Maintaining a Healthy Equity Structure: A Policy Change at Producers Cooperative Association

Within its sales territory, Producers Cooperative Association of Bryan, Texas is a dominant feed, fertilizer, and farm supply business. This case study enables students to understand the operating philosophies of this cooperative as it faces over twenty-one different major competitors. The case is designed to give students an understanding of the equity financing of a cooperative; a greater appreciation for creating member value within a cooperative; and an illustration of a successful board decision-making process. This case is intended for use in junior or senior level cooperative management or strategic management classes. Alternatively, the case can also be used in board of director and/or manager training. A separate teaching note explains the authors’ desired case learning outcomes and also answers student questions.