The amazing progress an* success of 

 co-operative buying and handling of 

 petroleum products by Illinois farmers 

 is emphasized again in the annual report 

 of Illinois Farm Supply Co. 



One County Farm Bureau after 

 another has organized to distribute gas- 

 oline, oil and other farm supplies until 

 today 58 county companies operating in 

 90 counties are associated in this ex- 

 tremely worth-while project. Like other 

 CQ-operative enterprises which preceded 

 it, the co-operative oil company is 

 definitely narrowing price spreads and 

 lowering the cost of quality products to 

 members through patronage dividends. 



The county service companies have had 

 at least three favorable conditions mak- 

 ing for their success. First is the rather 

 wide margin between large volume 

 wholesale prices, and retail prices. This 

 margin has been fairly well stabilized by 

 a few dominant petroleum companies. 

 Second, the good will, power and confi- 

 dence created by the Farm Bureau 

 movement in this state which quickly 

 provided a market for a substantial vol- 

 ume of products. Third, the profit-shar- 

 ing or co-operative principle evidenced 

 by a steady flow of patronage dividends 

 back to Farm Bureau member customers. 



The importance of good management 

 and aggressive salesmanship goes with- 

 out saying. This is clearly indicated by 

 the rather wide differences in volume of 

 business and earnings between companies 

 operating in adjacent territory. 



.■f: 



As the co-operative oil business grows 

 in volume, it^ cuts more and more into 

 the business of private companies. Nat- 

 urally this is irritating. Sooner or 

 later there will be retaliation, price cut- 

 ting and narrowing of margins. That 

 time is fast approaching, if it is not 

 already here. Attempts will be made to 

 entice farmers away from their own co- 

 operative companies by attractive price 

 offers, generally for inferior quality 

 products. 



This sort of thing has happened in 

 every case where organized farmers 

 have attempted to remedy a wrong, stop 

 price gouging, or improve their economic 

 condition. Why should we expect any- 

 thing different in the oil business? 



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If and when this happens, and com- 

 petitors out after the scalps of the co- 

 operatives slash their prices, let's not 

 forget how they got that way. Intelli- 

 gent farmers will take the long view 

 and stay with their own companies. Just 



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STANDING BY HIM 



AJf9/MM^^ 



as well-managed co-operative creameries 

 raise the general level of butterf at prices 

 in the districts where they operate, so 

 do co-operative oil companies serve to 

 protect farmer patrons on the cost and 

 quality of petroleum products. E. G. T. 



Corn Loan Helped 



Neighbbrs in LaSalle 



■v '"One of, my neighbors had between 

 4,000 and 5,000 bushels of corn last fall," 

 says Archie McPhedron of Oglesby, 

 president of the Mississippi Valley Milk 

 Producers. "He told me not long ago 

 that if it had not been for the corn loan 

 program sponsored by the I. A. A. he 

 would have sold his com for around 31 

 or 32 cents per bushel to meet payments 

 he had to make. When the corn loan 

 offer came he got a loan of 45 cents a 

 bushel and held his crop. As a result 

 he finally sold for a much higher price. 



"Without a working organization of 

 farmers neither the com loan nor any of 

 the other price-raising plans would have 

 been possible," says Mr. McPhedron. 



Most Counties Receive 



Corn-Hog Payments 



More than eight million dollars in 

 corn-hog benefit payment checks had 

 been distributed to Illinois contract 

 signers by the second week in October. 



As we go to press nearly every coun- 

 ty in the state has received all or at least 

 a substantial part of the first corn-hog 

 benefit payment which is two-fifths of 

 the payment on hog allotments and one- 

 half on corn acreage reduction. 



Illinois contract signers will receive 

 between $35,000,000 and |40,000,000 when 

 payments are completed in 1935. The 

 second payment is scheduled to be made 

 some time after the middle of Novem- 

 ber, and the third after the middle of 

 February. . ; v § 



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A total of $352,000,000 in rental and 



benefit payments were disbursed up to 

 October 5 to co-operating farmers by the 



AAA. '^^'--^ ;--:.vV-^: ■-^^- 



A Hoax 



The mysterious farmer wlio Is sup- 

 posed to have received $1,000 in the 

 corn-hog program when the most he 

 ever received previously from the sale 



of hogs was $400 in one year, is a 

 "preposterous hoax," according to Secre- 

 tary Henry A. Wallace. '" 



"This story which has been going the 

 rounds is coming to be one of the most 

 familiar ghosts of the recovery pro- 

 gram," he said, ■■^■^(y''-'-^- ■::.■'' ■■'•^■■■^'■'''■y.-'0-''':^' 



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I. A. A. RECORD 



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