United Agricultural Cooperative: considering the sale of the agronomy division

Abstract

This case study examines a common agricultural cooperative structure in the United States, namely that of a business which both sells farm supplies to its members and also markets, to others, the agricultural products of its members. The case concerns whether the United Agricultural Cooperative should sell the cooperative’s agronomy supply division. This division sells fertilizer, chemicals and seed. It also provides related services. The cooperative has received an acquisition inquiry from rapidly expanding agricultural retailer, Pinnacle Agricultural Holdings, LLC. The case allows readers to examine both detailed financial information as well as the cooperative’s political environment. The case ends with readers being asked to recommend a decision; namely should the cooperative sell the agronomy division or should it be kept? Professors can read the authors’ teaching note to learn recommended classroom teaching strategies and also to learn the actual decision which was made by this cooperative.