AIS-Uncastei Farming, Saturday, March 14,1981
NFO grain marketer says farmers need system
WARRINGTON - “For any
business to be a success, four basic
needs must be met.
“There must be capital,
management, efficient marketing
and a marketing system that
allows both seller and buyer a fair
profit,” Glen Utley, speaker and
former Director of the National
Farmers Organization, told
producers attending a recent day
long gram seminar, sponsored by
the National Farmers
Organization.
The seminar drew farmers from
Eastern Pennsylvania counties
and New Jersey, meetmg at the
Warrington Motor Lodge &
Restaurant.
Utley praised the efficiency of
the modern farmer. “You got
efficient for the buyer, but that
alone will not guarantee you a
profit so that you stay in business,”
he said. “You must have a
marketing system that is in your
control
“The old marketing system has
been the procurement structure of
the gram traders. It isn’t designed
for producers. It isn’t designed for
producers. It isn’t helping you as
producers. But if you don’t have a
system of your own, you have to
serve theirs
Since producers have, never
designed and built a marketing ;
system that would secure a fair _
profit for their production, the t
traders of agricultural products
were forced to build a procurement }'
system that will supply them an
abundant supply, any place,
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anytime they need it, he said.
What must producers do?
Utley suggested they must begin
to live by the three’“Com
mandments for the preservation of
the family farm. (1) Any group
that fails to create its own
marketing system is doomed to
serve another’s (2) When a system
breaks down and there is no other
system to take over, chaos results;
(3) If any group holds a service or
commodity that is essential to a
basic industry and that group is
uncontractable, then that service
or commodity will be forced mto
that basic industry by repressive
means.
“Producers must build a
bargaming block—that is, a large
unit of production maintained over
an extended period of tune, every
growing larger and ever extending
over a longer period of tune. And
they must learn to use then own
marketing system,” Utley ex
plained.
“A marketing system is a
procedure whereby the producer
-transfers the title of the production
p f a buyer for the purpose of both
parties realizing a profit.
“Under the same system,” Utley
said,. “Speculators sell a lot of your
gram one or two years before you
harvest it„and the buyers set.your
-prices. U.S. farmers produce about
12 billion bushels of gram per year,
and they are receiving $2 less per
bushel than they should.
“One of those dollars is needed to
help pay your fertilizer, fuel, etc„
'and the other dollar should have
been your profit.
“Our economy cannot survive as
long as its biggest industry is
prices under the cost of production.
Everyone who sells the gram after
it is purchased from the farmer,
puts a price on it—everyone but the
farmer,” he said.
“$l6B million was lost to the U.S.
economy last year because our
gram was sold at $2 under a fair
price That money is being used by
foreign buyers and our own cor
porations to buy our farmers out.
Instead of getting that profit, we
are forced to turn around and
borrow it. Let’s turn the traders’
system around so that it will work,
for everyone in the world. ”
Utley said that to have a com
plete working system the producer
must (1) join an organization that
is working for a fair,price; (21
build a power base—your
production, contracted on a steady
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