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THE FARMER AND MARKETING

The farmer and those engaged in advising and helping him have a tremendous stake in an
efficient marketing system. The income from the raw products which farmers sell is a function of
the smooth operation of the marketing system. As one author has phrased it, the effective and
efficient marketing system from the farmers' viewpoint is one which will induce the production
of those products and quantities which, when sold to consumers, will result in maximum returns
after the deduction of minimum marketing charges and farm production costs.

Knowledge of marketing and its problems will help farmers make needed business decisions.
Some of these decisions are as follows:

1. What to produce.

For example, some fruit varieties are more desired than others. Some hog types will produce
more consumer-desired pork than others. Farmers who know these market desires can adjust
their production accordingly.

2. How to prepare products for markets.

The degree of maturity at harvest often influences the value of products. The kind of harvesting
equipment used may have an effect on the damage and spoilage of some products. Certain
packing practices may influence the amount of transportation damage. Following such practices
will permit the farmer to reduce part of the marketing costs.

3. When to sell or buy.

Different products have different high and low periods of prices throughout the year. Breeding
and production patterns may be changed to take advantage of these price patterns. Storage
practices may be reviewed in light of cost and return possibilities. Costs of things that farmers
buy may be reduced by knowing whether there is a usual period of low prices.

4. Where to sell or buy.

Many alternatives are usually available. Which outlet will help maximize returns? What factors
should be taken into account in making the decision?'

Also, familiarity with marketing may help farmers make wiser decisions as members of a group.
Should a cooperative be formed to help do a marketing job? What part should government play
in control and regulation? What position should be taken toward a new method or development?
A broad knowledge of the objectives, organization, and operation of marketing is needed to
judge wisely the proper actions which need to be taken.

These are just a few of the contributions which knowledge of marketing can make toward more
profitable farming. The objective of production from the producer's standpoint is profit. And
profit is not realized until the product is sold. Coordination of those activities which occur within
as well as those which occur outside the farm fence is necessary for maximum returns.

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