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LTOGETHER, about 130 farmer cooperatives serve their members in the Territories of Alaska and Hawaii and the Commonwealth

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of Puerto Rico. This section discusses the growth and present activities of these cooperatives, and their importance in their localities.

OUR farmer cooperatives are now active in Alaska. These are the Matanuska Valley Farmers' Cooperative Association, Palmer; the Tenana Valley Farmers' Association, Fairbanks; the Juneau Dairies, Inc., Juneau; and the Kachemak Bay Farmers' Association, Homer. A fifth organization at Anchor Point, on the Kenai Peninsula, has been inactive. Aside from these, there are several Rural Electrification Administration cooperatives and a dozen or so native. village cooperative purchasing groups.

The Matanuska Valley Farmers' Cooperative Association, commonly referred to as MVFCA, was formed in 1939 among the colonists of the Matanuska Valley project. The community facilities of the colony were purchased on a longtime contract. The farmers took over the operation of cooperative stores which sold farm supplies, groceries, and dry goods; the creamery and produce plants; a garage; a dormitory; and other housing facilities. In spite of certain difficulties, including occasional periods of lax management in the past, the association has thrived. In fact, it has been the nucleus of the Matanuska Valley's progress. Membership in 1954 was 125.

The MVFCA receives milk from 41

shippers. The cooperative plant at Palmer bottles milk and distributes it largely in Anchorage. In addition to fresh milk the cooperative manufactures recombined milk for the military posts of Alaska. It is the largest manufacturer of ice cream and cottage cheese in the Territory. The Palmer plant is completely modern.

The MVFCA also handles eggs and produce for its members. It stores approximately 1,500 tons of potatoes and has modern grading equipment and cold-storage facilities. The Trading Post, with farm supply store, petroleum bulk plant, and housing facilities, is active.

The Tenana Valley Farmers' Association organized in 1945 to market the produce grown in the Tenana Valley around Fairbanks. It also purchases feed and fertilizer for its members each year. The group built a root storage of about 800-ton capacity and purchased grading equipment which has enabled them to store and market efficiently. The membership in 1954 was 53.

Juneau Dairies, Inc., is an association of four dairymen who have sizable herds. Its modern processing plant bottles milk and makes ice cream and cottage cheese for Juneau and sur

rounding towns. Although the plant is small it provides an efficient outlet for milk.

Kachemak Bay Farmers' Association has a membership of perhaps 20

farmers, most of them with small or part-time operations near Homer. The organization buys feed, seed, and fertilizer for the members but does no marketing.

GRICULTURE in Hawaii centers around production of sugarcane and pineapples by about 40 large plantation units. There are considerable numbers of independent growers in some areas of the Islands but their output is small when compared to that of the corporate farms. Of the 5,246 farms listed in the Territory at the end of 1952, production of sugarcane or pineapples was the major enterprise of 1,765. In terms of value at point of production these two major crops made up over three-fourths of Hawaii's income from agricultural output.

The 28 sugar plantations of Hawaii market their entire output of raw sugar and molasses through the California and Hawaiian Sugar Refining Corp., Ltd. The "C. and H." is a stock-type cooperative, chartered in California as a producer cooperative in 1921. It is owned and operated by the Hawaii plantations, ownership being substantially in proportion to the volume of sugar marketed by each member unit. This cooperative organization operates two refineries, one on the Mainland and one in Hawaii. The C. and H. refinery at Crockett, Calif., is the largest of its type in the world. It has an annual capacity of 775,000 tons of raw sugar. In 1953 the value of raw sugar and molasses produced by Hawaii's plantations for marketing through this association was over $145 million.

There are 3,481 farms engaged in producing diversified agricultural commodities (other than sugarcane and pineapples). Among these the major enterprises in 1954 were livestock,

poultry, vegetables, coffee, fruits, and taro. Almost two-thirds of the units producing diversified crops were classified as vegetable, coffee, or swine farms. Beef, dairy and poultry products accounted for over half the value of 1954 marketings from the diversified farms.

Aside from successful efforts on the part of Hawaiian sugar planters, development of farmer cooperatives in the Islands has been of recent origin and is still limited in scope. The organizational period for formal cooperative associations by small-scale farmers in Hawaii began in 1934. Prior to this date the only forms of joint action consisted of informal Japanese groups (called “Kumiai”, the Japanese word for cooperative), and Chinese groups (called Hui) organized for such mutual activities as burial, credit, and investment. A number of marketing associations were set up between 1934 and 1941 but the mortality rate among these groups was high. Major reasons for the difficulties of these early associations included faulty organizational pattern, poor management, unsatisfactory membership relations, and inadequate financing.

During World War II a cooperative type of produce marketing organization operated successfully to channel fresh fruits and vegetables through the Military Farm Produce Coordinator in Honolulu. Many people believed that this organization would serve as the basis for an islandwide produce cooperative after the war, but these plans failed to materialize. During

and after the war period several local associations handling poultry, produce, flowers, and farm supplies were established.

In 1949, the Territorial Legislature enacted a law that provides adequately for the needs of farmer cooperatives. Now the way is much more clear for farm groups desiring to engage in formal cooperative activity. But there has been only limited development of new associations since the improved act became effective.

There were 18 local farmer cooperatives with 1,060 members actively operating in Hawaii at the close of 1953. Each of the major islands of Kauai, Oahu, Maui, and Hawaii had at least two of these cooperatives. All but two of the organizations were engaged primarily in marketing. This has been the function emphasized in the cooperative movement as it has developed in the Islands.

Eight of the marketing associations with 418 members are packing and shipping fresh fruits and vegetables to the Island markets. One cooperative owned by five cattle ranchers markets much of the beef consumed on the Island of Hawaii. Two other livestock associations market live hogs on the Island of Oahu. Three marketing groups handle eggs and poultry while the remaining two associations market coffee and flowers, respectively. A new association of coffee growers is building a coffee mill on the Island of Hawaii. This is the second cooperative actively marketing Kona coffee. The 16 marketing associations reported more than $3.6 million in gross business (including farm supplies) during 1953.

Two associations engage exclusively in purchasing supplies in the Territory. These units, located on Oahu, specialize in livestock and poultry feeds. In 1953 they had 335 members who purchased farm supplies valued at $719,000. Several of the marketing associations also handle a line of production supplies as a service to their members. The value of farm supplies that were purchased through Hawaii's

Bulk sugar bins at the Crockett, Calif., refinery, largest of its kind in the world. California and Hawaiian Sugar Refining Corp., Ltd., a producers' cooperative, operates this refinery and also one in Hawaii.

marketing cooperatives in 1953 probably exceeded $500,000.

Ón all the major islands except Oahu farmers have made substantial progress in building a cooperative source of credit through organization of Federal Credit Unions. This approach to the credit problem has been reasonably satisfactory during recent years of high prices when growers have had a surplus of funds to invest in the Unions. The Farm Credit Administration's program of cooperative credit for agriculture has not yet been extended to Hawaii.

In 1953, about 25 percent of the farmers producing diversified crops in Hawaii were members of one or more cooperatives. Further development of farmer cooperatives is probable. However, there are serious impediments in the form of a traditionally suspicious attitude of farmers toward one another. Lack of adequate financial resources must be overcome, also, before the movement will develop as it has on the

Mainland. Comparatively speaking, progress has not been rapid in establishing cooperatives among the small family-type farmers in the Territory. However, there is now available a sat

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isfactory legislative authorization plus sufficient accumulation of actual experience to guide those who endeavor to engage in new or expanded cooperative action.

ECAUSE of complex social and economic factors affecting the Puerto Rican economy, cooperative development is of vital importance, especially in agriculture. This island, which is about 100 miles long and 35 miles wide, had about 90 percent (about 1.8 million acres) of its total land area in farms in 1950.

Most Farms Are Small

There were 53,515 farms in Puerto Rico in 1950. Over half were less than 9 acres and nearly 90 percent were less than 49 acres. Only 2 percent had 252 acres or more. Of the land in farms, 41.7 percent was used for crops, 34.6 percent was suitable for crops but was used for pastures, 8.5 percent was used for crops although not suitable for such purpose, 9.8 percent was in

Puerto Rico Cotton Growers Marketing Cooperative, Arecibo, only cotton co-op on the Island, handles almost all of the cotton raised there.

hills and mountains, and 5.4 percent

was used for roads and buildings or was wasteland.

Population in Puerto Rico totaled 2,210,703, or 645 inhabitants per square mile, in 1950. Of these, 1,315,890, or 60 percent, were classified as rural and the remainder as urban. Because of the population pressure, subsistence farming is common on the poorer hilly land. Such farmers, of course, obtain only a meager living.

Of

Gross income from agriculture in 1952-53 totaled $211.7 million. this total, about 72 percent came from crops and 28 percent from livestock products. Most of this farm income was derived from export crops, principally sugarcane, tobacco, pineapples, coffee, coconuts, and vegetables. Over $103 million or about half the income was from sugarcane alone. Milk accounted for over half the income from livestock products.

Agricultural products contribute about four-fifths of the net exports of the Commonwealth. Sugar, molasses, and rum constitute about three-fifths. Coffee, tobacco, and fruits account for the other fifth.

Cooperatives Develop

Interest in farmer cooperatives began in the 1920's. An association to market sugarcane had been incorporated under corporation laws of Puerto Rico in 1919, but it dissolved 2 years later. The first cooperative law in the Commonwealth was passed as Act No. 70 on August 4, 1925, and was amended in 1926, 1932, and 1938. It pro

vided for the incorporation and regulation of marketing cooperatives. It can be credited as the act which really awakened the interest of authorities and farmers in the benefits of cooperative action.

From 1925 to 1933, 34 marketing cooperatives were formed under this law. Half of these were tobacco marketing cooperatives which eventually failed. In fact, most of the cooperatives organized during this period failed. Factors responsible for their failure were severe hurricanes of 1928 and 1932, the depression of the 1930's, lack of markets, lack of specific branded products, and lack of good management and of capital. The few cooperatives that survived were completely reorganized. These included the Cooperativa de Cafeteros de Puerto Rico, Ponce, and the Puerto Rico Tobacco Marketing Cooperative Association, San Juan.

The largest agricultural marketing cooperatives operating in the Commonwealth were organized during the period from 1934 to 1945. Among the several Federal Agencies which began operations in Puerto Rico during 1934 and greatly helped in the development of modern farmer cooperatives were:

1. The Puerto Rico Reconstruction Administration. This agency operated a cooperative division and made possible the existence of some of the Commonwealth's strongest farmer cooperatives.

2. The Baltimore Bank for Cooperatives, Farm Credit Administration. From 1934 through 1954, the Puerto Rico Branch of the Baltimore Bank for Cooperatives made loans amounting to more than $42.5 million. The strongest farmer cooperatives are its main clients.

3. Production Credit Association, Farm Credit Administration. This association began with nine scattered offices in 1934. In 1936 it was consolidated as the Puerto Rico Production Credit Association. It finances growers of sugarcane, tobacco, coffee,

The Insular Government and the Agricultural Extension Service of the University of Puerto Rico also helped greatly in the development of cooperatives that followed.

A study made by the Cooperative Research and Service Division of the Farm Credit Administration in 1936 showed there were 9 farmer cooperatives in Puerto Rico with more than 3,500 members and a total volume of business of approximately $3.7 million. By 1940, according to annual reports of the Puerto Rico Reconstruction Administration and the Coffee Marketing Cooperative Association, there were 11 farmer cooperatives with 6,505 active members, a capital investment of $6.4 million and a total volume of business of $5.3 million. These consisted of 1 each of associations marketing tobacco, cotton, coffee, and fruits; 1 purchasing farm supplies; 2 marketing sugarcane; and 4 marketing vegetables.

During the. 1920-45 period, a total