The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1921-01-12
THE REDWOOD GAZETTE, REDWOOD FALLS, MINNESOTA

but to become themselves part Of the marketing
machinery.
"The American Farm Bureau federation en-
braces a membership of approximately one and
half million farmers, while the Minnesota Farm
Bureau federation has at present an approximate
farmer membership Of $4,000. Before these two
organizations there are three proposals intended
to enable the farmers to definitely enter the
ond period and become distributors of their own
products:
"First: That the farmers, through sys-
tenn of collective sale of their produce, estab-
lish their own distributing exchanges and
thereby bring their produce directly to the
manufacturer.
Second: That the farmers organize stock
corporations, stock to be held by the farmers
themselves or by their own local cooperative
units the distribution of profits to be made
upon the basis Of stock held by an individual
or a local cooperative unit; the cooperative
unit, however, to distribute its profits upon
patronage basis, ifsdesired, such stock COM
pany to have seat in the exchange OF the
terminal markets.
= "Third: That the farmers organize purely
cooperative or mutual selling agencies TO
have memberships in the terminal exchanges,
such agencies to make their distribution OF
nrofits according to the patronage of the
farmer member of such cooperative selling
agency.
"The first two plans need no legislation l be-
lieve that the second plan is a practical one and
that you will redeem the pledges made in the re-
cent campaign if you will instruct the State De-
partment of Agriculture to assist the farmers in
organizing local and terminal cooperative sell
=. 49,
department with means and experts to make such
assistance efficient and effective. specific illus
tration of the achievement of the Department of
Agriculture in such organization work is the
Minnesota Potato exchange. With the co-opera-
ton of other agricultural interests, it organ
lied by the State Department of Agriculture It's
membership includes over 100 local cooperative
potato associations, all marketing their produce
through the state exchange.
"In similar manner, the Department of agricul-
ture in conjunction with the farmers cooperative
organizations might develop grain selling
change. Minnesota has approximately 400 coop
erative elevators. If a group of these elevators
should be organized, each elevator purchasing
stock in selling agency, such agency to have
membership in the terminal grain markets at
Minneapolis and Duluth, the farmers of Mime
sofa will have constituted themselves distribu-
tors. They will be distributors in the same man.
ner as the grain growers of Canada who have
organized the greatest grain selling agency in the
world, namely: The United Grain Growers of
Canada. Stock can be sold to the farmers in
small amounts, or if the farmers should prefer;
they can instruct their local cooperative elevators
to purchase stock in the central selling agency
"The central selling agency make its dis
tribution to its stockholders stock basis, but
the local cooperative elevators might make their
distributions not upon the amount of stock held
| by their members, but upon the patronage OF the
farmer members of the local elevator association
Such plan could be carried out not only in the
marketing of grain, but as well in the marketing
of livestock and other produce. | sincerely hope
| that you will provide for the organization OF
such companies holding memberships in the ter
| mina exchanges and that the action taken will be
! sufficiently prompt to permit marketing OF next
years crop in this manner by those individual
| farmers or farmer organizations who so desire.
"If neither of the two first plans referred to is
satisfactory, the third might be adopted. This
would be accomplished if your body would pass a
law compelling all terminal exchanges to admit to
membership purely mutual concerns which would
make their distributions on the so-called patron
age basis, without taking into consideration the
stock held by patron.
"At the present time, the various exchanges
operating in Minnesota have rule that there
shall not be any rebating by members Of ex-
changes to those who sell their produce through
such members. If farmers cooperative con-
Germ were admitted the basis just referred to,
this rule would have to be modified. 1t is for
you to determine whether such rule is in the in
terst of all the people Of the state of Minnesota
producer and consumer alike, or should by legis-
lative act be abrogated or modified.
tWhile in this message have stressed the par
ty pledge to establish marketing facilities for
farmers, urge you to give careful consideration
to the legislative programs of the American Farm
Bureau federation and the Minnesota Farm Blu
reau federation and especially to their recon-
mendations relative to rural credits and future
trading.
"The problem Of trading in futures is ma
tural in character. Prices of Minnesota farm
products are frequently affected by sales or
l.. o1sy,rr