DEPARTMENT OF AGRICULTURE


 An organization agreement is the means, usually em-
ployed by those interested in forming an association, to
ascertain what percentage of the farmers in a given area
will patronize an association if it is organized By this
means, an approximation may be obtained of the amount
of the agricultural commodity in question that will be
available for handling by an association. A suggested
organization agreement may be found in this bulletin.
 If an association will not have enough volume to
operate in the "black' from a competitive standpoint
from the day it begins business, it should not be organ-
ized. Farmers do not like to join associations that figu-
ratively or actually are operating in the "red." They
know that they will be called upon to make up losses
previously sustained.
 From the outset, emphasis should be placed upon the
fact that, in forming an association, the farmers con-
cerned are going into business and, in general, no man
can go into business without furnishing a certain amount
of capital. Unless it is possible to raise a reasonable
amount of capital, relative to the proposed activities of
an association, the association should not be organized.

INCLUDE ALL OBJECTIVES IN CHARTER
 In the drafting of the articles of incorporation for a
cooperative association, frequently called a charter, care
should be exercised to see that the purposes of the asso-
ciation are entirely consistent with the statute and that
the association, from the very beginning, is authorized to
do all things that the association may find it desirable to
do in the future, thus avoiding the necessity for amend-
ing the articles of incorporation.
 One of the important factors that should be consid-
ered in organizing a cooperative association is the basis
on which the members will be entitled to vote in meet-
ings of the association. Most cooperatives are organized
on the basis of one man, one vote. Cooperative leaders