E. A. STOKDYK, Deputy Governor, In Charge of Research T. G. STITTS, Chief The Cooperative Research and Service Division conducts research studies and serv- ice activities relating to problems of manage- ment, organization, policies, merchandising, sales, costs, competition, and membership, arising in connection with the cooperative marketing of agricultural products and the cooperative purchase of farm supplies and cooperative associations; and cooperates with educational agencies, cooperative associa- tions, and others in the dissemination of information relating to cooperative principles Copies of this publication may be obtained upon request, while a supply is available, from the Director of Information and UNITED STATES OF AMERICA NOV 29 '39 FARMERS' RETAIL PETROLEUM ASSOCIATIONS by JOSEPH G. KNAPP, Principal Agricultural Economist AMERICAN agriculture has become highly commercialized during the last century. Today the American farmer is concerned primarily with producing products for market rather than for his own use. This shift to commercialized agriculture has been accompanied by a tremendous increase in the use of farm machinery—at first horsedrawn equipment and later powerdriven machinery. One of the earliest indications of this trend occurred in the Shenandoah Valley of Virginia. Here on a midsummer's afternoon in 1831 a group of skeptical farmers gathered to watch a demonstration of Cyrus McCormick's newly invented reaper. Skepticism, however, turned to amazement as these farmers watched the new horse-drawn "contraption" proceed slowly across the field leaving an unbroken swath of wheat spread out behind it. It was a radical departure from the age-old method of harvesting grain by means of a hand cradle. It may have been that some of those present visualized in this new machine widespread release from the tiresome task of cradling grain. It would be unreasonable, however, to assume that anyone This widespread use of power-driven machinery-especially since the World War-has brought about a huge farm demand for gasoline, kerosene, distillate, lubricating oils, grease, and other related products. Data compiled by the United States Department of Agriculture show that the annual cost of operating tractors, trucks, and automobiles for farm use increased from 4 million dollars in 1910 to 440 million dollars in 1935.1 Following the advent of motor-driven machinery, farmers for many years secured their supply of fuel exclusively from private companies. 1 Includes the estimated cost of operating trucks and tractors, and one-half of the cost of operating automobiles. Expenditures per vehicle are based upon changes in the prices of gasoline, kerosene, oil, and tires, licenses, and estimated annual mileage. Cost of operation is estimated cost per vehicle times estimated number of vehicles on farms. |