The midland journal. (Rising Sun, Md.) 1885-1947, 1933-12-22
WHAT ABOUT AGRICULTURE ?
BY Miles H. Fairbank, Sec. Treas,
Maryland Farm Bureau
Federation
PART VI
Low Cost Production And Loopera-
tive Buying


cause it represents the most original
move on the part of the farmers
themselves to get into business, and
secondly, because it has caused
great amount of misunderstanding
and antagonism on the part of deal
ers and business men towacd farm
organizations.
/ am speaking of the cooperative
buying of feeds, fertilizers and farm
ers' supplies by farmers. The prac-
tice is widespread. 1t is encouraged
by farm organizations aid when a
new organization is formed within
county, cooperative buying is in
most cases, the first undertaking, be-
cause it is usually the easiest thing
to do. Yet there is nothing new
about this business. Years ego, the
more intelligent and progressive
farmers joined together to buy car
loads of lime, feed, etc., or ordered
it through some local association.
Recently, however, cooperative buy
ing organizations have developed on
a statewide and in some cases inter-
state basis. Business management
is taking over-the work that former
ly was volunteered by some local
farmer. Real organization. with
sound capital and ample credit are
rapidly developing. The old estab-
lished dealer finds cause (for which
he can hardly be blamed) in assum-
ing that this new movement is de-
signed to put him out of business
and he feels justified in fighting it.
That situation exists in many places
today We don't get very far in an
alyzing this farm problem by ignor-
ing it.
Let's look into the matter from
two angles, first-the justice or eco
Monies of it, second-lhe dealers
opportunity, if any.
Cooperative buying on the part OF
farmers has only one justification,
namely, to help low cost production.
We have said before that TIE farm
ers' problem is the same as that OF
any other business, simply to make
larger profit to meet ever increasing
expenditures. Better marketing will
probably be the most important step
towards doing that, but lowering his
cost of production is important, very
important. The things farmer
l.sells, such as milk, wheat, corn, to-
matoes, etc., are his finished pro-
ducts, the same as the finished pro-
ducts of any other manufacturer.
Therefore, the feed, fertilizer, seeds,
etc. that goes into these finished pro-
lucts is raw material, the same as
wool, steel, cloth, etc. is the raw ma
terial of the manufacturer.
Now every manufacturer feels
that it is his privilege to buy his raw
materials at wholesale. AS a mat
ter of fact, he would not for one
moment, consider it good business or
common sense to buy raw material
IN small quantities and at retail
prices. In many, cases that practice
alone, would cause him 10 go in the
red" When a farmer joins with
his neighbots and buys calload Oh
the things he will use, it is simply an
effort to buy raw materials at whole
sale. No one farmer can do this
alone unless he is a big operator
(and in that case, he is quite indie
pendent, anyway, but Oy joining
with his neighbors, the necessary
volume to insure wholesale prices is
assured.
That's all there is to the business
reasons for cooperative buying
namely, to enable farmer to pro-
duce cheaper as part of business
program. 1t does not seem neces-
sary to argue that if we are correct
in saying that real business must be
put into agriculture, then tbs farm
ers who pay retail prices and per-
maps above that, pays premium for
credit or service which he himself
can render (such as storage and
warehousing,) he is handicapped
from the start.
am acquainted by the arguments
put up by the local dealer and they
are good arguments. l know there
IS tendency for the better class OF
farmers, the better credit risks, to
patronize the cooperative and leave
the worst risks for the dealer. I
know the dealer is community in
stitutfon, rendering service and all
that. l have tried to analyze this
from a detached standpoint. know
now the average dealer fees, but
here are several things tnat think
the dealer should realize.
First, this whole business Is part
of a general movement that Is in ac-