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EXTRA EDITION, JUNE, 1932 



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I. A. A. RECOl 



I. A. A. FIGHTS FOR AGRICULTURl 



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FARMC(M)PS 

 GIVE PRODUCER 

 BETTER PRICE 



Narrows Spread Between 

 Price Paid By Consumer 

 and Received By Grower 



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Ten years ago when the tenth 

 anniversary of the Farm Bureau in 

 Illinois was observed there began a 

 period of steady progress and de- 

 velopment in co-operative market- 

 ing. 



Farmers who take part in the 

 state -wide celebration July 4 have 

 watched this movement develop 

 from its meagre beginning to a 

 great system of farmer-owned and 

 controlled co-operatives operating 

 on a national basis and handling 

 farm commodities in volume never 

 before handled through a single 

 agency, private or otherwise. 



The co-operative movement in 

 Illinois had its beginning in the 

 formation of farmer-owned grain 

 elevators and co-operative livestock 

 shipping associations which oper- 

 ated as independent local organi- 

 zations. It was not until after the 

 depression of 1921-22 that Illinois 

 farmers began seriously to develop 

 machinery to control their com- 

 modities after they left the country 

 point. 



This movement led to the organ- 

 ization of the Producers Livestock 

 Commission Association of East St. 

 Louis, followed by similar sales co- 

 operatives the next year at Chi- 

 cago, Peoria, and Indianapolis. The 

 Illinois Agricultural Association de- 

 voted much time and effort to the 

 organization of these co-ops. 



.V Began in 1921 



About this time the I. A. A. also 

 began making surveys to find the 

 possibilities in marketing other 

 'commodities co-operatively. The 

 year 1921 marks the beginning of 

 the first state fruit and vegetable 

 co-operative, the first co-operative 

 milk association, and the first at- 

 tempts at handling grain on the 

 terminal markets. 



At present Illinois farmers have 

 state-wide agencies for marketing 

 milk, vegetables, livestock, grain, 

 soybeans, butterfat, poultry, red top 

 ' seed, and other commodities. Sev- 

 eral of these are affiliated with na- 

 tional marketing organizations. 



More than 23,000 carloads of Illi- 

 nois livestock were handled through 

 Producers' Commission Associations 

 or sold direct to packers during 

 1931. Early in the year the Illinois 

 Livestock Marketing Association 

 was orfanized to co-ordinate the 

 work of county and district mar- 

 keting associations and direct the 

 movement of livestock to the best 

 markets. 



At the present time the state as- 

 sociation has six county concentra- 

 tion points In operation and two 

 more almost ready to open. The 

 volume of livestock handled by 

 these points has Increased every 

 month since last October when they 

 . started operating as units of the 

 association. 



In May the volume was nearly 

 3,000,000 pounds. During the eight 

 months from October 1 to June 1 

 the association handled 15,309,520 

 pounds. The new organization is af 

 filiated with the National Livestock 

 Marketing Association and works In 

 co-operation with Producers' Com- 

 mission agencies. 



Over 80 Members 



The Illinois Grain Corporation, 

 organized in 1930, now has over 

 eighty member elevators as com- 

 pared with 32 at the beginning of 

 1931. These elevators have a com- 

 bined business of 14,000,000 bushels 

 of grain annually. 



Illinois Grain Corporation stands 

 third among the 25 regional co- 

 operatives In volume of grain 

 handled through Farmers National 

 Grain Corporation during the past 

 year. At least 60 of the 102 coun- 

 ties in the state have used the ter- 

 minal facilities of the co-operative, 

 sending their grain from more than 

 200 shipping points. The average 

 volume from Illinois for the past 

 four months is more than 600 cars 

 a month. In March, 666 cars were 

 handled by the state organization. 



A seven per cent dividend on 

 preferred stock in Illinois Grain 

 was recently paid out of the earn* 

 Ings of the co-operative. This is an 

 indication that the organization Is 

 getting the support of grain grow- 

 ers. Deficits incurred during the or- 

 ganization period also have been 



Part of the 3,000 Entering Armory at Decatur, where State-Wide Demonstration July 4th^was Un 



Approved. 



paid off. For the first time In his- 

 tory farmers are organized to con- 

 trol their grain until It reaches the 

 processor or consumer. 



The Illinois Fruit Growers Ex- 

 change last year handled more than 

 1,200 cars of fruit and vegetables, 

 selling to 200 markets In 23 states 

 and three Canadian provinces. This 

 is one of the oldest co-operatives 

 in the state. It is affiliated with 

 the National Fruit and Vegetable 

 Exchange, recently organized with 

 A. B. Leeper as Its president and 

 general manager. In addition to Its 

 marketing activities, the state ex- 

 change purchases supplies for fruit 

 growers and has only recently or- 

 ganized a credit corporation to aid 

 Its members. 



Practically every milk market in 

 Illinois is now organized and 85 per 

 cent of the fluid milk in the state 

 is marketed through co-operatives. 

 The value of co-operatives in the 

 fluid milk industry is shown by the 

 fact that milk was the last farm 

 commodity to suffer price declines 

 and even now milk is much above 

 the level of grain, livestock, and 

 other major commodities. 

 Care For Surplus 



An important step is now being 

 undertaken at Rock Island and at 

 Peoria to take care of surplu;> milk 

 by setting up creameries owned and 

 operated by the milk co-operatives. 

 During the past year surplus milk 

 has created one of the major prob- 

 lems confronting the Industry. 



The Illinois Produce Marketing 

 Association handled more than 3,- 

 000,000 pounds of butterfat during 

 1931 through Its 48 member county 

 associations. It is estimated by 

 F. A. Gougler, director of produce 

 marketing for the I. A. A., that the 

 co-operative actually raised the 

 price of butterfat three cents above 

 what the price would have been 

 without farmer organization. This 

 means a cash return of several 

 hundred thousand dollars, not in- 

 cluding patronage refunds to mem- 

 bers. Non-members as well as mem- 

 bers receive the benefit of the Im- 

 proved price level. 



The Soybean Marketing Associa- 

 tion, which has just finished Its 

 second season, has handled nearly 

 3,000,000 bushels of soybeans at 

 prices from three to four cents 

 above prices paid across the state 

 line in Indiana where soybean 

 growers are not organized. This 

 year the association handled a con- 

 siderable volume of beans for ex- 

 port. About 31 counties sent soy- 

 beans through the co-operative this 

 year. More than 4,000 growers hold 

 memberships in the organization. 

 Illinois produces about 40 per cent 

 of the soybeans produced in the 

 United States for commercial pur- 

 poses, and of these the Soybean As- 

 sociation markets about 60 per cent. 



Nearly 1,000 new members were 

 signed up by the red-top seed co- 

 operative, the Egyptian Seed 

 Growers Exchange in 1931, increas- 

 ing the membership to 2,738. This 

 co-operative controls a large part 

 of the red-top grown In this coun- 

 try. About 90 per cent of the coun- 

 try's supply comes from southern 

 Illinois where the Seed Growers Ex- 

 change Is located. 



SAVE CASH CUT 

 FARM COSTS BY 

 VOLIMBUYING 



Organized Purchasing of 



Petroleum Products Pays, 



Save More Than Dues 



Most of the Farm Bureau mem- 

 bers who drive to the celebrations 

 to be held in every county in Illi- 

 nois July 4 will be using oil and gas 

 bought through their own company 

 at an average saving of 15 per cent 

 of what It would have cost them 

 elsewhere. 



The Illinois Farm Supply Com- 

 pany is an excellent example of 

 what farmers can do to cut their 

 production costs through organized 

 purchasing of commodities they 

 need. That the state company and 

 Its subsidiaries have succeeded in 

 achieving this aim is demonstrated 

 by their rapid growth and their 

 substantial refunds. 



April 1 was the fifth birthday of 

 the Farm Supply Company. In 1927 

 It started business with ten county 

 companies already organized and a 

 few others in process of organiza- 

 tion. At the end of seven months 

 the company had 14 member com- 

 panies and had handled for them 

 3,500,000 gallons of petroleum prod- 

 ucts. This was just a beginning. 



Ranked Fifth 



The state company in 1931 

 handled for its 47 member com- 

 panies more than 33,000,000 gallons 

 of fuel oils and lubricants. This 

 farmer-owned company ranked fifth 

 In gasoline sales and second In 

 kerosene sales among the 874 li- 

 censed petroleum distributors in 

 the state last year. 



But what about the savings which 

 the company made possible for 

 Farm Bureau members? In 1931 

 more than $500,000 went back to 

 member patrons from the county 

 subsidiaries This was enough to pay 

 the Farm Bureau membership dues 

 of every member in the counties 

 where these companies operate. If 

 members got no other benefit from 

 the organization but the privilege 



panics already in opera 

 shown substantial increas 

 ness. This indicates thai 

 are realizing more and 

 economic value of co-oper 

 chasing as a means of 

 production costs. 



SURVEY m 

 MONEY SA\ 



Benefits Revealed by 



County Farm Bur 



Typical of All Coi 



The Carroll County Pai 

 returned its members 

 $25.75 In measurable cas 

 for every membership fee 

 recent survey reveals. The 

 of maintaining the ori 

 was $7,704 and the casl 

 and direct savings th 

 services were $16,522. 



rhis saving was reall 

 cipally on five projects of 

 Bureau; namely, automol 

 ance, life insurance, 

 products, serum, and lime 

 amount saved in farm ta: 

 rates, co-operative marki 

 other projects of the Pai 

 is not included In the ab 



More than $8,.iD0"Wfit^ 

 to members as a cash refi 

 and gas purchased thr 

 Farm Bureau company. 

 Ing on life insurance in 

 Bureau company was est 

 $2,784, and on automob 

 ance, $2,708. Comparis 

 based on costs In neai 

 petltlve companies. Tl 

 service returned $1,912 an 

 ing on limestone obtained 

 the organization was $77 



Savings by Towns!) 



In every township exce] 



saving was more than $50 



of the 14 townships, the £ 



more than $1,000. In R 



township, where 79 men 



advantage of the servi 



than $3,000 was returned, 



Records of one of th 



townships in the county 



the returns per membt 



from $2 to $149, depeiK 



how much they used tt 



of sharing in this enterprise they I services of the Farm Bur 



would be amply rewarded. [ -Below are listed the sav 



Three years ago there were only ! by a number of indivldu 



16 companies associated with the at random: Roland Ari 



INVITE YOUR NEIGHBOR 

 TO ATTEND THE DEMON- 

 STRATION YOUR COUNTY 

 JULY 4 



From I^ockford to Cairo They Came 



state company, operating 42 bulk 

 storage stations and approximately 

 100 trucks. Today there are 52 

 member companies, 125 bulk sta- 

 tions, and some 360 trucks serving 

 the farm trade. 



Yet, In spite of the rapid growth 

 during the past few years, 1932 

 prpmlses to be the greatest year for 

 the' project. During February the 

 J'arm Supply Company received 

 orders for more than 400 cars of 

 petroleum products, representing 

 an increase of 19.5 per cent for 

 volatile fuels, 22.3 per cent for lubri- 

 cating oils, and 83.8 per cent for 

 grease over the same month the 

 preceding year. 



April Big Month 



More than five and one-half 

 million gallons of these products, 

 or something over 700 carloads, were 

 distributed to Illinois farmers 

 through this agency during April. 

 During the five years the company 

 has operated, no month has equal- 

 led this In volume. All commodities 

 handled showed substantial in- 

 creases over the corresponding 

 month in previous years. 



Gasoline sales were 3.6 better 

 than any previous April, kerosene 

 sales were 29 1 per cent better, 

 tractor and burner fuel 449.9 per 

 cent better, and lubricating oil 5.5 

 per cent better. 



The gallonage of all petroleum 

 products handled during the first 

 eight months of the present fiscal 

 year exceed the volume for the 

 same period last year by a good 

 margin. The volume handled dur- 

 ing the past eight months was more 

 than the entire gallonage handled 

 by the company during the fiscal 

 years of 1929 and 1930. 



This increase in volume Is not 

 jdue entirely to the organization of 

 the five new companies. The corn- 



Herman Heuerman, $8.94 

 mobile Insurance, $3.40 c 

 gas, and $14.63 on serun 

 Bloyer and Son, $10.42 oi 

 surance and $11.52 on oi] 

 Christ Bremmer, $24.93 c 

 gas; Charles Cheeseman 

 $21 on life insurance an 

 oil and gas; H. L. Derrer 

 oil and gas and $12.50 on 

 Fritz Franklin and Son, 

 auto Insurance, SSO^on '. 

 ance, $36.52 on oil aBIS'' 

 $11.42 on serum; F. a. 

 $7.04 on auto insurance, 

 oil and gas, $78 on serun 

 on limestone. v_ 



A Typical Count 

 Carroll county is not ^ 

 as an exceptional count] 

 Bureau work, but as a' tyj 

 ty. Similar direct savini 

 shown in every organized 

 the state. These five serv| 

 amples of actual cash t 

 the figures are on the 

 show exactly how eacl 

 profited by patronizing 

 companies. The amount i 

 ing depends almost ent 

 the amount of patronai 

 dividual gives to these s< 

 The Indirect benefit! 

 from the tax reduction j 

 the I. A. A., from repi 

 before rate-making and 

 ing bodies, and from c( 

 marketing of farm prodi 

 swell the dollars and ce 

 per member to a mu 

 figure. 



THE FARMER MUS 



THE NATION BAI 



PROSPERir 



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