CHAPTER XXVI 

 MARKETING FARM PRODUCTS 



The problem. Thus far we have studied the economic prin- 

 ciples which underlie the activities of farmers in bringing agri- 

 cultural products into existence. This is usually called the 

 economics of production. We have also studied the economic 

 forces which determine the share of the farm value of these 

 commodities which goes to each of the factors of production, 

 namely, as wages of labor, interest and depreciation on equip- 

 ments, the rent of land, and the profits of management. This 

 division of returns is usually called the distribution of wealth. 

 We now turn to the problems of marketing. From one point 

 of view marketing is a productive function because it adds place 

 or time utility to commodities. From another point of view 

 the economics of marketing is a problem in distribution because 

 it has to do with the forces and conditions which determine how 

 the dollar paid by the consumer is divided among the men who 

 participate in the supplying of the article, from the farmer at 

 the one end to the retail dealer on the other end of a longer or 

 shorter line of middlemen. 



We are interested in marketing as a productive activity from 

 the point of view of introducing economies into the system 

 and thus reducing the cost of the service, to the benefit of all 

 concerned. We are interested in the marketing problem also 

 from the standpoint of establishing a just division of the con- 

 sumer's dollar among those who participate in providing the 

 product at the point where the consumer gets it. This has 

 been otherwise designated as a square deal. 



Direct sale. Some products are carried by the producer to 

 the consumer. Milk sold in a small city is a good example of 

 direct sale. Potatoes and garden truck are sometimes sold in 



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