Measuring the Economic Impact of Cooperatives: Results from Wisconsin

This study measures the economic impact of cooperatives at the State level and therefore quantifies a portion of their contribution to economic development. Financial data was collected from almost 800 agricultural and non-agricultural cooperatives in Wisconsin during 2000. The total economic impact of these cooperatives was assessed using a Social Accounting Matrix (SAM) model. The SAM accounted for the total economic transactions spurred by cooperative business activity in Wisconsin. Direct, indirect, and induced effects were estimated in terms of jobs, wages and salary, and total income. In the case of patronage refunds and dividends, the total value added to the State’s economy was also calculated. The economic impacts are reported for each of the following six cooperative types: agricultural marketing, farm supply and services, credit unions and farm credit, food, rural utilities, and other. The analysis did not attempt to measure the total value of cooperatives to either their local economies or their members. Economic impact studies are a single, not final, measure of the important role cooperatives play in any economy.