THE I. A. A. RECORD 



Poff* Fiv« 



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started in Clark, Crawford and Law- 

 rence counties. 



The prevailing station price in these 

 counties has been 46 cents per pound 

 for butterfat. Assuming that the 

 centralized creameries will bid as much 

 for pool cream at these points as they 

 are now pajnng for pool cream in or- 

 ganized localities, dairj^nen will re- 

 ceive at these new stations five cents 

 above the present Chicago quotation 

 for 90 score butter, or 53 cents per 

 pound butterfat. Out of this, oper- 

 ating costs must be paid. This will 

 not exceed three cents per pound, 

 which will leave a net profit of four 

 cents. This represents very closely 

 what takes place from time to time as 

 new stations are opened. 



Illinois produces around 60,000,000 

 pounds of butterfat, annually. Thus, 

 the bargaining power gained through 

 co-operative produce marketing asso- 

 ciations means a potential gain in in- 

 come to Illinois cream producers of 

 from $1,500,000 to $2,500,000 an- 

 nually. 



Producers are selling their butterfat 

 on their own weights and tests through 

 their 26 operating units. A plan is 

 being developed for paying the pro- 

 ducer on a graded basis, and an effec- 

 tive plan for cream improvement is 

 underway. 



The estimated volume of 26 co-oper- 

 ative units for 1928, at this writing, is 

 1,980,000 pounds of butterfat The 

 net gain to producers marketing 

 through these associations is estimated 

 at $79,200. 



FRUIT AND VEGETABLE 

 MARKETING 



THE general level of fruits and 

 vegetables was lower in 1928 than 

 for many years. All commodities suf- 

 fered. The low prices were to a cer- 

 tain degree anticipated by the Depart- 

 ment early in the season and steps 

 were taken to increase local demand 

 and the consumption of Illinois grown 

 fruits from the nearby markets. A 

 campaign of advertising was launched 

 with the aid of sister organizations in 

 the state seeking greater use of Illinois 

 grown products. The demand for 

 peaches particularly was decidedly in- 

 creased over that of any previous year. 

 Credit is due the University of Illinois, 

 the Illinois Chamber of Commerce, the 

 Illinois State Horticultural Society, the 

 Illinois Department of Agriculture, 

 and Prairie Farmer for their helpful 

 co-operation. 



This local demand resulted in a 

 higher general level of prices in Illi- 

 nois than in other producing sections. 

 Growers who were not connected with 

 marketing orgranizations and who were 

 forced to depend upon speculators, or 

 to consign their products often failed 

 to receive net returns large enough to 

 pay the cost of harvesting and packing. 



A material reduction in freight 

 rates on peaches shipped to south- 

 eastern points was received during the 



year. This is the first year Illinois 

 peaches have moved into southeastern 

 territory at the same freight rate as 

 peaches from Georgia, the Carolinas, 

 etc., move into Illinois. 



INSURANCE 



APPROXIMATELY 11,000 auto in- 

 -tV. surance policies have been issued 

 by the Illinois Agricultural Mutual In- 

 surance Company to Farm Bureau 

 members in Illinois. It is estimated 

 that these members saved more than 

 $150,000 in the cost of insurance and 

 initial investment compared with the 

 cost of similar protection in any other 

 company. 



An accident prevention campaign, 

 carried on among members during the 

 year, is tending to reduce the number 

 of accidents and also the cost of in- 

 surance. 



By the end of the year the assets 

 of the company will be close to $225,- 

 000. 



THE Farmers Mutual Reinsurance 

 Company, with headquarters in the 

 I. A. A. office has $13,000,000 worth 

 of insurance in force. This is fire and 

 tornado insurance. In addition, $4,600,- 

 000 worth of farm crop hail in- 

 surance was provided during 1928 at a 

 saving of $9 per thousand, or more 

 than $36,000 compared with the cost 

 of similar insurance in a stock com- 

 pany. 



The savings on direct fire insurance 

 will total at least $6,000 since the com- 

 pany renders this service at a cost of 

 approximately 80 per cent of the stock 

 company rate. The total savings, in- 

 cluding fire insurance, field crop, and 

 fruit and vegetable hail insurance will 

 approximate $49,640 for the year. 



In addition to the financial savings, 

 farmers benefited through the improve- 

 ment in insurance facilities due to the 

 co-operation of the state reinsurance 

 company with the local mutuals. The 

 local mutuals are enabled to avoid 

 heavy net losses and to obtain a more 

 stable assessment. This company is 

 the only mutual writing hail insurance 

 in Illinois. 



AT THIS writing $125,000 worth of 

 -^ capital stock has been subscribed 



Why take life too 



seriously? You'll 



never get out of it 



silive! 



in the new proposed life insurance 

 company and more than $14,000,000 

 worth of insurance has been pledged 

 for the first special participating policy. 

 The company's charter has been ap- 

 plied for and operations are expected 

 to begin at an early date. , 



ACCOUNTING AND BUSINESS 

 SERVICE 



I 



THE Illinois Agricultural Co-oper- 

 atives Association audited th« 

 books and gave financial advisory serv- 

 ice to its 212 members during the 

 year. Current membership in the As- 

 sociation is classified as follows: | 



Farmers Elevators .81 



Farm Bureaus 54 



Home Bureaus 2 



Farm Supply Companies (Oil) 23 



Mutual Insurance Companies 11 



Livestock Terminal Comm. Assns 6 



County Livestock Shipping Assns 7 



Local Livestock Shippings Ass'ns 7 



Dairy & Produce Marketing Assns 9 



Mercantile Companies „. 6 



Seed Companies _ 4 



Miscellaneous _ S 



Totel 212 



The Association has a staff of six ex- 

 perienced accountants who have special 

 training in the co-operative field. 



The- Association filed 125 applica- 

 tions for income tax exemptions with 

 the Internal Revenue Department. 

 Thousands of dollars in refunds cover- 

 ing income taxes previously paid were 

 secured for clients in addition to se- 

 curing exemptions during the year. 



LIMESTONE PHOSPHATE 



TWENTY-TWO limestone companies 

 and two rock phosphate companies 

 are handling limestone and phosphate 

 in Illinois under signed agreement 

 with the Illinois Agricultural Associa- 

 tion. Ninety County Farm Bureaus 

 made use of this Department's lime- 

 stone project during the year. Sixty- 

 four counties co-operated in handling 

 rock phosphate. 



The i. A. A. maintains an office in 

 the phosphate fields at Columbia, 

 Tenn., where it superintends the sam- 

 pling aftd testing of gn"ound rock phos- 

 phate sold to Illinois Farm Bureau 

 members. 



Approximately 400,000 tons of lime- 

 stone were sold and used in Illinois in 

 the nine months ending September 30, 

 1928. It is estimated that Illinois 

 farmers secure their limestone as a re- 

 sult of collective bargaining at a 25 

 cent per ton discount making a saving 

 of approximately $100,000. 



Up to October 1 the two major phos- 

 phate companies had sold 29,000 tons 

 of phosphate in Illinois on which Illi- 

 nois fanners saved approximately $43,- 

 500 compared with going prices in 

 other states. 



(Continued on page 12) 



