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AGRICULTURAL RELIEF

“We should center attention on the problem of organizing the producers of
major farm commodities.”

And again:

“It these cooperative organizations would help agriculture and be generally
veneticial to the country, their development should be encouraged.”

Concluding the same paragraph with—

“It is entirely consistent with established American policy to foster a beneficial
agricultural movement in its early stages.”

The concluding declaration of policy on pages 2 of both H. R. 7940 and 8S.
1176, reads: .

“And to further the organization of producers of such commodities into
cocperative assoc’ations.”

Surely none but a practical and substantial aid is contemplated. Yet sec-
tion 5 makes no provision for appropriations for loans to “further organiza-
tion.” In its experience and development the Federal Farm Board will be
most concerned in, and desirous for, an ab lity to render financial aid for
organization in such cases as it deems worthy and necessary.

Legislative price regulation is not all the farmer is interested in, as sug-
gested by some advocates of the debenture plan, because legislation is erratic
and changeable. The farmer wants bargaining power, class independence on a
par with industry so as to make his advantages permanent: which can only
come by extensive organization. In any act proposed it should be remembered
throughout that the fundamental objective in the long run of agricultural rel ef
is to build and maintain strong, self-sustaining, and effective cooperatives with
bargaining power. Such organization ‘s a tremendous undertaking. Farm
papers, the public press, official agricultural reports, for years have pointed
and stressed bargaining power for the farmer. Is it possible legislative action
will underrate the expense and d ficulties of organization? Any farm relief
bill should provide “building machinery” at the farmer end of the cperation
by provision for loans when the board deems it necessary.

The term * cooperative marketing” is synonymous with “organized markat-
ing” and pctures the two primary functions of such an organization. The
“marketing” element has many established methdos and channels already
with us and available, even though unsatisfactory; but organization” of
approximately a million wheat farmers has not yet been demonstrated. Such
organization will not just come about. nor result automatically from the
nperation of the act.

Organ’zation work varies in the number, character, and intensity of its
difficulties in different commodities, llocalities, and times. As to localities,
mark the rapid organization of wheat in Canada, and the comparative fa'lure
to organize wheat in some of the States. As to times, some of the tobacco
groups easily signed up 65 per cent of ther territory a few years ago, but
now desire this assistance. As to commodit'es, fruit, vegetables, and dairy
products are more easily organized because their production is more localized,
ete. So we can not predict the results of organ’zation effort in one locality by
hat happened in another. We must know the local atmosphere and con-

ions.

There is precedent for Government loans for organization. Government money
was loaned for organization purposes in Canada for the Canadian Wheat
Pool Campaign. (See Bulletin 63, Bureau of Agricultural Economics, p. 62.)
The United States Government sold stock and bought stock and bu’lded the
Federal reserve system for banking, an activity wh'ch was no more in behalf
of all the people than the production of their food. Government gave as a
gift. 129.000.000 acres of land, to encourage railroad construction.

The central and northwest wheat States have labored five years with this
organization problem without getting enough volume to become a potent factor
in the market. Some of the difficulties encountered should be borne in mind
in order to get a perspective of the requirements for relief and the reason why
the I ory mind is kent so deceived and muddled that he will not organize

A localized effort like a farmers’ elevator at one point draws little fire from
opposition to farmer organization. But the attempt to organize a whole com-
modity. covering several States, draws fire, with volumes of malicious propa-
Sma Competing interests have repeatedly misrepresented the prices paid by
The or waodiom, Stories are circulated that officers are dishonest
Aistoaraging Fail . cial organ in Chicago recently carried a series of articles

|eonrs ‘ rs from joining the Wheat Growers Association and pub-