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Some factors making for the success or failure of agriculture in British Columbia Lee, Doris E. 1925

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SOMI FACTORS MAKING FOR THE SUCCESS OH FAILURE OF AGRICULTURE IK 3. C. 8Y DORIS LEE  SCSIE FAOfOBS MAKING, F O R T H E S U C C E S S OR FAILURE OF AGRICULTURE IN BRITISH COLUMBIA  by DORIS LEE.  i  A Thesis submitted for the Degree of Master of Arts in the Department of Economics.  The University of British Columbia. April, 1925.  SOME FACTORS MAEIHG FOB THE SUCCESS OB FAILURE OF AGRICULTURE 13 BRITISH COLUMBIA.  CHAPTER 1 .  Introduction.  CHAPTER 2 .  The A g r i c u l t u r a l R e v o l u t i o n .  CHAPTER 2*  The Poultry I n d u s t r y .  CHAPTER 4 .  The Dairy I n d u s t r y .  CHAPTER 7 .  The Tree F r u i t Industry*  CHAPTER 6 .  The 3 B e l l - f r u i t  CHAPTER 6 .  The C a t t l e and Sheep I n d u s t r y .  CHAPTER 9 .  Factors a f f e c t i n g Land V a l u e s and i n B. C.  CHAPTER 8 ,  Co-operation.  CHAPTER 1 0 . Conclusion.  Industry,  Land Incomes  - 1 SOME FACTOBS WlilCH MAKE FOB THE SUCCESS OB FAILUBE OF AGBICULTUBAL IU BRITISH COLUMBIA.  goreword -  Daring the p a s t few years a g r e a t many eomplaiats  have been made by the farmers of B r i t i s h Columbia.  They  claim t h a t in s p i t e of the g r e a t n a t u r a l advantages t h a t they enjoy they a r e unable to Ba&e any p r o f i t o u t of t h e i r farms; t h a t the majority have had d i f f i c u l t y at all*  in making ends meet  A g r i c u l t u r e i n t h i s Province i s g e n e r a l l y oonoeded  to be an u n p r o f i t a b l e o c c u p a t i o n .  The purpose of t h i s essay  i s t o d i s c o v e r , i f p o s s i b l e , how much t r u t h t h e r e i s in these r e p o r t s , and to find out what a r e the f a c t o r s l e a d i n g to success or f a i l u r e * Time and space prevent an adequate treatment of a l l the f a c t o r s involved:  Besides a d i s c u s s i o n of each of  the types of forming, the p a r t i c u l a r problems of c o - o p e r a t i o n , and the high value of the l a n d , are onli ones to which a s e p a r a t e chapter is devoted.  The problem of P r o t e c t i o n and  the c l o s e l y a l l i e d question of F r e i g h t B a t e s , meant individual treatment but have received onl^ a cursory mentioa a t the end.  - £ IBTRODUCTORY. Chapter 1 . T.e Province o f B r i t i s h Columbia i s bounded by the United S t a t e s on the s o u t h . Alberta on the e a s t , Yukon and Alaska on the n o r t h , and the P a c i f i c Ocean on the w e s t . At present i t o c c u p i e s a r a t h e r out of the way p o s i t i o n w i t h r e s p e c t to world markets, but in the f u t u r e , when trade w i t h the  Orient assumes g r e a t e r importance, B r i t i s h Columbia w i l l  have a very f a v o r a b l e s i t u a t i o n * The Province i s some seven hundred m i l e s l o n g by f i v e hundred w i d e s , and has a p o p u l a t i o n of 524,582 p e o p l e , not q u i t e 2 people per square m i l e .  A s regards occupation  12.7% o f the p o p u l a t i o n are engaged i n a g r i c u l t u r e as compared to 1618% in f o r e s t r y , f i s h i n g and mining, the other e x t r a c t i v e industries. There are three great mountain r a n g e s ; the Bookies i n the e a s t , the S e l k i r k s about s e v e n t y m i l e s west of the Hookies, ynd the Coast Bange.  Between the o e l k i r k s and the  Coast Bange there i s a great Central Plateau* expected c l i m a t i c c o n d i t i o n s vary g r e a t l y . three main a o n e s .  A s might be  1'here are however  In the C o a s t d i s t r i c t the c l i m a t e i s mild  and equable with few extremes of heat or c o l d and w i t h a heavy rainfall.  In the dry b e l t s of the i n t e r i o r such as the  Kootenai and  Okanagan V a l l e y s , there i s much l e s s  and there are g r e a t e r extremes of temperature,  rainfall  i n the  e a s t e r n d i s t r i o t a which on the whole are mountainous, one f i n d s (1)  Canadian Year Book 1 9 2 8 .  • 3 cooler summers and cold w i n t e r s with i e r y heavy s n o w f a l l s . F a m i n g i s c a r r i e d on i a the I n t e r i o r on the Plateaux and in the v a l l e y s , along the Coast on the d e l t a s a t the souths of r i v e r s , and on Vancouver I s l a n d .  The t^-pe  of farming v a r i e s with the l o c a t i o n and the kind of s o i l , which depends r a t h e r upon the g e o l o g i c a l formation of the land than upon the l o c a l i t y . to p r a c t i c a l l y any c r o p .  There are s o i l s in B. C. s u i t e d  There a r e 50,000,000 acres of land  suitable for some kind of a g r i c u l t u r e but about half of t h i s i s onl} f i t f o r p a s t o r a l p u r p o s e s .  Of the remaining 25,000,000  a c r e s , 2,000,000 a r e well f i t t e d for f r u i t growing.  This  land i s s i t u a t e d in s p e c i a l i s e d d i s t r i c t s , and only in Central B.C. i s general farming c a r r i e d on.  Up the ¥ r a s e r Valley  there are numerous dairy farms, while small f r u i t s are produced a t Maple Ridge, s t r a w b e r r i e s in p a r t u c u l a r a t Saanich, and poultry farms are centered a t Duncan and Hammond. Because h i s land i s very new the B.C. farmer has many s p e c i a l d i f f i c u l t i e s to face in developing i t .  A series  of problems in engineering confront him a t the o u t s e t .  £i:ie  land must be c l e a r e d , the stumps removed by burning o r ' b l a s t i n g , and in many cases drainage i s necessary, while in s t i l l o t h e r s the land i s u t t e r l y u s e l e s s without some s o r t of i r r i g a t i o n , and in these cases water i s u s u a l l y d i f f i c u l t  to o b t a i n .  These  are some of the f a c t o r s which make the cost of improved land So h i g h . Agriculture i s very important as an industry in  "•* 4:  B. C,  mm  It i s ranked as follows; Values of net production:  Forestry  £7.9$  Agriculture  17.8%  Mining  17*2%  Fisheries  9.8%  Agriculture stands second, having produced #59,159,798.00  U)  worth in 1923, the l a s t year for which figures ure a v a i l a b l e : The importance of agriculture to B.C. cannot be denied, and a s i t u a t i o n which shows that those engaged in i t are unsuccessful should be regarded by the government as a menace to the welfare of the people of the Province.  (1)  Canadian Year Book 1922.  - 5 THE AGRICULTURAL RBVOLUTIQM* Chapter 2. Agriculture throughout the world has just passed through a period of »erv, serious depression, which has resulted in greater demands from the farmers.  Agricultura-  lists are reclaiming that position of importance in national affairs which they consider rightfully theirs* With the exception of a few predoainaantly agricultural countries such as 33 enmark, the coming of the Industrial Revolution resulted everywhere in the subordination of agriculture to manufacturing*  Under the domestic system  agriculture and manufacturing were carried on at home by the members of the family working side by side.  With the intro-  duction of the factory system a great part of the population moved from the country into the city, where work was organized and specialized according to the principle of the Division of Labor. As the productive powers of the world decreased, so the standard of wants was raised.  The  original products of the land, the forests, the mines, and the sea demanded more and more treatment before they satisfied the more fastidious desires of the people.  T here-  fore it is not surprising that manufacturing gained an eves increasing importance, and the rights and interests of the manufacturers were considered before those of the farmers. The farmers ase a class are conservative and individualistic*  Their work is largely solitary; they do not  - 6 l a b o r s i d e by s i d e with t h e i r fellow t e n , n e i t h e r do they l i v e in congested d i s t r i c t s where any mew idea spreads r a p i d l y through the whole community.  T he p r i n c i p l e of l a i s s e z - f a i r e  appeals very s t r o n g l y to the faraerjaad h i s work makes him independent and tie wishes to remain so, but in s p i t e of hims e l f he has been influenced by the g r e a t changes in economic organisation. sufficient*  Formerly each farm was more or l e s s s e l f Each man produced what was needed to support  himself and h i s family.  If he had any s u r p l u s he too^ i t to  the n e a r e s t town ana there marketed i t .  But the enormous  development of t r a n s p o r t a t i o n and the improvement in a g r i c u l t u r a l methods have changed a l l t h i s *  The farmer of today  finds t h a t he can buy most of the things he needs, f a r more cheaply than he can produce them, therefore he tends to spend h i s time in producing those commodities which he can s e l l to best advantage.  A s soon as he has a s u r p l u s for s a l e he  comes into contact w i t h the business world, and i s affected by a l l the c r i s e s and depressions as well as the p r o s p e r i t y and booms which c h a r a c t e r i s e i t *  When he t r i e s to s e l l his  f r u i t for example, i n the n e a r e s t ©arket, he finds t h ^ t i t must cosapete with other f r u i t produced in d i s t a n t p a r t s of the world.  He has become a s p e c i a l i s t , f i r s t in a g r i c u l t u r e and  secondly in one branch of a g r i c u l t u r e , and as such i s simply one member of the f r u i t growing industry of the whole world. The p r i n c i p l e of the Division of Labor has been extended to agriculture.  The market i s no longer l o c a l , i t i s world wide;  - 7 the aelf8ufficing unit is not the family but the world. The application of the principle of specialisation to agriculture has led to the danger of local overproduction. Faraers as a whole have adopted industrial aethods to the extent of specialising, but they have not gone further end applied those aethods to marketing.  In consequence each  individual farmer seeks to sell his product in the aost convenient market, and as be has not the knowledge of what is needed he frequently sends it to one already glutted*  As a  result of this unorganised marketing one finds overproduction in some districts while there is an actual shortage in others, •no this involves loss, not only to the faraer but to the world as a whole. Another danger which is confronting aone countries today is that of underproduction.  T he glooay prophecies of  Mai thus at the end of the eighteenth century were forgotten for a time ia the optimism of the nineteenth, when improvements both in agricultural and industrial aethods seemed to show that that productive powers of the world could be indefinitely increased.  But there are some who believe that the evil day  has onl.N been postponed, and that unless steps are taken to organise and increase agricultural production, it will be difficult to feed a fast increasing population. The difficulties experienced b;v the farmers in adjusting themselves to the new economic situation, and a gradual realisation on the part of governments that agriculture  - 8 la of fundamental importance, have led to a greater consideration of the interests of the farming class, during the last few years. Governments everywhere are seeking to promote the suocess of agriculture by the establishment of special departments, by the collection and publication of statistics,by establishing experimental farms, and by spreading increasing facilities for education and technical training. But so natter how good a governments* policy ma^ be, the farmers* salvation lies almost entirely in their own hands. They must adjust themselves to new conditions and develop new methods. Farmers as a rule are afraid to co-operate because they fear to lose their cherished independence. is needed is not less independence but more*  What  where formerly  they left the business of distribution largely in the hands of brokers and middlemen, the farmers must now undertake the distribution of their product themselves*  The great factor  in production is management and that no government can give; it depends on the individual.  Hithereto farming has been a  means of Baking a living, and little else* how it has become a specialised business, and as such needs the introduction of business methods sadly lacking in the past*  T he comparative  advantages of large and small scale farms, the most economical application of labor and capital, beside the technical methods of production, are all problems which must be met and handled in a business-like fashion. Agriculture must be brought up to date if it is ever to regain its rightful importance; the  - 9 methods which have long proved successful in industry oust be applied to farming* It should be remembered, however, that farming differs widely from other occupations in some respects, "on the faro, the hone is pert of the business and the business 11) a pert of the home*. Steps which might not be considered profitable in any ether enterprise are satisfactory to the farmer because they add to the comfort and advantages of his home.  On the other hand, many undertakings which might be  deemed desirable in any ordinary business are not good wh-efi-P"1 v  • l  farming because of the different circumstances. As a rule the farm whicb is most economical in size is the one which can be adequately managed by the operator with the aid of his family*  In most occupations the members of a family have  nothing to do with one another during buaineashours; on a farm they have the same aims, the same interest, und frequently work side by side, She family rather than the individual still tends to be the producing unit in agriculture, and in this it differs materially fro© any other industry.  T he mere  existence of the farm as a "going concern" will provide subsistence for the family, while in any other occupation very low wages or none at all lead to starvation* The eighteenth century inaugurated the Industrial Revolutions the nineteenth century revolutionized methods in Agriculture, it remains for the twentieth to complete that (1) f.H* Carver:  Principles of Eural Economies, P, 23.  - 10 revolution by piecing Agriculture en a firm well organized basis that will enable it to regain its lost importance.  - 11 THE POULTRY I13SU3TRY. Chapter 2. Poultry farming in B. C« is carried on largely along the Coaat, up the Praaer Valley, and on Vancouver laland* There are also a few flourishing farms in the interior near the larger towns. The first necessity for poultry farms ia an accessible market, and their growth may therefore be eipected near any large centre of population.  Vancouver and the other  Coast cities absorb by far the largest part of the eggs produced, but there is a surplus which constitutes the chief problem of poultrymen today, There are two distinct types of poultry farming. The first, and at present the most important, ia the business of egg producing.  U any of the farmers buy their feed and  baby chicks and devote all their time to production of eggs for the domestic and export trade. There is however another type of farmer who specialises in the breeding of the beat strains of birds, and this side-line, entered into at first with the sole intention of improving production,bids fair to become the mos-t important of the two branches of poultry farming. 1.  The Egg Producing Farms. These farms grow with their markets.  ?e.e farmer  must be able to obtain his baby chicks early in the spring, and be near a market where he can sell his fresh eggs. T he export trede is merely incidental and is the result of a surplus of eggs during the months of greatest production.  - 12 Poultry farms in B. C. are almost always operated by their owners for the following reasons; First, it has been • very popular form of occupation among returned soldiers who •re assisted by the Soldiers Settlement Board.  Secondly, it  is e type of farming comparatively easy to finance as there is less initial expenditure required, and the stock multiplies more quickly and yields a return sooner than on other kinds of farms*  fairdly, B. 0* poultry-men include a large nuaber of  men with capital who deliberately sought out their holdings. Fourthly, it requires a large part of the total investment to be in buildings which are not suitable for other purposes, and in consequence landlords refuse to invest money in them and they must be brought outright.  On the average, statistics show  that 48$ of the total investment is in land as against 52% in buildings.  The dwelling represents approximately 25$ of the  total investment. S-'he large percentage invested in buildings is an unfortunate factor in poultry farming, for buildings are subject to constant depreciation, whereas land values may be expected to increase, and the poultryman has a comparatively small percentage of his investment in land. The period of depression following the war affected the poultry industry later than most others. F igures show that the year 1928 was a good one. Prices were high and returns on the whole good, and there was as a result a period of expansion. Farmers enlarged their flocks and tuere was a £2% increase in the number of birds. Overproduction in 1923 was • followed by a period of great depression, prices were much  - 13 l o w e r , and many of toe marginal men were f o r c e d out o f business*  Tbe a t e r a g e f e e d c o s t per f l o c k rose from #£72.29  i n i y £ 2 to # 1 6 6 1 . 0 0 in 1 9 2 2 , the average n e t revenue f e l l  from  #1026.63 to #850*00 w h i l e the income r e c e i v e d by the operator in r e t u r n f o r h i s l a b o r f e l l from #588.85 in 1922 to #311.00 i n 1 9 2 5 , that i s : fron about # 4 9 . 0 0 per s o u t h to $ 2 6 . 0 0 per month. Of the hundred farms surveyed i n 1 9 2 2 , 15 r e c e i v e d a  minus  labor income, g e t t i n g no r e t u r n a t a l l for the o p e r a t o r ' s labor w h i l e o f the 94 included in the 1922 s u r v e y , 25 r e c e i v e d a minus l a b o r income  •  In 1924 c o n d i t i o n s improved somewhat.  Net revenue averaged #1226.35 while the o p e r a t o r ' s income was #686.36 or approximately # 5 7 . 0 0 per month.  Only 11 o f a t o t a l  o f 80 farms surveyed r e c e i v e d a minus l a b o r income; s t a t e d  in  peroentugeB r e s u l t s are as f o l l o w s : *AR&> EECEI7IHG MIHU3 LABOUR WCOkiBB. 1921  ....22$  1922  15%  1923  .....25%  1924..  12£%.  In 1923 15% o f the farms went out of b u s i n e s s , ana 6% reduced production to one h a l f .  Of the remainder, in 1924 5% doubled  production* 6$ increased i t by i , and 22$ by 1 / 4 .  At the same  time the number of l a y i n g birds increased 11%, The Bise of the farm and the amount of the t o t a l investment has a very important e f f e c t on p r o f i t s *nd l a b o r income* (1)  The average t o t a l investment today i s about #6000*00  These f i g u r e s allow f o r i n t e r e s t on the investment at the r a t e of 7%.  - 14 and farms with from 600 to 800 b i r d s seen to pay b e s t .  One  reason why l a b o r incomes are so low i s t h a t the average farm i s not l a r g e enough to provide employment for the owner a l l the year round.  I t i s not wise to have too tauoh l a n d ; from  five to f i f t e e n a c r e s gives s u f f i c i e n t opportunity f o r development.  Beyond t h i s s i z e l a b o r incomes r a p i d l y diminish again  «s there i s too much land for p r o f i t a b l e management by one man. I t cannot be too much emphasised t h a t the most important f a c t o r in poultry farming i s the a b i l i t y of the farmer himself as breeder, feeder, and business manager.  It is  advisable to e l i m i n a t e e x t r a l a b o r wherever p o s s i b l e by the i n s t a l l a t i o n of l a b o r saving machinery; i t i s unwise to invest money in unproductive equipment, and above a l l in too much land.  Land i s very expensive, i t s average value in p o u l t r y  farms being $205.00 per a c r e .  The average value of buildings  per acre i s approximately $216.00 making a t o t a l investment of f481*00 per a c r e . ^ If a l l other f a c t o r s are e q u a l ,  profits  should increase as the flock i n c r e a s e s , but t h i s does not n e c e s s a r i l y follow.  Success or f a i l u r e whether on a big farm  or a small depends on the o p e r a t o r , and on the proportion in which he combines h i s land and c a p i t a l goods. In s p i t e of the r a t h e r dismal f i g u r e s h i t h e r t o quoted, the J b u l t r y Industry in B. 0* has many advantages which make f o r future Bucoess. To begin with the industry i s very highly s p e c i a l i s e d , the proportion of the t o t a l r e c e i p t s derived from poultry being around 80J6*  This s p e c i a l i s a t i o n  - 15 gives B. C. an advantage in the production of eggs of a uniform and standardised quality. Secondly the climate is excellent.  Its mildness makes it possible to produce eggs  practieally all the year round, notably during the months of November and Deaember when it is difficult to get eggs in countries with a more extreme climate. B.C. also has the most advanced legislation dealing with eggs among all the Provinces of the Dominion* and Canada leads the world in her laws and regulations governing egg production. Dominion legislation insists on strict grading of eggs according to certain standards, and this makes it possible for the "B .C. Fresh" eggs to be recognized everywhere in Canada as of superior quality.  She egg regulations protect the consumer, who is there-  by enabled to demand the best eggs and be sure of getting them. Unfortunately for B.C. producers, the prairie and eastern provinces have not yet been educated to the point of appreciating a really fresh egg, a luxury they comparatively seldom enjoy. Hence they are not so particular as the B.G . Poultrymen could wish. B.C. has supplemented the D ominion legislation by the Egg Marks Act first passed in 1917, amended in 1919 and again in 19255. This endeavours to protect the home market against invasion by lower quality eggs from the United States and China. She act provides that all eggs coming into the B.C. market must be marked with the name of the country of origin. This requirement is successful in keeping out most foreign eggs, as it adds about 1/ per dozen to the cost, which practically  - 16 amounts to an a d d i t i o n of \i to the 5 / t a r i f f a l r e a d y In f o r o a , B.C. producers would Ilka the Dominion Government t o enforce a s i m i l a r r e g u l a t i o n throughout Canada, but a r e unable a s y e t to gain the support of the people In the Bast who are n o t used t o s t r i c t l y f r e s h egga and therefore do n o t object to those of ptofttr q u a l i t y which come i n from other c o u n t r i e s * After production the chief concern of the poultry farmer l a h i a market. market the year round*  In B.C. t h e r e i s a f a i r l y s t a b l e home Local consumption of eggs i a i n c r e a s i n g ,  p a r t l y because of an I n c r e a s i n g p o p u l a t i o n , and p a r t l y because i  of the Dominion grading r e g u l a t i o n s which ensure the consumer the beat q u a l i t y e g g s .  But a t the same time t h e r e i s a s u r p l u s  of aggs for export during p a r t of the y e a r . ara imported  In ttoa summer eggs  nd during December, January, February and e a r l y  March there i s an a b o r t i n g s u r p l u s ,  from ITovambar 15th t o  March 15th, the C.P.H. g r a n t s reduced express r a t e s , and f a v o u r able f r e i g h t r a t e s on carloads of eggs shipped l a s t .  This i s a  good season to s h i p , but i n the p r a i r i e and eastern, markets B.C. eggs must compete with those of lower q u a l i t y imported from the United States and China.  The Winnipeg and Montreal markets  axe afraid of buying B.C. aggs becausa of the long haul which gives time f o r United S t a t e s aggs to flood the market and cut prices.  Competition I s therefore very severe in s p i t a of the  f a c t t h a t B.C. eggs are of a superior q u a l i t y .  Competition In  the East tends to prevent the export of aggs and t h i s floods t h e home market and c u t s p r i c e s In Vancouver. The egg producer p o i n t s to tea f a c t t h a t the t a r i f f  - 17 on eggs e n t e r i n g Canada i s only 3$f wheras eggs e n t e r i n g t h e United S t a t e s mast pay 8 / *  <  fhia e x o r b i t a n t duty p r e v e n t s B.C* '  producers from t a k i n g advantage of the markets of Saw York and other Amerioan c i t i e s which are the s a l v a t i o n of Western egg producers of the United S t a t e s *  I t the same time our more moder-i i  a t e duty permits t h e dumping of i n f e r i o r q u a l i t y eggs in Canada* I The B.C* poultryman i s not demanding p r o t e c t i o n a g a i n s t the importation cf s u p e r i o r q u a l i t y eggs* t h a t his product can hold i t s own,  In t h a t r e s p e c t he f e e l s  She demands, however, kfHf#  some p r o t e c t i o n a g a i n s t the I n f e r i o r eggs shipped i n t o Eastern markets* He would l i k e t o see t h e a t t e n t i o n of the p r i n c i p l e of the B.C. egg marking r e g u l a t i o n t o t h e whole of Canada, and claims t h t t h i s would only be enabling t r a d e to follow I t s n a t u r a l channel*  B*G. would export the surplus of high q u a l i t y  eggs to the e a s t and a t the same time import the cheaper eggs used by r e s t a u r a n t s and confeotionariea from Alberta, which l a also a large egg producing c e n t r e * A d i f f i c u l t y the l o c a l egg producer xaust face i s the high cost of feed* caused l a r g e l y by f r e i g h t d i s c r i m i n a t i o n .  It  i s p o s s i b l e for the Japanese p o u l t r y farmer today to import has feed from Canada more cheaply than the B*C. poultryraan can get it*  Obviously t i e r s i s no hope of remedying t h i s  entirely*  difference  She railway must get the advantage of the long haul  and t h a t can only be obtained by lower r a t e s , but a s l i g h t r e duction i n the coat of g r a i n would put the p o u l t r y farmer i n a much more advantageous p o s i t i o n to compete with the r e s t of the world*  - 18 Unfortunately t h e r e i s no e x p o r t a b l e s u r p l u s the year round.  If t h e r e were, the s e r i o u s n e s s of t h e s i t u a t i o n  would make some s o r t of co-operative marketing scheme imperative.  The only movement i n t h a t d i r e c t i o n , the B»C. P o u t t r y -  men's Co-operative Sxohange, came t o an untimely end i n 1923, p a r t l y because of mismanagement, and p a r t l y a s a r e s u l t of t h e very unfavorable c o n d i t i o n s then p r e v a i l i n g : A s i m i l a r o r g a n i z a t i o n i n the State of Washington succeeded in weathering the o r i a i s , appointed a new management, and i s now immensely successful. circle,  I n B*C« today the s i t u a t i o n looks l i k e a vioious  ihere can' be no co-operative marketing u n t i l egg p r o -  duction has increased s u f f i c i e n t l y  to provide a large e x p o r t -  able surplus which n e c e s s i t a t e s a s e l l i n g organization*  At the  same time there w i l l be no great expansion in production unless t h e r e i s a f a i r l y r e l i a b l e means of marketings  3 . 0 . has e x c e l -  l e n t s t o r a g e f a c i l i t i e s however, and t h e r e I s a movement on f o o t to induce "the farmers to s t o r e t h e i r own eggs which i f kerit of the market f o r a time would tend t o prevent the u s u a l slumps in February* March, and A p r i l .  This by keeping p r i c e s more even  throughout the .ear should increase r e t u r n s and s t i m u l a t e p r o duction. f i g u r e s anew t h a t the export t r a d e has f a l l e n off considerably i n ths l a s t two y e - r s as a r e s u l t of the c u r t a i l ment of production in 1923. and about 30 imported;  In 19£2 70 carloads were exported  l a l i 2 3 only 20 carloads tie re exported  and importation was l a r g e l y checked by the a.'aendm«nt to the S"gg aiarka Act.  In 1924 12 carloads were exported c & g ' ^ o u t the  - 19 game quantity imported* There i s a growing deaire to stimulate trade with Australia and Hew Zealand but a t present i t is impossible to f i l l a l l the orders that are received.  Opportunities are  continually lost because production ia not great enough to maintain markets abroad* The most important single f a c t o r , If t nere be one, in the success &± those farmers who in s p i t e of d i f f i o u i t l e s have prospered, is t h e i r om individual a b i l i t y . 2* The Poultry Breeding Parma, The f i r s t essential of poultry farming i s high production per bird*  Also i t i s advisable to have aa high pro-  duction aa possible in the f a i l *  i t i s then, while p r i c e s are  high that the greatest p r o f i t s are made. In consequence of the desire to improve production* breeding, a t f i r s t only a aide l i n e , has attained great importance among the poultry farmers of B*C.  Some specialize entirely  in breeding, bat the majority of breeders also keep commercial flocks. Success in t h i s business has been largely b u i l t up on three foundations*  JSlrst there are the o f f i c i a l records of  the Dominion Government* which has kept records of performance for poultry since 1919* "B*0*?."for poultry conslst*of the official inspection of trap-nested flocks of fine bred poultry on breeders own farms and the subsequent c e r t i f i c a t i o n of the product recorded •••The objects of Heoord of Performance are to  - 20 encourage the breading of poultry combining high production and standard q u a l i t i e s and to secure for poultry breeders r e (i) l i a b l e information aa to sources of such stock*" B.C. farmers have taken advantage of the records of the Dominion Government, and B.C. shows the g r e a t e s t Increase of a l l the provinces,both in the number of breeders and the birds entered i n the years 1921-22, and 1922-23.  B.O. a l s o leads In the percentage of birds  entered dhieh qualified for c e r t i f i c a t e s , shwoing that B.C. breeders must have particularly good f l o c k s .  Registration by  t h i s mesas makes i t p o s s i b l e to e s t a b l i s h the good standards which are e s s e n t i a l to high production. The second factor i s the action of the Dominion Government in e s t a b l i s h i n g the Canadian national 3gg laying Contests through the Zzperimental Farms. three purposes.  x  heae contests have  .First, to stimulate i n t e r e s t i n production;  t h i r d , to secure data of an i n v e s t i g a t i o n a l nature.  Canada was  ihe f i r s t country In the world to provide for the r e g i s t r a t i o n of poultry in a national way, and she has done ao by standardising the Egg Laying Contests as a medium through whioh to obtain registration.  In these contests B.C. made higher records than  the. r e s t of Canada, and as a r e s u l t of this success a l o c a l organization was formed in 1922. The t ird faotor i s t h i s local organisation, the H.Q.E. Breeders' Association of B.C..whioh in s p i t e of i t s youth and the d i f f i c u l t i e s whioh always come with the pioneer stage, has enjoyed a great measure of s u c c e s s . I t s members are (I) Canadian H.O.P. for Pure Bred Poultry-Uecord year 1922-23, Heport Ho.4. P.5.  m 21 m  endeavoring t o improve breeding methods by s t a n d a r d i z i n g pedigrees and r e c o r d s .  "Given the most adv need system  of  government i n s p e c t i o n arri c e r t i f i c a t i o n of p o u l t r y records in the world, they have used t h i s , t o g e t h e r id.Hi t h e i r f a v o r a b l e climate and i n d i v i d u a l i n i t i a t i v e to develop a p o u l t r y breeding (1) centre which I s unsurpsssss on t h e American c o n t i n e n t " The e f f o r t s of the l o e a l Association have been seen i n a higher and sore p r o f i t a b l e production, and in propaganda work f o r ii.O.P. members*  The Association a l s o a c t s as a channel for t h e  s e l l i n g of a i l surplus high grade stock*  As the stock i s  Improved the s u r p l u s Increases and the object i s now t o build up an export t r a d e *  Prices are s t a d i i y r i s i n g with the  q u a l i t y of the product,  Eggs fetch from $1*00 t o $5*00 a^piece,  and i n d i v i d u a l l y pedigreed birds with high reoords from |10*Q0 to |1QO*00 each*  There i s a market i n B*C* and on the p r a i r i e s  for pure bred stock;and Hew Brunswick and Nova Scotia are beginning to show demand for B.G» s t r a i n s *  As soon a s production  i s g r e a t enough i t i s hoped to build up an export t r a d e with England, Hew Zealand and Australia*  In 1924 B*C* breeders  sold to p r a c t i c a l l y every State In the Union, Ohio being a (I) p a r t i c u l a r l y good market* The Association i s p u t t i n g on a big a d v e r t i s i n g campaign, u s i n g a l l the farm j o u r n a l s , agents are being established on the p r a i r i e s and abroad, and t r a d e r e l a t i o n s viith ( l ) Third Annual Catalogue of S*0*P. Poultry Breeders* Association of 3*C*, ?* 3* fi) There i s f o r t u n a t e l y a free exchange of pure-bred s t o c k with the United S t a t e s *  - 22 other c o u n t r i e s a r e being r a p i d l y b u i l t up through t h e consuls and trade commissioners. p r a o t i o a l l y unlimited*  The f i e l d for expansion i s Canada leads the world i n o f f i c i a l  records, and B.C. has the b e s t records i n Canada, and has sold stock to a large number of foreign c o u n t r i e s although the l o c a l Association, formed i n October 1922, only s t a r t e d s e l l i n g ill 1924.  Up t o t « p r e s e n t no f i n a n c i a l a s s i s t a n c e has been  received from the government.  The Poultry department of the  University of B.C* takes a l e a d i n g p a r t i n the improvements and the commissions and f e e s received by the University f o r the s a l e of stock through the o f f i c e ^ t e t o pay expenses. S t i l l the expense t h a t must be faced by the i n d i v i d u a l breeders i s very g r e a t . The 3.O.P. Poultry Breeders* Association has had an almost phenomenal growth, and i n s p i t e of i n i t i a l d i f f i c u l t lea r (I) the future looks b r i g h t for Poultry Breeders i n B.G»  of the  two branches of p o u l t r y farming i t seems p o s s i b l e t h a t the breading and sale of pure-brad s t o c k , a t f i r s t a bye product of ,tha mors important of the two.  B.C. breeders have the a d -  vantage of an e a r l y s t a r t , which i s very important i n any industry* and i f s a t i s f a c t o r y markets can be developed there seems no reason why B. u .Ishould not lead the world a s a producer of pure-bred p o u l t r y *  (1)  I t i s worthy of note t h a t very few H.O.P. members were forced out of business in 1923, while a large percentage of non-members wars*  - £3 •  THS MIBY IHDUSTHT. Chapter 4* The daUfy farms for which a t a t i a t i o s are a v a i l able are located i n f i r e d i s t r i c t s *  On the Arrow Lakes from  l a s t Bobson to Sakusp the fariaa are mostly small*  In t h e  Courtney d i a t r i o t t h e r e a r e large s p e c i a l i z e d farms with s o i l i n large p a r t u n t i l l e d .  There are farms a t  Salmon Arm devoted  to general d a i r y farming with some small f r u i t s , and i n the Chllliwaok and Ladnar d i s t r i c t s the farms are large and highly specialized* The degree of s p e c i a l i z a t i o n which i s moat p r o f i t able v a r i e s with the a b i l i t y of the i n d i v i d u a l farmer t o manage h i s farm*  Very g r e a t s p e c i a l i s a t i o n seems j u s t i f i e d  in  a case where there i s high u n i t production or a s p e c i a l market, hut i n general s p e c i a l i z a t i o n from 50% t o 65% In d a i r y i n g seems most p r o f i t a b l e *  ^his g i v e s opportunity for an adequate  Study of t h e f a c t o r s necessary to success along t h a t l i n e * .i"  The s i d e U s e s which the farmer adopts to supplement hia dairy r e c e i p t s v a r y .  They include  different  kinds of livestock* f r u i t , and f i e l d c r o p s , somajwhloh a r e used as feed and some marketed.  The type of s i d e l i n e should  be dependent on the operators* experience and a d a p t i b i i l t y ?  the  r e l a t i o n of the farm to the market, and the demands of that market; the n a t i v e of the farm s o i l ; and the extant to which the s i d e l i n e f i t s i n with d a i r y i n g ;  Hog r a i s i n g , which i s very  popular on d a i r y farms elsewhere la n o t ao common i n B.C.,  '"• 24 l a r g e l y because Yancouver provides an e x c e l l e n t market for whole milk, and a l s o because the hog market la not well organised* line*  There i s opportunity f o r an increase along t h i s  I t la advisable t h a t the farmer produce a c e r t a i n  amount of h i a own feed*  Pasture l a good, but through an e x -  • c l i e n t f e e d ; i t does n o t always give the neaeaaary^feed y per acre which l a most economical on the high priced land* As regards a l a s , a farm of from 25 to 60 a c r e s acems t o hare aa g r e a t p o s s i b i l i t i e s aa any other; a I t hough here again the a b i l i t y of the o p e r a t o r and h i s p a r t i c u l a r circumstances may r e s u l t i n g r e a t e r p r o f i t from a l a r g e r or smaller farm*  The average a c t u a l s i z e i s 100 a c r e s , of which  about 75 a c r e s are t i l l a b l e , and t h i s i s too l a r g e to be profitable* managed by one man.  Since the land i s c a p i t a l i z e d  a t a very high value i t i s necessary t o make a g r e a t e r r e t u r n per aors^and t h e r e f o r e the holding of land which i s a c t u a l l y not In f u l l use i s to be discouraged.  On comparing land i n  Ontario and B*C* which i s s i m i l a r f o r farming purposes i t i s found t h a t i n Ontario the avarage c a p i t a l i z a t i o n i s |195*00 p e r a c r e , while i n B.C. i t l a $ 3 2 5 . 0 0 , .  This makes i t necessary  for the B*C* farmer t o i n v e s t flO.OO per acre more, and t o obtain #75*00 gross r e t u r n s , #25*00 more than h i s Ontario competitor*  Hia only means of e q u a l i s i n g cost of production l a  through good crops and higher production per cow, which the climate stakes p o s s i b l e *  To t h i s end both good breeding and  good feeding are n e c e s s a r y , the former being of g r e a t e r  - 25 importance than the l a t t e r . All t h e s e f a c t o r s are dependent f o r an ocasa on the a b i l i t y of the o p e r a t o r . Figures f o r the l a r t few y e a r s show t h a t 1922 was the worst year i n d a i r y farming and p o i n t t o the factlerirt i f the Industry s u f f e r s from t h e v a r i a t i o n s of the b u s i n e s s c y c l e , if grade* Prospects look b r i g h t for the next few i t i s now on'Jup years.  5he d a i r y farmer ought t o be able to make a l i v i n g and  safe a l i t t l e although he i s not l i k e l y t o make a f o r t u n e *  The  following f i g u r e s show t h a t he has by no means done so i n fehe past* Allowing for wages to the operator a t $960*00 p e r year* he received i n t e r e s t on h i s investment a t the following ratea: 1919 1920 1S21 1922 1923  Q% 4^ 1.3% *5$ 2*4%  l o r the year 1922 the average n e t income received by t h e farmers was $1039*40 while i n 1923 i t rose to |1360*73* Labor incomes in 1921,when i n t e r e s t was charged a t 93 on the c a p i t a l Investment, were a l l minus labor incomes except i n the group of from 26*45 a c r e s * plus labor incomes*  v.'hen I n t e r e s t was charged a t &k% a i l made With I n t e r e s t a t 7% the average annual  labor income was #34*12 in 1922 and #174*25 In 1923. while with i n t e r e s t a t 3&6 i t was 0497.33 i n 1922 and i$767*49 in 1923* With an I n t e r e s t eh rge of 7$ I t i s obviously very d i f f i c u l t f o r the farmer to make a good labor Income* what fee would have t o pay for a mortgage,  7% I s  on t h e other hand the  «•' 26 • average farmer would probably ba quite s a t i s f i e d t o put h i a surplus c a p i t a l In t h e bank and r e c e i v e i n t e r e s t a t &%$ f o r i t * Ha should n o t demand a g r e a t e r r e t u r n f o r i t when invested in h i s own b u s i n e s s , find a t 3£# moat of t h e farmers made a p l u s labor income however s m a l l . If ha r e c e i v e s no labor iaoome what than does the farmer l i v e on?  l a the f i r s t p l a c e ; t h e I n t e r e s t on h i s  c a p i t a l investment which he i s not compel lad t o pay to himjt self.  Second the labor of h i s family which i s seldom p a i d .  Third, h i s own l a b o r , and f o u r t h the d e p r e c i a t i o n upon b u i l d Ings and equipment*  I t should ba remembered t h a t n e t revenue -  gross expanses deducted from gross r e c e i p t s — i s the important thing.  The average farmer does n o t analyze the source of h i s  income, and c a r e s l i t t l e whether he i s l i v i n g on hia l a b o r i n come or the I n t e r e s t on h i s investment. The Vt acre farm; which i s the one with the l a r g e s t number of successes* has an average t o t I c a p i t a l i z a t i o n of $13000,00 and a per acre c a p i t a l i z a t i o n of $325,00.  of t h i s ,  land r e p r e s e n t s 54%, the dwelling 15$, farm buildings 12$, machinery ?$ and l i v e s t o c k l £ # , §75*00 par a c r e ,  (I)  Heturns average 12800*00 or  Expenses should be kept below f1200.00 or  The value of the house is included i n the farmers t o t a l investment, but house r e n t a t 10^ of i t s value i s charged among farm p e r q u i s i t e s which are c r e d i t e d t o the farmer, so t h a t hia labor income does n o t s u f f e r from a deduction f o r i n t e r e s t on house investment* The t o t a l average p e r q u i s i t e s amounted t o f430*00 i n 1922 and |434,00 i n 1923*  * 27 * $$£+00 p e r a c r e , aa t h e r e ajuat be a l a r g e return per aore a t a low expense i n order t o make t h e use of the high valued land p r o f i t a b l e * I t i a p o s s i b l e t o r e n t land i n B.C. f o r 4.3% of i t a c a p i t a l i z e d value*  That i a exclusive of t a x e s , which must be  paid* howeveryshether the f^rm i a owned or r e n t e d .  Under t h e s e  eircumstanoea i t i a more p r o f i t a b l e for the operator to r e s t a farm a t 4.3% t h a n i t i s t o borrow the purchase p r i c e a t 7%. HIS labor income would be considerably higher i n the ease of the rented farm e s p e c i a l l y a s he has no c a p i t a l i n land and buildings.  Onder these circumstances one might expect t o find  more rented farms, b a t from t h e l a n d l o r d s ' view p o i n t r e n t i n g I s not ao p r o f i t a b l e as he r e c e i v e s a lower r a t e of i n t e r e s t on his investment than If he o p e r a t e s h i s farm himself*  on  the other hand by r e n t i n g and working a t some o t h e r occupation he may r e c e i v e a much higher labor Income.  He must choose  between a low wage or a low r a t e of i n t e r e s t on h i s c a p i t a l . In the long run t h e a t t r a c t i o n of being hia own master, and the p o s s i b i l i t y t h a t by c a r e f u l management he may i n c r e a e t h e labor income he r e c e i v e s from the farm.turn the s c a l e i n t h e favour of ownership*  There a r e not many rented farms*  The  percentage i n 1921 was 17*5%. As far aa markets are concerned the dairy farmers , a r e f o r t u n a t e i n having In Vancouver a market which absorbs the g r e a t e r p a r t of t h e i r production*  '4iere ia a s u r p l u s of  milk, but the Praaer Valley Milk Producers* Association has  - 28 * undertaken to dispose of i t *  Aa far as batter and cheese are  concerned there l a p r a c t i c a l l y no export trade*  on the other  band B*0* imports huge quantities of butter* BUTTEfi IMP0RT3D*  1920 1921 1922 1923  4 million f * 8 • 9 *  The Bill: surplus varies greatly* Jane, anal l e s t in February.  lbs* • " •  I t i s largest in Hay and  Proa the vi ewpoint of the In-  dividual farmer* the Important factor i s the increase i n the production of butterfat per cow*  In 1915 B.C. produced 2&  million lbs of butterfat* and t h i s has increased to 6& m i l l i o n lbe in 1924* Sinee B*C* producers do not export Da4*f extent* they do not come into direct competition with producers in other l o c a l i t i e s , nevertheless world prices govern local prioea If the price charged by the B.C* producer were too high the home market would be invaded by f o r e i g n products.  Therefore  the B.C* producer i a i n competition with the Ontario and United States producer* There are three Go-operative Associations among the dairymen i n B.C.  The Comox Creamery Association for  Vancouver Island* and the Vancouver Island Milk Producers* Association i n Victoria merely assemble the product*  They  simply provide a central wholes -le s t a t i o n to which the milk l a shipped and from which i t pa-ses t o the various r e t a i l e r s * The Fraaer Vnlley Milk Producers' Association on the mainland.  both assembles and distributes*  This organization has hither-  to been very successful, and the city of Vancouver has reaped the benefit by enjoying lover milk prices than an; other city in the Dominion except Ottawa,with which there is continual rivalry for lowest place* The milk producers claim that it is impossible for this organization to exploit the public so long as it does not attempt to control production.  If prices were raised as  a result of a monopoly the returns would go direct to the farmer and would result in increased production which would flood the market and automatically reduce the price.  As a matter  of fact the Association has not a monopoly aa there are a large number of independents.  The eitizens of Vancouver have nothing  to fear from the Association thus far; on the contrary it sends to improve the quality of the tnilk. It oonfors an enormous benefit on all the independents as well as its own members by disposing of the surplus of milk through creameries, and thus prsTanting waste and a glutted market during the montha of high production.  Actually the msmbersq-et 5$ per lb lesa for their  butterfat than do the independents, who reap the advantages of a stable market without assuming any of its obligations*  The  Association is carrying on an extensive campaign to educate the independents and thus eliminate them,  The farmers realize that  without Co-operation ail would be receiving lower prices; they have great confidence in their organization, and they are trying to show the independenta that the Interests of all lie  * 30 — i n the same d i r e c t i o n , t h a t of e o - o p e r a t i o n <  The f a t u r e of  the d a i r y i n d u s t r y depends l a r g e l y upon t h e type and i n c l u s l v e neea of the c o - o p e r a t i v e o r g a n i z a t i o n which ia developed*  The  f a r m e r ' s f i r s t problem i s t h a t o£ p r o d u c t i o n , but oioae upon i  i t s heels cornea t h a t of marketing, and c o - o p e r a t i v e marketing  ;  ia e s s e n t i a l i d the success of the dairy i n d u s t r y * Owing t o the f^et t h a t B*C# has ao l i t t l e e x p o r t trade* the high United S t a t e s t a r i f f has l i t t l e e f f e c t *  Also  our own lower t a r i f f i s augmented by u n w r i t t e n agreements between the l o c a l co-operative and those south of the l i n e ; to »ae a f f e c t t h a t we w i l l keep oat of t h e i r market i f keep out of o u r s ,  they w i l l  This agreement has proved e f f e c t i v e d u r i n g  s l i g h t overproduction i n the State of Washington, but i f  their  exportable surplus became too g r e a t t h e i r c o - o p e r a t i v e s could n o t hope t o prevent the invasion of the B,C* market*  These  agreements p o i n t t o an important development, t h a t of co-opera* tion  between c o - o p e r a t i v e s o c i e t i e s , a development which w i l l  become a l l the more imperative as local o r g a n i z a t i o n s gain i n strength* The d a i r y farmers of B»C» have a great d i f f i c u l t y t o surmount i n the high c a p i t a l i z a t i o n of l a n d , which p u t s them a t a disadvantage aa regards coat of production when competing with farmers who do not have such a large amount of t-here Capital invested i n land*  r ^  As already s t a t e d t h i s r,akes necessary  a g r e a t e r i n t e n s i t y of c u l t i v a t i o n *  But B»C» farmers have on*  inestimable advantage which .makes i t p o s s i b l e f o r them t o  • 31 * equalizes namely, t h e i r c l i m a t e : The mild and favorable oiimata of t i e P a c i f i c slope leads to high production p e r cow, which i s the important f a c t o r .  Also crops are very good*  The com-*  parative crop y i e l d s i n o a t s and hay are p r a c t i c a l l y double those of Ontario and the p r a i r i e p r o v i n c e s ,  This permits the  dairyman to i n c r e a s e h i s r e t u r n s per a c r e * After considering the two f a c t o r s of land and climate the dairyman's success o r f a i l u r e i s l a r g e l y i n h i s own hands*  That i t was p o s s i b l e to make p r o f i t s even during  the bad year of 19E2 i s shown by t h e f a c t t h a t some farms showed a s u b s t a n t i a l o p e r a t o r s * income even a f t e r paying i n t e r e s t a t 7% on the investment*  Most of the farmers today a r e l e a v i n g  t h e i r o a p i t u l i n t h e i r farms even when they could r e a l i z e and move o u t , which shows t h a t the  it  have s u b s t a n t i a l hopes*  The  average c a p i t a l i s a t i o n toda; i s from $2000.00 to .$8&00_.00 per farm* t h e r e f o r e the dair;/ farmer cannot afford to pay as high \ a r a t e of i n t e r e s t a s can the :>oultr,yiaen on a smaller i n v e s t ment*  Nevertheless he ma;,1 make a good l i v i n g and save a t l e a s t  a little*  His g r e a t e s t need i s for more education both along  i i  technical and business lines*  A lower cost of production of  butter fat is essential 1o the development of the industry In B»0* in order that the farmer may take advantage of the world wide market for butter fat and increase his business accordingly* And in order to reduce his cost of production, he must have the j requisite technical knowledge, and also learn how to organise his farm in the way taat it will pay best.  - 32 * TH£ QAITIE & SHBBP IBDUST5Y. Chapter 5* I*-  Cattle.  There are no figures available shoeing the success  or failure of the cattle industry,, and it ia not probaie that there sill be any in the near future*  A survey was considered  by the Extension Department of the faculty of Agriculture in the University, but the requisite information was not fojthcoming from the individual farmers*  They are men operating on  a large scale* and they resent inquiries more than do the small farmers*  Also many of them do not know themselves exactly hots  they stand.  The oattle for instance are counted but once a  year; the rest of the time they are out on the range, and it is frequently difficult to calculate the exact amount of stock* However it is possible to <astimate roughly the position of the cattle industry, and to discover what are the chief factors affecting it* Gattle farming in B.C. is confined to the range districts of the Cariboo, the Chilcotin Valley and the M o o la Valley*  The men engaged in it are of a different type to those  in other kinds of agriculture.  To begin with, even if the farm j  is a comparatively small one, an enormous capital investment is needed*  Therefore the men who enter it are on the whole far  [ \  more business like than the average small farmer.  Their invest-  ment must be managed carefully, and the me nare as a rule of a fairly progressive type* Since 1920 the oattle farmers have been losing  ]  - S3 » aoney, or a t b e s t only j u s t managing to r.iake t h e i r expanses,  /  P r i c e s have been Tary low, but they a r e gradually improving, The beef now produced on the American c o n t i n e n t i s not s u f f i c i e n t to feed the p o p u l a t i o n .  P r i c e s f e l l so low a f t e r  1  1920 t h a t many cattlemen were forced o u t of business* t h e r e -  j  fore although the per c a p i t a consumption of beef on t - I s continent has decreased* t h e demand i s s t i l l g r e a t e r than the *apply # and t h i s t e n d s to r a i s e the p r i c e although the importa t i o n of eecf from the Argentina has h i t h e r t o succeeded In keeping i t down*  B,C« cattlemen have shared i n a depression  f e l t a l l over the c o n t i n e n t .  Their c o s t of production has not  differed m a t e r i a l l y over the l a s t f i v e y e a r s , There a r e three important t h i n g s needed by the farms: f i r s t good breeding, see.nd a c c e s s i b i l i t y of range, and t h i r d good management,  The n e c e s s i t y of good breading h s been  largely recognized and the scrub b u l l almost e n t i r e l y e l i m i n a t e d . One drawback i s the f a c t t h a t packer does not pay a s u f f i c i e n t l y high premium on e x c e l l e n t c a t t l e ,  There i s not a large enough )  difference between c u t t l e grading choice, and those merely ordinary.  Hence the incentive t o high f i n i s h tooth from a  breeding und feeding standpoint i s a b s e n t ,  She seeond f a c t o r ,  a c c e s s i b i l i t y of r a n g e , the B,C. cattlemen have*  The t h i r d ,  good management, depends e n t i r e l y u. on the o p e r a t o r .  I t was  found p o s s i b l e by c l e v e r and economical management on a few farms, to make money even when the o t h e r s in the industry were losing i t .  On the whole the c a t t l e farmer I s l e s s to be blamed  i  * 34 ^ f o r poor management than other a g r i c u l t u r a l i s t s , if only for the sake of his l a r g e r investment. There i s n o t much winter feeding in B.C. Moat of the farmers plaoe a i l t h e i r stock on the market in the f a l l * If they oould feed some of t h e i r oat t i e through the winter and put tbam on the market i n the spring whan p r i c e s are much higher i t would he g r e a t l y t o t h e i r advantage* but t h i s involves much c a p i t a l which i s not always forthcoming*  Those farmers who  do p r a c t i s e winter feeding buy t h e i r stock i n Alberta and d f a t t e n them through t h e winter on a l f a l f a which gives a slower and cheaper bat not so high a f i n i s h * and Okanagan d i s t r i c t s grow ; l f a l f a ,  The L i l l o o e t , Karaloops l a r g e l y as a cash crop, s o  t h a t i t can be obtained f a i r l y e a s i l y .  The Vies t e r n P a c i f i c  Slope w i l l never become a g r e a t grain f i n i s h i n g c e n t r e as i t cannot hope t o compete w i t h the p r a i r i e s , but a l f a l f a  feeding  would c e r t a i n l y be p r o f i t a b l e for many 3 . 0 . farmers oould they afford  it. The g r e a t need of the cattlemen i s an organized  c e n t r a l market*  At p r e s e n t moat of the stock i s bought i n  Alberta, where t h e r e are l a r g e stockyards and p l e n t y of o p p o r t u n i t i e s for choice, and i s brought i n here t o be finished* The c a t t l e a r e sold d i r e c t l y t o buyers of big companies such as Swift and Burns, who come to the farms and buy the annuals taere*  The farmer i s thus saved the troubae of grading and  s h i p p i n g , but he hos to take the p r i c e offered to him.  The  B,C« S t o c k b r e e d e r ' s Association has been a g i t a t i n g for the  establishment of a government stockyard i n t h i s province, bat a t present the supply of c a t t l e i s not great enough to warrant i t , and u n t i l there i s a central market the supply i s not likely to increase t o any appreciable extent.  Anot&ar  difficulty in the way of a central market is the opposition of big concerns such as Saift and Burns*  At present they have  p r a c t i c a l l y no competition and they are n o t likely t o want any market which would compel them to bid against others for their beaf* The c a t t l e industry throughout Canada i s suffering from the prohibitory t a r i f f of the United States*  The States  are the natural market for the prairie provinces, and the blocking of that market has resulted in a considerable f a l l in prices*  This reacts on 3.C, which has no exportable surplus  and ia therefore not directly affected by the t a r i f f .  Some  store c a t t l e are %eing shipped to England now, and there ia a p o s s i b i l i t y that with the reduction of ocean r a t e s on l i v e stock a trade in beef c a t t l e may be built up with the o r i e n t . But this i s a mere p o s s i b i l i t y and a t present low prices p r e vail throughout Canada as a r e s u l t of the high United Statas tariff* B,<3« cattlemen are in a more advantageous position ' than tlpse on the p r a i r i e s .  Owing to tho fact that B«C, does  not produce enough beef for home consumption, some must be imported and that pays freight rates which the home product escapes.  The prices that are received for beef in B.C. are  j  i  - 36 from i&/ t o Zi lb more than in Calgary,  However the p r a l r i e a  hate the advantage of l a r g e s c a l e p r o d u c t i o n . have g r a d u a l l y Improved s i n c e 1921 and 1922*  P r i c e s i n B.C* They a r e now  S.75 per 10G l b s , and were from \4 t o lj?/ lb l e s s i n 1924* Were i t not f o r the p r o h i b i t o r y  American t a r i f f  the f u t u r e would seem b r i g h t f o r B*C* c a t t l e farmers, but i f t h a t remains i n force i t w i l l n e c e s s i t a t e f i n d i n g o t h e r mark-its, x  which w i l l take some t i m e .  h e r e i s l i t t l e the oattlemen can  do except t o manage t h e i r farms as ec moral c a i l y as p o a s i b l e and j f  wait for prices to improve*  The lack of marketing facilities  cannot be overcome until production is increased, and that will not be at present prloea.  As usual it is t&a small man operat-  ing near the margin wit out any extra capital vjho suffers moat, but he cannot Improve his position till prices are better,not only throughout B.C. but throughout the whole of Canada* 2*  Sheep*  There are certain districts in B.C. that are not  adapted to cattle but are .veil suited to sheep. present paying very  Sheep are at  -well, either as individual flocks, or as a  sideline upon the range or on general farms. mutton are fetching a wry  Both wool and  high price today, higher throughout  Canada than in any other moat producing country in the v.orld* She reason for high prices lies in world conditions. Prices fell in 1920 and 1921 because of the large supplies of wool left after the war*  During the depression many sheep farmers  were forced out of business, and they flooded the market with breeding stock*  By now the wool has been used up and sinoe the  - 37 supply i s checked p r i c e s are l i k e l y to remain high for some tine* Sheep farming In Canada has never been a s popular a s might have bean expected.  The small supply of wool produced  has been sold h i t h e r t o on a s unorganized market which made competition with big wool countries, auch as A u s t r a l i a  difficult.  So* however Canada's wool I s put on the market on a graded b a s i s which gives a chance for f a i r competition. I t seems likely t h a t t h e r e w i l l be a large increase In the number of sheep kept In Canada and a l s o i n B. C. where f a c i l i t i e s are admirable in c e r t a i n d i s t r i c t s * Used as a s i d e l i n e sheep may help to steady ptoduotion i n other l i n e s and thus aid in the development of a g r i c u l t u r e as a whole.  • 38 -  liiS SUALli gaUIT IffS03T:-ff* Chapter 6 . I t has bean found impossible to o b t a i n figures for the 8mail F r u i t Industry for the l a ^ t t h r e e years*  The r e s u l t s  of a Snail P r a t t SurTay viera published i n 1921, but since then although d a t a has bean c o l l e c t e d froi:. the farmers i t has n o t been assembled*  In consequence a l l statements made hsra must  be of a very g e n e r a l and often t e n t a t i v e nature*  It is possible  however to p o i n t with a f a i r degree of accuracy to general development and tendencies for the years 192£» 1923 and 1924* and t h a t 1B what has bean attempted* She d i s t r i c t s devoted to small f r u i t farming ara chiefly- on the Coast where the climate i s most s u i t a b l e * future the production of a t r a i s b e r r i e s w i l l ba large I.  In  oonfinad  t o Vancouver I s l a n d , while the Eraser Valley d i s t r i c t appears isteal f o r r a s p b e r r i e s *  O^here are c e r t a i n other l o c a l i t i e s i n  the I n t e r i o r which grow small f r u i t s : Salmon Aim, Kootena;/ and Boundary, Uorth Okanagnn and Tarraca, and Creston» The l a s t named i s the only one of g r e a t importance, and has one g r a a t advantage over the eoaavt d i s t r i c t s , i n t h t i t i s much n e a r e r to the p r a i r i e markets* Bafora the war tha B.C. small f r u i t s i n d u s t r y was small, s e l l i n g p r i c e s lav?* and few a c r e s davotad t o production* Baring the viar p r i c e s roaa an<3 the industry began to expand, then baing an enormous increase both i n acreage and number of growers Mi between 1916, tha f i r s t .year for which f i g u r e s ara o b t a i n * * ^ ,  and 1921*  - 39 P r i c e s i n IS 19 and 11)20 were e x c e p t i o n a l l y high,  almost r i d i c u l o u s l y so In sotoe e a s e s , and aa a r e s u l t t h e r e was an enormous i n c r e a s e i n production s+iraulated by the high r e t u r n s the growers isere r e c e i v i n g *  farmers a l r e a d y i n the  business Increased the number of a c r e s under c u l t i v a t i o n , and new men began t o flock i n t o the i n d u s t r y . . Tho acreage i n creased enormously:  I n 1920 t h e r e were 500 a c r e s on Vancouver  Island and 3000 i n B. C. as a whole and t h i s inoreaaod t o 16X50 a c r e s on t h e Island and 6000 i n B. 0. in 1924,  The value of the  output increased from #989,672*00 i n 1920 to $1185^442.00 i n 1921 and thiB^taking into aeeount the decreased p r i c e s , shows an enormous i n c r e a s e in p r o d u c t i o n .  The 4uraber of grovsars i n -  creased d a r i n g I 2 0 - 2 1 , but decreased l a t e r when the period of depression came*  Than a large number went out of business and  o t h e r s c u r t a i l e d t h e i r production*  The i n d u s t r y seams now well  on the *3ay to recovery, the f i g u r e s from 1920~19£4 showing a s u b s t a n t i a l increase in a c r e a g e . crease i s 136.2#«  The average percentage of i n -  This in d e t a i l i s as f o l l o w s :  E?iKJ3aT •&! OJ? IH0HMS3 IB AC3EA3F 1920 - 1924. Strawberries..•...«.,...*• 41.6% R a s p b e r r i e s • . . . . . . . . . . . . . . . . . . 146 %1% Loganberries . . . • • • • • • • • » . • • • • . 265.52b B l a c k b e r r i e s . . « . . . . . . . * • * . . . . . 19*5 i Had C u r r a n t B . * . . . . . . . . . • . . . • . # 1 5 2 . 0 % Black Cur tants••.....••.••....290.0~? ^ o o s e b e r r i e s . • « • • • • • . . . • • • . . . . 74*5% Rhubarb............. 103 .OX There a r e fewsr growers in 19 24 than in 1920 showing th&t s p e c i a l i s a t i o n i s g r e a t e r than i t was t h e n .  „  This i s a jruwKuf  progress as s p e c i a l i z a t i o n leads to the employment of b e t t e r  - 40 methods and more intensive cultivation* There are no figures available as to the exact net incomes and Labor Incomes received by the farmers for the last three years but it is certain that they wore often a negligible quantity if not a direct ioas.  The reasons for this failure  are many: 1* General agricultural and business depression. 2. Thecal overproduction. 3* Type of farmer* 4* High capitalization of land, 5* Lack of an orgeni aed market* 6* Exportation by brokers and jobbers* ; I*  General agricultural and business depression. The general infiati n of prices which followed  the world war lad to a period of great business depression about 1922, Abnormal conditions intensified both the boom period and the following depression.  The condition of agri-  culture throughout t m world was deplorable and 3.0. farmers wara not by any means alone in their difficulties, a great part of which may be attributed to the wear Id wide depreasion, and the effect which it had on fruit prices. 2*  Local overproduction* As the result of inflation caused largely by the war,  the prices received for small fruits were ridiculously high in 1920 and 1921* berries*  Growers obtained as much as 19/ per lb. for jam  This state of affairs was co-existent with the return  of a large number of men from Europe, in many caaes dissatisfied with their routine and in search of soma new form of occupation  and" investment.  The "back to tha land* movement fostered by  tha Soldiers* Settlement Board lai a number of returned soldiers t© Invest in land*  it tha same time many speculating businaaa  man ware attracted by the high prices received by tha fruit gro\sera. Small fruit farms are desirable for several reasons. Tha Initial Investment needed la comparatively small and .viaIda quick returns*  The acreage required ia not large and there is  no excessive charge tor labor, alac amall fruits are frequently planted on newly cleared land thus cutting down the expanse of land improvement. Ail things considered, small fruit farming with inflated prices seemed a very profitable occupation.  A  large number of men bought land at prices raised by the after war demand for it.  Some of this land was not suited to the  production of small fruits, and a large proportion of the new farmers knew nothing whatever about fruit production.  However  the total production of 1221 was greater than that of former years, and that of IG2£ exceptionally so.  The market remained  about the same and there were no additional facilities fornexporting the enormous surplus over former years, £feen more was produced than could be marketed vshich resulted in a ruinous fall In prices.  The jam factories overstocked, and being unable to  aell a large part of their output stored it until it£3 and re* fused to take any more fruit. IS £3 found conditions var;; little better, but these two years eliminated a iRrge number of the marginal farmers and production was aurtailed.  The result has  been a far better market for 19£4, and improved prospects for  - 4£ tha future. faara is a danger of overproduction in B. IU whani w r prospects become too bright.  Snail fruits yield a return  very soon after they are planted, consequently it is easy to invest capital in their production whan prices seem to warrant It*  Since the fruits are perishable they must be sold fairly  soon after,, picking which li its the market considerably.  In  order to avoid overproduction it is necessary to keep open ail possible prairie markets* and in years of particularly heavy production to take care of tha surplus through canneries and Jam factories*  Unfortunately the demand  small fruits on  the prairie is largely controlled by the success or failure of the wheat crop*  Farmers cannot buy without purchasing power*  hence a poor harvest on the prairies rapidly reacts on the B.C. small fruit farmer. 5.  The type of farmer. As a result of the after war boom and high prices,  small fruit farming attracted a large number oi people who had no permanent Interest in it and no particular qualifications. The business man who took it up as a speculative sideline had none of tha requisite technical knowledge, m  consequence his  cost of production was very much higher than it need have ueen* and tha reputation of the industry suffered accordingly.  The  same thing is true of a large number of returned soldiers and immigrants who settled on the land*  Many of them wore no t of a  type suited to farming,' and a large number of those both eager  and w i l l i n g to l e a r n had: t o g a i n t h e i r knowledge through b e t t e r experience*  Farming i s a s p e c i a l i z e d occupation and r e q u i r e s  a s p e c i a l i z e d knowiedge > and that n e c e s s i t y has been overlooked in t h e p a s t .  If the farmer i s to make any p r o f i t s he must out  down his c o s t of production* and t h i s man,; of the new men did n e t know hon to do*  They bought expensive land and did n o t  c u l t i v a t e i t with s u f f i c i e n t  intensity*  The boom years of 19 20 and 1921 did do one s e r v i c e i n i n t r o d u c i n g some business methods, and the bad year of 1922 and 1923 eliminated most of the u n f i t . • *  1 - .  •••>  ,  The farmer on the margin*  (  the speculator.and the incompetent.were forced out of business* Those who remain are the more e f f i c i e n t farmers who a r e studying t'js beat methods of p r o d u c t i o n .  They have learned t h e i r lesson  i n p a r t , but t h e r e la s t i l l room for improvement in the way t h e i r farms a r e managed, both from the t e c h n i c a l and business s t a n d points* 4*  Tha High C a p i t a l i z a t i o n of Land* As a r e s u l t of the enormous demand for land a f t e r  the war i t s value was very much i n f l a t e d *  Man? farmers paid  twice what the land was worth and are s t i l l hindered by the n e c e s s i t y of paying i n t e r e s t on theraoney which they borrowed as purchase p r i c e *  Land values have f a l l e n considerably and would  have f a l l e n s t i l l f u r t h e r were i t not f o r trie f a c t t h a t the farmer i s u n w i l l i n g to admit h i s loss and continues to ouots Ms land a t somewhere near the p r i c e he paid for i t :  Many men paid  11000 per acre for land on Vancouver Island which i s n o t worth  m 44 m  nearly t h a t today*  This gives tfae farmer a heavy i n i t i a l  handicap i n the form of i n t e r e s t payments, and makes i t neoesaary to c u l t i v a t e each acre of land very i n t e n s i v e l y * Some idea of the handicap which t h i s p u t s upon the farmer maybe gained by c o n s i d e r i n g 1924 c o n d i t i o n s *  Exact f i g u r e s are n o t  yet a v a i l a b l e but I t i s estimated t h a t without allowing f o r the payment of i n t e r e s t most of the farmers gained a f a i r l i v i n g wage, while when i n t e r e s t payments a r e allowed for* the majority show minus labor incomes* There i s an advantage which may p o s s i b l y r e s u l t from the high value of land*  I t n e c e s s i t a t e s more intensive  c u l t i v a t i o n * otherwise the farmer cannot make any Labor income, and t h i s i n t e n s i v e c u l t i v a t i o n ieaaa to g r e a t e r s p e c i a l i z a t i o n and a study of c o n d i t i o n s which i s badly needed*  Many farmers  bought land s u i t a b l e for s n a i l f r u i t s , a t ruinous p r i c e s , and then proceeded to devote p a r t of i t t o more extensive c u l t i vation i n the form of dairying*  This, of c o u r s e , proved very  • ^ p r o f i t a b l e and they a r e r e a l i z i n g t h e i r mistake*  A small  f r u i t farmer should a p e e i a i i z e and c u l t i v a t e h i s land i n t e n s i v e * l y , and there l a an i n e r e a a i n g tendency in t h i s d i r e o t i o n simply because i t does n o t pay to do otherwise with such high priced land* 5.  The "Lack of an Organized Market* B.C. small f r u i t farmers have had to f i g h t a g a i n s t a Met*,  disorganized market* and tfc«*e e f f o r t s have r e s u l t e d i n too many attempts a t r e o r g a n i z i n g .  There has been a new manager  - 45 p r a c t i c a l l y every year i n the c o - o p e r a t i v e s o c i e t i e s and t h a t t&jgjj£-^roda»t lead to e f f i c i e n c y .  Owing to the f a c t t h a t t h e i r  product i s p e r i s h a b l e and must be soon marketed, attempts have been made t o s t a b H i s s the p r i c e by means of Co-operative S o c i e t i e s , and t h e r e have been too many s o c i e t i e s *  The F i n -  land Growers are members of the Berry Srowers* Co-operative Union of B. C», which a t p r e s e n t bids f a i r to become a s t r o n g and successful o r g a n i z a t i o n .  I t has had to face great  difficul-  t i e s i n the p a s t but seems to be surmounting most of them,  on  Vancouver Island t h e r e i s another a s s o c i a t i o n which h i t h e r t o has refused to j o i n t h a t on the F i n l a n d because i t s overhead Charges are much l e s s and the»* members are not anxious to i n crease them by taking over p a r t of the burden of the -Mainland prod users .who a r e s u f f e r i n g under a heaver overhead a s a r e s u l t of too rapid an expansion.  There i s j u s t a p o s s i b i l i t y t h a t the  two o r g a n i a a t i o n s may combine a f t e r the r e v e l a t i o n s of the Duncan Report, in which case they w i l l be able to c o n t r o l a cuoh larger proportion of the supply, There are s t i l l a large number of independents who r e fuse to j o i n the co-operativea^and they are reaping the b e n e f i t of the e f f o r t s of the l a t t e r to keep up p r i c e s without assuming t h e i r share of the o b l i g a t i o n s .  A g r e a t disadvantage t h a t ifche  co-operatives labor under i s t h e i r i n a b i l i t y t o obtain money e x cept on very s h o r t time l o a n s .  This c o n t r i b u t e s to t h e i r enormous  overhead which the independents are unwilling t o a h a r a .  However,  Since the Vancouver Island Co-operative Association gave i t s  -46members batter prices in 1224 than the independents were able to obtain, it ia probable that ia membership will be materially Increased. Bven if one central organization can be established to control ail the small fruits in B.C. marketing difficulties are by no means over*  Because the United States season is earlier  than ours, it ia possible for American fruit to be put on B.C. markets from two to three weeks before local fruit ia ready. The United States producers secure the highest prices and the local market is spoiled for home producers.  There ia a law a-  gainst dumping but it does not appear to be adequately enforced and B.C. farmers are agitating for an increased tariff. Failing this the best thing they can hope for la an agreement between the American and local co-operatives not to spoil one anothers* markets.  This would not be very affective at present as the in-  dependents still produce in large quantities on both sides of the line*  B.C* producers must endeavor to maintain the prairie  markets and to do so must have control of as large a part of the supply es possible* There is one way of relieving an overstocked market and also of doing away with many of the evils of overproduction, "{his is by the establishment of canneries and jam factories. The former will dispose of a large surplus of high class fruit, while the latter will take care of fruit that is ovarripe and slightly spoiled and thus prevent it being a dead loss.  Up to the present  this sideline has not been iexplolted In B.CU,which has hitherto  - 47 been devoted en t i r e ly t o production for the f r e s h f r u i t market. The Barry Growers* Co-operative haa eatabliah8d a cannery a t Miaaion and i s c o n s i d e r i n g the purchase of a jam f a c t o r y .  This  i s undoubtedly a move i n the r i g h t d i r e c t i o n and q u i t e a p a r t from the steadying o f f s e t i t w i l l have on the market, should prove a p r o f i t a b l e business venture*  But here again the Co-  operative I s being hampered by :t&e n e c e s s i t y of r a i s i n g money on s h o r t time l o a n s .  The money borrowed t o pay for fee cannery  was on a year loan* t h e r e f o r e the overhead for the f i r s t  year  was extremely heavy and no p r o f i t could be expected. The B.C. small f r u i t i n d u s t r y i s as y e t very ne\^ there are few s u b s i d i a r y i n d u s t r i e s and any s t e p s i t takes are n e c s s - \ s a r l l y of an experimental n a t u r e ,  There are bound to be many  mistakes made, but the d i f f i c u l t i e s which a r e the r e s u l t of m i s management w i l l be done away with as experience i n c r e a s e s . 6«  ]?xpioltation by Brokers and Jobbers. I t i s hard, e s p e o i a l i y a t t h i s e a r l y stage of the i n -  v e s t i g a t i o n , to estimate j u s t how much of "fee f a i l u r e of the f r u i t farmers ean be a t t r i b u t e d to t h e i r e x p l o i t a t i o n by brokers and jobbers as exposed i n the luncan Report.  However i t i 3 safe to  Say t h a t bad c o n d i t i o n s were c e r t a i n l y sad a worse.  The grower i n  many oases a c t u a l l y did not r e c e i v e the sum to which he was ent i t l e d for h i s f r u i t ,  l l s o the alleged tolaJa combine appears to  have added to the s t r i f e and mismanagement which are com .on enough in a i l co-operative s o c i e t i e s , and prevented any one o r g a n i s a t i o n from securing the support of a i l the growers.  If t h i s  - 48 -  eacj»&oltation and I n t e r f e r e n c e oaa be eliminatad the  fruit  farmers w i l l have a much b a t t e r chance of sucoaaa»  i-il  I  i  II  ! i  - 49 THB THSB FRUIT I2PP3THT.  H  Chapter 7. Tree F r u i t growing i s c a r r i e d on i n many p l a c e s  in  the i n t e r i o r of B.C. b u t t h e t h r e e most i m p o r t a n t c e n t r e s * t h o a e  •v  ';Sf, : '  considered in the University Extension Surveys, are the Okanagan, Salmon Arm, and Eeremeoa  tf  districts.  A c t u a l f i g u r e s a r e a v a i l a b l e o n l y up t o 1 9 2 3 , t h e • «  l a t e s t s u r v e y c o n s i d e r i n g and oomparing the t h r e e y e a r s 1 9 £ 1 , 1922, and 19£3«  "During t h o s e ;.eara t h e growers s u f f e r e d  heavily  from a g r e a t f a l l i n p r i c e s w h i l e t h e r e Baa no c o r r e s p o n d i n g  rdi:  T '•V '  d e c r e a s e i n c o s t of p r o d u c t i o n ,  P r i c e s were e x c e e d i n g l y high i n  1919 and 1920 and t h e drop came s u d d e n l y g i v i n g l i t t l e f o r r e a d j u s t m e n t t o meet t h e new s i t u a t i o n *  chance  1922 was t h e w o r s t  y e a r and s i n c e t h e n c o n d i t i o n s have been g r a d u a l l y I m p r o v i n g . The a v e r a g e p r i c e p e r box of m a r k e t a b l e f r u i t r e c e i v e d by t h e growers a f t e r a l l o u t s i d e c h a r g e s were p a i d 2 7 . 5 ^ i n 1922 and 3 8 . 8 / i n 1 9 2 3 .  was 7 5 / i n 1221,  The f o l l o w i n g t a b l e shows  a v e r a g e r e t u r n s p e r box r e c e i v e d by t h e growers when i n t e r e s t and wages were c a l c u l a t e d t o g e t h e r w i t h o t h e r expenses of production. 3ct allowing I l l o w i n g mges Allowing i n t e r e s t ^ i i 0 , ! 1 ! 8 i n t e r e s t or wages but no i n t e r e s t . b u t no w a g e s . Interest IBAB. p r o f i t or L n a s . P r o f i t or L o s s . ZtQtiX QJ LoBi3,«?r°£ l t 1 , o r 1.09 L o s s . f.425 5*60 .1920 1.937 -.39 .01 -.13 1921 .27 9 . 4 0 5 . 5 2 6 -.843 1922 - .162 . 2 4 . 3 5 .64 1923fBat 1 mate) $*0 > . 2 7 9 . 3 2 8 . 622 Average 10 : f r s . - » 0 1 5 (D 1 9 2 3 ) .  - 50 In t h i s table i n t e r e s t ia allowed at 7% and wagea to the operator at §960 per year,  Family labor la allowed f o r  whether paid or not and the owner ia oh rged 10% of the value (I) of hia house aa rental « I t shows th t not allowing either jagea or i n t e r e s t the average farmer received a minus inoome in 1922, and a n e g l i g i b l e one i n 1922, while if both wagea and i n t e r e s t are charged there waa a plus inoome i a no year since 1920.  it  moat be remembered however that conditions during these yeara were not normal.  After war nrosparity l a s t i n g u n t i l IV20 ralaed  f r u i t lands to high prices and attracted s e t t l o r s , and man; farms changed hands*  Then abruptly came low prioes and a d i e -  organized malfcet, which played havoc with the hopes of the gro war a* Land value;? were very high in 1921 aa a result of an accelerated demand and they remained f a i r l y high throughout 1922 to 1923 when there was a s l i g h t reduction.  In 1921 orchard  lands averaged $982.67 por acre, 3961.5? in 1922, and $886.50 in 1923.  Since than there has been a substantial drop i n values due n  i a part to the f a i l i n prices and subsequent reduction in the earning power of the land, and to the low valuation placed on recently purchased farma.  In 1921 orchard lata in general baaed s  (1)  I n t e r e s t on the house If charged a t 7%, depreciation and repairs average 3>, therefore 10"a of the value of the houae 18 charged to the farmer as exponaea. Tola ia credited to the farm among perquisites ao that i t doea not a f f e c t the farmer's labour income*  - 51 * "toe value of t h e i r land on what s i m i l a r land was s e l l i n g f o r i n t h e i r neighborhood, or on whit they had a c t u a l l y been offered for t h e i r own farmsaccuracies,  Jtefrteerds which leave room for g r e a t i n -  The i d e a l t e s t of a f a r m ' s value would ba i t s p r o -  spective e a r n i n g power over a Long period of time and that far Ttaither aa lesman nor p u r c h a s e r s c o n s i d e r e d .  The value of orchard  lands i s s t i l l f a i r l y high in IS25 but t h a t oan be explained, i n p a r t a t l e a s t , by the following  factors:  1* The productive value of the land during good y e a r s .  It is  a n t i c i p a t e d t h a t b e t t e r c o n d i t i o n s w i l l p r e v a i l and t h e value of the land i s thus based in p a r t upon an estimate of i t s future earning power* 2*  The advantages both c l i m a t i c and s o c i a l of the i n t e r i o r d i s t r i c t s where moat.of the orchard land i s l o c a t e d ,  3*  The outlay required i n improving new l a n d . An unfortunate consequence of the high value of  land i s t h a t only those men with p l e n t y of c a p i t a l can safely e n t e r the f r u i t business a s long aa the overhead charges a r e so heavy,  Those who brought during i n f l a t e d p r i c e s are s t i l l pay-  ing i n t e r e s t on t h e i r heavy investment, whioh adds to t h e i r other d i f f i c u l t i e s .  Those who paid for the land and equipment  eas^ down have not f e l t the s t r a i n as heavily a s the o t h e r s since they are not compelled to pay I n t e r e s t to themselves during bad years although i t i 3 a l e g i t i m a t e c h a r g e . Taxes and water r a t e s which r e p r e s e n t 10% of the grower*a expenses have shown no r e d u c t l n ae p r i c e s f e l l .  - 52 7»ater r a t e s are very heavy i n the i r r i g a t e d d i s t r i c t s .  In  'i  some oases the t o t a l receipts for f r u i t i n 1922 were not I  s u f f i c i e n t t o pay for taxes and water r a t e s . The 1922 depression led to a considerable c u r t a i l ment in the c r e d i t extended t o the grower.  Bonks grew wary,  and i t was almost impossible t o obtain any f u r t h e r c a p i t a l . One r e s u l t of t h i s was t h a t orchards were neglected for \rant of working c a p i t a l and the production par acre was not i n c r e a s e d . Farms w i l l fas I in the future the i n j u r i o u s e f f e c t s of these bad years when I t was d i f f i c u l t to give t r e s s and s o i l t h s a t t e n t i o n they needed, The investment once made, an e s t a b l i s h e d orch r d farm does n o t r e a d i l y lend i t s e l f t o sadden c h a n g e ,  2his la  true to a degree o$ a l l farms, but e s p e c i a l l y ao of t r e e  j j \  fruit.  On poultry or d a i r y farms the stock can be moved and t h e i r value realized.  F r u i t t r e e s cannot bo removed nor can they be i n -  creased or decreased e a s i l y *  ihe only way to decrease the sup-  ply i s t o p u l l out t h s f r u i t t r e e s , and t o increase i t , young and taproductlve  t r e e s must be p l a n t e d , the farmer depending on  f u t u r e crops and on the ineressed value of the land for r e compense.  Once planned, t h e n , f r u i t t r e e s cannot be considered  a p a r t f r o s the land as can s t o c k .  For t h i s reason ths number of  a c r e s i n orchard land remains f a i r l y constant and has increased only very s l i g h t l y in the p a s t four y e a r s . t h e r e was very l i t t l e new p l a n t i n g .  From 1921 to 1923  - 53 The a v e r a g e a l a s of t h e farm I s 22*8 a o r s a . bulk of t h e c a p i t a l i n v e s t e d , 77% t l a I n l a n d , and of  that  land 95% l a dn o r c h a r d s t h e r e g a i n i n g 5% b e i n g snore o r unproductive:  The  less  1'he a v e r a g e d u e l l i n g r e p r e s e n t s 13%, b u i l d i n g s  3,5%, equipment 5 $ , and s t o c k 1.5%. farm i s v e r y h i g h l y s p e c i a l i z e d .  This s h o i s t h a t t h e  fruit  The a v e r a g e o r c h a r d i s t  inveata  | 2 5 0 0 i n h i s house showing t h a t he i n t e d s t h a farm t o be h i s hose*  Ha might p r o f i t a b l y  i n c r e a s e h i s e x p e n d i t u r e for  stock  such a s p o u l t r y or b a s s , which do n o t r e q u i r e a l a r g e amount of land* Apart from i n t e r e s t payments tha g r e t a s ^ t o t a l e x pense was t h a t of Labour*  The f o l l o w i n g t a b l e g i v e s a comparison  of e x p e n s e s . 2EBCBETAG.S OF TOTAL SXPUSSSS. Year*  1921  U)  Labor f o o t i n c l u d i n g o w n e r r a } _ _ 26% Faed.fead f e r t i l i z e r , S p r a y M a t e r i a l , R e p a i r s . - - - _• ^ . 18% Taxes and ^ a t a r B a t e s . • _.~ _ - 10$ D e p r e c i a t i o n on b u i l d i n g s and machinery* __ - _ — - - - — -.- 8% I n t e r e s t on c a p i t a l i n v e s t e d . . . . . - . 3 8 %  1922  1985  Average*  26%  26%  26%  14% 10%  12% 10%  15$ 10%  9% 41%  10% 42%  9% 40%  Hired l a b o r d e c r e a s e d g r e a t l y a f t e r 1921 showing t h a t t h e f a r m e r s were c u t t i n g down e x p e n s e s and  substituting  t h e i r own and t h e i r f a m i l i e s . ! l a b o r f o r t h a t u s u a l l y h i r e d *  A  s p e c i a l i s e d f r u i t farm does n o t o f f e r s t e a d y employment f o r l a b o r t a r o u g h t h e ; e a r , and t h i s b r i n g s up t h e q u e s t i o n of (1)  side  Family l a b o r i s charged a s an expense though i t i s seldom a c t u a l l y paid*  - 54 l i n e s which could be profitably c a r r i e d on a i t h the  fruit  farm, and would allow of a more economical employment of l a b o r . 2«Iaay growers waste labor because the# do not keep s u f f i c i e n t working stock o r machinery, and ara compelled t o do much rasohantoal  work themselves .  This may be the r e s u l t of poor  management o r i t may be dua to an a c t u a l lack of working c a p i t a l , fhe average farmer i s very c a r e l e s s about h i s t o o l s and machinery and frequently does not take d e p r e c i a t i o n i n t o account a t all.  l  I t t a k e s f152*78 par 5ear on the average farm to pay for  depreciation of working equipment* l a reducing c o s t of production the moat Important f a c t o r i s i n c r e a s i n g the y i e l d per c o r e .  In 1921 the average  yield was 242 packed boxes per acre and t h i s rose to 263 i n 1922 and 270 i n 1922* showing a d i s t i n c t improvement.  As y e t , however  the yield does not come up to t h a t of the s p e c i a l i z e d farms in the State of Washington* greatly.  fruit  Coat of production v a r i e s  One farm showed a c o s t of 1 7 / per box while another  was aa high a s #1.34 per box.  During 1922 and 1923 not even the  high producing farms made a n j revenue but t his was due to lack of an orderly market and a good eastern of d i s t r i b u t i o n , and not t o overproduction or poor q u a l i t y f r u i t .  B.C. f r u i t farmers a r e  s p e c i a l i z e d and t h e r e f o r e the f r u i t can show uniformity of pack and conform t o d e f i n i t e standards of grade and 00lour, a i l of which go t o make i t e a s i l y marketable* Variety i s a very Important question t o the grower*  — 55 — There are c e r t a i n v a r i e t i e s which are suited t o p a r t i c u l a r d i s t r i c t s , and these can only be discovered by experiment* Also there are c e r t a i n v a r i e t i e s which are on the market e a r l y and o t h e r s which keep throughout the w i n t e r .  B.C. has 65% of  i t s apples i n e a r l y v a r i e t i e s which must be handled quickly or put into cold s t o r a g e , whereas only 30% of the Washington and Oregon apples are e a r l y v a r i e t i e s .  V/e need more l a t e apples  in B. 0« to balance the consuming period and avoid overstocking a t ona t lme and a lack of supply l a t e r in the w i n t e r . The g r e a t need of the Tree f r u i t growers is a s t a b l e organized market, and the only p r a c t i c a l way to o b t a i n t h i s i s by c o - o p e r a t i o n .  The h i s t o r y of the e f f o r t s made i n  t h a t d i r e c t i o n i s not encouraging up t o 19L4«  The f i r s t a t t e m p t  to c o n t r o l the B.Ct supplv came from the okanagan United f?ro a r s formed i n 1913*  This a s s o c i a t i o n became bankrupt i n 1922 p a r t -  ly because of the vary poor c o n d i t i o n s i n the f r u i t  business  a f t e r the war and p a r t l y beoauoe of l o c a l mismanagement.  This  f i a s c o helped to make the c o n d i t i o n of the i n d i v i d u a l growar s t i l l worse, and tended t o d i s c r e d i t c o - o p e r a t i o n .  However t h e  extremity was g r e a t ; and i n d i v i d u a l marketing r e s u l t e d in a ruinous chaos, markets being gUitted i n some places while there was a demand in o t h e r s .  After the v i s i t of Xlr. Sapiro the 3 - 0 .  2 r u i t Grower*a Association was formed, and i n s p i t e of i n i t i a l d i f f i c u l t i e s I t has prospered and the members are a l r e a d y r e ceiving much b e t t e r r e t u r n s than formerly.  I t c o n t r o l s about  -. 56 '9&j» of t h e supply of marketable t r e e f r u i t s i n B.O*, and i s endeavoring t o build up safe and substantia], m a r k e t s , There are t^o big disadvantages t h a t the B.C. Grower most f a c e .  One i s the f a c t  that h i s b e s t and n e a r e s t market i s  the p r a i r i e p r o v i n c e s , and that he i s t h e r e f o r e unavoidably i n jured by a f a i l u r e in the p r a i r i e crop which deprives the p r a i r i e farmer of purchasing power* Ing other markets,  Shis can only be avoided by develop*  Ihe second i s .American competition*  The  season of the American s t a t e s to the south i s from ten days t o two weeks ahead of t h a t In B.C.  Therefore American f r u i t comes  on the market before B.C. f r u i t i s a v a i l a b l e * are anxious f o r P r o t e c t i o n to prevent t h i a .  The f r u i t grovgers They d e s i r e a law  which w i l l prevent American apnles coming into B.C. and a l s o on to the p r a i r i e market, before B.C. f r u i t i s ready., There are two problems which face the f r u i t grower $oday.  The f i r s t i s t h a t of reducing h i s cost of production  and is e n t i r e l y an i n d i v i d u a l m a t t e r .  I t depends on the a b i l i t y  and management of the grower* to p l a n t su t a b l e v a r i e t i e s , t o increase h i s yield per a c r e , and to manage h i s farm economically. The second problem i s t h a t o f marketing which i s a more s e r i o u s matter to t h e farmer than i t i s to the i n d u s t r i a l i s t ,  f r u i t must  ba sold or i t p e r i s h e s ; produotion cannot be c u r t a i l e d if p r i c e s are not a d e q u a t e .  The only s o l u t i o n of t h i s problem appears a t  present to l i e i n o o - o p e r a t i e marketing, and on the success of the B«C. f r u i t Grower's Association hangs the p r o s p e r i t y of the t r e e f r u i t farmers of the Province.  - 57 00-OPEaATIOH. Chapter 8 , Go-operation ia known aa the "Golden Hale i n A g r i c u l t u r e " , but i t haa taken more than f if ty years for that r a t a t o gain r e c o g n i t i o n in a g r i c u l t u r e throughout the world, fhe f i r s t  "productive* c o - o p e r a t i v e s o c i e t y ;ms founded in  ^ermaay i n 1671, a«d today i n 1925 there a r e many d i s t r i c t a where the p r i n c i p l e has only a t e n t a t i v e hold, wheae i t ia a e r e l y spoken of aa d e a i r e a b l e Or put i n t o p r a c t i c e by way of experiment. Co-operative S o c i e t i e s may be divided i n t o two main c l a s s e s : Gonsumera.  Associations of Producera and Associations of  I t i a the former i . which the farmers a r e l a r g e l y  i n t e r e s t e d and which w i l l be d e a l t with he^e,  A Producers  Asaooiation may ha e i t h e r a co-operative s e l l i n g o r g a n i s a t i o n or I t may a i a o undertake production i n t he usual sense of the word. A c o - o p e r a t i v e d a i r y takes the milk and changes a large p a i l of i t i n t o b u t t e r and cheese before s a i l i n g i t , operative f r u i t cannery changes the form of the f r u i t .  A coAs a  r u l e , however, the co-operative noeiety has for i t s main objact the marketing of the p r o d u c t .  Dairies and canneries are merely  aide ilnaa which are a t a r t e d aa a r u l e to dispose of an unmarketable s u r p l u s , here are o n l j two ways i n which eo-operation may davelofj aa a r e s u l t of n e c e a a i t y , or of education along cooperative l i n e s .  The fiiff l e n i t i e s which the A g r i c u l t u r a l and  - 58 I n d u s t r i a l devolutions created for the fanner, and the general depression from which a g r i c u l t u r e has been s u f f e r i n g have made the former r e a s o n , the most important*  Because farmers produce  i n d i v i d u a l l y they are not prepared for group s e l l i n g , vrtiich cornea SB the n a t u r a l r e s u l t of group production in the i n d u s t r i a l field.  The farmer in the p a s t has not been a business man, h i s  r o l e war to produce, to s e l l hia product for what he could get and then r e t u r n home to produce no re.  As a r e s u l t vre have had  overproduetioa in some d i s t r i c t s , and i n i q u i t o u s shortages i n o t h e r s , a l l because the farmer*s business was merely j 4^:^^%;^!|^p0#HJ^pa»to  to produce  organize e i t h e r h i s production or the  d i s t r i b u t i v e of h i s p r o d u c t .  This s t a t e of a f f a i r s injured the  farmer, injured the sonsumer and injured  the country as a whole.  The only remedy la to i n s t i l some business methods i n t o the the farmers c o l l e c t i v e l y and i n d i v i d u a l l y *  "The farmer i s the only  producer who produces without informing himself c a r e f u l l y as to future demand; who s e l l s a t the prico the buyer i s w i l l i n g to pay; who does not condition hi3 products c a r e f u l l y for market; who dumps them in large q u a n t i t i e s on the market soon a f t e r h a r v e s t ; and who t h e r e f o r e pays high charges of a l l s o r t s to o t h e r people to do wh*it he ought to do himself,"  The aim of co-  operation i s t o c o r r e c t a l l t h i s by introducing a system uhioh prevents waste and s p e c u l a t i o n , and i n s u r e s t h a t the man v.ho p r o duced farm products s h a l l have a chance to merchandize them and to make a l i v i n g out of i t * (1}  Honorable Henry C.YJallaes.  Address a t Columbia, Ohio., 19ES,  - 59 Co-operation must always be In p a r t the r e s u l t of experiment,aa the c o n d i t i o n s d i f f e r with d i f f e r e n t  /hioh govern i t 3  localities.  establishment  IPhe general o h a r a o t e r i a t i c a  which have been found necessary to success i n the p a s t a r e as follows; I*  i'he primary purpose la marketing on a commodity b a s l a i  £»  The commodity .lust be marketed aa a vihole and n o t by l o c a l ity*  Experience has shown t h a t Iocs i i t y marketing leads  to s t r i f e among the farmers and makes I t more d i f f i c u l t  to  grade and s t a n d a r d i s e the product* SI* The c o - o p e r a t i v e a s s o c i a t i o n must be based on l e g a l binding c o n t r a c t s with the formers, otherwise agreements are apt to be broken in t i n e a of d i f f i c u l t y and the a s s o c i a t i o n f a l l s to pieces* 4*  Products must be pooled according to grsde and s i z e e t c . This leads to i n s i s t e n c e on q u a l i t y and e l i m i n a t e s jealousy and f r i c t i o n between members.  5.  Grades and standards of qu l i t y for products must be p r o vided.  This makes p o s s i b l e nore extensive a d v e r t i s i n g .  Canadian stockbreeders and poul "toymen are very lucki 1 In t h i s r e s p e c t , a s the Dominion Government rraintains A rigorous system of grading by which a i l farmers are invited t o p r o f i t , and which gives c o - o p e r a t i v e a s s o c i a t i o n s a reoognlaed high standard to e s t a b l i s h . 6.  The i n o p e r a t i v e should be managed by an expert who s p e c i a l i s e s i n marketing t h a t p a r t i c u l a r p r o d u c t .  This gives the  - 60 i n d i v i d u a l farmer the advantage of s p e c i a l i s e d  fcusinass  skill  and Information in s e l l i n g such as i t ?ould be next t o impossible for him t o acquire himself. 7*  The oo-operativea should operate on a n o n - p r o f i t b a s i s , merely handling the products and paying the farmer the s a l e price l o s s the coat of o p e r a t i o n .  Thus by e l i m i n a t i n g  middlemen the farmer g e t s a much l a r g e r p r o p o r t i o n of the consumer's d o l l a r 8*  than ever b e f o r e .  The a s s o c i a t i o n should be operated as a semi-public *ody» i t s r e c o r d s should be open to the p u b l i c , and farmers k e p t advised of i te a c t i v i t i e s and given frequent  financial  statements. Co-operative marketing endeavors to maintain a s t a b l e market and does t h i s by s u b s t i t u t i n g merchandizing for the dumping p r a c t i s e d by i n d i v i d u a l f a r m e r s ,  When the farmer  sold h i s crop he u s u a l l y put i t a l l on the n e a r e s t market immediately a f t e r h a r v e s t i n g .  If b e t t e r markets and p r i c e s e x -  i s t e d elsewhere he did n o t know i t .  Under c o - o p e r a t i o n i t i s  the buesiness of a s p e c i a l i z e d lisnager to keep in touch isith markets throughout the ^ o r l d .  If  the product i s non-perishable  i t Is stored and released as demanded, a process involving a g ,'od deal of c a p i t a l .  If the  roduct i s highly p e r i s h a b l e i t l a  shipped over d i f f e r e n t r o u t e s to d i f f e r e n t market?, to avoid glutting.  In the merchandizing of some p e r i s h a b l e products  storage and r o u t i n g are both used to insure a s t a b l e m a r k e t . The advantages of merchandizing in place of dumping a r c .  - 61 i*  I t o r g a n i z e s the m a r k e t .  2.  I t reduces the c o a t of marketing.  All l a done through one  c e n t r a l agency. Instead of s a n y . 3*  I t broadens the market through a d v e r t i s i n g , f r e q u e n t l y by the use of a t r a d e mark.  The experience of t h e Fun Maid  Haiain Growers i s an excellent examnle of v*hat may be done t o c r e a t e a market* 4.  I t improves the q u a l i t y of the p r o d u c t ,  The salesman « i l l  refuse t o accept anything not up to s t a n d a r d . One g r e a t r e q u i s i t e for success i s c o n t r o l of t h e l a r g e s t p a r t of the supply.  The p r o s p e r i t y of c o - o p e r a t i v e  marketing depends l a r g e l y on. t h i s .  One of the reasons for the  f a i l u r e of the OltfJ.S. m a I t s I n a b i l i t y t o e l i m i n a t e the indef pendents.  The l a r g e r t h e A s s o c i a t i o n , the g r e a t e r the number of  growers among vshora t o divide the overhead*  ||  i struggle with  the independents and \3ith the s p e c u l a t i v e s e l l i n g i n t e r e s t s I s i n e v i t a b l e i n the o u t s e t , and any o r g a n i z a t i o n must be prepared to face l t »  claimed t h a t the co-operativee are dangerous a t l e a s t p o t e n t -  |$  ak  In so far as the? ranfee for a more s t a b l e market and  a more s t a b l e p r i c e l8Vel» they a r e doing a servlsse t o the vihola community.  1  % From the consumers p o i n t of view i t i s often  iaily so.  li  I t la undoubtedly t r u e th».t ^hen the market i s  flooded through unorganized s e l l i n g , the consumer reapa the  | Ji jjjf  b a n f i t In low p r i c e s * but h« haa to pay high p r i c e s l a t e r in the season because of the shortage of p r o d u c t .  A more s t a b l e p r i c e  1  - 62 l e v e l would b e n e f i t r a t h e r than Injure him,  Statementa are  frequently published showing the difference between the p r l o e received by the farmer and t h a t paid by the consumer. difference I s l a r g e l y eliminated by c o - o p e r a t i o n .  x  Thia  he farmer  receives what the consumer pa.ya less s e l l i n g expenses.  Before  the establishment of the Fraser Valley MiUc P r o d u c e r ' s Association the d a i r y farmers of the Fraser Valley received only about 4 0 / of the consumer's d o l l a r ; t h e y now receive 65jf. The farmer i s anxious to o b t a i n the p r o f i t s which have h i t h e r t o gone t o the middleman.  Thia w i l l increase his r e t u r n s without  Injuring the consumer.  Assuming t h a t p r l o e a must be r a i s e d to  give the farmer a return for his l a b o u r , s u r e l y t h i s la more d e s i r a b l e than the c o n t i n u a l e x i s t e n c e of a s i t u a t i o n under which the general p u b l i c enjoy l o s e r p r i c e s a t the expense of a decant standard of l i v i n g for the farming p o p u l a t i o n . n o t been the general expaalanoe.  This ho.ever, has  Vhere oo-oparation has been  e s t a b l i s h e d the consumer does not a s a r u l e pa^/ nora for h i s product; i n some cases he even pays l e a s .  The e x t r i r e t u r n s  of the farmer are a r e s u l t of a sane and business Ilk* marlceti<g» of the e l i m i n a t i o n of a i l unnecessary expanses, and o f t a * improvement i n q u a l i t y of the r-roduot, and the extension of the market* I t la frequently maintained t h a t a oo-operatlve tends t o become a c o n t r o l l e d monopoly which w i l l e x p l o i t tha p u b l i c by t a k i n g advantage of i t s prices.  control of the supoly t o f i x  Thia a c c u s a t i o n contains enough t r u t h t o mate I t  - 63 dangerous to the c o - o p e r a t i v e movement. co-operative s e l l i n g 3ociet, can g i l n c o n t r o l of the suppl  I n the f i r s t place a  la a monopoly in ao f a r as i t produced within i t s  district.  In the second place i t does fix p r i c e s but no more so than !ihe average business f i r m .  Hitherto the farmer has taken h i s p r o -  duction t o market and askada,  "'Jhat w i l l you give ne for i t ? "  And the buyer f i n d i n g other farmers a l s o waiting with t h e i r products raad^ for s a l e has given a p r i c e whioh in many oases did not cover c o s t of production*  The co-operative knows a p -  proximately whnt supply w i l l be, and i s a l s o In a p o s i t i o n to estimate demand, and i ts p r l o e i s fixed with reference t o both exactly as a hi*, goods*  raanuficturs*  decides '.*hat p r i c e he w i l l charge for  If the p r i c e be too high p a r t of the supply w i l l be  l e f t on h i s hands.  The c o - o p e r a t i v e , then, does n o t f i x i t s  p r i c e anymore a r b i t r a r i l y than ao:s the ordinary business man* As t o the oo-oparutive becoming a controlled monopoly which can e x p l o i t toe p u b l i c , t h ; t i s impossible so long as the o r g a n i s a t i o n maintains i t s purely co-operative c h a r a c t e r and does not attempt t o c o n t r o l i n d i v i d u a l production*  Co-  o p e r a t i v e s which hiVe taken advantage of t h e i r c o n t r o l of t h e supply t o r a i s e the p r i c e soon found t h a t higher p r i c e s led to such an lnoreaae in production on the p a r t of 1fae fnrmers t vat they oould not market the s u r p l u s . and not only did p r i c e s  fell  They defeated t h e i r ova ends  but a largo p a r t of 1he product aa  wasted . P o t e n t i a l competition by independents if the p r i o e beoones too high is another obstacle in t he way of i n c r e a s i n g i t .  As  long as the connection with the i n d i v i d u a l farmer i s limited t o  - 64 marketing h i s product and giving him t e c h n i c a l information which a i d s hira to maintain a high standard of q i i a l i t y , the consumer i s s a f e .  The danger l i e s in the p o s s i b i l i t y t h a t the  co-operative ma; gain c o n t r o l of a larger enough portion of the supply to he more or l e s s safe from competition, and t h a t i t will then use i t s po^er to e x p l o i t the m i b i i c .  Hitherto t h a t  has not been the e x p e r i e n c e , possible- because farmers are not as e a s i l y c o n t r o l l e d as business f i r m s .  Fven if the c o - o p e r -  a t i v e s do tend to become e x p l o i t i n g monopolies, s t a t e r e g u l a t i o n may be e s t a b l i s h e d to check t h e i r e v i l t e n d e n c i e s .  At a i l events  of the two e v i l s ^ s ^ p o s s i b l e monopoly aetr c e r t a i n d i s a s t e r t o a large p a r t of the farming population, th-s former seems the lesser a t present* Co-operation In B, 0,  I t has been estimated t h t co-operation in general r e p r e s e n t s one t e n t h of the f a r m e r ' s problem. tenths a r e problems of p r o d u c t i o n .  i1he other n i n e -  In B.C. today the s t a t i s t i -  cian vuuld probably find t h a t i t meant more than t i a t . a l production I s concerned the farmer c>n hold h i s own*  As f a r He has  to face the u s u a l pioneer d i f f i c u l t i e s of a nev* country, with an e s p e c i a l disadvantage i n the high c a p i t a l i s a t i o n of land, but to counterbalance t h a t he has a e l l : a t e which i : e x c e l l e n t l y s u i t e d for high p r o d u c t i o n .  B.C. Fresh Zggs are recognized a i l over the  continent as of the h i g h e s t q u a l i t y ; s t r a i n s b u i l t up by B.C. poultry breeders are being exported a l l over the vsorle; i t was B*C« f r u i t growers who f i r s t introduced boxed apples t o t h e  - 56 English market -where they a r e r a p i d l y r e p l a c i n g these in barrels.  Yet i n s p i t e of the undoubted excellence of the p r o -  d u c t , f a m i n g i n the l a s t five years has passed through a d s reasion which can only be described a s d i s a s t r o u s .  Far from  making any p r o f i t s the majority of farmers l o s t money, and with the p o s a i b i e exception of those i n tha dairy i n d u s t r y , the majority oould be pointed to as thoroughly unsuccessful.  A  very large p a r t of t h i s f a i l u r e can be l a i d a t the door of nonco-operation. Oo-operation has baen t r i e d in s e v e r a l d i a t r i c t a in B.C. and in s e v e r a l types of farming,  where i t has a r i s e n ,  i t has been the r e s u l t of e x t r e m i t y , the l a s t hope of th6 farmers.  I t i s always i n the n a t u r e of an experiment, a s p e c i a l -  iy i n a new country, and matiy of the mistakes made are neeeaaary s t e p s to p r o g r e s s .  Co-operative s o c i e t i e s depend e s s e n t i a l l y  on the w i l l i n g n e s s of i n d i v i d u a l s to c o - o p e r a t e , and t h i s i s uhat has been d i f f i c u l t to o b t a i n .  A f a i r l y large percentage  of the farmers are men who have come to B.G. t o r e t i r e ; or t o make farming supplement t h e i r small incomes.  In e i t h e r e ae  they have a d e f i n i t e income, even if a t i n y one, on which to l i v e , and they a r e not dependent on t h e i r farms.  These men are  often stumbling blocks to the co-operative movement.  I t i s not  a b s o l u t e l y e s s e n t i a l t o them t h a t they join the a s s o c i a t i o n s . The older farmers object to new developments to rthioh they are not aoeustomsd; they are used to i n d i v i d u a l marketing, and do not l i k e the pooling of t h e i r produce with t h a t of t h e i r  - 66 neighbors*  A3 ona o f f i c i a l expressed i t :  H  The younger farmers  are easy to isork with, but the older ones are hope l e s s ITl So f a r the most successful example of co-operation in B*C, i s to be found among the dairymen,  The Fraser Valley  Milk Producer*a Association was s t a r t e d i n 1913 as a b a r g a i n i n g aeaoeiatioa»  I t next became a marketing copoperativa; o p e r a t -  ing p l a n t s and handling the surplus milk,  '.Today i t o p e r a t e s  the l a r g e s t r e t a i l milk business in Vancouver through the f r a s e r Valley Dairies Ltd*, a s u b s i d i a r y co-operative devoted merely to d i s t r i b u t i n g .  D i s t r i b u t i n g costs are very iovj and  the farmer g e t s the b e n e f i t .  Milk consumers enjoy p r i c e s as  low and frequently looser than those i . any other important Horta American c i t y .  Producers r e c e i v e Zfa% more of the con-  sumers* money t h a n they did i n the days of independent marketing,  The s u r p l u s of milk which v a r i e s in d i f f e r e n t seasons, i s  taken cure of by the co-operative i n eondensaries, creamer l e a , and cheese p l a n t s , which a l s o take charge of the milk of those producers who are unable "to ship i n t o Vancouver,  About one  f i f t h of the c a p i t a l of the Association i 3 required to finance these p l a n t s .  Good q u a l i t y milk i s I n s i s t e d on, and must be  maintained if the Co-operative i s to keep up i t s r e p u t a t i o n and p r i c e s .  There i s considerable competition from independents  v?ho are coming i n froiL the p r a i r i e s every year, but the Cooperative i s too firmly e s t a b l i s h e d to be s e r i o u s l y menaoed by then*  The c a i r y a s n \ e a j o y an exceptional advantage i n having in  Vaaeotsrsr so large a market f o r ahoie milk, b t the  "fightiag  - 67 funds" necessary to ensure successful competition had reduced t h e i r incomes to almost no thing in the dsys before co-operation was e s t a b l i s h e d . The true fcest of a co-operative s o c i e t y i s "Hora f a r i s ihe o r g a n i z a t i o n s o c i a l l y b e n e f i c i a l and economically profitable?"  The Fraaer Valley Milk Producer's Association  meets both q u e r i e s ; i t has proved advantageous both to producer and consumer.  I t 13 noteworthy t h a t t h e dairy industry of B«0»  i s the only branch of a g r i c u l t u r e which has had an suscass a t a l l in the p a s t five y e a r s , and t h a t the d a i r y industry i s the only one in ahieh co-operation i s firmly  established.  The s i t u a t i o n i n the Poultry i n d u s t r y has n o t yet bean s u f f i c i e n t l y s e r i o u s to n e c e s s i t a t e c o - o p e r a t i o n .  An  attempt in t h a t d i r e c t i o n , the B»C, Poultryman'a Co-operatives Exchange* f a i l e d i n 19L3 a s a r e s u l t in p a r t of the very bad conditions p r e v a i l i n g a t the time, and no p a r t of mismanagement. There i s only an exportable surplus during a fear months oi the yaar.  For the r e s t Vancouver p r e s e n t s a j k i r i y s t a b l e market  for eggs*  Until the surplus i n c r e a s e s to such an e.rtant t h a t  i t e x i s t s throughout the year* i t i a doubtful whether co^operati till I again be t r i a d and u n t i l t h a t time the industry cannot i n crease to an., appreciable extent beyond the needs of the home market* The Poultry Breeder's Association of B.Oi i s a vary young but e x c e p t i o n a l l y successful o r g a n i z a t i o n .  In a p i t a  - 68 -  of I t s youth and heavy ovarhesd expenaaa i t ia already raaking p r o f i t s for i t s mesibars by t h e a a l a of high grade a e t t i n g eggs and baby ohiolra.  I t has 391 an e x c e p t i o n a l l y high standard  based on the Dominion Government B#Q#I-. r e g u l a t i o n s , and i t  is  p u t t i n g on a tremendous a d v e r t i s i n g campaign vjlth the g a i n of extending i t a market throughout the world. would seem to i n d i c a t e  I t s immediate auccaas  thnt ona of thcs r e s u l t s of c o - o p e r a t i o n  vsill be the g r a t e r importance and development of t h i s br .neh of the p o u l t r y b u s i n e s s , o r i g i n a l l y only s aide l i n e of egg producing, while the l a t t a r i n d u s t r y r e l a t i v e l y d e c l i n e s . The s t o r y of co-oper': t i o n among the t r e e growers ia an unhappy o n e .  fruit  Desperation led those in the  Okanagan Valie.-; t o forn the Okanagan United Growers In 1913, This, a f t e r the p r e l i m i n a r y d i f f i c u l t i e s were surmounted appaared on the road to success*  Iviarkets were extanded, and the  famous "O.K." brand i n s t i t u t e d . of s i z e .  One g r e a t o b s t a c l e \saa the lock  B.C. apples are but a drop i r the bucket of the viorld  n&rket, • nd unleaa the O.U.G. could manage the g r e a t e r p a r t of the B.C, supply i t had not s u f f i c i e n t c o n t r o l of n o r k a t a .  The  g r e a t drop i n p r i c e s in I9£i and 2£ vsas more th&n the o r g a n i s a t ion, already s u f f e r i n g from tr.ismaii^gement, could s t a n d , and i n 19E2 i t became b a n k r u p t .  The growers, i n d e s p e r a t i o n i n v i t e d  Mr. Aaron Sapiro the C a l l f o r n l a n a u t h o r i t y on c o - o p e r a t i o n t o come to B.C. and consider the problem of o r g a n i z i n g the apple growers of B.C.  *s a r e s u l t oi lAr. Sapiro*s v i s i t twenty  h o r t i c u l t u r a l o r g a n i z a t i o n s were formed d u r i g 19 £2, the r.iajority  - 69 of whioh joined the B.C.. ^ s s o c i s t e d F r u i t Growers, the s u c c e s s o r of the i l l fated 0*U.G»  This a s s o c i a t i o n had g r e a t o b s t a c i e a  to face; i t *ms formed during a period of io^ p r i c e s , and i t had g r e a t d i f f i c u l t y i n r a i s i n g the necessary funds for expanses, the majority of i t s members being on the verge of bankruptcy themselves*  The n«?< manager resigned during tha f i r s t  three  months and h i s place ^as taken by a l o c a l man who has succeeded in p u l l i n g the o r g a n i z a t i o n through tha f i r s t two years and s e t t i n g i t on the way to p r o s p e r i t y ,  Returns to the growers  were much b e t t e r in 19E4 than formerly, n o t w i t h s t a n d i n g the heavy overhead.  Tha f u t u r e of tha t r e e f r a i t i n d u s t r y undoubt-  edly depends upon the success of the Associated Growers. The small f r u i t mea have been organised i n t o a number of c o - o p e r a t i v e s o c i e t i e s * no one of which i s large enough t o c o n t r o l the s u p p l y .  In a d d i t i o n the*e have been  numerous l o c a l d i s p u t e s nnd c o n s t a n t charges of management, a s s i s t e d , i t l a uon b e l i e v e d , by the Influence of the hash combine of brokers and j o b b e r s .  The evidence put forward i n  the Duncan Ileport s t r e s s e s again the n e c e s s i t y of d i s t r i b u t i o n of the product by the farmers thamaalvos. not content a i t h the ordinary p r o f i t  The middlemen ..iere  bo be obtained from  Speculation i n the f r u i t market, but took advantage of the Ignorance of the farmer In business a f f a i r s to f a l s i f y and make the iov? p r i c e s he r e v i v e d a t l i l io.ver*  returns  3mall f r u i t s  are so p e r i s h a b l e t h a t organised c e n t r a l d i s t r i b u t i o n i s e s s e n t i a l to ensure t h e i r r o u t i n g to markets ^here tiiey are  - 70 needed and t o avoid overaupply.  At p r e s e n t the Mainland -sid  Vancouver Island Growers ara organised s e p a r a t e l y , those on the Island having a much smaller overhead and being u n w i l l i n g to pay t h e i r share of the l a r g e r .  However the Txtncan Report  has done much to show the need of unityli n.n& I t hes £ Ico strengthened the l.lainland o r g a n i z a t i o n by proving tho i n t e g r i t y of I t s Manager, and hopes a r e expressed t h a t the two w i l l combine*  The immediate r e s u l t of t ^ e i r union should be t h e e s -  tablishment of an adequate c e n t r a l marketing system which would eliminate a l a r g e p a r t of the expense involved In s h i p p i n g , and would ensure t h a t a l a r g e r share of the p r i c e pnld by the consumer goes to the p r o d u c e r s . The c a t t l e and sheep i n d u s t r y i n B.C. has g r o a t need of the e s t a b l i s h m e n t of some cantr- 1 market  vithout ahlch  the formers cannot i n c r e a s e t h e i r r t o c k to any a p p r e c i a b l e extent.  I t r e 3 i s with them to i n c r e a s e t h e i r s t o c k when p r i c e s  are b a t t e r end form a c o - o p e r a t i v e a s s o c i a t i o n which TJ :>uid enable members t o market t h e i r product independently of Barns^ and Swift vihose p r i c e s the:- are compelled to accept todr.^. Farmers throughout B.C. today ore nuffarir^ lack of o o - o p e r a t l o n .  The o a l j Industry which i s caking even  small r e t u r n s Is the dairy I n d u s t r y .  r!  a.;t br noh oJ! the r c u l t r y  Indsutry which h^s e s t a b l i s h e d c o - o p e r a t i o n h .3 inf b e t t e r prospects  from  than t h t whicb h s n o t .  nltei:  lack of o o - o p e r a t i o n  i s proving v.. g r e a t disadvantage to the 0 t t i e f a r m e r s .  The  f a i l u r e of o o - o p e r e t i o n in f r u i t farming i s not to be a t t r i b u t e d  - 71 t o f a u l t s of c o - o p e r a t i o n per s e .  Had co-oper t l o n been mora  firmly e s t a b l i s h e d i t i s probably t h a t the d i f f i c u l t i e s of 1921 2£, and L3 vsould have been f a r mora adequately met.  :3s ya^t the  a s s o c i a t i o n s are only i n the e x p e r i m e n t a l stages., and experience i s a hard teacher a l b e i t a good one.  F i n a l l y , mismanagement h a a \  feeen daa i n many eases to lael: of the "'proper nan as manager. If a man vsith the necessary business q u a l i f i c a t i o n s i s brought in from o u t s i d e , he does not know d i s t r i c t c o n d i t i o n s .  Also he  demands an enormous s a l a r y which the growers a r e r e l u c t a n t to pay.  If a l o c a l man i s appointed the chances are heavily a g a i n s t  h i s having the r e q u i s i t e business knowledge, which i s n o t such (1) as i s required of the average f a r m e r . Tae p o s i t i o n seams t o demand s p e c i a l i z e d business experience and a t the same time a knowledge of l o c a l farming. Co-operation, then seems to be badly needed by a g r i c u l t u r e i n B.C.  But a word of e a r n i n g i s n e c e s s a r y .  Co-  o p e r a t i v e s o c i e t i e s are by no mesne a panacea f o r a i l e v i l s . They are merely an attempt to do away with some of the most p r o ve l e n t e v i l s t h a t the farmer must face today.  Their success d e -  pends upon the vjillingneas of the i n d i v i d u a l f a r c e r s to maint a i n ind improve the q u a l i t y cf t h e r e p r o d u c t s , and t o sinlr t h e i r p e t t y q u a r r e l s and d i s p u t e s xcr the good of a g r i c u l t u r e as a whole*  Without c o - o p e r a t i o n agricultures in 3 , 0 . in doomed t c  f a i l u r e ; with i t t h e r e are s t i l l many l i o n s in the p a t h towards 3uoc,eas« f i ) The man who ha3 put the Associated Growers on I t s f e e t a Summer land farmer*  Is  - 72 ?ACT033 A.?g30-TIJg 1A:W VALUES All3 LAUD 111001183 I.U B. 0 . Chapter 9 . One g r e a t drawback t h a t B.C* f a r m e r s must f&se i s  / i  the essaptioiially high, valuation that ia set on land in t h i s .  Province*  • I  A g r i c u l t u r e i n B»C# can be d i v i d e d b r o a d l y i n t o t-so  e i i s s e s - ^ t h o s e fr.nas which p r o d u c e l a r g e l y f o r a d o m e s t i c and t h o s e 'which p r o d u c e main I;, f o r a f o r e i g n m a r k e t .  The f a r m e r  p r o d u c i n g f o r a f o r e i g n market must penmate w i t h f a r m e r s of o t h e r p r o v i n c e s and c o u n t r i e s whose land c o s t s them very much l e a s ; and t h e man p r o d u c i n g f o r  t h e d o m e s t i c market must a l s o  face foreign competition although i n d i r e c t l y for  i f he c h a r g e s  t o o high a p r i c e f o r h i s p r o d u c t , i t w i l l be i m p o r t e d from e l s e where*  Thus t h e B.C. f a r m e r h a s a g r e a t i n i t i a l d i s a d v a n t a g e  f a c e * s i n c e land i s h i s f i r . i t  to  necessity,  F o r 1922 B . C . s t o o d f i r s t a v e r a g e v a l u e of o c c u p i e d farm l a n d s .  i n t h e Dominion i n t h e The a v e r a g e i n B . C . was  §120 a s opposed t o O n t a r i o $ 6 4 . 0 0 , ^uebee $ 5 8 . 0 0 , P . E . I .  345.00.  3*3* 354*00, H . B . and Man. $ 2 2 . 0 0 , S a s k . $ 2 5 . 0 0 , and A l b e r t a 3 2 4 . The a v e r a g e v a l u e of o r c h a r d and f r u i t  lands  (in-  c l u d i n g b l d g s e t c ) f o r U ' £ l and 1922 w a s : Year* J ova S c o t i a Ontario 3 . C.  1921* -)llTO0 per 137.00 S;iO*00  oro  19 £2* "v3.00 127.00 3£0.00  3 . 0 . b e s i d e s h a v i n g by f?.r the h i g h e s t v a l u e p a r o a s u , shows a n i n o r e a a e from U'2 l t o 10 22 w h i l e the o t h a r two i r u i t show a d i s t i n c t d e c r e a s e *  ?  provlacag  h© f a i l i n v a l u e s i n B.C. c mo l a t e r .  On d a i r y farrn3 t h e land i s c a p i t a l i s e d  in Ontario at  - 73 #195*00 per a c r e , while s i n i l a r lands in B.C. s e l l f o r $325.00 per a c r e . If the high value of B.C. land la baaad upon i t s s u p e r i o r Income y i e l d i n g power then i t should prove no d i s a d vantage t o the f a r m e r .  If i t ha3 i n any way to I n f l a t e d  value.  than i t I s a s e r i o u s drrwbaok. •<  Bent la the term u a u a i l y used t o denote tha income derived from t h a ownership of l a n d . yielded by land as n f a c t o r of i s mors comprehensive.  In d i s c u s s i n g the r e t u r n s  r e d u c t i o n the term "land tnc me"  I t include a a l l t h e re'.urns both  m a t e r i a l and psychic t h - t the ucorn o b t a i n , such «o s i t u a t i o n , d e s i r a b l e s o c i e t y and c i i ^ - t e .  I t i s tha "land Incoro" i n t h i s  broader sense t h a t the farmer enjoys, and even, if he d e s i r e s only the m a t e r i a l r e t u r n s th t a given p i e c e of land a i l l  yield,  he must pay in s p i t e of hircself for a i l tha othnr r s t u r n s which add to tiie s e l l i n g p r i c e of the l a n d , *The s e l l i n g p r i c e equals' the s u c c e s s i o n of  future  inooraes. \*hich i t la a n t i c i p a t e d w i l l be derived from the land, discounted ami added t o g e t h e r , "in other viorda the p r e s e n t (2) worth of a p e r p e t u a l income." Very o f t e n t h i owner of toe land ovsrratea  tha f u t u r e inoo e and dema/ids tuo i.uc'u l o r h i a land.  The purchaser f i n d s hi:.self handicapped by t i e n o o s a s i t y of p a c i n g i n t e r e s t , e i t h e r to h i m s e i : ox to another on an investment Hi  T l y : Coat3 and Income i n "lane U t i l i z a t i o n  (2)  Ely* Coats and Income i n land U t i l i s a t i o n  P. 10. ?» 3 2.  - 74 which f i e l d s a s m a l l e r r e t u r n t h a n naa a n t i c i p a t e d . baen tha emparlance of many B.C. f a r m e r s .  This has  The value of farm  land vias i n f l a t e d a f t e r the war fas a r e s u l t o f f a c t o r s  vfiioh  w i l l ha considered l a t a r ) '.'.any people bought a t a high pr.ica and than discovered t h a t tha incor.e y i e l d i n g pow.r of the l a i d w s lass than the.y e x p e c t e d .  Land income may be e i t h e r under*  aatijaated or overestimated in tho s o i l i n g p r i e s .  In 3 . 0 . d a r i n g  1?2€ and 19 21 i t was c o n s i d e r a b l y o v e r e s t i m a t e d . The land income depends on many t h i n g s q u i t e o a t s i d e the owner*s c o n t r o l , portant.  Conjuncture! gains or l o s s e s a r e im-  Ihone v/ho bought land in 11 £0 paid a p r i c e baaed on  the income R a i d i n g powers of the land a t t a u t t i m e .  But the  future inc cms \tas o v e r e s t i m a t e d ; i t «as assumed t h a t t h e y e a r l y income ^sould remain approximately c o n s t a n t which i t did not d o . As ajon  .a the p r i e s of tha products of the land f e l l , so did  the land income, q u i t e a p a r t from any a c t i o n of the ov»n.r.  Any  Increase in tha p r i c e of products i s l i k e l y , o t h e r thing;: being e q u a l , to i n c r e se the land incorsa*  S i m i l a r l y any decrease in  the p r i c e of p r o d u c t s i s l i k e I, o t h e r t h i n g s being e q u a l , t o r e duce the land income.  I t follows t h a t any g r e a t i n c r e a s e in  population by i n c r e a s i n g the demand for a g r i c u l t u r a l p r o d u c t s , w i l l tend to i n c r e a s e tha land income ^nd t h e r e f o r e land v a l u e s . S i m i l a r l y a decrease in population w i l l tend to decrease l*ud values. Conjuuctural gain3 and l o s s e s tend to move i n o.voles. S h i i e p r i c e s aro high lanci inc J a i s h i g h , and when p r i e e s a r e  - 75 low land income ia low. and other things being equal, land values w i l l follow the course of the business cycle.  \  The value of each acre of a g r i c u l t u r a l land in ^Lo« ia based on conditions which apply t o i t in p a r t i c u l a r , and not i  to other a c r e s . *jaong the causes of value are the f e r t i l i t y of the s o i l , climate, topography, a c c e s s i b i l i t y to markets ate* Land which i s valuable for small f r u i t s ia not necessarily so for dairying.  I t is d i f f i c u l t to compare the factors which',.  affect the value of laud in Central B.C. and on the Coast. lh. ia quite impoasibde to pick out any single factor as the cause of the high valuation of land but one can point to definite factors which snake for high values. On the whole, the value of a g r i c u l t u r a l land in B.C. has not changed g r e a t l y . I t rot:e over one whole of" the Province a f t e r the war. but t h i s may be accounted for by the i n f l a t i o n (I) of the currency.  But in c e r t a i n d i s t r i c t s land used for speci-  fic purposes increased in value considerably after the war. Land suitable for p o u l t r y , tree f r u i t s and small f r u i t s increased greatly in va lue because of an accelerated demand, but even here i t v;a;- only i n c e r t a i n d i s t r i c t s .  Small fruit, land  has lately incre.aad in value ia the Oreaton d i s t r i c t a t the suae time as i t has tended to f a i l in the Boundary d i s t r i c t . To obtain an accaratG r e s u l t each small d i s t r i c t would have to be studied by i t a a l f , and I t s u£e or f a l l in value compared with (!) I have been unable t;> trace the change in land values with sufficient accuracy to rake possible any comparison between price movements, :ind movements of land values.  - 76 the change in tho purchasing power of money.  F a i l i n g t h i s the  b e a t t h a t aen be done i s t o p o i n t out some of the important f.ictors a f f e c t i n g land values and incomes. high v3 lues of a g r i c u l t u r a l 1. 2* 3. 4. 5. &• 1.  S'hejfcEaetcrs mak*f^for  Innd.  .Txeeptional demand. High ooat of improvement. Climate. Speculation, THailke of I n d i v i d u a l s to admit l o s s . The case of lend near population c e n t r e s .  1'xoepti.jna L Demand* The value oi land i a governed i i ^ a the value of a l l  Other commodities by demand and s u p p l y . "Ultimately the i n c r e a s e or tSaorease i n t h e r e n t a l value of land depends, other t h i n g s being e q u a l , on t h e r e l a t i o n between t h e r t e of the i n c r e a s e in t h e economic land supply, and the r a t e of the growth of popfl) uiation." The demand f o r farming land i n c e r t a i n d i s t r i c t s of B.C. «aa enormously a f f e c t e d by the war. In IS 19, 1920 and 1S21 a large number of r e t u r n e d s o l d i e r s v»ere a t t r a c t e d by the high p r i c e s then received by f a r m e r s , e s p e c i a l l y those engaged i n p o u l t r y farming a«3 f r u i t gro?i;:g«  The nBaci£ to the Land"  movement j a s f o s t e r e d by the government through the Settlement Board.  -oidler's  At the 3ame time are l a r g e number oi i m n i -  g r a n t s froi. toe B r i t i s h I s l e s who -3era d i a i n c l i n e d t o r e t u r n to t h e i r pre-war o c c u p a t i o n s , oarae to B.C., a t t r a c t e d often by the c l i m a t e .  Improved or semi-improved land was in g r e a t d e -  mand, accordingly i t s p r i c e r o n e , arid many farna changed" hands.  (1)  iily:  Costs and Income i n Land U t i l i s a t i o n  r . t>0.  - 77 .... Unfortunately for the p u r c h a s e r s thay bought during e. period of p r i c e i n f l a t i o n , ana the high p r i c e s received f o r f r u i t 1919 and 1920 \7ore l a r g e l y the r e s u l t of that i n f l a t i o n ;  in ; : hen  the g e n e r a l p r i c e l a v s l f a l l the p r i c e of farm products f e l l with i t .  Production had been enormously increased both i n the  horticultural ary boom. ioaer.  .nd p o u l t r y i n d u s t r i e s &.s a r e s u l t of the tempor-  This helped to g l u t xaarkets and forced the p r i c e  still  Therefore land inc otaas ware considerably reduced, and  the farmers found t h a t thay had paid f o r a f u t u r e income which was not fortheoming. 2*  Accordingly the value of the land f e l l *  High c o s t of improvement. f  Ihe a e o o n i f a c t o r leading to high values f o r a s r i -  c u l t u r a l land in B.C. i s the high c o s t of improving l a n d .  B.C.  i s a ne*vs country and a mountainous onm9 consequently there a r e g r e a t expenses involved I n the c l e a r i n g and improving of the land.  In soma d i s t r i c t s drainage i s necessary and i n o t h e r s  irrigation.  There i s land In the South Okanagan t h a t c o s t s a p -  proximately 1600.00 p e r acre to cle«ir and Improve, the earning power of which* based on p r e s e n t p r i c e s , would be only about $500.00.  The reason such land i s cleared at a l l l i e s i n the  f a c t t h a t i t s value to i t a ovmer depends on i t s f u t u r e powar.  earning  da a n t i c i p a t e s an i n c r e a s e i n the value of the land as  i t s land income i n c r e a s e s .  The b e s t time to purchase land l a  when p r i c e s are low and the expense of improving comparatively snail.  The man who i n v e s t s h i s money in such land today mnat  n o t expect an immediate r e t u r n .  He expects  to r e c e i v e h i s  • 78 raturns In the future when there ia a g r e a t e r demand f o r land and i t s produoo.  Uo unw hi ie his lnvestmont i s s a f e , h i s land  cannot disappear, -:van i f he cannot r e u l i .a i t a t a Momenta notioo#  Investing in umimproved land involves waiting and  eeda  a good deal of c a p i t a l ; more than the incoming s e t t l e r can usually afford.  Tharafore the \alue of improvea land i 3 i n -  creased because i t villi yield an i .come of soma s o r t immediately ad ia therefore i a demand* 2.  Climate* B. C.'s climate i s one of her chief a s s e t s , and one  v»hioh o. not bo taken away from her a t louat u n t i l the coming jf a ne.« Ice-Age,  r soma aimliur phenomenon.  Iho mild and  equable coast climate i s TS*jr v e i l salted t o poultry, dairying and f r u i t farming, while i n the i n t e r i o r a r e d i s t r i c t s salted to almost every other t^.po of u g r i c u l t u r e .  In addition the  climate 13 one which a t t m o t a Inraigrants of a l l types* The p r a i r i e farmers who find the climate too aevaro are constantly coming to £.C«, and too man who i s r s t i f i n g  nd who wis ho* t o  invest p a r t of his c a p i t a l in a sm 11 form, finds a favorable s i t u a t i o n on Vanoouve* I s l a n d ,  'fhe oliraate onsuros a fairLy  s t e i d y demand for a g r i c u l t u r a l land and t h i s keeps up the p r i c e . 4.  Speculation A gre t deal of land in B.C. wan bought up many  years ago by speculators who realised t h a t the population and demand for land wore bound t o I n c r e a s e .  They have had a  monopoly of the best land i n cany locations and have used i t to  - 79 obtain an exhorbltant p r i c e ,  fibnj  bought: land j u a t before  tha general r l s a a f t e r the war, r e a l i s i n g t h a t the demand f o r i t would ba g r e . t .  Thus they have i n t e n s i f i e d  the r i s e in p r i c e *  Much d e s i r a b l e land i s s t i l l in the hands of apeoulatoro v;ho w i l l hold i t u n t i l i t s value r i a e a » Y.'hen the s p e c u l a t o r s c u l t i v a t e t h e i r Land^as many did ae a r e s u l t of the high p r i c e s of 1912 and 12£0, thay mere* lymafce a bod s i t u a t i o n worse.  3y buying and holding the land  they increased the demand for i t * uad t h e r e f o r e  the h e i g h t t o  allien values r o s e ; ami by producing thGy added to the g l u t on the markets t>£ the anoraous f a l l i n p r i c e r e a u l t l n g from i t * i'haae i n ^ l a ^ a c e i n B. 0 . haa not been f o r good* .&«  j.he d i a l i k e of i n d i v i d u a l s to admit loss* I'he r e a s o n t h a t land values i n g e n e r a l did n o t f a l l  mora r a p i d l y a f t e r i $ 2 l * can be found in the d i s l i k e of the average farmer to admit a l o s s *  lie hud paid too high a p r i o e  f o r Vila land, but he was u n w i l l i n g to admit i t ; he did n o t l i k e to f a a i himself a poor business man.  In consequence he con-  inuad t o quote hla land a t the p r i c e ha paid f o r i t ,  regard-  l e s s of tha f a a t t h a t he could not s e l l for a n y t h i . e l i k e t h a t sum*  a i s example r e a c t e d upon h i s neighbors who refuaad  mit t h a t t h e i r farms were wo rth l e a s than h i s *  tj ad-  I t was n o t u n t i l  i t came to tha p o i n t of a c t u a l l y s e l l i n g h i s farm t h a t his v a l u e s oould be questioned*  A*tuaiiy very fevj farms h^ve changed handa  w i t h i n the l a s t t h r e e y e a r s *  Tee c o n d i t i o n of a g r i c u l t u r e haa  n o t been such as t o encourgge p r o s p e c t i v e farmers to parohasa*  - ao Also the aaaiviat thing for tha firmer who has paid too much for iila land i s t o hold i t and hope for the boat*  I t in wry un-  l i k e l y t h a t he w i l l receive an adequate r e t u r n on his whole Invesimentj p a r t of i t must be w r i t t e n off as l o s a .  But by r e -  maining on the farm he hue a t l e a s t a sporting chance of r e ceiving an Income which w 111 p a r t l y racom ense him, w he re as If ha s e l l a today, his loss Is an accomplished f e o t , and can never ho reduced in amount* 6.  Tha c^se of land near -population c e n t r e s . There Is ens oasa l a which the p r i c e paid for tha  land is much gre' t a r than tha lncone whioh onn be derived from i  i t s products i s worth.  L8n<j a t Gordon Hand, five miles out of  T l e t o r i s and s u i t a b l e for small f r u i t s sold for vary high p r i c e s during the boom.  But f a r from f a l l i n g value when the general  depression came, i t tended to i n c r e a s e .  The increase does not  come from i t s value a s a g r i c u l t u r a l land, but from i t a a n t i c i pated ir.oone as a r e s i d e n t i a l s i t e ,  ifirt of the increase in  value is an unearned increment, although p a r t may ha a t t r i b u t e d to f o r e s i g h t .  Dr. Marshall s t a t e s t h a t "Land near t o a glow-  ing town, which is s t i l l used for a g r i c u l t u r e may yield very l i t t l e net r a n t ; and yet be a valuable p r ^ e r t y .  For i t 3 future  ground rents aro anticipated in i t a c a p i t a l v a l u a | and further i t i ownership la l i k e l y to yield on 1 come of s a t i s f a c t i o n out* (I) side of the Bonay r e n t received for i t . * (1)  Marshall! P r i n c i p l e s of Economics, 6th e d i t i o n , London 1900 ??. 799 and 800.  - 31  -  Tile ad are the moat important f a c t o r s causing nigh / a l i a t i o u of alnd l a 3*G« In ao f a r aa they h.vo tended to laaie contract r e n t higher than ao uioniio runt, they a c t aa a drawback to the termor.  From the individual viewpoint there 8s  ao surplus derived from the ownership of land*  There i s only  a low r e t u r n on Vie investment which has been Mala.  I t la a  recognised faot t h a t normally an investment in land a l i i give a monetary return rather los:i than t h a t afforded by other i n vestments.  A r e t u r n of 3J7I to 4% i s o n a i d o r e d good*  That  snouid be taken into account in examining the returns oi the University extension surveys the figures of which were uaed i n '.he e a r l i e r p a r t of t h i s ea^ay.  I n t e r e s t on investment was  charged In c r ry oase a t 7,1 unless expressly s t a t e d otherwise* 7,» was what the f .rmer h d to pay on a mortgage bat i t was more than he should dotiand from his farm* If the r e t u r n s on an investnent in land are smaller than those on an Invaj.ment in other i n d u s t r i e s i t may we 11 bo as.ed why there are any farmers a t a l l *  The reason l i e s i n the  p a r t i c u l a r advantages which the owner of land enjoys, and in tho olreomatances which d i f f e r e n t i a t e a g r i c u l t u r e from any other industry or occupation* One reason why land yields a smaLl r e t u r n la t h a t I t la considered* a safe form  f investment.  I t has been des-  cribed as tho poor man's "Savings Bank." I t i s safer than an investment i n o p i t . I goods because i t cannot dlaa, pear or so wholly nasi a p .  I t may be usod for one purpose i f n o t for  - 82 another* and tiiere i a always the cnanoe o± a sodden i n c r e a s e value r e s u l t i n g from a movement of the p o p u l a t i o n .  in  There i s  of c o u r s e , a l s o t h e p o s s i b i l i t y of an unearned decrement, and an a n t i c i p a t e d i n c r e a s e ma^ not oome f o r some time t h e r e f o r e the r e t u r n which land w i l l give to the I n v e s t o r i s only about 4%«  farmers in comparing t h e i r business with those of manu-  f a c t u r e r s should not expect so g r e a t a monetary r e t u r n both because of i t a g r e a t e r s a f e t y and of the advantages which the farmer may enjoy and the man in i n d u s t r y c a n n o t .  In the f i r s t  p l a c e he i s enabled t o l i v e a t home and work with h i s f a m i l y . . Business and s o c i a l l i f e aro bound up t o g e t h e r whereas in o t h e r occupations they are e f f e c t i v e l y s e p a r a t e d ,  There may be d i s -  advantages i n t h i s bat a s a r u l e i t i s considered d e s i r a b l e . The farmer runa hia own business and need s u f f e r no i n t e r f e r e n c e from o u t s i d e r s , nnd i n t h a t ha has an advantage over the o r dinary wage e a r n e r .  The firmer i s b o t h c a p i t a l i s t and l a b o r e r ,  and reaps the advantage of h i s double c a p a c i t y i n bad t i n e s , when i f he does not r e c e i v e enough t o pay himself wages he c a n l i v e off the i n t e r e s t on h i a investment and the unpaid labor of himself and his f a m i l y .  If he succeeds in improving the i'L)  c o n d i t i o n of h i s land, he himself reaps t h e b e n e f i t ,  and i t l a  the hope t h a t the va tae of the land w i l l i n c r e a s e , e i t h e r through h i s W B labors or a n unearned increment t h a t makes many a farmer endure hardships and s t i l l remain on t b s l a n d . (1) This l a assuming t h a t he is the owner of the l a n d . comparatively l i t t l e tenancy i n B. G.  ?here i a  - 83 The ownership of land oarriaa with I t a c e r t a i n p r e s t i g e , i s a safe form of inveatment, and gives a chanoe for oonjunotural f a i n s , therefore although I t requires more care :nd yields lower r e t u r n s than other forms of investment, i t is considered d e a i r a b l e . .hen the farmer has capitalized a i l hid advantages; the quality of tae s i l , c l i . i u t e , l o c a t i o n , t r a n s p o r t a t i o n and marketing i i . o i l i t i o s , aooiai op o r t u n i t i e s e t c . , hi a chances for gain a ruduced t o tne p o s s i b i l i t i e s of a oonjunotural increase in the vulue of uis land, and h i s own a b i l i t y as a manager, «4any a Man hum boon ruined through purchasing too much land nr investing too ouch c ^ i t u i par acre*  I t i s a b i l i t y t c manage  his Increments of land, labor e a t c a p i t a l In the most advant-geo a way* t h a t s e p a r a t e s the successful farcer from the unsuccessful. If tiiere is a continual tendency In a g r i c u l t u r e to yield low r e t u r n s I t shows t h a t too much labor and c a p i t a l is invested in a g r i c u l t u r e end those farmers producing on the margin should seek other occupations*  Bat poor r e t u r n s ua., be due  to unstable p r i c e s , and attempts should be made to c o r r e c t t h i s through the b e t t e r adjustment of production to demand, and by bettor marketing methods.  Agricultural experts in 3.C. do not  believe that there ia too nuoh production, or t h a t toe number of men ong^ged in farming should b reduced*  The,, point to the  uisorgunization both in production and marketing t h a t has p r e vailed h i t h e r t o and maintain t h a t t h i s dan b  remedied and the  f^rrmr thereby reootva g r e a t e r returns on his investment.  - 04 Governments nre recojrnl 3In,? the nscasait.y of adopting a d e f i n i t e l-ind p o l i c : ; , should bo t h r e e , v i z :  feetter  and b a t t e r p o p u l a t i o n .  "'he limn of suoh a poligjy  Production, b e t t e r d i s t r i b u t i o n  The ~ominion Sovarnraant is attempting  t o f u r t h e r the f i r s t tvio a?m3 b;, making a v a i l a b l e through the U n i v e r s i t i e s Information r e l a t i n g to improved p r o d u c t i o n . Anti-dumping i^ws, p r o t e c t i o n ,  nd a s s i s t a n c e given t o co-  o p e r a t i v e s o c i e t i e s a s s i s t in d i s t r i b u t i o n , t h a t of p o p u l a t i o n  '"he t h i r d problem,  la of g r e « t importance in B.S* tod a.v.  Undoubted 1,7 a l a r g e r p o p u l a t i o n i s needed for the development of the r e s o u r c e s of the Province, but vie have at the same time unemployment an e v i l which ought to be diminished not i n c r e a s e d , H i t h e r t o the policy of land s e t t l e m e n t followed by t h e ^CTerament has bean l a r g e l y throagh the S o l d i e r ' s S e t t l e ment Board, «h.ieh haa aimed a t e s t a b l i s h i n g s e t t l e r s ; raoatiy r e turned s o l d i e r s , on farms which the;/ may purchase on easy terms through government l o a n s , eT?ry c a s e .  This scherae has not ^orV-ed well in  Too many of the men s e t t l e d knew l i t t l e or nothing  about farming and mva of a t; pa not s u i t e d to i t , were very bad a on a f t e r  Conditions  t h e i r purchase making i t d f f f i c u l t  many coses to pay off t h e i r l o a n s .  in  In a n i t e of o b s t a c l e s many  of them succeeded as f a r as could be expected in the face of a d v e r s e c o n d i t i o n s , o t h e r s with the ;?ame o p p o r t u n i t i e s gave up t h e i r farms. These farms hr;ve oo^e back t o the new scheme has been devised t o s e t t l e them.  rovernment and a This a p p a r e n t l y  - 85 doea away with the g r e a t e s t objection to the old, by vary careful selection of the imnigrants.  Through an arrangement between  the B r i t i s h and Cmadlan Government's, families whloh huva had farm experience and have, so f i r as can he ascertained, the necessary q u a l i t i e s of honest; , Industry, ?ind t h r i f t , are as is ted in purohasi >g firms which both they and the super-* viaors think s u i t a b l e *  Tae soheme i s too elaborate to go into  hera, but if as successful as is anticipated i t w i l l give 3«C, a valaabia addition to the farming population.  ,iere again the  ao4t important single factor Is the a b i l i t y of the individual furoara, and i t i s being recognized b.y the Government in careful 3eiscUan of the quality of the immigrants.  - 86 CuIiC kUSXun* Chapter 10* There a r e two d i f f l o u l t i e s  t h a t tne B*C. farmer  must f a c e , which have h i t h e r t o been Mentioned only but which a r e of g r e a t i m p o r t a n c e .  The f i r e t  incidentally  i s the q u e s t i o n of  P r o t e c t i o n * and the aaoona that of f r e i g h t B a t e s . A g r i c u l t u r e throughout t&a frevince from the very h i g h t a r i f f c u l t u r a l produoa. different  is Buffering  levied by t h e United s t a t e s on a g r i -  This of course has d l f f r e n t i f f a c t s on t he  types of fanning* but whenever tho r e la any e x p o r t *  a b l e a u r p l u s t o l a b a r r i e r r e a c t s d isuflmnt igolousiy by g l u t t i n g the home m a r k a t .  i'he farmers a s a whole are n o t demanding p r o -  t e c t i o n a g a i n s t high grade p r o d u c t s .  They f e e l t h a t here they  oan hold t h e i r own, out the;, wjuld l i k e some check to be p u t  n  t h e damping of low o l a s a produce i n t o Canada b y ' t h e United St- tea producers.  Also they would l i k e a p r o h i b i t i o n of tho import-*  a t i on of United S t a t e s pr oduce before i t s p o s s i b l e t o p u t t int of B.C. on the m a r k e t s , in the endeavour t o do away w i t h the advantage of an e a r i i o r soaaon r*hioh i 3 poaseaued by t h e i r o o c p e t l t o r a s o u t h of the  line.  - The q u e s t i o n of f r e i g h t r a t e s haa received a b l e a t t e n t i o n of l a t e .  oonslder-  Suffice i t t o aa.? he I s t h a t the B.C.  farmer does labor under a c o n s i d e r a b l e handicap when he b r i n g s i n feed or a g r i c u l t u r a l imp lamenti from the 2&Ot, and t a l c adds to hla c o a t ot p r o d u c t i o n * A g r i c u l t u r e In B.C. h_ , on tho whole, been a  * 87 -  f a i l u r e during the p u a t four y e o r s , as f u r as mnklng a good l i v i n g 1B concerned.  An a t t e m p t hae been made t o enumerate  t h e d i f f e r e n t reaaona for thiB f a i l u r e .  There le only one r e -  medy for I t , and t h n t I l e a l a r g e l y In t h e hands of the themselves• 3duontlon« N  farmers  I t la e d u c a t i o n , more e d u c a t i o n , and a t 111 more The farmer must c a t donn h i s ooet of p r o d n e t i o n and  to <lo t h i s must have the IH qui at to t e c h n i c a l knowledge.  The  government haa reoognlsed t h i n , and the moans of o b t a i n i n g i n formation have been throvm open t o t h e f a r m e r s .  There are f i v e  dominion Government TxpaFtment-*: I * t a t l o n a i n B . C . . s i t Kited a t jBrorraare, Tunrearland . i g n s s l s , S i d n e y , and Salmon Arm, the named being a s u b s t a t i o n .  last  The Information obtu inod throagh t h e  experiments mode on tha3e farms la a t t h e d i s p o s a l of the  farmers.  Both Dominion and Br ovine la I Departments of A g r l o a l t n r e r n b l i a h s t a t i s t i c s and I n f o r m a t i o n r e l a t e d to p r o d u c t i o n ,  "he §x-  tenai:<n r e p a r t m e n t of the Oo'lege of A g r i o u l t u r a a t the U n i v e r s i t y 13 doing e x c e l l e n t work among t h e farmers* I n t r o d u o l n g the r.ost modern methods of p r o d u c t i - n . The animal e x t e n s i o n a irve^s £lve the farme* aorae i d e a of hov» ho a t and e , a ad show hlra what he f r e q u e n t l y doea not know, namely where and how he l e l o s i n g money. After t e c h n i c a l e d u c a t i o n the firmer needs Ion in btLsinsnn a a t h o d a .  Instruct*  r.'an.y farmers do n o t kenp hooka end  f  nave only a *ory f gne Idea weather they are moklng o r l o s i n g  J  money.  j  They-cannot t e l l whloh of t h e i r u n d e r t a k i n g s " r e p r o *  f l t i b l e and which a r e n o t . e l a b o r a t e , t h e y can fajfe  ollt  9 i t h a n e t of books, n o t n e c e s s a r i l y j ^ t where t h e * e t a n d . and oan  •> 88 eliminate those operations wiich are not p r o f i t a b l e . I t is not nossiblo to manage a farm well, unless there is a f a i r l y exact knowledge of the returns which d i f f e r e n t factors of production ield.  The farmer frequently claims t h a t he hug aotime to keep  books.  If he anent a l i t t l e less time p o t t e r i n g round his out-  h n l l d i n g s , he would have enough ocportunity not only t o keep a simple s e t of b o k s but a l s o to keep his teahnloai and general education op t o data*  So business firm would for an i n s t a n t con-  s i d e r operating without any accounting ayatem, but t h i s is exa c t l y what the majority of farmers do, and a farm a f t e r a l l i s only a specialized form of business u n i t . The farmer today ia irrevocably connected with the business world*  His period of "splendid i s o l a t i o n " la over. Mot  b e t t e r or for oorse ao is no a a specialized u n i t in the production of the <vhole world*  Therefore ne moat keep abreast of the  times and leave his extreme conservatism beaind. Co-operation .Must take the place of individualism and blind competition.  Un-  t i l the farmers of tha Province r e a l i z e t n i s , they cannot e s t a b l i s h t h e i r industry upon a firm basis* and education* vshother I t Qjmes through b e t t e r experience or more e a s i l y . Is what l a needed to induce co-operation.  The effect of education on the  younger generation of farmers >vho acre not reared l a tha i n d i v i d u a l i s t atmosphere of t h e i r f a t h e r s , oan already be aean.lhey *ra eager and .billing to learn and to oo-operate* I t i a Uie older ,aen who grew up under a l a i s s e z - f a i r e regime who object ao strenuously to any interference in the methods which they have ouraaed throughout t h e i r l i v e s , and their fathere before ^h6m. Zduoation is the aolo hope of tha farmers of B.C. today, and tha aooner they r e a l i z e i t , the b a t t e r for them and for the whole Province.  

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