Estimating the Value of Local Ownership to a State’s Economy: The Case of Kansas Farmer Cooperatives

Farmer cooperatives positively contribute to the vitality of many rural communities. The objective of this research is to measure the total economic and local contribution of farmer cooperatives to the Kansas economy. This analysis utilizes a unique data set to create customized grain cooperative sectors within the IMPLAN economic modeling system. Results show that in 2017, Kansas farmer cooperative business activity contributed over 9,000 jobs, $630 million in labor income, and $1 billion in output. These contribution estimates decrease considerably if cash patronage is assumed to be spent as a corporate dividend, which highlights the value of local ownership.