United States
Department of
Agriculture
Rural Business–
Cooperative
Service
RBS Service
Report 58
Cooperative Feasibility
Study Guide
Preface
This guide has been designed to assist agricultural cooperatives in completing a feasi-
bility study. Rather than being a complete handbook, this publication presents the
important elements to consider when conducting a feasibility study.
The guide contains information on whether or not a group should conduct a feasibility
study, the steps involved, how to evaluate a study, and how to implement one once
completed. Tips on selecting and working with consultants are also provided.
A sample feasibility study outline is included for reference.
October 2000
Price: domestic– $5.00; foreign--$5.50
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Contents
The project development process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Why do feasibility studies? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
What is a feasibility study? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Feasibility study limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Creating a feasibility study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Project definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Group characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Group decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Feasibility study decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
1. Conduct the study? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
2. Idea identification and clarification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .