UNITED STATES OF AMERICA DEC 22 '45 Organizing a by S. D. Sanders Cooperative Bank Commissioner F ARMERS organize cooperative associations to provide themselves with many services. Marketing associations sell the growers' products and frequently prepare, process, and transport them to market. Purchasing associations engage in the purchase, manufacture, and distribution of farm supplies for the benefit of their farmer-members. Farm business service associations provide warehousing, irrigation, insurance, and many other benefits for their members. Producers have saved large sums of money by handling their business through their own organizations. But other important benefits, such as more modern facilities and improved services, may come also through cooperative activity. Cooperatives have taken the lead in standardizing products, in obtaining better methods of preparation, and in improving quality. Such services as these result in larger returns to the members and also are of material benefit to the consumers. Cooperatives, like other business enterprises, are as different as the various conditions under which they are developed. Only general principles may be laid down that apply to all types of associations. This circular is designed to focus attention on some of the more common factors pertaining to the organization of farmers' business associations. No attempt will be made to discuss each type separately. Groups of farmers planning to form an association should have technical advice from those experienced in the services to be rendered, and in the organization and operation of cooperatives, as well as competent legal counsel. State and Federal agricultural agencies may be of assistance. The bank for cooperatives serving the territory in which the cooperative is to be organized is glad to give interested groups the benefit of its experience in meeting general organizational problems. Various publications designed to assist groups of producers interested in forming a cooperative may be obtained on request from the Farm Credit Administration. NOTE.-Acknowledgment is made of the assistance of L. S. Hulbert, LiaisonCooperative Attorney, Office of the Solicitor, United States Department of Agriculture, in drafting the organization forms. |