The Ordway new era., 1922-12-08
Farmers Cooperative
Societies Explained

The problem of distribution is at
tracing increasing attention from
consumers. producers and students
OF economic problems. The spread
between the factory and farm and
the ultimate consumer is realized to
lie the cause of much of the digs5tis-
factfon and unrest which pre- yulls
among consumers and producers.
one of the factors which it is be
iieved will contribute to correction
CT this evil. insofar as it affects the
products of the farm. is the organize
ton of cooperative associations, The
present Congress enacted a law which
legalized the voluntary organization
of agricultural producers for .ha mr.
pose of handling and marketing lheir
products.
The Department of Agriculture is
lending every possible assistance to
farmers in their formation of cooper
atiye associations under this law.
In order that the law itself NAV be
perfectly clear, the department has
issued n bulletin giving discussion
of the legal phases of cooperative
associations in language that can be
understood by the layman. 1t is
understood that this is the first of
number of publications which the
Department of Agriculture will issue
upon the various phases of agricul-
tural cooperation.
In this connection. Lloyd S. Tenny,
assistant chief of the Bureau of Agr-
icultural Economics of the United
States Department OF Agriculture
recently addressed the members Of
the American Farm Economics AS
sociation upon the subject of farmer
cooperative organizations. In this
address Mr.. Tenny laid down seven
rules which he said must be followed
ment is to be successful. They are:
/. The association must have q
definite object in view. Interviews
with farmers disclosed that farmers
frequently do not know the purpose
for which the organization is being
formed.
2. The organization must be
formed on commodity basis. Both
at home and abroad the outstanding
successes in cooperative marketing
have almost invariably confined their
operation to single agricultural
product or to group of products
very closely allied.
8. There must be a sufficient vol
ume of business TO cover
operating costs. and the business
should be controlled or under
contract by the association
Many efforts in cooperation nave
failed because the farmers We're
willing enough to promise to sell
their products through the associate
ion but when the time to deliver
these products came there appeared
to be equally good reasons why lhe
promises should not be fulfilled. 1t
is not good business for commerciai
organization to attempt to proceed
without contracts.
4. Good management. No business
can succeed without good manage
ment. Tie management is not only
concerned with selling the products
profitably but must also recognize
the individual member In the as
sociation and must function in such
a manner es to satisfy this human
element.
6. Proper accounting.
g. Educated membership. Ihe
members must have complete know
ledge of the aims and conduct OF the
organization.
z. self-perpetuating. The organiz-
alton must be established and oper-
ated on lines that include and make
use of the best thought and exper-
ience available: once organized II
should he unnecessary to call on out
side aid to reestablish policies to
proyide board of directors or man
aeement to conduct affairs.
L. h n