Dec. 1939] Marketing of Farm Woodland Products 29 



in the area are available and reasonable in price. This is an aspect of 

 the cooperative into which we have not inquired in our survey. 



In the light of the above discussion, it would seem advisable if the es- 

 tablishment of a cooperative is attempted that it activities be restrict- 

 ed to forest products marketing. In view of the many efficient processing 

 plants now operating in the area, it would seem wise for such a cooper- 

 ative to attempt to contract for its processing with one or more of the 

 existing mills. Because it is doubtful if sales volume would be over 

 $40,000 per year, expenses of management would have to be restricted to 

 such an extent that it would not be possible to hire a full time manager. 

 Perhaps some local resident might be able to devote a part of his time to 

 managing the affairs of the cooperative. Under such an arrangement 

 the directors would have to assume a large part of the responsibility for 

 successful operation of the organization. 



Experience with other cooperatives has demonstrated that in order to 

 assure continued interest, the membership should supply a good part of 

 the capital. Prior to the formation of an association it would be well to 

 obtain the assistance of one of the agencies which has had long experience 

 in the organizing and financing of cooperatives. 



The potentialities of a cooperative organization of either the federated 

 or centralized type have not been explored. By combining two or more 

 operating units under a central management there might be a great 

 enough volume of businass to support a full-time manager and staff. 

 However, if both production areas and markets are located as they are 

 in Carroll county, such an organization would involve increased travel 

 and communication expense and would probably cost more per thousand 

 board feet than the single cooperative previously discussed. To the ex- 

 tent that high value products are handled the federated or centralized 

 type of organization would have certain advantages, but in the area 

 studied very little business would fall into that category. 



While there are some exceptions there is a general tendency for coop- 

 eratives which cannot be operated successfully independently to be un- 

 successful when combined. 



