166 UNIVERSITY OF ILLINOIS 



in so far as they cannot be satisfactorily met by the two existing 

 agencies. 



These are merely illustrations of the kind of questions confronting 

 the farmer and his organizations in their efforts to solve some of 

 their economic problems. They indicate the need for a more thoro- 

 going and comprehensive program of research in the field of agri- 

 cultural economics. In such a program the Agricultural College and 

 Experiment Station should have a large part. 



FARMING A BUSINESS OF SMALL UNITS 



While one of the most obvious facts about farming is that it is 

 a business of small units, the real significance of this fact is only 

 partially understood. Because farming is a business of small units, 

 and because of the public importance of its efficient development as 

 an industry, practically all modern nations have made some effort 

 to subsidize research activities in the interest of developing the more 

 important scientific facts underlying the business. The agricultural 

 experiment station is the result of this development in the United 

 States. It would be plainly impossible for the individual farmer to 

 work out the facts and principles which have been developed by these 

 publicly supported institutions. 



It would be almost equally impossible for many individual 

 farmers to avail themselves of the information developed by the 

 experiment station. To insure the more complete dissemination, and 

 introduction into actual farm practise, of this information we have 

 established the publicly subsidized Agricultural Extension Service 

 and the County Farm Adviser working in cooperation with the 

 County Farm Bureau. 



One of the principal reasons for the formation of cooperative 

 and other collective farmers' organizations is the fact that the indi- 

 vidual farmer, representing a small business unit, cannot deal on the 

 basis of equal advantage with the larger organized groups with which 

 he must do business at many points. In matters of legislation, rate- 

 making, taxation, and collective bargaining the individual farmer 

 must be largely ineffective. Collectively he develops strength to deal 

 on a somewhat more nearly equal basis with other organized groups. 



Whether this collective organization is to be of permanent value 

 to the farmer depends upon how he uses this newly acquired power. 

 If he uses it in his own interest, he may benefit largely by it only in 

 so far as his use of it does not conflict with the public interest. If he 

 goes beyond this point, in price enforcement, legislation, rate-making, 



