NOTE: The author expresses his appreciation to Charles L. McNeil, General Manager of Mississippi Federated Cooperatives (A. A. L.), his associates, and the managers of local associations who provided information for this study; and to representatives of the Department of Agricultural Economics, Mississippi State College, and the New Orleans Bank for Cooperatives for their helpful assistance. Also appreciation is expressed to M. A. Abrahamsen of the Farmer Cooperative Service for his sugges tions. The Agricultural Association Law as amended in 1930 required that the names of associations incorporated under the act terminate with the letters (A. A. L.) Farmers in Mississippi developed purchasing cooperatives around fertilizer-from pooling orders for car-door delivery to manufacturing fertilizer in their own plants. ress made since 1936 in integrating their supply purchasing and marketing operations; (2) to indicate some of the benefits farmers have derived from the county cooperatives and their State association in procuring quality supplies at minimum costs; and (3) to suggest ways by which both the State organization and local cooperatives can improve their operations and services, strengthen their financial condition, and improve the welfare of farmermembers in Mississippi. The information in this bulletin can be used by farmer directors, managers and other employees of the county cooperatives, by representatives of educational institutions and other agencies working with agriculture in the State; and by farm and cooperative leaders with policy making and educational responsibilities in other Southern States. Personal interviews where a questionnaire was used early in 1951 gave the information on each county association. Since the study could not be completed at that time, the writer acquired additional information in the summer of 1952 on part of the associations by personal interview. The State association, which Much of the fieldwork in obtaining data on local associations for this circular was performed by John H. Lister and Ralph Shaw of the Coopers tive Research and Service Division. They were not able to complete the study because of Mr. Li ter's retirement and Mr. Shaw's change of employ ment. provides an auditing service for its local associations, made available current operating and financial data. Interviewing its personnel gave detailed information on the State organization. Managers of member local associations also furnished an evaluation of M. F. C.'s services. Data were obtained and analyzed covering the financial position and | operating results of the State association from organization through its fiscal year ended May 31, 1953, and for the fiscal year of county associations ending on June 30, 1952.. Representatives of other agricultural agencies were also consulted, including the Department of Agricultural Economics of Mississippi State College, the Mississippi Farm Bureau Federation, and the New Orleans Bank for Cooperatives. Following a brief setting for the study which includes recent changes in Mississippi agriculture, the increasing use of farm supplies, and the early development of the county cooperatives and Mississippi Federated Cooperatives (A. A. L.), this circular is divided into two parts. The first covers the State association since it was largely responsible for the development of the cooperative system-organizing the member county cooperatives and thereafter supervising and financing them. The second part deals with the member associations, their relationship to the State organization, and their services to farmer-members. Changes in Agriculture and Farm Supply Costs RECE ECENT changes in the types and methods of farming in Mississippi have resulted in the purchase of more farm supplies, and encouraged the development of cooperatives through which to acquire them. World War II stimulated livestock production and a more diversified agriculture in Mississippia trend which has continued since that time. Cattle on farms on January 1, 1953, for example, numbered about 1.9 million or 23 percent above the 1942-51 average, with 88 percent in the upland portion of the State. Cash receipts from marketings of livestock and its products were 30 percent of total cash receipts from all marketings in 1951. Further details are included in Appendix tables 1, 2, and 5. Cotton and corn, of course, remain the two principal crops, but their acreage has been only twothirds to three-fourths of that during the prewar period. More livestock production along with increased dairying and broiler production in certain areas have resulted in farmers purchasing more commercial feeds, more pasture crops seed such as lespedeza, clover, and fescues, more fertilizer for pastures and feed crops, more poultry and dairy equipment, more veterinary supplies, and more hardware, fencing, and building materials. Increase in mechanization has been another important development. The 52,618 tractors on farms on April 1, 1950, represented a tenfold increase from 1930, while the 56,249 farm trucks were 31⁄21⁄2 times that 20 years earlier. Automobiles on farms, however, declined over 10 percent during this period to 76,250 in 1950. (See Appendix tables 3 and 6.) Gains in tractors and trucks have meant a large increase in the use of petroleum products, tires, batteries, and other automotive supplies and much larger expenditures for farm machinery and repair parts. Although a large amount of this equipment is in the Delta, it is also becoming more significant in the upland area. The number of farms electrified increased from 4,792 in 1930 to 140,486 in 1950. The result was a greater demand for electrical farm equipment such as water systems, hot-water heaters, feed grinders, chick brooders, milking machines, and electrical appliances and equipment for the farm home. Although complete data are not available on the expenditures by farmers in Mississippi for production supplies and equipment, data from the United States Census of Agriculture and Bureau of Agricultural Economics showed that in 1949 farmers spent about $77.4 million for feed, seed, fertilizer, and petroleum products. Feed and fertilizer each accounted for about $26 million; seeds, bulbs, and plants amounted to $9 million; and petroleum products, $16.5 million. (See Appendix tables 4 and 5.) The outlay for these four items alone was equivalent to about 16 percent of cash receipts from farm marketings in Mississippi that year.3 * Expenditures for feed and seed, however, include purchases from one farm to another and thus are considerably greater than amounts bought through commercial channels. another $5 million, thus bringing the total spent for production supplies to about $93 million that year. And if farmers purchases of buildings, motor vehicles, and farm machinery and equipment estimated at $75 million were included, total expenditures for supplies and equipment used in production would have represented about 30 percent of their cash receipts from marketings. Figure 1 indicates the expenditures for four groups of supplies by counties in 1949. The tons of fertilizer shipped to each county during the year ended June 30, 1952, is shown in figure 2. The quantities by types and areas in the State are shown in Appendix table 7. Other factors which have influenced the progress made by pur chasing cooperatives in Mississippi include the size of farms, proportion of tenancy, and the cash income from marketing. Although the av erage size of farm has increased from 63 acres in 1935 to 82 acres in 1950, about 45 percent of the farms were still under 30 acres and comprised only 8 percent of total farm acreage, At the other extreme, 5 percent of the farms were over 260 acres in |