Thus we observe a minimum membership fee setup, relative ease in 

 becoming a member, and ease in terminating membership. And hired 

 management digs hard for nonmember volume to fill out loads and 

 achieve an economic operation. 



On the other hand, if directors and managers visualize adopting a 

 conscious policy of building their organizations into more aggressive, 

 vital, growth-minded competitive business, then they ought to adopt 

 broader objectives -- for example, objectives that would 



-- enable members to have the best possible income producing 

 farms , and 



-- supply their employees with the best possible income 

 opportunities and work responsibilities. 



In this situation, a cooperative may require greater member financing 

 and member contracts and embark on involved membership relations 

 programs -- all to assure members' patronage. The "urge to merge" will 

 be greater because of the growth that can be attained and the market 

 power that could flow from a successful merger » Patronage refund 

 policies will be important also as a means of getting economic 

 benefits back to producers. 



There will be a compelling necessity to increase efficiency -- to 

 gain economies of scale-- to become market oriented. Thus efforts to 

 "go basic," integrate operations, and improve standards will call for 

 greater capital demands on members. 



Second, the boards should continually challenge hired management to 

 come up with sound plans and systematic programs that would improve 

 services, increase business volume, enhance members' income and, as 

 a residual benefit, document a sound basis for increased employee 

 benefits and pay. 



Third, there is evidence that wiser cash management practices would 

 benefit producers. For example, the buildup of cash and investments 

 in capital stock of other firms during the seasonal low-point of 

 receivables and inventories raises three questions: 



a. Have reserves been built up beyond the point where they are 

 "reasonable"? 



