28 X. H. Agr. Experiment Station [Bulletin 318 



A prerequisite of any plan of cooi)erative action must be an estimate 

 of the volume of forest products which that cooperative may expect to 

 handle. By applying appropriate prices to this estimate some idea of 

 the income which the cooperative migiit expect can be obtained. 



In a previous section the income from forest products received by 

 farmers in the area in 1929 was estimated at about $30,000. This figure, 

 while it indicates the return which fanners in the area did obtain in one 

 year, is of doubtful value in considering the organization of a cooper- 

 ative. Depending upon the assumjitions made, various estimates of 

 possible income to a cooperative operating within the area can be .se- 

 cured. The estimate based on assumptions which seem to have most 

 merit, indicates a total handle of about $40,000 worth of product. Other 

 estimates, depending largely upon the stage at which the cooj^erativi' 

 would sell the forest products, range all the way from $20,000 to over 

 $60,000. This $60,000 estimate assumes that all woodland owners would 

 market through the cooperative and that labor and equijiment would b(> 

 available at satisfactory prices so that all sales would be of logs at de- 

 livery points. This is probably a maximum figure and in actual prac- 

 tice it is doubtful if it would be approached. To the extent that sales 

 were made of stumpagc rather than logs at deliveiy points the total in- 

 come of the cooperative would be lower, and conversely, if sales of fin- 

 ished lumber were made directly to consumers, income would be in- 

 creased. 



Should a cooperative be largely of a marketing type it would jirobably 

 not receive support unless it could keep its operating expenses well be- 

 low ten per cent of it^: gross sales. Applying this maxinuun percentage 

 to the probable handle of a cooperative in this area, we obtain a figure 

 of $4,000. Such an amount is probably insufficient to maintain an organ- 

 ization and a manager on a full time basis. 



A marketing cooperative would probably find it« greatest opportuni- 

 ties in assembling sawlogs, keeping in touch with markets and market 

 conditions, bargaining as a unit for its memi)ers. and jierhaps assisting 

 members in forest management. 



Thus far discussion has been restricttd to a cooperative marketing 

 only forest products. To the extent that a cooperative perfonned other 

 functions in addition to that of marketing or assisting woodland owners 

 to manage theii' timber, a greater income might be available to the or- 

 ganization. There is, for instance, the possibility of handling other than 

 forest products to supplement the marketing business. Such a procedure 

 in this area wouhl seem to offer little opportunity for success, as pro- 

 duction of othei' agricultural products is limited largely to those used 

 on the farm or sold locally. Another opportunity might be the purchas- 

 ing of farm supplies. In this connection, however, there arc already ef- 

 ficient, well-operated coopi-ratives and proprietary businesses now fimc- 

 tioning in tiie area and it would seem unlikely for success to follow a 

 new organizatiim attcmj^ting to enter this field. A third opportunity 

 might i)e in financing some of the members of the cooperative in their 

 woods work. Su<'h a function ha> been can'ied on by the Forest Prod- 

 ucts Association, the cooi)erative in northern New Hami)shire. with a con- 

 siderable amount of success. The advisability of entering this fiekl de- 

 pends largely ujion whether or not present sources of crcflit to jiroducers 



