The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1923-04-20
COOPERATIVE FARM
MARKETING NOTES
American Bankers Association
Bodies Are Lending Their
Active Support to Movement.

Active support 10 movement.
On the theory that efficient market.
ing methods. rather than easy credit
facilities, are the big need OF the farm
ers, the State Bank Division and the
Agricultural Commission Of the Ameri.
can Bankers Association have Jointly
! launched an active campaign to pro-
mote the development OF the co-opera-
tive farm mark citing movement;
OF the cooperative plan, President
Harding says: 81 know Of no single
movement that promises more help
toward the present relief and the per
manent betterment Of agricultural
conditions than cooperative farm
marketing"
In order 20 gather the best informa
ton obtaiuat,a on successful co opera
tive marketing projects, the State
Bank Division has sent a question
naire 70 bankers in every part OF the
country Information is asked as to
whether the local associations are or
ganized on the commodity basis.
handling one product or few similar
products. or on the regional basis. do
ing all buying or selling; whether
they serve local needs only; whether
they are combined or consolidated
with other locals to include some spe
cal phases of marketing. such as
processing and packing, and whether
they are combined with large mum
her of locals to form a sales organiza
ton.
James R. Howard Of the Amertc
Farm Bureau Federation says: the
volume of credit necessary to market
any given crop comparatively would
not be greater than that required for
homeopathic marketing. serl-
ously question whether or not as
large a volume Of credit would be
necessary, since cooperative market
Ing implies orderly marketing or the
feeding Of the market consistently
throughout the period of consumption.
II certainly would remove the neces-
sity Of whatever funds are used IN
speculative transactions. The farmer
is concerned with consumptive and
not speculative demands" n
The form Of contract between the
Burley Tobacco Growers Cooperative
Association and its members is cited
by the Bankers Association as an
efficient instrument for putting the
idea into operation. Under this con-
tract the Association agrees to buy
and the grower to sell to the co-opera-
tive all his tobacco for five years, ex-
cept such as Is not under his control,
on account OF existing mortgage or
contracts.
The tobacco is to be delivered at
the earliest reasonable time after cut
ting or curing. The Association makes
rules and standardizes and grades the
tobacco, the grower agreeing to be
bound by such rules. Tobacco OF like
type, grade and quality delivered in
the same crop year is pooled, the AS
ISOLATION classification being conclu-
sive. The tobacco is handled in one
major pool; minor pools are made by
type and grade.
The Cooperative Association sells
the tobacco at the best prices obtain
able, and pays the grower the net
amount received, less freight, insur-
ance, interest, and deductions to cover
all costs Of operating the association;
also to create funds for credits and
other general commercial purposes,
not to exceed one per cent of the :
gross sale price The surplus from
these deductions is later prorated
among the growers.
The Association agrees to accept
drafts drawn against it by the grower
upon delivery of tobacco, and to assist
the grower to discount his drafts, Sc
cured by the warehouse receipts,
the most advantageous bank
Ing system. 1t also co-operates with
him in many other details Of his bust
ness. 4
Eugene Meyer, Jr., managing direc-
tor of the War Finance Corporation. !.
says: Generally speaking, the Ameri ,
can farmer has been forced to sell his
crop hurnedly and at the time of
maximum supply. But the co-opera.
tive marketing associations are gradu-
Ally overcoming this situation. In the
hands Of tho individual farmer, his
products have often been little more II
han an Offset against debts contract L
ID in order to carry on his producing &
operations. In the hands Of the CO. {
operative association, they can be as t
,embled in quantity, graded and I
pledged as collateral for {
oans, and marketed In an orderly Z
way" Ii