H oh the Work ofF.C S. W ith Farmer Cooperati (Contributes to the ves Nati lonal Interest 3 Prize-Winning Essays Farmer Cooperative Serviee U. S. Department of Agrieulture Information 25 Mareh 1962 This leaflet gives the three prize- winning papers of an essay contest on the subject "How the Work of F. C. S. with Farmer Cooperatives Contributes to the National Interest. " This contest was open to all em- ployees of Farmer Cooperative Service other than Division Directors. It was conducted to stimulate F. C.S. staff thinking on the meaning and signifi- cance of our work. The 18 papers submitted were judged by the Division Directors, with only a number to identify each entry. Because of the worthwhile content of the winning essays we are putting them in this form for wider cir- culation. -- Joseph G. Knapp, Administrator Farmer Cooperative Service U. S. Department of Agriculture First Place Winner by J. Warren Mather Chief, Farm Supplies Branch The work of FCS involves two sets of ingredients- -research, service, and education, and farmers and their business organizations. Both contri- bute to our national welfare. Applied together effectively, they produce benefits to agriculture, business, labor, and consumers. Farmer Cooperative Service re- search on cooperative purchasing of farm supplies and services helps farmers reduce costs, improve yields or gains, and save time and labor. It supplements research of the De- partment and State universities to improve farm production. Research on the cooperative marketing of farm products helps farmers improve their returns, develop wider markets, and strengthen their bargaining power. Examples of FCS work are studies showing how cooperatives can reduce operating expenses, control credit, provide efficient insurance services, improve merchandising, coordinate sales, use better pooling practices, and lower transportation costs. Research and educational activities of FCS help farmers build strong economic institutions that benefit thousands of rural communities. We examine business policies; encourage use of sound cooperative principles; and analyze methods of selecting di- rectors, financing operations, and conducting membership relations. Sound cooperatives resulting from this assistance also develop social values- -a spirit of self-help, mutual aid, local ownership, and farm leader ship- -all elements in the na- tional interest. The work of FCS implements our national policy of helping farmers, through group action, obtain a fair share of the Nation 1 s income. A Tt committee of conference" in the House reaffirmed this policy in 1961. FCS activities are of value to other segments of our economy. Our re- ports go to many business firms that perform services similar to those of farmer cooperatives. Our statistics and findings showing the position, role, and trends of such coopera- tives are used by business, educa- tional, and governmental agencies, and the public. Net savings of cooperatives, result- ing from application of our research, soon are spent for tractors, auto- mobiles, clothing, and other items. This helps factories in the cities and businesses in rural towns. More- over, strong cooperatives prevent monopolies, thus helping small in- dependent companies stay in business. The labor force of cooperatives benefit from our studies of personnel policies, retirement programs, and incentive pay plans. Employees attain more security as other studies point the way to stronger cooperatives. The work of FCS also is in the in- terest of consumers and the general welfare. Our studies aid farmer cooperatives to adopt better inspec- tion of products; determine kinds and qualities of products consumers want; and to provide -them in convenient, attractive packages which help protect the quality of the food. Few people would question whether Diamond walnuts, Sunkist oranges, or Land T Lakes butter are in the national interest. As our research helps build effi- cient cooperatives, they serve to restrain monopolistic practices and cause other firms to become more efficient. This eventually benefits consumers. Furthermore, strength- ening the economic position of farmers assures consumers a steadier, more abundant supply of food and fiber and a higher standard of living. Research and education are hall- marks of progress in America. They are the main services or tools FCS uses to help farmers efficiently pro- vide necessities for the people of our Nation and other countries. Second Place Winner by Oscar R. LeBeau Membership Relations Branch The Farmer Cooperative Service engages in a multitude of research, service, and educational activities that contribute to the national inter- est. Through its constructive work with interested farmer cooperatives, governmental agencies, and others, FCS extends its helpfulness the Nation over. In the process of aiding farm- ers, FCS gives new impetus to the place of cooperatives in the Amer- ican private enterprise system and strengthens the image of democracy throughout the free world. FCS Encourages Farmer Self-Help Cooperatives provide farmers with a much- needed economic tool. In helping farmers to help themselves, FCS effectively lessens the need for costly governmental assistance pro- grams. This in turn adds to the dignity of farming. FCS Helps To Preserve Farmers' Economic Freedom Through its work with farmer coop- eratives, FCS helps farmers to attain jointly what they could never achieve separately. Through the vote mem- bers have in their cooperatives, farmers retain a voice in their off- farm business activities. With contract farming threatening to revolutionize agricultural business operations, cooperatives may well hold the answer to "Who is going to control farming?" FCS Aids Rural Areas Development Cooperatives offer a practical means of improving living standards and income in rural areas. Cooper- atives are helpful in obtaining produc- tion supplies and services and in marketing agricultural products. They provide employment and add to the community's tax base. FCS Helps Carry Out Researeh Results FCS economists, working in coop- eration with State marketing special- ists and other key leaders, can often assist in effecting research recom- mendations. The savings resulting from more efficient operation and competitive pricing may ultimately be reflected in lower prices to con- sumers as well as more adequate returns to cooperative members. FCS Pyramids Its Services Through Joint Efforts The good which FCS can do is greatly multiplied by the many ways the agency works with other groups. For example, the educational work that FCS conducts jointly with the American Institute of Cooperation, the various State cooperative councils, agricultural extension workers, and others takes on surprising propor- tions when totaled. FCS Maintains Cooperative Reeords and Statisties The annual cooperative statistics report, developed from information submitted by farmer cooperatives of the Nation, is a distinct contribution to American agriculture. Moreover, the records maintained are valuable for research and educational purposes. FCS Promotes International Good Will and Understanding The many foreign agricultural leaders who visit our shores annually to study farmer cooperation under the guidance of FCS representatives leave with a high regard for the American private enterprise system. These training activities, plus the cooperative exhibits displayed at international fairs in New Delhi, Cario, and other places, have done much to cement international good will. These are a few of the ways in which the Farmer Cooperative Service con- tributes to the national interest. I am proud to be a part of that effort. Third Place Winner by John M. Bailey Farm Supp 1 i e s Branch A strong agriculture is a necessary link in our chain of national in- terest. The contributions of Farmer Cooperative Service to the national interest are reflected in its efforts that strengthen the farm sector of our economy. Believing that which is good for agricultural cooperatives is good for farmers, FCS is dedicated to the good of cooperatives. While the re- search, service, and educational activities of FCS are largely oriented to cooperative business entities, the ultimate beneficiaries are the mem- ber patrons. The contributions of FCS appear as end products in the economic and social well-being o f farmers and their families. Economic Well-Being Here is how FCS contributes to the national interest by enhancing the economic well-being of agriculture. 1. Its research encourages effi- cient business operations. Efficient business operations mean higher prices for products marketed and lower prices for production supplies and services. This combination in- creases net income to farmer mem- bers and thus strengthens agriculture. 2. Well-being is influenced also by cooperative attainment of market power. FCS activities help achieve market power by strengthening bar- gaining cooperatives; by encouraging both vertical and horizontal integra- tion; and by analyzing the merits of mergers, consolidations, and ac- quisitions. 3. Agricultural well-being is fur- ther enhanced by virtue of FCS efforts to promote expanded and pooled research by cooperatives- - research directed to improve re- source use at cooperative and farm levels. 4. FCS draws upon its background of research and experience to recom- mend sound policies for organizing, financing, and operating cooperatives. 5. FCS personnel participate in workshops, training centers, and other educational activities to raise the level of operations in cooperatives. In whatever ways FCS strengthens cooperatives, healthy market com- petition is sustained and monopoly restrained. Social Well-Being The contributions of FCS to social well-being in the farm sector include the following: 1. FCS in its membership activ- ities encourages wider participation in cooperative affairs. Participation leads to understanding of business principles; it establishes a conviction of the power of concerted action; it 8 helps farmers recognize common problems and points up the effective- ness of joint action to achieve goals. These traits expand members' poten- tial for service to society. 2. FCS emphasizes in its service and educational work the necessity of member responsibility. The areas of responsibility include financial sup- port and an interested voice in coop- erative affairs. Member responsibility for financial support of cooperatives adds strength to individuals in their civic affairs by alerting them to costs of endeavors and the need for broad support. In a political sense, a cooperator carries into his civic affairs a con- viction of the strength of democratic processes. His cooperative respon- sibility has enhanced his value in public affairs. FCS publications on conduct of meetings and group re- sponse add substantially to his role in other group efforts. In brief, our staff is alert to recognize new and better methods. Our Service, through publications and personal contacts, passes observa- tions and recommendations of jobs well done to others and thus serves as a catalyst and exchange agent between cooperatives and people for achievement of a stronger rural link in our national interest. UNIVERSITY OF FLORIDA 3 1262 08500 2383 Other Publications Available Cooperatives in the American Private Enterprise System. Information 24. Co-ops Have a Place in Rural Com- munity Progress. Information 23. Providing Equitable Treatment for Large and Small Members. Infor- mation 21, Irwin W. Rust. The Story of Farmers' Cooperatives. Educational Circular 1. Forming Farmer Cooperatives. Edu- cational Circular 10. Sizing Up Your Cooperative. Edu- cational Circular 11. Farmer Cooperatives in Our Com- munity. Educational Circular 12, A. W. McKay. A copy of these publications may be obtained upon request while a supply is available from -- Information Division Farmer Cooperative Service U. S. Department of Agriculture Washington 25, D. C.