2 BULLETIISr 403^ U. S. DEPARTMENT OF AGEICULTUEE. 



While agricultural marketing organizations are founded primarily 

 for the disposal of products of the farm to the central market, in a 

 majority of cases they have found it necessary for the convenience of 

 their patrons to handle certain lines of farm supphes. Many live- 

 stock shipping associations are at present selling grains and prepared 

 feeds to the farmers, and as this is done to some" extent on credit accu- 

 rate accounts receivable must be kept. 



The system of accounts devised by the Office of Markets and Rural 

 Organization and described in this bulletin has been so constructed 

 as to meet the requirements of shipping associations under vary- 

 ing conditions at a minimum expenditure of time and bookkeeping 

 effort,^ and is the result of investigations made by the office in 

 cooperation with several five-stock shipping associations in various 

 States where the system is now in successful operation. Special 

 care has been taken to make the method of application as direct as 

 possible and to cut to a minimum the number of forms necessary to 

 do the work properly. It is well understood that not all the forms 

 included in the system will be needed under every condition of opera- 

 tion, but such forms as are suggested will be found practicable for 

 use in every association attempting to keep an accurate account of 

 the transaction of its business. 



TYPES OF SHIPPING AGENCIES. 



The efforts of farmers to market their own five stock where suffi- 

 cient animals are available to support united efforts usually have 

 resulted in the formation of a corporation or association equipped 

 with the necessary estabfishment to do the work. This often includes 

 a yard and scale and the employment of a buyer or manager, with 

 provision for an office at or near the yard. Where such associa- 

 tions have been formed and have not had sufficient business to 

 make it profitable to keep a manager, individual farmers have taken 

 turns at shipping for the association. This method can not be 

 recommended, however, as some one should have a continuous 

 knowledge of the affairs of the association to insure proper service. 



Individual buyers having an estabfished business at a certain 

 point frequently make it a practice to ship for farmers on commission 

 on the same basis used in shipping associations. This arrangement 

 is common only in places where but few farmers have the desire to 

 sell at terminal market prices. In any case, the accounting records 

 necessary would be similar. 



1 For a further discussion of general subjects relating to live-stock shipping associations, see Doty, S. W., 

 and Hall, L. D., "Cooperative Live-Stock Shipping Associations," U. S. Department of Agriculture, 

 Farmers' Bui. 718, 1916. 



