in table 3. An average of these ratios is used

to negate the effect of changes in a few of the largest

cooperatives. When the 6 largest cooperatives generate

50 percent of total sales for the top100, any changes by

them would weigh more heavily if total summed values were used in the calculations.

Liquidity remained fairly stagnant in 2001. The

average current liquidity ratio moved from 1.37 to

1.38, while the average quick ratio remained

unchanged at 0.75.

Leverage ratios provide a more long-term look at

the capital and debt structure of a cooperative. The

average long-term debt-to-equity ratio increased from

0.59 to 0.62 in 2001. The average total debt-to-asset

ratio was 0.62, up from 0.61 in 2000.

The combined effect of stable liquidity and higher leverage ratios illustrates the change in the term

structure of the cooperative debt. In other words,

cooperatives appear to be shifting their debt loads

from short term to long term. Funds generated from

operations were higher in 2001 and were able to fund

current operations, which cut the need for working

capital loans.

However, some cooperatives changed their debt

structure. Expansion of fixed assets slowed, yet longterm debt continued expanding. This could indicate

that some cooperatives were having problems meeting

their current obligations or that favorable interest rates

made it advantageous for them to restructure their

debt towards long-term financing.

Efficiency ratios look at how well a cooperative

uses its assets in generating sales. Local asset turnover

remained at 2.9. This means that each dollar of local

assets generated nearly $3 of sales. Activity ratios indicate that cooperatives slowed their investment in fixed

assets. Several commodity groups were able to expand

their market through investments in joint ventures.

This was especially evident in the dairy sector.

While not an absolute indicator of fiscal health,

profitability ratios provide a view of financial strength

for a cooperative. Average gross profit margins inched

upwards, from 14.9 in 2000 to 15.2 in 2001. However,

net operating margins continued to fall, from 1.3 to 1.1.

This would indicate either that cooperatives are not

able to efficiently handle higher sales, or that they rely

heavily on non-operating revenue to support operations.

Return on total assets continued to decline in

2001, falling from 3.6 to 3.4. This ratio focuses on the

results of their operation regardless of how the cooperative is financed. This reflects lower efficiencies in the

use of the cooperative’s assets in generating net margins. The return on member equity ratio measures the

return on member investment after all expenses have

been deducted, including taxes and interest. This ratio

continues to erode. In 1997 the average return was

14.3, but by 2001 it had fallen to 7.

The average cooperative in the Top 100 produced

higher sales in 2001. However, generating these sales

was not cost effective for many cooperatives. One

exception was the dairy sector, which was able to turn

12

Table 3—Average ratios, 2000-01, Top 100 Cooperatives

Long-Term Return Return

Debt Debt Times Local Fixed Gross Net On On

Current Quick To To Interest Assets Assets Profit Operating Total Members

Ratio Ratio Assets Equity Earned Turnover Turnover Margin Margin Assets Equity

--------------------------------ratio------------------------------------ ---------times----------- --------percent-------

-------Liquidity------- ---------------Leverage--------------- --------Efficiency------ ----Profitability--- --------Return--------

1997 1.42 0.79 0.60 0.49 4.52 3.31 16.69 13.90 1.62 6.0 14.28

1998 1.38 0.77 0.60 0.51 5.16 3.00 14.99 14.45 1.50 5.4 13.40

1999 1.41 0.77 0.59 0.56 3.63 2.66 13.70 16.54 2.66 5.5 12.66

2000 1.37 0.75 0.61 0.59 3.56 2.90 14.47 14.91 1.28 3.6 8.38

2001 1.38 0.75 0.62 0.62 3.79 2.88 15.34 15.19 1.14 3.4 7.02
those higher sales into higher margins for members.

Overall, higher total debt levels coupled with lower

non-operating revenue, put pressure on the bottom

line.

Cotton

Cotton cooperatives are facing tough times.

Appendix table 19 lists the common ratios by cooperative type for a 2-year period beginning in 2000.

Liquidity eroded as debt levels rose. Cotton cooperatives seem to rely more on debt to fund inventory and

operations. If profitability continues to fall, they may

find debt and interest payments eating into member

returns. Plant efficiency and use of assets also

declined. Lower sales and margins have hampered

investments in new equipment. This is illustrated by

declining return on assets and on members’ equity.

Dairy

Dairy cooperatives faired well in 2001. While

their liquidity dropped slightly, profitability gained

substantially from 2000. They were able to handle the

added debt as illustrated by their bump-up in timesinterest-earned ratio. The added efficiency to their

operations was mostly due to significant investments

in value-added processing with non-cooperative ventures. Venture revenues bolstered the bottom line

while minimizing expenses. Return on members’ equity was one of the highest of all commodity groups.

Diversified

Diversified cooperatives showed mounting stress

that cumulated in several publicized bankruptcies in

2002. Liquidity declined for several years, although

2001 seems to have stopped this trend. However, longterm debt ballooned in that time and some cooperatives had trouble covering interest payment in 2001.

This cut into overall profitability. In some cases, diversified cooperatives overextended their operations.

Selling off some outside interest and focusing on their

core business may prove beneficial for most of their

principal members.

Fruit & vegetable

Fruit & vegetable cooperatives fared well in 2001.

Liquidity levels were up due to operations generating

sufficient working capital. They relied less on loans to

bridge that gap. This is also illustrated in their higher

efficiency ratios. However, these cooperatives work on

narrow margins and the gained efficiencies and liquidity did not carry over to profitability. Higher interest

expense from a few cooperatives with higher longterm debt caused the average return to members’ equity to stagnate from 2000.

Farm supply

Despite losses from a few farm supply cooperatives, the average cooperative improved its financial

position and increased efficiency. The average liquidity

was up slightly, yet a few struggling cooperatives

needed substantial increases in working capital loans

to help fund current operations. The higher interest

cost on these loans, coupled with operating losses,

caused the times-interest-earned ratio to bottom out.

Losses from these operations also put pressure on

profitability and pulled down the average profitability

ratios for all of the farm supply cooperatives.

Grain

The average grain cooperative showed a slight

decline in its liquidity position, due mostly to higher

working capital loans to help fund inventory and

operations. Lower payments to members, in terms of

cost of goods sold for grain products, helped increase

the average revenue stream. The higher revenues

bumped up operational efficiency and profitability of

these cooperatives.

Poultry & livestock

Liquidity improved for poultry & livestock cooperatives. However, the transferring of short-term debt

to long-term caused a shift in their capital structure.

Higher sales coupled with lower payments to members for their products sold allowed the cooperatives

to curb their demand for working capital loans. Higher

sales helped improve the efficient use of the cooperatives assets. However, higher sales came at a price.

One cooperative caused substantial increases in

expenses to generate its higher sales. This consumed

any margins the higher sales generated and produced

a loss for that cooperative. This net loss ended up

affecting the average return on members’ equity

tremendously because the equity owned by members

represents only 5 percent of its total equity. Excluding

that cooperative, the average return on members’ equity jumps to 14 percent.

Rice

The performance of rice cooperatives remained

fairly steady despite lower sales. Liquidity improved

slightly, mostly due to falling short-term debt and

member payables. Interestingly, rice cooperatives were

the only commodity group with a debt to asset ratio of

13
less than 50 percent. Lower cost of goods sold allowed

the cooperatives to pay off a fairly large amount of

their liabilities. It appears that the rice cooperatives are

positioning themselves for the future.

Sugar

Sugar cooperatives are in a precarious situation.

While their liquidity improved from 2000, they still

rely tremendously on long-term debt. Interest expense

consumes much of the net margins generated from

operations. The sugar industry is capital intensive.

This requires substantial amounts of long-term investment. Low margins have forced the cooperatives to

rely on borrowed funds. This is illustrated by the fact

that sugar cooperatives are the only commodity group

that averages a long-term debt to equity ratio greater

than 1. The Credit Commodity Corporation program

for sugar helped bail out some of the cooperatives in

2001 while others continued to struggle.

14
Appendix

15
Appendix Table 1—Consolidated Statement of Operations, 2000-01, Cotton Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 2,154,113 2,514,716 (360,603) -14.3 96.3 96.7

Farm Supply 50,333 60,650 (10,317) -17.0 2.3 2.3

_________________________________________________________________________

Total Sales 2,204,446 2,575,366 (370,920) -14.4 98.6 99.0

Other Operating Revenues 32,065 26,567 5,498 20.7 1.4 1.0

_________________________________________________________________________

Total Operating Revenues 2,236,511 2,601,933 (365,422) -14.0 100.0 100.0

Cost of Goods Sold 2,124,001 2,445,751 (321,750) -13.2 95.0 94.0

_________________________________________________________________________

Gross Margin 112,510 156,182 (43,672) -28.0 5.0 6.0

Expenses

Operating Expenses 87,729 90,476 (2,747) -3.0 3.9 3.5

_________________________________________________________________________

Net Operating Margins 24,781 65,706 (40,925) -62.3 1.1 2.5

Other Revenues (Expenses)

Interest Expense (24,544) (16,299) (8,245) 50.6 -1.1 -0.6

Interest Revenue 184 1,785 (1,601) -89.7 0.0 0.1

Other Income 14,232 2,390 11,842 495.5 0.6 0.1

Other Expenses

Patronage Revenue 507 3,419 (2,912) -85.2 0.0 0.1

_________________________________________________________________________

Net Margins from Operations 15,160 57,001 (41,841) -73.4 0.7 2.2

Non-Operating Revenue (Expenses) (6,200) (6,200) -0.3 0.0

_________________________________________________________________________

Net Margins 8,960 57,001 (48,041) -84.3 0.4 2.2

Distribution of Net Margins

Cash Patronage Dividends 14,066 26,325 (12,259) -46.6 157.0 46.2

Retain Patronage Dividends (12,679) (5,860) (6,819) 116.4 -141.5 -10.3

Nonqualified Noncash Patronage 447 602 (155) -25.8 5.0 1.1

Dividends 15,988 22,380 (6,392) -28.6 178.4 39.3

Unallocated Equity (8,997) 13,224 (22,221) -168.0 -100.4 23.2

Income Tax 135 330 (195) -59.0 1.5 0.6

_________________________________________________________________________

Total Distribution 8,960 57,001 (48,041) -84.3 100.0 100.0

16
Appendix Table 2—Consolidated Statement of Operations, 2000-01, Dairy Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 19,701,355 16,960,685 2,740,670 16.2 99.0 99.1

Farm Supply 123,331 87,959 35,372 40.2 0.6 0.5

_________________________________________________________________________

Total Sales 19,824,686 17,048,644 2,776,042 16.3 99.7 99.6

Other Operating Revenues 67,410 70,597 (3,187) -4.5 0.3 0.4

_________________________________________________________________________

Total Operating Revenues 19,892,096 17,119,241 2,772,855 16.2 100.0 100.0

Cost of Goods Sold 18,924,249 16,153,026 2,771,223 17.2 95.1 94.4

_________________________________________________________________________

Gross Margin 967,847 966,215 1,632 0.2 4.9 5.7

Expenses

Operating Expenses 791,300 793,004 (1,704) -0.2 4.0 4.6

_________________________________________________________________________

Net Operating Margins 176,547 173,211 3,336 1.9 0.9 1.0

Other Revenues (Expenses)

Interest Expense (56,826) (53,309) (3,517) 6.6 -0.3 -0.3

Interest Revenue 10,534 11,881 (1,347) -11.3 0.1 0.1

Other Income 119,315 78,636 40,679 51.7 0.6 0.5

Other Expenses (26,252) (25,971) (281) 1.1 -0.1 -0.2

Patronage Revenue 6,622 4,630 1,992 43.0 0.0 0.0

_________________________________________________________________________

Net Margins from Operations 229,940 189,078 40,862 21.6 1.2 1.1

Non-Operating Revenue (Expenses) 10,661 12,624 (1,963) -15.6 0.1 0.1

_________________________________________________________________________

Net Margins 240,601 201,702 38,899 19.3 1.2 1.2

Distribution of Net Margins

Cash Patronage Dividends 102,351 75,220 27,131 36.1 42.5 37.3

Retain Patronage Dividends 185,831 64,970 120,861 186.0 77.2 32.2

Nonqualified Noncash Patronage

Dividends 920 941 (21) -2.2 0.4 0.5

Unallocated Equity (75,131) 39,856 (114,987) -288.5 -31.2 19.8

Income Tax 26,630 20,715 5,915 28.6 11.1 10.3

_________________________________________________________________________

Total Distribution 240,601 201,702 38,899 19.3 100.0 100.0

17
Appendix Table 3—Consolidated Statement of Operations, 2000-01, Diversified Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 17,308,686 17,145,116 163,570 1.0 63.1 60.5

Farm Supply 9,747,984 10,859,240 (1,111,256) -10.2 35. 6 38.3

_________________________________________________________________________

Total Sales 27,056,670 28,004,356 (947,686) -3.4 98.7 98.8

Other Operating Revenues 356,506 351,010 5,496 1.6 1.3 1.2

_________________________________________________________________________

Total Operating Revenues 27,413,176 28,355,366 (942,190) -3.3 100.0 100.0

Cost of Goods Sold 25,757,641 26,755,516 (997,875) -3.7 94.0 94.4

_________________________________________________________________________

Gross Margin 1,655,535 1,599,850 55,685 3.5 6.0 5.7

Expenses

Operating Expenses 1,351,253 1,353,727 (2,474) -0.2 4.9 4.8

_________________________________________________________________________

Net Operating Margins 304,282 246,123 58,159 23.6 1.1 0.9

Other Revenues (Expenses)

Interest Expense (308,539) (271,626) (36,913) 13.6 -1.1 -1.0

Interest Revenue 28,296 25,426 2,870 11.3 0.1 0.1

Other Income 98,362 107,039 (8,677) -8.1 0.4 0.4

Other Expenses (15,813) (35,566) 19,753 -55.5 -0.1 -0.1

Patronage Revenue 6,592 6,589 3 0.1 0.0 0.0

_________________________________________________________________________

Net Margins from Operations 113,180 77,985 35,195 45.1 0.4 0.3

Non-Operating Revenue (Expenses) (25,500) 52,772 (78,272) -148.3 -0.1 0.2

_________________________________________________________________________

Net Margins 87,680 130,757 (43,077) -32.9 0.3 0.5

Distribution of Net Margins

Cash Patronage Dividends 67,570 64,890 2,680 4.1 77.1 49.6

Retain Patronage Dividends 36,604 125,714 (89,110) -70.9 41.8 96.1

Nonqualified Noncash Patronage

Dividends 8,000 8,817 (817) -9.3 9.1 6.7

Unallocated Equity 29,951 (46,460) 76,411 -164.5 34.2 -35.5

Income Tax (54,445) (22,204) (32,241) 145.2 -62.1 -17.0

_________________________________________________________________________

Total Distribution 87,680 130,757 (43,077) -32.9 100.0 100.0

18
Appendix Table 4—Consolidated Statement of Operations, 2000-01, Fruit & Vegetable Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 6,575,672 6,367,115 208,557 3.3 98.5 98.4

Farm Supply 10,931 10,414 517 5.0 0.2 0.2

_________________________________________________________________________

Total Sales 6,586,603 6,377,529 209,074 3.3 98.7 98.6

Other Operating Revenues 89,223 91,334 (2,111) -2.3 1.3 1.4

_________________________________________________________________________

Total Operating Revenues 6,675,826 6,468,863 206,963 3.2 100.0 100.0

Cost of Goods Sold 4,975,434 4,840,276 135,158 2.8 74.5 74.8

_________________________________________________________________________

Gross Margin 1,700,392 1,628,587 71,805 4.4 25.5 25.2

Expenses

Operating Expenses 1,433,821 1,433,802 19 0.0 21.5 22.2

_________________________________________________________________________

Net Operating Margins 266,571 194,785 71,786 36.9 4.0 3.0

Other Revenues (Expenses)

Interest Expense (165,024) (157,338) (7,686) 4.9 -2.5 -2.4

Interest Revenue 326 412 (86) -20.9 0.0 0.0

Other Income 7,676 18,394 (10,718) -58.3 0.1 0.3

Other Expenses (3,505) (1,476) (2,029) 137.5 -0.1 -0.0

Patronage Revenue 2,544 4,193 (1,649) -39.3 0.0 0.1

_________________________________________________________________________

Net Margins from Operations 108,588 58,970 49,618 84.1 1.6 0.9

Non-Operating Revenue (Expenses) (2,415) (28,840) 26,425 -91.6 -0.0 -0.5

_________________________________________________________________________

Net Margins 106,173 30,130 76,043 252.4 1.6 0.5

Distribution of Net Margins

Cash Patronage Dividends 2,997 5,868 (2,871) -48.9 2.8 19.5

Retain Patronage Dividends 69,109 (18,733) 87,842 -468.9 65.1 -62.2

Nonqualified Noncash Patronage 15,327 18,103 (2,776) -15.3 14.4 60.1

Dividends 8,404 7,691 713 9.3 7.9 25.5

Unallocated Equity 4,028 8,779 (4,751) -54.1 3.8 29.1

Income Tax 6,308 8,422 (2,114) -25.1 5.9 28.0

_________________________________________________________________________

Total Distribution 106,173 30,130 76,043 252.4 100.0 100.0

19
Appendix Table 5—Consolidated Statement of Operations, 2000-01, Farm Supply Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 506,953 482,361 24,592 5.1 6.7 6.9

Farm Supply 7,014,976 6,398,841 616,135 9.6 92.4 91.7

_________________________________________________________________________

Total Sales 7,521,929 6,881,202 640,727 9.3 99.1 98.6

Other Operating Revenues 65,532 97,191 (31,659) -32.6 0.9 1.4

_________________________________________________________________________

Total Operating Revenues 7,587,461 6,978,393 609,068 8.7 100.0 100.0

Cost of Goods Sold 6,846,674 6,193,991 652,683 10.5 90.2 88.8

_________________________________________________________________________

Gross Margin 740,787 784,402 (43,615) -5.6 9.8 11.2

Expenses

Operating Expenses 770,158 712,350 57,808 8.1 10.2 10.2

_________________________________________________________________________

Net Operating Margins (29,371) 72,052 (101,423) -140.8 -0.4 1.0

Other Revenues (Expenses)

Interest Expense (107,776) (101,327) (6,449) 6.4 -1.4 -1.55

Interest Revenue 22,083 20,975 1,108 5.3 0.3 0.3

Other Income 26,972 22,035 4,937 22.4 0.4 0.3

Other Expenses (22,452) (20,373) (2,079) 10.2 -0.3 -0.3

Patronage Revenue 10,669 4,956 5,713 115.3 0.14 0.07

_________________________________________________________________________

Net Margins from Operations (99,875) (1,682) (98,193) 5837.9 -1.32 -0.02

Non-Operating Revenue (Expenses) 18,189 2,113 16,076 760.8 0.24 0.03

_________________________________________________________________________

Net Margins (81,686) 431 (82,117) -19052.7 -1.08 0.01

Distribution of Net Margins

Cash Patronage Dividends 16,813 14,187 2,626 18.5 -20.6 3291.7

Retain Patronage Dividends 34,072 17,177 16,895 98.4 -41.7 3985.4

Nonqualified Noncash Patronage

Dividends 5,164 6,932 (1,768) -25.5 -6.3 1608.4

Unallocated Equity (79,083) (24,881) (54,202) 217.8 96.8 -5772.9

Income Tax (58,652) (12,984) (45,668) 351.7 71.8 -3012.5

_________________________________________________________________________

Total Distribution (81,686) 431 (82,117) -19052.7 100.0 100.0

20
Appendix Table 6—Consolidated Statement of Operations, 2000-01, Grain Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 3,546,657 3,619,427 (72,770) -2.0 69.1 70.6

Farm Supply 1,466,413 1,399,680 66,733 4.8 28.6 27.3

_________________________________________________________________________

Total Sales 5,013,070 5,019,107 (6,037) -0.1 97.7 97.9

Other Operating Revenues 117,325 105,148 12,177 11.6 2.3 2.1

_________________________________________________________________________

Total Operating Revenues 5,130,395 5,124,255 6,140 0.1 100.0 100.0

Cost of Goods Sold 4,607,942 4,674,709 (66,767) -1.4 89.8 91.2

_________________________________________________________________________

Gross Margin 522,453 449,546 72,907 16.2 10.2 8.8

Expenses

Operating Expenses 411,878 382,963 28,915 7.6 8.0 7.5

_________________________________________________________________________

Net Operating Margins 110,575 66,583 43,992 66.1 2.2 1.3

Other Revenues (Expenses)

Interest Expense (36,423) (44,310) 7,887 -17.8 -0.7 -0.9

Interest Revenue 10,264 10,342 (78) -0.8 0.2 0.2

Other Income 10,552 29,262 (18,710) -63.9 0.2 0.6

Other Expenses (1,758) (1,131) (627) 55.4 -0.0 -0.0

Patronage Revenue 16,522 11,068 5,454 49.3 0.3 0.2

_________________________________________________________________________

Net Margins from Operations 109,732 71,814 37,918 52.8 2.1 1.4

Non-Operating Revenue (Expenses) (689) (1,143) 454 -39.7 -0.0 -0.0

_________________________________________________________________________

Net Margins 109,043 70,671 38,372 54.3 2.1 1.4

Distribution of Net Margins

Cash Patronage Dividends 18,605 17,850 755 4.2 17.1 25.3

Retain Patronage Dividends 42,581 26,386 16,195 61.4 39.1 37.3

Nonqualified Noncash Patronage 338 316 22 7.0 0.3 0.5

Dividends 107 59 48 81.4 0.1 0.1

Unallocated Equity 37,016 15,788 21,228 134.5 34.0 22.3

Income Tax 10,396 10,272 124 1.2 9.5 14.5

_________________________________________________________________________

Total Distribution 109,043 70,671 38,372 54.3 100.0 100.0

21
Appendix Table 7—Consolidated Statement of Operations, 2000-01, Poultry & Livestock Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 2,508,721 2,182,592 326,129 14.9 99.6 99.8

Farm Supply

_________________________________________________________________________

Total Sales 2,508,721 2,182,592 326,129 14.9 99.6 99.8

Other Operating Revenues 9,207 4,425 4,782 108.1 0.4 0.2

_________________________________________________________________________

Total Operating Revenues 2,517,928 2,187,017 330,911 15.1 100.0 100.0

Cost of Goods Sold 2,371,945 2,108,143 263,802 12.5 94.2 96.4

_________________________________________________________________________

Gross Margin 145,983 78,874 67,109 85.1 5.8 3.6

Expenses

Operating Expenses 118,412 98,047 20,365 20.8 4.7 4.5

_________________________________________________________________________

Net Operating Margins 27,571 (19,173) 46,744 -243.8 1.1 -0.9

Other Revenues (Expenses)

Interest Expense (46,101) (41,420) (4,681) 11.3 -1.8 -1.9

Interest Revenue 19,313 20,253 (940) -4.6 0.8 0.9

Other Income 44,338 (2,500) 46,838 -1873.5 1.8 -0.1

Other Expenses

Patronage Revenue

_________________________________________________________________________

Net Margins from Operations 45,121 (42,840) 87,961 -205.3 1.8 -2.0

Non-Operating Revenue (Expenses) (7,130) (342) (6,788) 1984.8 -0.3 -0.0

_________________________________________________________________________

Net Margins 37,991 (43,182) 81,173 -188.0 1.5 -2.0

Distribution of Net Margins

Cash Patronage Dividends 2,933 2,919 14 0.5 7.7 -6.8

Retain Patronage Dividends 566 563 3 0.5 1.5 -1.3

Nonqualified Noncash Patronage

Dividends

Unallocated Equity 21,222 (25,121) 46,343 -184.5 55.9 58.2

Income Tax 13,271 (21,543) 34,814 -161.6 34.9 49.9

_________________________________________________________________________

Total Distribution 37,992 (43,182) 81,174 -188.0 100.0 100.0

22
Appendix Table 8—Consolidated Statement of Operations, 2000-01, Rice Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 1,035,663 1,071,322 (35,659) -3.3 99.8 100.0

Farm Supply 2,624 2,624 0.2

_________________________________________________________________________

Total Sales 1,038,287 1,071,322 (33,035) -3.1 100.0 100.0

Other Operating Revenues

_________________________________________________________________________

Total Operating Revenues 1,038,287 1,071,322 (33,035) -3.1 100.0 100.0

Cost of Goods Sold 716,781 768,688 (51,907) -6.8 69.0 71.7

_________________________________________________________________________

Gross Margin 321,506 302,634 18,872 6.2 31.0 28.3

Expenses

Operating Expenses 306,544 284,638 21,906 7.7 29.5 26.6

_________________________________________________________________________

Net Operating Margins 14,962 17,996 (3,034) -16.9 1.4 1.7

Other Revenues (Expenses)

Interest Expense (4,381) (3,227) (1,154) 35.8 -0.4 -0.3

Interest Revenue

Other Income 116 2,590 (2,474) -95.5 0.0 0.2

Other Expenses (2,256) (2,848) 592 -20.8 -0.2 -0.3

Patronage Revenue

_________________________________________________________________________

Net Margins from Operations 8,441 14,511 (6,070) -41.8 0.8 1.4

Non-Operating Revenue (Expenses)

_________________________________________________________________________

Net Margins 8,441 14,511 (6,070) -41.8 0.8 1.4

Distribution of Net Margins

Cash Patronage Dividends 7,519 6,919 600 8.7 89.1 47.7

Retain Patronage Dividends 563 331 232 70.1 6.7 2.3

Nonqualified Noncash Patronage

Dividends 446 459 (13) -2.8 5.3 3.2

Unallocated Equity 827 5,624 (4,797) -85.3 9.8 38.8

Income Tax (914) 1,178 (2,092) -177.6 -10.8 8.1

_________________________________________________________________________

Total Distribution 8,441 14,511 (6,070) -41.8 100.0 100.0

23
Appendix Table 9—Consolidated Statement of Operations, 2000-01, Sugar Cooperatives

2001 2000

2001 2000 Percent Common size statement

$ thousand Difference Change percent of total revenue

Revenues

Marketing 1,653,945 1,549,901 104,044 6.7 97.8 96.7

Farm Supply 2,142 1,808 334 18.5 0.1 0.7

_________________________________________________________________________

Total Sales 1,656,087 1,551,709 104,378 6.7 97.9 96.8

Other Operating Revenues 36,257 50,457 (14,200) -28.1 2.1 3.2

_________________________________________________________________________

Total Operating Revenues 1,692,344 1,602,166 90,178 5.6 100.0 100.0

Cost of Goods Sold 1,288,763 1,192,747 96,016 8.1 76.1 74.5

_________________________________________________________________________

Gross Margin 403,581 409,419 (5,838) -1.4 23.9 25.5

Expenses

Operating Expenses 342,447 327,275 15,172 4.6 20.2 20.4

_________________________________________________________________________

Net Operating Margins 61,134 82,144 (21,010) -25.6 3.6 5.1

Other Revenues (Expenses)

Interest Expense (60,513) (66,068) 5,555 -8.4 -3.6 -4.1

Interest Revenue 3,232 3,202 30 0.9 0.2 0.2

Other Income 1,590 2,442 (852) -34.9 0.1 0.2

Other Expenses (20,191) (26,690) 6,499 -24.4 -1.2 -1.7

Patronage Revenue

_________________________________________________________________________

Net Margins from Operations (14,748) (4,970) (9,778) 196.7 -0.9 -0.3

Non-Operating Revenue (Expenses)

_________________________________________________________________________

Net Margins (14,748) (4,970) (9,778) 196.7 -0.9 -0.3

Distribution of Net Margins

Cash Patronage Dividends 8,184 5,968 2,216 37.1 -55.5 -120.1

Retain Patronage Dividends 11,882 11,882 -80.6

Nonqualified Noncash Patronage

Dividends

Unallocated Equity (35,679) (11,452) (24,227) 211.6 241.9 230.4

Income Tax 865 514 351 68.3 -5.9 -10.3

_________________________________________________________________________

Total Distribution (14,748) (4,970) (9,778) 196.7 100.0 100.0

24
Appendix Table 10—Consolidated Balance Sheet, 2000-01, Cotton Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 3,632 26,046 (22,414) -86.1

Accounts Receivable 157,404 128,237 29,167 22.7

Inventory 270,654 197,590 73,064 37.0

Other Current Assets 153,169 37,889 115,280 304.3

_________________________________________________________________________

Total Current Assets 584,859 389,762 195,097 50.1

Investment

Bank of Cooperatives 23,123 22,028 1,095 5.0

Other Cooperatives 2,379 1,902 477 25.1

Other Investments 28,599 31,448 (2,849) -9.1

_________________________________________________________________________

Total Investments 54,101 55,378 (1,277) -2.3

Net Property Plan & Equipment 196,764 197,613 (849) -0.4

Other Assets 36,712 21,634 15,078 69.7

______________________________________________________________________

Total Assets 872,436 664,387 208,049 31.3

Liabilities

Curren Liabilities

Total Short-Term Debt 436,124 167,987 268,137 159.6

Accounts Payable 18,928 15,008 3,920 26.1

Member Payables 19,819 60,134 (40,315) -67.0

Patron and Pool Liabilities 9,313 15,883 (6,570) -41.4

Other Current Liabilities 22,725 27,351 (4,626) -16.9

_________________________________________________________________________

Total Current Liabilities 506,909 286,363 220,546 77.0

Long-Term Debt

Less Current Portion 88,651 81,626 7,025 8.6

Other Liabilities and Deferred Credits 5,765 6,531 (766) -11.7

______________________________________________________________________

Total Noncurrent Liabilities 94,416 88,157 6,259 7.1

_________________________________________________________________________

Total Liabilities 601,325 374,520 226,805 60.6

Minority Interest N/A

Member Equity

Preferred Stock N/A

Common Stock 13 13 0.0

Equity Certificates and Credits 262,695 259,119 3,576 1.4

Unallocated Capital 8,403 30,735 (22,332) -72.7

_________________________________________________________________________

Total Equity 271,111 289,867 (18,756) -6.5

______________________________________________________________________________________________________

Total Liabilities and Equity 872,436 664,387 208,049 31.3

25
Appendix Table 11—Consolidated Balance Sheet, 2000-01, Dairy Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 349,199 160,887 188,312 117.0

Accounts Receivable 1,199,101 1,251,127 (52,026) -4.2

Inventory 588,178 557,034 31,144 5.6

Other Current Assets 176,291 161,432 14,859 9.2

_________________________________________________________________________

Total Current Assets 2,312,769 2,130,480 182,289 8.6

Investment

Bank of Cooperatives 25,660 25,166 494 2.0

Other Cooperatives 38,071 40,063 (1,992) -5.0

Other Investments 1,172,243 968,642 203,601 21.0

_________________________________________________________________________

Total Investments 1,235,974 1,033,871 202,103 19.5

Net Property Plan & Equipment 1,164,752 1,122,535 42,217 3.8

Other Assets 74,739 79,407 (4,668) -5.9

_________________________________________________________________________

Total Assets 4,788,234 4,366,293 421,941 9.7

Liabilities

Current Liabilities

Total Short-Term Debt 174,711 162,483 12,228 7.5

Accounts Payable 606,145 591,796 14,349 2.4

Member Payables 364,843 274,086 90,757 33.1

Patron and Pool Liabilities 667,741 502,893 164,848 32.8

Other Current Liabilities 185,602 219,976 (34,374) -15.6

_________________________________________________________________________

Total Current Liabilities 1,999,042 1,751,234 247,808 14.2

Long-Term Debt

Less Current Portion 599,077 560,423 38,654 6.9

Other Liabilities and Deferred Credits 93,243 84,949 8,294 9.8

_________________________________________________________________________

Total Noncurrent Liabilities 692,320 645,372 46,948 7.3

_________________________________________________________________________

Total Liabilities 2,691,362 2,396,606 294,756 12.3

Minority Interest 377,962 302,628 75,334 24.9

Member Equity

Preferred Stock 69,964 69,539 425 0.6

Common Stock 23 25 (2) -8.0

Equity Certificates and Credits 1,324,927 1,195,577 129,350 10.8

Unallocated Capital 323,996 401,918 (77,922) -19.4

_________________________________________________________________________

Total Equity 1,718,910 1,667,059 51,851 3.1

_________________________________________________________________________

Total Liabilities and Equity 4,788,234 4,366,293 421,941 9.7

26
27

Appendix Table 12—Consolidated Balance Sheet, 2000-01, Diversified Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 244,846 80,652 164,194 203.6

Accounts Receivable 2,311,872 2,635,176 (323,304) -12.3

Inventory 1,671,010 2,010,260 (339,250) -16.9

Other CurrentAssets 564,572 551,514 13,058 2.4

_________________________________________________________________________

Total Current Assets 4,792,300 5,277,602 (485,302) -9.2

Investment

Bank of Cooperatives 92,868 93,371 (503) -0.5

Other Cooperatives 990,660 950,897 39,763 4.2

Other Investments 442,577 390,290 52,287 13.4

_________________________________________________________________________

Total Investments 1,526,105 1,434,558 91,547 6.4

Net Property Plan & Equipment 2,661,743 2,556,378 105,365 4.1

Other Assets 1,698,125 1,425,238 272,887 19.1

_________________________________________________________________________

Total Assets 10,678,273 10,693,776 (15,503) -0.1

Liabilities

Current Liabilities

Total Short-Term Debt 1,025,872 1,543,209 (517,337) -33.5

Accounts Payable 1,599,838 1,576,246 23,592 1.5

Member Payables 101,054 82,364 18,690 22.7

Patron and Pool Liabilities 147,621 168,714 (21,093) -12.5

Other Current Liabilities 951,917 1,124,036 (172,119) -15.3

_________________________________________________________________________

Total Current Liabilities 3,826,302 4,494,569 (668,267) -14.9

Long-Term Debt

Less Current Portion 3,133,224 2,535,614 597,610 23.6

Other Liabilities and Deferred Credits 454,713 340,436 114,277 33.6

_________________________________________________________________________

Total Noncurrent Liabilities 3,587,937 2,876,050 711,887 24.8

_________________________________________________________________________

Total Liabilities 7,414,239 7,370,619 43,620 0.6

Minority Interest 179,892 232,618 (52,726) -22.7

Member Equity

Preferred Stock 138,529 140,669 (2,140) -1.5

Common Stock 559,383 557,046 2,337 0.4

Equity Certificates and Credits 2,075,885 2,113,956 (38,071) -1.8

Unallocated Capital 310,345 278,868 31,477 11.3

_________________________________________________________________________

Total Equity 3,084,142 3,090,539 (6,397) -0.2

Total Liabilities and Equity 10,678,273 10,693,776 (15,503) -0.1
28

Appendix Table 13—Consolidated Balance Sheet, 2000-01, Fruit & Vegetable Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 80,401 50,676 29,725 58.7

Accounts Receivable 634,619 626,072 8,547 1.4

Inventory 1,299,706 1,344,689 (44,983) -3.3

Other Current Assets 147,424 212,603 (65,179) -30.7

_________________________________________________________________________

Total Current Assets 2,162,150 2,234,040 (71,890) -3.2

Investment

Bank of Cooperatives 55,284 59,886 (4,602) -7.7

Other Cooperatives 7,834 18,272 (10,438) -57.1

Other Investments 93,956 100,471 (6,515) -6.5

_________________________________________________________________________

Total Investments 157,074 178,629 (21,555) -12.1

Net Property Plant & Equipment 1,252,209 1,315,614 (63,405) -4.8

Other Assets 527,962 543,329 (15,367) -2.8

_________________________________________________________________________

Total Assets 4,099,395 4,271,612 (172,217) -4.0

Liabilities

Current Liabilities

Total Short-Term Debt 335,487 545,289 (209,802) -38.5

Accounts Payable 394,069 394,031 38 0.0

Member Payables 19,272 24,970 (5,698) -22.8

Patron and Pool Liabilities 294,858 261,170 33,688 12.9

Other Current Liabilities 221,231 233,045 (11,814) -5.1

_________________________________________________________________________

Total Current Liabilities 1,264,917 1,458,505 (193,588) -13.3

Long-Term Debt

Less Current Portion 1,328,016 1,327,873 143 0.0

Other Liabilities and Deferred Credits 276,637 271,094 5,543 2.0

_________________________________________________________________________

Total Noncurrent Liabilities 1,604,653 1,598,967 5,686 0.4

_________________________________________________________________________

Total Liabilities 2,869,570 3,057,472 (187,902) -6.1

Minority Interest 35,000 43,000 (8,000) -18.6

Member Equity

Preferred Stock 274,070 269,303 4,767 1.8

Common Stock 136,920 134,106 2,814 2.1

Equity Certificates and Credits 531,113 525,453 5,660 1.1

Unallocated Capital 252,722 242,278 10,444 4.3

_________________________________________________________________________

Total Equity 1,194,825 1,171,140 23,685 2.0

_________________________________________________________________________

Total Liabilities and Equity 4,099,395 4,271,612 (172,217) -4.0
29

Appendix Table 14—Consolidated Balance Sheet, 2000-01, Farm Supply Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 67,925 184,460 (116,535) -63.2

Accounts Receivable 598,864 653,434 (54,570) -8.4

Inventory 817,336 947,341 (130,005) -13.7

Other Current Assets 79,520 87,015 (7,495) -8.6

_________________________________________________________________________

Total Current Assets 1,563,645 1,872,250 (308,605) -16.5

Investment

Bank of Cooperatives 59,998 66,669 (6,671) -10.0

Other Cooperatives 596,567 580,703 15,864 2.7

Other Investments 96,311 90,189 6,122 6.8

_________________________________________________________________________

Total Investments 752,876 737,561 15,315 2.1

Net Property Plant & Equipment 1,385,445 1,449,814 (64,369) -4.4

Other Assets 245,984 196,770 49,214 25.0

_________________________________________________________________________

Total Assets 3,947,950 4,256,395 (308,445) -7.2

Liabilities

Current Liabilities

Total Short-Term Debt 485,821 393,390 92,431 23.5

Accounts Payable 526,132 570,703 (44,571) -7.8

Member Payables 21,455 22,976 (1,521) -6.6

Patron and Pool Liabilities 15,819 210,282 (194,463) -92.5

Other Current Liabilities 114,520 136,201 (21,681) -15.9

_________________________________________________________________________

Total Current Liabilities 1,163,747 1,333,552 (169,805) -12.7

Long-Term Debt

Less Current Portion 754,930 802,945 (48,015) -6.0

Other Liabilities and Deferred Credits 152,648 174,191 (21,543) -12.4

_________________________________________________________________________

Total Noncurrent Liabilities 907,578 977,136 (69,558) -7.1

_________________________________________________________________________

Total Liabilities 2,071,325 2,310,688 (239,363) -10.4

Minority Interest 10,618 11,204 (586) -5.2

Member Equity

Preferred Stock 1,085,389 1,082,391 2,998 0.3

Common Stock 14,554 14,695 (141) -1.0

Equity Certificates and Credits 434,756 453,633 (18,877) -4.2

Unallocated Capital 331,308 383,784 (52,476) -13.7

_________________________________________________________________________

Total Equity 1,866,007 1,934,503 (68,496) -3.5

_________________________________________________________________________

Total Liabilities and Equity 3,947,950 4,256,395 (308,445) -7.2
30

Appendix Table 15—Consolidated Balance Sheet, 2000-01, Grain Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 72,439 73,625 (1,186) -1.6

Accounts Receivable 407,497 349,792 57,705 16.5

Inventory 647,102 541,426 105,676 19.5

Other Current Assets 114,424 110,198 4,226 3.8

_________________________________________________________________________

Total Current Assets 1,241,462 1,075,041 166,421 15.5

Investment

Bank of Cooperatives 45,994 42,277 3,717 8.8

Other Cooperatives 175,364 168,616 6,748 4.0

Other Investments 56,316 64,343 (8,027) -12.5

_________________________________________________________________________

Total Investments 277,674 275,236 2,438 0.9

Net Property Plant & Equipment 736,077 792,860 (56,783) -7.2

Other Assets 60,556 104,967 (44,411) -42.3

_________________________________________________________________________

Total Assets 2,315,769 2,248,104 67,665 3.0

Liabilities

Current Liabilities

Total Short-Term Debt 437,400 334,794 102,606 30.6

Accounts Payable 203,777 211,414 (7,637) -3.6

Member Payables 23,267 20,846 2,421 11.6

Patron and Pool Liabilities 164,109 199,559 (35,450) -17.8

Other Current Liabilities 132,698 115,645 17,053 14.7

_________________________________________________________________________

Total Current Liabilities 961,251 882,258 78,993 9.0

Long-Term Debt

Less Current Portion 338,911 338,426 485 0.1

Other Liabilities and Deferred Credits 23,332 29,922 (6,590) -22.0

_________________________________________________________________________

Total Noncurrent Liabilities 362,243 368,348 (6,105) -1.7

_________________________________________________________________________

Total Liabilities 1,323,494 1,250,606 72,888 5.8

Minority Interest 73,819 73,359 460 0.6

Member Equity

Preferred Stock 77,222 78,972 (1,750) -2.2

Common Stock 20,834 24,093 (3,259) -13.5

Equity Certificates and Credits 580,517 605,038 (24,521) -4.1

Unallocated Capital 239,883 216,036 23,847 11.0

_________________________________________________________________________

Total Equity 918,456 924,139 (5,683) -0.6

_________________________________________________________________________

Total Liabilities and Equity 2,315,769 2,248,104 67,665 3.0
31

Appendix Table 16—Consolidated Balance Sheet, 2000-01, Poultry & Livestock Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 25,425 27,720 (2,295) -8.3

Accounts Receivable 204,816 230,894 (26,078) -11.3

Inventory 178,339 192,578 (14,239) -7.4

Other Current Assets 111,605 44,879 66,726 148.7

_________________________________________________________________________

Total Current Assets 520,185 496,071 24,114 4.9

Investment

Bank of Cooperatives 3,100 2,562 538 21.0

Other Cooperatives 2,383 722 1,661 230.1

Other Investments 121,662 167,988 (46,326) -27.6

_________________________________________________________________________

Total Investments 127,145 171,272 (44,127) -25.8

Net Property Plant & Equipment 254,367 264,082 (9,715) -3.7

Other Assets 139,267 154,436 (15,169) -9.8

_________________________________________________________________________

Total Assets 1,040,964 1,085,861 (44,897) -4.1

Liabilities

Current Liabilities

Total Short-Term Debt 195,907 281,820 (85,913) -30.5

Accounts Payable 102,965 94,205 8,760 9.3

Member Payables 556 560 (4) -0.7

Patron and Pool Liabilities N/A

Other Current Liabilities 83,777 74,092 9,685 13.1

_________________________________________________________________________

Total Current Liabilities 383,205 450,677 (67,472) -15.0

Long-Term Debt

Less Current Portion 286,218 260,678 25,540 9.8

Other Liabilities and Deferred Credits 56,244 80,365 (24,121) -30.0

_________________________________________________________________________

Total Noncurrent Liabilities 342,462 341,043 1,419 0.4

_________________________________________________________________________

Total Liabilities 725,667 791,720 (66,053) -8.3

Minority Interest 2,080 1,390 690 49.6

Member Equity

Preferred Stock N/A

Common Stock 955 1,011 (56) -5.5

Equity Certificates and Credits 213,002 220,549 (7,547) -3.4

Unallocated Capital 99,260 71,191 28,069 39.4

_________________________________________________________________________

Total Equity 313,217 292,751 20,466 7.0

_________________________________________________________________________

Total Liabilities and Equity 1,040,964 1,085,861 (44,897) -4.1
32

Appendix Table 17—Consolidated Balance Sheet, 2000-01, Rice Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 23,602 26,607 (3,005) -11.3

Accounts Receivable 78,877 89,331 (10,454) -11.7

Inventory 134,239 142,699 (8,460) -5.9

Other Current Assets 5,821 3,205 2,616 81.6

_________________________________________________________________________

Total Current Assets 242,539 261,842 (19,303) -7.4

Investment

Bank of Cooperatives 15,339 15,503 (164) -1.1

Other Cooperatives N/A

Other Investments 17,164 18,325 (1,161) -6.3

_________________________________________________________________________

Total Investments 32,503 33,828 (1,325) -3.9

Net Property Plant & Equipment 194,434 189,674 4,760 2.5

Other Assets 2,358 2,613 (255) -9.8

_________________________________________________________________________

Total Assets 471,834 487,957 (16,123) -3.3

Liabilities

Current Liabilities

Total Short-Term Debt 73,846 79,466 (5,620) -7.1

Accounts Payable 29,521 32,139 (2,618) -8.1

Member Payables 1,418 1,452 (34) -2.3

Patron and Pool Liabilities 34,921 41,313 (6,392) -15.5

Other Current Liabilities 18,359 19,192 (833) -4.3

_________________________________________________________________________

Total Current Liabilities 158,065 173,562 (15,497) -8.9

Long-Term Debt

Less Current Portion 65,671 70,063 (4,392) -6.3

Other Liabilities and Deferred Credits N/A

_________________________________________________________________________

Total Noncurrent Liabilities 65,671 70,063 (4,392) -6.3

_________________________________________________________________________

Total Liabilities 223,736 243,625 (19,889) -8.2

Minority Interest N/A

Member Equity

Preferred Stock N/A

Common Stock 8 8 0 0.0

Equity Certificates and Credits 164,928 162,888 2,040 1.3

Unallocated Capital 83,162 81,436 1,726 2.1

_________________________________________________________________________

Total Equity 248,098 244,332 3,766 1.5

_________________________________________________________________________

Total Liabilities and Equity 471,834 487,957 (16,123) -3.3
33

Appendix Table 18—Consolidated Balance Sheet, 2000-01, Sugar Cooperatives

Percent

2001 2000 Difference Change

----------------------------- $ thousand ------------------------------

Assets

Cash 12,891 73,789 (60,898) -82.5

Accounts Receivable 185,906 142,690 43,216 30.3

Inventory 258,813 294,814 (36,001) -12.2

Other Current Assets 26,556 18,399 8,157 44.3

_________________________________________________________________________

Total Current Assets 484,166 529,692 (45,526) -8.6

Investment

Bank of Cooperatives 25,349 24,459 890 3.6

Other Cooperatives 9,607 10,776 (1,169) -10.8

Other Investments 54,109 52,540 1,569 3.0

_________________________________________________________________________

Total Investments 89,065 87,775 1,290 1.5

Net Property Plant & Equipment 854,788 881,430 (26,642) -3.0

Other Assets 272,900 279,944 (7,044) -2.5

_________________________________________________________________________

Total Assets 1,700,919 1,778,841 (77,922) -4.4

Liabilities

Current Liabilities

Total Short-Term Debt 176,657 266,896 (90,239) -33.8

Accounts Payable 103,965 88,613 15,352 17.3

Member Payables N/A

Patron and Pool Liabilities 99,812 70,593 29,219 41.4

Other Current Liabilities 24,887 35,134 (10,247) -29.2

_________________________________________________________________________

Total Current Liabilities 405,321 461,236 (55,915) -12.1

Long-Term Debt

Less Current Portion 488,465 512,384 (23,919) -4.7

Other Liabilities and Deferred Credits 75,303 66,531 8,772 13.2

_________________________________________________________________________

Total Noncurrent Liabilities 563,768 578,915 (15,147) -2.6

_________________________________________________________________________

Total Liabilities 969,089 1,040,151 (71,062) -6.8

Minority Interest 220,624 227,305 (6,681) -2.9

Member Equity

Preferred Stock 149,388 149,777 (389) -0.3

Common Stock 373 372 1 0.3

Equity Certificates and Credits 462,851 428,566 34,285 8.0

Unallocated Capital (101,406) (67,330) (34,076) 50.6

_________________________________________________________________________

Total Equity 511,206 511,385 (179) 0.0

_________________________________________________________________________

Total Liabilities and Equity 1,700,919 1,778,841 (77,922) -4.4
34

Appendix Table 19—Average ratios, 2000-01, Top 100 Cooperatives by commodity type

Current Quick Debt Long-Term Times Local Fixed Gross Net Return Return

Ratio Ratio To Debt Interest Assets Assets Profit Operating On On

Assets To Earned Turnover Turnover Margin Margin Total Members

Equity Assets Equity

--------------------ratio-------------------- --------------------times-------------------- --------------------percent--------------------

-----Liquidity----- ----------Leverage---------- -------Efficiency------ -----Profitability----- -----Return-----

Cotton

2000 1.60 0.99 0.50 0.33 6.37 5.10 27.43 12.79 4.37 11.01 21.66

2001 1.29 0.68 0.62 0.36 3.27 2.78 22.31 9.83 0.15 3.53 8.03

Dairy

2000 1.34 0.96 0.59 0.31 10.46 5.52 30.56 9.09 1.40 5.22 10.74

2001 1.32 0.94 0.60 0.35 12.39 5.80 32.15 8.31 1.45 5.81 15.21

Diversified

2000 1.23 0.83 0.72 1.50 1.65 2.18 10.11 10.38 0.63 1.33 3.58

2001 1.22 0.84 0.73 1.70 1.35 2.18 9.68 10.57 (0.40) (0.34) (3.49)

Fruit & Vegetable

2000 1.44 0.63 0.70 0.96 1.49 1.91 9.95 24.66 0.58 1.79 7.94

2001 1.57 0.69 0.69 0.98 1.73 2.04 11.58 25.60 1.07 2.10 7.93

Farm Supply

2000 1.36 0.61 0.58 0.52 2.33 2.13 10.81 14.91 1.12 2.80 5.61

2001 1.37 0.63 0.57 0.50 1.78 2.30 11.42 14.76 0.32 2.53 6.11

Grain

2000 1.25 0.61 0.59 0.45 2.05 2.36 8.49 12.62 1.18 3.43 9.15

2001 1.23 0.58 0.61 0.42 2.41 2.21 8.61 13.33 1.47 4.04 10.31

Poultry & Livestock

2000 2.38 1.95 0.57 0.64 0.16 1.82 25.33 7.16 2.09 1.99 (1.28)

2001 2.42 2.00 0.57 1.42 0.37 2.75 40.69 9.94 2.88 2.17 (52.90)

Rice

2000 1.68 0.77 0.50 0.34 6.13 2.29 5.63 29.38 2.10 5.06 10.70

2001 1.69 0.89 0.48 0.33 7.48 2.29 5.48 32.07 2.09 5.11 11.29

Sugar

2000 1.17 0.54 0.67 1.12 1.05 0.86 1.63 25.84 0.52 0.43 (0.19)

2001 1.31 0.68 0.66 1.16 1.19 0.93 1.73 27.96 2.16 1.18 (1.61)
U.S. Department of Agriculture

Rural Business–Cooperative Service

Stop 3250

Washington, D.C. 20250-3250

Rural Business–Cooperative Service (RBS) provides research,

management, and educational assistance to cooperatives to

strengthen the economic position of farmers and other rural

residents. It works directly with cooperative leaders and

Federal and State agencies to improve organization,

leadership, and operation of cooperatives and to give guidance

to further development.

The cooperative segment of RBS (1) helps farmers and other

rural residents develop cooperatives to obtain supplies and

services at lower cost and to get better prices for products they

sell; (2) advises rural residents on developing existing

resources through cooperative action to enhance rural living;

(3) helps cooperatives improve services and operating

efficiency; (4) informs members, directors, employees, and the

public on how cooperatives work and benefit their members

and their communities; and (5) encourages international

cooperative programs. RBS also publishes research and

educational materials and issues Rural Cooperatives magazine.

The U.S. Department of Agriculture (USDA) prohibits

discrimination in all its programs and activities on the basis of

race, color, national origin, gender, religion, age, disability,

political beliefs, sexual orientation, and marital or family

status. (Not all prohibited bases apply to all programs.)

Persons with disabilities who require alternative means for

communication of program information (braille, large print,

audiotape, etc.) should contact USDA’s TARGET Center at

(202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director,

Office of Civil Rights, Room 326-W, Whitten Building, 14th and

Independence Avenue, SW, Washington, D.C. 20250-9410 or

call (202) 720-5964 (voice or TDD). USDA is an equal

opportunity provider and employer.