Phillips County herald., 1923-04-12
COOPERATIVE FARM
MARKETING NOTES
American Bankers Association
Bodies Are Lending Their
Active Support to Movement.

Active Support to 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 marketing movement.
OF the cooperative plan. President
Harding says: II know Of no single
movement that promises more help
| toward the present relief and the per.
manent bettermeut Of agricultural
| conditions than cooperative farm
| marketing"
In order to gather the best informa.
| ton obtainable on successful co-opera.
tive marketing projects, the State
Bank Division has sent a question
naire to 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-
cial phases OF marketing, such as
processing and packing. and whether
they are combined with a large mum.
ber OF locals to form a sales organiza.
ton.
James Il. Howard Of the Americ n
Farm Bureau Federation says: 1.-The
volume of credit necessary to market
any given crop comparatively would
not be greater than that required for
homeopathic marketing. l serl-
ously question whether or not as
large 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.
1t certainly would remove the neces-
sity OF whatever funds are used in
speculative transactions. The farmer
is concerned with consumptive and
not speculative demands"
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 Ave years. ex.
cept such as is not under his control.
on account OF existing mortgage or
contracts.
The tobacco Is to be delivered a.
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
typs. grade and quality delivered in
the same crop year is pooled. the As.
sociatlon classification being conclu.
sire. The tobacco is handled In one
major pool: minor pools are made by
type and grade.
The Cooperative Association sells |
the tobacco at the bes, 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 /
.th
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 Il by the grower
upon delivery of tobacco. and TO assist 1
the grower to discount his drafts. SO.
cured by the warehouse receipts. /
through tho most advantageous bank. |
Ing system. II also co.operates with /
him IN many other details OF HIS bust
ness.
Eugene Meyer. Jr.. managing dlree.
tor OF the War Finance Corporation. /
says; Generally speaking. the Amerl.
can farmer has been forced to sell h!s /
crop hurrlediy and at the time OF
maximum supply But the co-opera. /
tive marketing associations are gradu. !
ally overcoming this situation In the |
hands OF the individual farmer. his /.
products have often been little moro
than an OFFSET against debts contract.
Cd IN order to carry on hls producing !
operations. In the hands OF tho CO.
operative association. thay can be as.
aembled In quantity. graded and
warehonsed. pledged as collateral, for
loans. and marketed In an orderly |
way"
Fred I. Kant. chairman Of the Com.
merce aud Marine Commission OF the
American Bankers Association, says |
When bankers refuse TO extend cred.
lts 10 cooperative Organizations that
are not being deseloDsd 80 aa 10 as.