ORGANIZATION OF THE AGRICULTURAL ENTERPRISE 371 



operation cannot effect a like efficiency in the organization of the 

 labor factor in agricultural production. The co-operative cow-testing 

 association may employ a trained animal husbandman to supervise the 

 operations of all its members; the co-operative fruit associations may 

 secure special labor in pruning, spraying, packing, and selling. The 

 essential difference between the incorporated and the co-operative 

 form of association in this regard is that in the former authority goes 

 with the supervisory worker, whereas in the latter he is too often 

 only in an advisory position. This question of control we shall 

 return to later. 



The second weakness of individual enterprise in agriculture con- 

 cerns the capital factor. Since agriculture has passed into the 

 capitalistic stage, economy in equipment on the one hand and operat- 

 ing efficiency on the other have become the two conflicting goals 

 which the farmer is trying to reach. The family-farm has too much 

 invested in capital-goods for profit and too little for full efficiency. 

 Can co-operation solve this difficulty ? Evidently it cannot do so by 

 consolidating the operating units into monster plants similar to pur 

 great industrial establishments. But it can organize together groups 

 of the existing small units, so as to give larger employment to an 

 expensive piece of machinery, or to secure full utilization of a costly 

 breeding animal, or build a community packing-shed and equip it 

 with appliances that would be utterly out of the question on a single 

 farm. Here again we meet with the administrative problem. It is 

 in many cases impossible to give the same service to all. The cor- 

 poration can guide its actions by considerations of largest total profit, 

 no matter from which of its plants or departments it may be derived. 

 The co-operative association cannot thus wave aside personal con- 

 siderations, but is constantly confronted by nice questions of justice 

 and equality among its members. 1 



But these considerations of faulty organization of the labor and 

 capital factors in agriculture, and the benefits possible through co- 

 operation, sink into minor importance as compared with the problem 

 of directive and administrative efficiency the function of entre- 

 preneurship. The conspicuous successes of consolidated industrial 



1 Undoubtedly, the mere fact of size, which comes of pooling their business 

 interests, gives to the co-operative group numerous commercial advantages. 

 Through its improved bargaining position it can sell products, buy supplies, hire 

 labor, and borrow funds on better terms, ship at lower rates, and secure better 

 service than as individuals. 



