Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1924-03-13
FARM
COOPERATIVE
SELLING
National Live Stock Pro-
ducers' Association
By GLENN C. HAYES
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Ia. laal. western Newspaper Union.l


ence. 1t was the first national live
stock cooperative Of its kind in the
world
On the first birthday of the estab-
lishment of its first cooperative COM
mission house at st. Louis January q
1923, the National Live Stock Pro
ducers; association had a record that
read something like this: National Of
fee established; six terminals operat-
ing; 1924 cars of live stock sold !;
$2600OOOO value of live stock handled ;
total net earnings over 100000. To-
day it has ten cooperative live stock
COMMISSION houses at the terminals
and is doing more than $10OO00,OO0
worth OF business year.
Back in the seventies and eighties
farmers took their own stock to mar
ket and sold it directly to the packers.
But farmers didn't know much about
the selling game and it wasn't long un-
til they began hiring expert statesmen
to do their selling at the terminal
markets. The practice proved popular
and soon commission men were ham
ding all the selling About this time
we find them organizing an associa-
ton at the various markets called the
live stock exchange. The commission
men worked together through the ex-
change where the prices were fixed
and the selling rules made. The
farmer no longer had any control over
his stock once it reached the central
market.
Need Expert Statesmen.
Producers do need the services Of
expert statesmen in dealing with the
packers. The commission system
worked all right for a time, but once
the commission man had complete
control he seemed to forget that he
was working for the good Of the ship
per first and personal interest second
Practices grew up which made live
stock producers dissatisfied with con-
ditions. They came to feel that the
rules and regulations of the markets
were all made IN the interest Of the
commission companies and stockyard
owners. So universal was the dissat-
isfaction that some three years ago
the American Farm Bureau federation
appointed a committee of fifteen of the
outstanding live stock men of the
United States to study conditions and
propose a remedy.
The farmers live stock marketing
committee of Is started to work In
June, 1921. On November 10 and IL,
1922, they reported the cooperative
marketing plan around which the Ma
tional Live Stock Producers associa-
tion is organized.
This plan calls for the organization
Of national association with subsid-
larry commission associations at vari-
Gus shipping points where business
prospects are good. These commission
associations are purely cooperative.
They are producer-owned and pro-
cer-controlled. They charge the
going rate of commission and at the
end of the year pay back the profits to
their customers in the form Of pat
ronage dividend.
Members of the Producers Commits
sion association include live stock ship
ping associations, individuals, part
nerships or corporations. The one re
quirement is that they be bona fde
live stock producers. Many have the
idea that the association is a Co
operative marketing agency for the
cooperative shipping associations only.
This is a mistake. Any regular pro-
Queer may join. Originally the mem
bership fee was $50 for cooperative
shipping association and $40 for an in
dividual. Several of the terminals
have found business SO prosperous,
that they do not use the membership
fee and have refunded it to the mem
bers. Membership in the National
Live Stock Producers association en-
titles one to the patronage dividend
and also to membership in the produc-
ers' stocker and feeder companies and
the free service which they afford
buyers.
Distribution Of Profits.
All profits are distributed on a pat
ronage dividend. That is, at the end
of each year the commission associa-
tions pay back to the shipper all earn
ings beyond the cost of conducting the
business, the profits being divided ac-
cording to the amount of business done.
Live stock consigned to the producers
agencies is sold at the regular COM
mission rates. In each case a saving
of about 80 per cent has been placed
in the treasury. At the end of the year
after the necessary SURPRISES and re-
serves are deducted the patronage div
idend is mailed out to the agency
members. It's the number of head
of stock marketed that swells the
farmers dividends, not the number Of
shares owned.
This plan was adopted in November,
1921. The provisions for putting it
into operation were carried out by the
executive committee of the American
Farm Bureau federation by appointing
the first board Of directors Of nine.
John G. Brown of Indiana was elected
president and the movement started.
On January 2. 1922, the first pro-
ducers' commission association was
opened for business at the National
stock yards, East ST. Louis, ILL., About
the same time the Missouri Farmers
association started the Farmer Com