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University of Wisconsin. College of Agriculture. Dept. of Agricultural Economics / Cooperation principles and practices: the application of cooperation to the assembling, processing and marketing of farm products, to the purchase of farm supplies and consumers' goods and to credit and insurance
([1937])

II. Possibilities and limitations,   pp. 10-21 PDF (3.5 MB)


Page 10


I1. POSSIBLITIES AND LIMITATIONS
C    OOPERATIVE marketing associations have perfor-
C     med outstanding services. Some of their successful
       accomplishments are:
    Making of adjustments in production, standardizing the
quality, grade and pack of products, feeding the market in
an orderly manner, extending the market, improving the
farmers' bargaining power, assisting them in their financ-
ing problems, and acting as a spokesman for organized
agriculture.
   In many instances cooperative associations are expected
to perform tasks which they are not fitted to undertake.
They are not in a position to fix prices arbitrarily, obtain
cost of production at all times, or eliminate the middleman's
services.
   Purchasing associations are often able to lower the cost
                  ofM  r-&VLV   LUCLW  meMterst eliminate wastes of com-
               petition, and assure members of quality products.
                  Credit unions and mutual insurance companies also make
              material savings possible.
              COOPERATION is continually struggling against handicaps created
by
          the promised miracles of some of its enthusiastic supporters. The
benefits
          advertised in the name of cooperation are without end. For example,
many
          people interpreted the Agricultural Marketing Act of 1929, creating
the Fed-
  !      ~~eral Farm Board, as a  method of administering farms relief through
cooper-
          ation. They advocated that cooperative organizations be used as
shock troops
          against the agricultural depression. Cooperation can deal only
with a few of
          the causes of the depression in agriculture. It does not offer
a cure for all the
          ills of agriculture. To demand of It such performances is to doom
it to fail-
          ure. Cooperation has its limitations as well as its possibilities.
There are cer-
          tain things which a cooperative marketing organization, for instance,
may be
          expected to do well, under good management. There are many tasks
assigned
          to it, which it is not fitted to undertake., It Is essential that
the membership
          have a thorough understanding of the things the association can
and cannot do.
                     Pouuibilities of Agricultural Marketing Associations
             The most important services which cooperatives are best equipped
to per-
         form in the agricultural marketing field are:
                                            10
IL
.  - -  ,  . _ __ - L - _, 'L- -                    __. - - I
-
I
eral Farm Board, as a method of administering farm relief through cooper-
ation. They advocated that cooperative oriraniz*ions,, be used as shock troops
against the agricultural depression. Cooperation can deal only with a few
of
the causes of the depression in agriculture. It does not offer a cure for
all the
ills of agriculture. To demand of it such performances is to doom ft to fail-
ure. Cooperation has its limitations as well " its possibilities. There
are cer.
talu thing" which a Cooperative marketing organization, for instance,
may be
expected to do well, under good management. There are many tasks assigned
to it, which it to not fitted to undertake., It In essential that the membership
have a thorough understanding of the things the association can and cannot
do.
            Po"ibilities of Agrieultural Marketing Assoociations
    The most important services which cooperatives are beat equipped to per.
form in the agricultural marketing field an:
                                  10


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