DEPARTMENT OF AGRICULTURE


 A well-managed cooperative purchasing association
 may eliminate or reduce many of these costs and bring
 competitive pressure to bear on prices. Cooperative pur-
 chasing associations endeavor to provide a type of service
 especially adapted to farmer's needs. The customary retail
 and wholesale agency is concerned foremost with making a
 profit and any service that does not tend to develop an im-
 mediate profit is lkely to be neglected. On the other hand,
 the aim of the farmers' cooperative purchasing associations,
 while concerned with saving as much as possible for patrons,
 is to give detailed attention to the provision of supplies and
 services which will result in profitable farm operation.

 In every section of the United States there are many
farmers' cooperative associations that do both marketing
and purchasing. Approximately 6,000 associations, primar-
ily engaged in marketing, handle farm supplies as a side-
line activity. In many instances the cooperative purchase
of farm supplies is of more value to the farmer than the
cooperative marketing of his crop. Cooperative purchasing
has developed along with cooperative marketing for several
reasons. For example, associations have found it possible
to reduce their overhead costs by using the same facilities
for assembling and selling crops, and for buying and
distributing supplies to the farmer. Furthermore, a farmer
delivering crops to be marketed by an association looks
upon it as a convenience if he can buy his supplies from
the same organization. Also, he may not desire to belong
to two organizations with the responsibilities of membership
in both when one association can perform satisfactorily
all the required services. Furnishing supplies of high
quality is accepted by cooperative purchasing associations
as a fundamental principle of operation. (Condensed from
Bulletin No. 1, Farm Credit Administration).
 One large cooperative association expresses itself in the
following by-laws:
 1-To encourage, introduce and apply improved busi-
ness methods in agriculture and to promote cooperation