Memo no. 1307 |
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DEPARTMENT OF AGRICULTURE
Office of the Secretary-
Washington 25, D. C,
INFO
R; W. T'RULL/NGER
tm' °lfice «» Experiment Static,
larch 2U, 1952
MEMORANDUM NO. 3.307
USDA POLICY REGARDING COOPERATIVES
The U. So Department of Agriculture is charged with a broad
public responsibility for promoting the general welfare and
with a specific responsibility for promoting the welfare of
our rural population. The realm of fulfillment for both
responsibilities lies in the maintenance of a sound, strong
agricultural economy within the framework of the American
system of private enterprise.
These responsibilities involve the Department in relationships
with all of the major economic factors affecting American agriculture. One of the strongest relationships exists between the
Department and the Nation's system of farmer cooperatives. The
nature of this relationship is forged in part by the Federal
legislation which gives life, purpose, and guidance to the
Department, and in part by the economic problems confronting
American agriculture as a whole.
American family farms fall in the category of small business
firms, and face the problems of such firms in a national economy
in which there is a definite trend toward more and more concentration of economic power. The farmer is in a weak competitive
position in dealing with economic problems beyond his individual
control. He has sought and continues to seek means of overcoming
his isolation and improving his position by joining with other
farmers to gain mutual advantage and protection through self-
help. From such efforts have come the many and diverse forms of
cooperatives found in rural America today. They represent modernization of the tradition of neighbors working together to help
themselves and each other in purely democratic fashion.
Based on these truths, Congress and state legislatures have both
seen fit, over several decades, to pass legislation which they
felt would encourage farmers to attack their own problems directly
through the formation of cooperatives. Numerous acts have aimed
to encourage the establishment, operation, and growth of cooperatives organized, owned, and controlled by farmers. It is fair to
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