DEPARTMENT OF AGRICULTURE


individual production. The definition of parity price as a
relation between city-made and farm-grown commodities,
emphasizes how definitely agricultural and non-agricul-
tural pursuits inter-weave to make up the American
economic fabric. The sense of community has so widened
the farmer's horizon, that he has become accustomed to
assist in the formulation of national policies.

 The position of the farmer today is one of our biggest
 problems. For successful production, he must receive prices
 for his products commensurate with those the manufacturer
 charges for his products. Government figures reveal that,
 from March 1937 to March 1938. farm prices dropped about
 30',, while the price drop on a wide range of manufactured
 goods the farmer had to have was less than 6, ; reducing
 the purchasing power of farm products approximately one-
 fourth.

 Agriculture is more essential to our comfort, happiness
 and welfare than any of the primary industries There are
 more than 6.000.000 farmers in the United States. represent-
 ing approximately one eighth of the Nation's voters. With
 the average farmer's family comprised of five persons,
 almost a quarter of the country's population live on farms.
 The maintenance of such a vital factor as the Nation's pros-
 penrty depends upon the success of agriculture The farmer
 must receive prices for his products in just proportion to
 what the manufacturer charges for his.

 Farmers' purchasing and marketing associations are
but part of the equipment of the individual production units.
The farmer, alone, rarely develops an effective purchasing
and marketing technique, but he can develop it by cooperat-
ing with other farmers. What marketing or purchasing
service he can use profitably he cannot afford to be without.
The farm as a producing unit faces purchasing and market-
ing problems that must be handled effectively to obtain
full returns for the producer. However, as purchasing and
sales agencies, cooperatives must be more than farmer-