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ucts until they can be sold in markets where prices are determined by nation-wide and even world-wide conditions, instead of conditions at points of production where there is always a surplus.
In stating this to some of you gentlemen who represent countries that are much further advanced than are we in the method of cooperating marketing, I will say that since the beginning of cooperative marketing in the United States we hăve learned much and we can learn still more from what you have done in blazing the trail as to cooperative marketing by farmers.
The beginning of the work in this country was by the establishment of local butter and cheese factories. There are now many of these. Some of these market their products singly, the one creamery selling its own products.
In several regions, however, there is a distinct movement on the part of these locally owned plants to create State or regional associations to act as the common selling agent for all. The economies that can be thus perfected are obvious, and by so doing these associations, operating in a larger way, can estabỉish trade labels that, becoming known to the consuming public, insure a continuity of demand for their products.
Probably the most rapid development of cooperative marketing of milk within the past few years has been in regions tributary to great cities. Some of these organizations have passed through several stages of development. In the beginning, nearly all of them were mere bargaining associations. They negotiated with buyers as to prices; and with these prices agreed upon, farmers delivered milk directly to the plant of the buyer, receiving their pay directly from the buyer.
Some of these organizations are still functioning in this way and are performing services of real value not only to their members but to distributors and the consuming public, in that they tend to stabilize conditions in the territories where they operate.
Others have found that conditions in their territories are such that real merchandising methods are necessary; that it is necessary for them to collect and distribute the proceeds of all sales—this largely caused by the ever vexatious question of surplus milk. The seasonal surplus is frequently large, and with one price named to buyers such price must of necessity be low enough so that the surplus may be manufactured without loss or else distributors competing with others in selling in city markets must reduce purchases, the farmer thus finding that his only choice was to accept a low price for all his milk or to sell part of it at a fair price with no market for the remainder. Distributors buying the farmer's milk, therefore, were sometimes compelled by relentless competitive laws to buy all milk upon a surplus price basis or to refuse to take a part of the milk during the surplus period, there being an ever present pressure to turn back to the farmer milk that buyers could not use in their usual business.
Cooperative associations collecting the proceeds of sales can correct these conditions by naming one price to buyers for all milk that they sell in the city and another price for the manufactured surplus. They can also name prices to those whose principal business is manufacturing that will permit such manufacturers to meet the competition of others manufacturing in localities where production costs are lower, while farmers delivering milk that is sold at the lower price are not discriminated against in that the proceeds of all sales are blended into one general fund, with uniform distribution per unit, subject always to locality and quality differentials, so that it is immaterial to a farmer whether his milk is a part of the manufactured surplus or goes into the higher price markets.
In the beginning in these regions tributary to cities, there was considerable opposition on the part of the public, as well as opposition on the part of the long-established distributors. This opposition, in a large measure, was based upon a misunderstanding of the purposes and objects of the cooperative marketing association, and when the general public came to know these objects and purposes, when it became known that they were not arbitrary price-fixing associations disregarding economic laws, when it became known that the great object and purpose was to retain control of milk until it could be sold in markets where prices were determined by economic laws, the public hostility disappeared and the public attitude is now distinctly sympathetic and helpful. For the same reason many of the long-established distributors have come to realize that this plan of operation, popularly known as the pooling plan and which will be explained further at the meeting in Syracuse, offers to them the one constructive solution of a problem theretofore most vexatious, a problem the failure to find a solution of which has, in different localities, at times led to destructive milk wars.
Many of these old distributing agencies are, therefore, sincerely cooperating with these marketing associations and are so coordinating their work that the farmer may have an equal voice in the determination of prices, that the milk shall be taken from the farm to the city as economically as possible, and that the price that the city consumers pay shall be as low as the cost of production and distribution will permit, with a fair distribution of the proceeds to the distributor and producer.
The fear that in the beginning was expressed by some that to pool the proceeds of sales would mean a deterioration of the quality of the milk has been proven to be unfounded in that these associations in making distribution to farmers pay premiums for milk of superior quality.
Just a word—as I must hasten--as to how these cooperative associations are financed. Some are capital stock corporations and are financed by the sale of stock to members. Others are nonstock corporations and are financed by loans from members; while still others are financed by both sales of stock and loans. Generally, when financed by loans they are paid off periodically from the proceeds of other loans made from members, thus creating a revolving capital fund.
The form of the organizations and their methods of financing are, however, so varied that no general statement applies to all. Let it be stated that the efficiency of many of these organizations and the magnitude of their operation are such that they seem to have become a permanent part of the industrial and commercial life of the Nation and that with efficient management their future is assured.
This discussion would be hardly complete, however, without a reference to some of the more intangible benefits that accrue to farmers by membership in this organization, for any student of the deep things of life knows that there are things that can not be measured by dollars and cents.
Before the formation of these organizations, farmers knew that they had no voice in determining prices that they were to receive. Prices for months in advance were announced by buyers, thus causing the formation and growth of a spirit of intense hostility. As farmers under this method, we found ourselves losing our selfrespect, now restored to us by collective action.
As members of these associations, we have brought home to us lessons of thrift in that we realize as never before the cumulative power of small savings as at the end of each fiscal year we receive from the association a bond for the small sums deducted from our milk checks for capital purposes.
Membership in these associations tends to enlarge and widen our vision and understanding in that we find reflected in our monthly milk check the results of economic chaos in any part of the world, thus bringing home to us, not in an academic but in a practical sense, the necessity of stability and order. We learn as never before that the people of no country can obtain the highest degree of prosperity while the peoples of other countries are prostrate, and that the peoples of the world are bound together by laws which they did not make and which they can not repeal.
Finally, membership in these organizations tends to lift members to higher and still higher levels of intellectual and ethical development in that being formed for self-help and mutual help, they are based upon ideals which appeal to the best instincts of men.
Chairman Scoville. For more years than most of us can remember, the next speaker has been laboring for the advancement of agriculture. For 35 years he has been associated with the Department of Agriculture, devoting most of that time to educational matters. Doctor True has a message for us that I am sure we will all be glad to hear. Dr. A. C. True, of the Department of Agriculture. [Applause.)
RESEARCH AND EDUCATION IN AGRICULTURE, INCLUDING DAIRY.
ING, IN THE UNITED STATES.
ALFRED CHARLES TRUE, Ph. D., D. Sc., specialist in States Relations Work.
United States Department of Agriculture. When this congress was planned it was expected that various phases of dairy education and research would be presented at meetings of the congress, and it was thought that it might be helpful, especially to members from foreign countries, if a brief presentation were made in outline of our general system of agricultural education and research and its application to dairying.
In the United States, research and education relating to dairying and dairy husbandry are carried on in connection with the institu tions which deal broadly with agricultural research and education. These include the United States Department of Agriculture, the State agricultural colleges and experiment stations, and secondary schools maintained by States, counties, or local communities. There is also some research work on matters relating to dairying conducted by State departments of agriculture and other public agencies in States and municipalities.
AGENCIES FOR RESEARCH IN AGRICULTURE. The principal agencies for research in agriculture are the United States Department of Agriculture and the State agricultural experiment stations.
Department of Agriculture.— The Department of Agriculture, under the act of Congress of 1862 establishing it, has authority “ to acquire and to diffuse among the people of the United States useful information on subjects connected with agriculture in the most general and comprehensive sense of that word.” Subsequent laws have enlarged its functions by establishing within it regulatory and service agencies, some of which have duties outside the agricultural field. In 1889 the department was raised to the front rank, having at its head a member of the President's Cabinet. Since that time its growth has been great and rapid. At present its general officers are the Secretary of Agriculture, Assistant Secretary, Director of Scientific Work, Director of Regulatory Work, and Director of Extension Work. Its employees number 20,000, of whom 4,800 are in Washington. About 2,000 scientists are engaged in its research work. In 1921–22 the appropriations for its regular work and publications aggregated $40,000,000, of which $10,000 000 is used for research.
Its research work is done through the following bureaus: Weather Bureau, Bureau of Animal Industry, Bureau of Plant Industry, Forest Service, Bureau of Soils, Bureau of Chemistry, Bureau of Entomology, Bureau of Biological Survey, Bureau of Public Roads (and Agricultural Engineering), Bureau of Agricultural Economics, Office of Experiment Stations, Division of Insular Stations, and Bureau of Home Economics. Besides a large number of scientific and technical reports and bulletins and popular publications, especially the series of farmers' bulletins, the department publishes the following periodicals: Journal of Agricultural Research, Experiment Station Record, and Weather Review.
The research work is carried on in laboratories and experimental fields in Washington and vicinity and at field stations in the States, Alaska, and the insular possessions. There are also many special investigations in the United States and other countries and much research work in cooperation with the State agricultural colleges and experiment stations.
Office of Experiment Stations. The Office of Experiment Stations administers the Federal acts (Hatch and Adams Acts) granting funds to the State agricultural experiment stations, makes an annual inspection of their work and expenditures under the Federal acts, has advisory relations with them regarding lines of work, equipment and personnel, prepares reports to Congress on their work and expenditures, and collects and disseminates information regarding similar institutions throughout the world.
The Experiment Station Record, prepared in this office, contains summaries of the publications of the Department of Agriculture and
the agricultural experiment stations and similar institutions in the United States and elsewhere, and of other scientific literature pertaining to agriculture wherever published, together with editorials and notes on developments in agricultural research and the progress of institutions for agricultural education and research throughout the world. The Record is published in two annual volumes of nine numbers each, with detailed author and subject index. The fortyseventh volume is now in progress.
Agricultural Experiment Stations.-Agricultural experiment stations have been established under Federal and State laws in 48 States. There are 50 of these stations, 47 of which are departments of agricultural colleges. In Ohio the station is a separate institution. In New York, Connecticut, and New Jersey there are separate stations, in addition to those connected with the colleges. In a number of the larger States substations are maintained under State laws. These are mainly engaged in the more practical experiments with crops and livestock to meet special local conditions.
In 1921 the total income of the stations was about $7,500,000, of which $1,440,000 were Federal funds granted under the Hatch and Adams Acts ($30,000 to each State), about $3,700,000 were State funds, $1,000,000 were proceeds of sales of farm products, and about $1,360,000 came from miscellaneous sources.
The general management of the stations is given by the State legislature to boards of trustees, which generally are also the boards managing the agricultural colleges. Usually the members of these boards are appointed by the governors of the States, but in some States they are elected by the people. The trustees determine the general policy of the stations, pass in a general way on their equipment, work, and expenditures, and appoint their principal officers.
Governors, State superintendents of education, or commissioners of agriculture are in some States ex officio members of the station board.
The direct management of the station is committed to a director, who reports to the president or dean of the college.
The staff consists of scientists and technically trained persons representing different branches of agricultural science and practice. There are also farm superintendents, clerks, laborers, and other helpers.
About 1,900 persons are employed in the work of the stations, of whom more than 1,500 are scientists and technically trained persons. About 500 of these give part of their time to teaching or extension work.
The stations are partly housed in buildings used also by the teaching and extension departments of the colleges, and also use portions of the college farms, which often comprise hundreds of acres.
But they also have many special buildings, experimental fields, farm Inachinery, animals, and elaborate equipment devoted entirely to research.
In the Hatch Act, which grants $15,000 to each State, the work of the stations is defined as follows:
It shall be the object and duty of said experiment stations to conduct original researches or verify experiments on the physiology of plants and animals; the diseases to which they are severally subject, with the remedies for the same: the chemical composition of nseful plants at their different stages of growth: