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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, FOR T H E SUCCESS 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 . Introduct ion . CHAPTER 2 . The Agricul tura l Revo lu t ion . CHAPTER 2* The Poultry Industry . CHAPTER 4 . The Dairy Industry . CHAPTER 7 . The Tree Fruit Industry* CHAPTER 6 . The 3 B e l l - f r u i t Industry, CHAPTER 6 . The Catt le and Sheep Industry . CHAPTER 9 . Factors a f f e c t i n g Land V a l u e s and Land Incomes in B. C. CHAPTER 8 , Co-operation. CHAPTER 1 0 . Conclusion. - 1 -SOME FACTOBS WlilCH MAKE FOB THE SUCCESS OB FAILUBE OF AGBICULTUBAL IU BRITISH COLUMBIA. goreword - Daring the pas t few years a g rea 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 grea t n a t u r a l advantages tha t they enjoy they a re unable to Ba&e any p r o f i t out of t h e i r farms; tha t the majori ty have had d i f f i c u l t y in making ends meet a t a l l * Agricul ture in t h i s Province i s genera l ly oonoeded to be an unprof i t ab le occupat ion. The purpose of t h i s essay i s to d iscover , i f pos s ib l e , how much t r u t h there i s in these r e p o r t s , and to find out what a re the fac tors leading to success or f a i l u r e * Time and space prevent an adequate treatment of a l l the fac to rs involved: Besides a d iscuss ion of each of the types of forming, the p a r t i c u l a r problems of co-operat ion, and the high value of the land, are onli ones to which a separate chapter is devoted. The problem of Protec t ion and the c lose ly a l l i e d question of F re igh t Bates , 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 south. Alberta on the e a s t , Yukon and Alaska on the north, and the P a c i f i c Ocean on the w e s t . At present i t occupies a rather out of the way p o s i t i o n with respec t to world markets, but in the f u t u r e , when trade with the Orient assumes greater importance, B r i t i s h Columbia w i l l have a very favorable s i t u a t i o n * The Province i s some seven hundred mi les long by f i v e hundred wides , and has a populat ion of 524,582 people , not qu i te 2 people per square m i l e . A s regards occupation 12.7% of the populat ion are engaged in 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 i n d u s t r i e s . There are three great mountain ranges; the Bookies in the e a s t , the Se lk irks about seventy miles 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* A s might be expected c l i m a t i c condi t ions vary g r e a t l y . 1'here are however three main aones . In the C o a s t d i s t r i c t the c l imate i s mild and equable with few extremes of heat or cold and with a heavy r a i n f a l l . In the dry b e l t s of the i n t e r i o r such as the Kootenai and Okanagan Va l l eys , there i s much l e s s r a i n f a l l and there are greater extremes of temperature, in the eastern d i s t r i o t a which on the whole are mountainous, one f inds (1) Canadian Year Book 1928 . • 3 -cooler summers and cold winters with i e ry heavy snowfal l s . Faming i s ca r r i ed 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 va r i e s with the l oca t i on and the kind of s o i l , which depends r a t h e r upon the geologica l formation of the land than upon the l o c a l i t y . There are s o i l s in B. C. su i ted to p r a c t i c a l l y any c rop . There a re 50,000,000 acres of land suitable for some kind of ag r i cu l t u r e but about half of t h i s i s onl} f i t for pas to ra l purposes . Of the remaining 25,000,000 a c r e s , 2,000,000 are well f i t t e d for f r u i t growing. This land i s s i t ua t ed in spec ia l i sed d i s t r i c t s , and only in Central B.C. i s general farming ca r r i ed 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 rawber r ies in pa r tucu la r a t Saanich, and poul t ry farms are centered a t Duncan and Hammond. Because h i s land i s very new the B.C. farmer has many spec ia l d i f f i c u l t i e s to face in developing i t . A s e r i e s of problems in engineering confront him a t the o u t s e t . £i:ie land must be c l ea red , the stumps removed by burning o r ' b l a s t i n g , and in many cases drainage is necessary, while in s t i l l o the r s the land i s u t t e r l y use 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 sua l ly d i f f i c u l t to o b t a i n . These are some of the fac to rs which make the cost of improved land So h igh . Agricul ture i s very important as an industry in "•* 4: mm B. C, 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 avai lable: The importance of agriculture to B.C. cannot be denied, and a s i tuat ion 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 -labor s ide by s ide with t h e i r fellow t e n , ne i t he r do they l i v e in congested d i s t r i c t s where any mew idea spreads r ap id ly through the whole community. T he p r i nc ip l e of l a i s s e z - f a i r e appeals very s t rong ly to the faraerjaad h i s work makes him independent and tie wishes to remain so, but in s p i t e of him-s e l f he has been influenced by the g rea t changes in economic o rgan i sa t ion . Formerly each farm was more or l e s s se l f -su f f i c i en t* Each man produced what was needed to support himself and his family. If he had any surplus he too^ i t to the neares t town ana there marketed i t . But the enormous development of t r anspo r t a t i on 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 f inds tha t he can buy most of the things he needs, far more cheaply than he can produce them, therefore he tends to spend his time in producing those commodities which he can s e l l to best advantage. A s soon as he has a surplus for s a l e he comes into contact wi th the business world, and is affected by a l l the c r i s e s and depressions as well as the prosper i ty and booms which cha rac 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, in the neares t ©arket, he f inds th^ t i t must cosapete with other f r u i t produced in d i s t an 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 inc ip l e of the Division of Labor has been extended to a g r i c u l t u r e . 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 consider-ation 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 depart-ments, 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. What is needed is not less independence but more* 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 • l v 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 pro-duced, 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 ex-pansion. 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 -lower , and many of toe marginal men were forced out o f bus iness* Tbe aterage feed c o s t per f l o c k rose from #£72.29 in iy£2 to #1661.00 in 1922, the average net revenue f e l l from #1026.63 to #850*00 while the income rece ived by the operator in return for h i s labor f e l l from #588.85 in 1922 to #311.00 in 1925, that i s : fron about #49.00 per south to $26 .00 per month. Of the hundred farms surveyed in 1922 , 15 rece ived a minus labor income, g e t t i n g no return at a l l for the opera tor ' s labor whi le o f the 94 included in the 1922 survey, 25 rece ived a minus labor income • In 1924 cond i t i ons improved somewhat. Net revenue averaged #1226.35 while the opera tor ' s income was #686.36 or approximately #57.00 per month. Only 11 of a t o t a l of 80 farms surveyed rece ived a minus labor 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 . . . . 2 2 $ 1922 15% 1923 . . . . . 2 5 % 1 9 2 4 . . 12£%. In 1923 15% of the farms went out of bus ines 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 labor income* The average t o t a l investment today i s about #6000*00 (1) These f i g u r e s allow for i n t e r e s t on the investment at the ra te of 7%. - 14 -and farms with from 600 to 800 bi rds seen to pay b e s t . One reason why labor incomes are so low is tha t the average farm i s not l a rge enough to provide employment for the owner a l l the year round. I t i s not wise to have too tauoh land; from five to f i f t e en ac res gives su f f i c i en t opportunity for develop-ment. Beyond t h i s s i z e labor incomes rap id ly 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 tha t the most important fac to r in poul t ry farming is the a b i l i t y of the farmer himself as breeder, feeder, and business manager. I t i s advisable to e l iminate extra l abor wherever poss ible by the i n s t a l l a t i o n of labor saving machinery; i t i s unwise to invest money in unproductive equipment, and above a l l in too much l a n d . Land i s very expensive, i t s average value in poul t ry farms being $205.00 per a c r e . The average value of bui ldings per acre i s approximately $216.00 making a t o t a l investment of f481*00 per acre .^ If a l l other fac tors are equal , p r o f i t s should increase as the flock inc reases , but t h i s does not necessa r i ly fol low. Success or f a i l u r e whether on a big farm or a small depends on the opera tor , and on the proport ion 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 igures 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 for future Bucoess. To begin with the industry i s very highly s p e c i a l i s e d , the proport ion of the t o t a l r e c e i p t s derived from poul t ry 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 uni-form 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 appreciat-ing 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 a-gainst 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 add i t ion of \i to the 5 / t a r i f f a l ready In fo roa , B.C. producers would I lka the Dominion Government t o enforce a s imi la r regu la t ion throughout Canada, but are unable as ye t to gain the support of the people In the Bast who are no t used to s t r i c t l y f resh egga and therefore do n o t object to those of ptofttr q u a l i t y which come in from other coun t r i e s* After production the chief concern of the poultry farmer l a hia market . In B.C. there i s a f a i r l y s t ab le home market the year round* Local consumption of eggs i a increas ing, p a r t l y because of an Increas ing popu la t ion , and p a r t l y because i of the Dominion grading r egu la t i ons which ensure the consumer the beat qua l i t y eggs . But a t the same time there i s a surp lus of aggs for export during p a r t of the yea r . In ttoa summer eggs ara imported nd during December, January, February and ea r ly March there i s an a b o r t i n g s u r p l u s , from ITovambar 15th to March 15th, the C.P.H. grants reduced express r a t e s , and favour-able f r e igh t r a t e s on car loads of eggs shipped l a s t . This i s a good season to s h i p , but in the p r a i r i e and eastern, markets B.C. eggs must compete with those of lower qual i ty 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 for United S ta t e s aggs to flood the market and cut p r i c e s . 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 f loods the home market and cuts p r i ces In Vancouver. The egg producer poin ts to tea fac t t h a t the t a r i f f - 17 -on eggs enter ing Canada i s only 3$f wheras eggs en te r ing t h e < United S ta tes mast pay 8 /* fhia exorb i t an t duty prevents B.C* ' producers from tak ing advantage of the markets of Saw York and other Amerioan c i t i e s which are the sa lva t ion of Western egg producers of the United S ta tes* I t the same time our more moder-i i a t e duty permits the dumping of i n f e r i o r qua l i ty eggs in Canada* I The B.C* poultryman i s not demanding p ro t ec t ion aga ins t the importation cf super ior qual i ty eggs* In t h a t respec t he f ee l s t h a t his product can hold i t s own, She demands, however, kfHf# some pro tec t ion aga ins t the In fe r io r eggs shipped i n t o Eastern markets* He would l i k e to see the a t t en t ion of the p r i n c i p l e of the B.C. egg marking regu la t ion to the whole of Canada, and claims t h t t h i s would only be enabling t rade to follow I t s na tura l channel* B*G. would export the surplus of high qua l i t y eggs to the eas 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 confeot ionariea from Alberta , which l a also a large egg producing centre* A d i f f i c u l t y the loca l egg producer xaust face i s the high cost of feed* caused largely by f r e igh t d i sc r imina t ion . I t i s poss ib le for the Japanese poul t ry farmer today to import has feed from Canada more cheaply than the B*C. poultryraan can get i t * Obviously t i e r s i s no hope of remedying t h i s d i f ference en t i re ly* 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 in the coat of gra in would put the pou l t ry farmer in a much more advantageous pos i t ion to compete with the r e s t of the world* - 18 -Unfortunately there i s no expor table surplus the year round. If there were, the ser iousness of the s i t u a t i o n would make some s o r t of co-operat ive marketing scheme impera-t i v e . The only movement in t h a t d i r e c t i o n , the B»C. Pou t t ry -men's Co-operative Sxohange, came to an untimely end in 1923, p a r t l y because of mismanagement, and p a r t l y as a r e s u l t of the very unfavorable condi t ions then p r e v a i l i n g : A s imi la r organi -za t ion in the State of Washington succeeded in weathering the o r i a i s , appointed a new management, and i s now immensely successfu l . In B*C« today the s i t u a t i o n looks l i k e a vioious c i r c l e , ihere can' be no co-operat ive marketing u n t i l egg p r o -duction has increased su f f i c i en t ly to provide a large expor t -able surplus which n e c e s s i t a t e s a s e l l i n g organizat ion* At the same time there w i l l be no great expansion in production unless there i s a f a i r l y r e l i a b l e means of marketings 3 . 0 . has exce l -len t s torage f a c i l i t i e s however, and there I s a movement on foot to induce "the farmers to s to re t h e i r own eggs which i f kerit of the market for a time would tend to prevent the usual slumps in February* March, and Apr 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 imula te p ro-duct ion. f igures anew tha t the export t rade has f a l l e n off considerably in ths l a s t two ye-rs as a r e s u l t of the c u r t a i l -ment of production in 1923. In 19£2 70 carloads were exported and about 30 imported; l a l i 23 only 20 carloads tie re exported and importation was largely 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 fac tor , If t nere be one, in the success &± those farmers who in spi te of d i f f ioui t les have prospered, is t he i r om individual a b i l i t y . 2* The Poultry Breeding Parma, The f i r s t essent ial 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 pr ices are high that the greatest prof 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 ine , has attained great import-ance among the poultry farmers of B*C. Some specialize ent i re ly in breeding, bat the majority of breeders also keep commercial flocks. Success in th is business has been largely bui l t up on three foundations* JSlrst there are the off ic ia 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 cer t i f ica t ion of the product recorded •••The objects of Heoord of Performance are to - 20 -encourage the breading of poultry combining high production and standard qual i t i e s and to secure for poultry breeders r e -( i ) l i ab le 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 greatest Increase of a l l the provinces,both in the number of breeders and the birds entered in the years 1921-22, and 1922-23. B.O. a l so 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 ocks . Registration by th i s mesas makes i t possible to es tabl i sh the good standards which are e s sent ia l to high production. The second factor i s the action of the Dominion Government in establ ishing the Canadian national 3gg laying Contests through the Zzperimental Farms. xheae contests have three purposes. .First, to stimulate in teres t in production; third, to secure data of an invest igat ional nature. Canada was ihe f i r s t country In the world to provide for the registrat ion of poultry in a national way, and she has done ao by standardising the Egg Laying Contests as a medium through whioh to obtain reg i s trat ion . In these contests B.C. made higher records than the. rest of Canada, and as a resul t of this success a local organization was formed in 1922. The t ird faotor i s th i s local organisation, the H.Q.E. Breeders' Association of B.C..whioh in sp i te 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 success . I t s members are (I) Canadian H.O.P. for Pure Bred Poultry-Uecord year 1922-23, Heport Ho.4. P.5. m 2 1 m endeavoring to improve breeding methods by s tandard iz ing pedigrees and r eco rds . "Given the most adv need system of government inspect ion arri c e r t i f i c a t i o n of poul t ry records in the world, they have used t h i s , together id.Hi t h e i r favorable climate and individual i n i t i a t i v e to develop a poul t ry breeding (1) centre which I s unsurpsssss on the American cont inen t" The e f for t s of the loeal Association have been seen i n a higher and sore p ro f i t ab l e production, and in propaganda work for ii.O.P. members* The Association a l so a c t s as a channel for the s e l l i n g of a i l surplus high grade stock* As the s tock i s Improved the surplus Increases and the object i s now to bui ld up an export t rade* Prices are s t a d i i y r i s i n g with the qual i ty of the product , Eggs fetch from $1*00 to $5*00 a^piece, and indiv idual ly pedigreed birds with high reoords from |10*Q0 to |1QO*00 each* There i s a market in B*C* and on the p r a i r i e s for pure bred stock;and Hew Brunswick and Nova Scotia are be-ginning to show demand for B.G» s t r a i n s * As soon as production i s great enough i t i s hoped to build up an export t rade with England, Hew Zealand and Austral ia* 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 pu t t i ng on a big adve r t i s i ng campaign, us ing a l l the farm journa l s , agents are being establ ished on the p r a i r i e s and abroad, and t rade 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* f i ) There i s fo r tuna te ly a free exchange of pure-bred s tock with the United States* - 22 -other count r ies a re being r ap id ly bu i l t up through the consuls and trade commissioners. The f ie ld for expansion i s p r a o t i o a l l y unlimited* Canada leads the world i n o f f i c i a l records, and B.C. has the bes t records in Canada, and has sold stock to a large number of foreign count r ies although the local Associat ion, formed in October 1922, only s t a r t e d s e l l i n g ill 1924. Up to t « present no f i nanc i a l a s s i s t ance has been received from the government. The Poultry department of the University of B.C* takes a leading p a r t i n the improvements and the commissions and fees received by the Universi ty f o r the s a l e of stock through the off ice^ te t o pay expenses. S t i l l the ex-pense tha t must be faced by the individual breeders i s very g r e a t . The 3.O.P. Poultry Breeders* Association has had an almost phenomenal growth, and in 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 br ight for Poultry Breeders in B.G» of the two branches of poul t ry farming i t seems poss ib le t h a t the breading and sale of pure-brad s tock , a t f i r s t a bye product of ,tha mors important of the two. B.C. breeders have the ad -vantage of an ea r ly s t a r t , which i s very important in 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 as a producer of pure-bred poul t ry* (1) I t i s worthy of note tha 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 in 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 the Courtney d i a t r i o t the re a re large spec ia l i zed farms with s o i l in large p a r t u n t i l l ed . There are farms a t Salmon Arm devoted to general da i ry farming with some small f r u i t s , and in the Chllliwaok and Ladnar d i s t r i c t s the farms are large and highly spec ia l ized* The degree of spec ia l i za t ion which i s moat p r o f i t -able var ies with the a b i l i t y of the ind iv idua l farmer to manage h is farm* Very g rea 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 un i t production or a spec i a l market, hut in general s p e c i a l i z a t i o n from 50% t o 65% In da i ry ing seems most p r o f i t a b l e * ^his gives opportunity for an adequate Study of the f ac to r s necessary to success along tha t l ine* .i" The s ide U s e s which the farmer adopts to supplement hia dairy r e c e i p t s vary . They include d i f fe ren t kinds of l ivestock* f r u i t , and f i e l d crops , somajwhloh a re used as feed and some marketed. The type of s i de l i ne 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 na t ive of the farm s o i l ; and the extant to which the s ide l ine f i t s i n with da i ry ing ; Hog r a i s i n g , which i s very popular on d a i r y farms elsewhere la not ao common in B.C., '"• 24 -largely because Yancouver provides an exce l l en t market for whole milk, and a l so because the hog market la not well organised* There i s opportunity for an increase along t h i s l ine* I t la advisable t h a t the farmer produce a c e r t a i n amount of hia own feed* Pasture la good, but through an ex-• c l i e n t f e e d ; i t does no t always give the neaeaaary^feedyper acre which la most economical on the high priced land* As regards a l a s , a farm of from 25 to 60 ac res acems to hare aa g rea 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 opera tor 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 rea te r p r o f i t from a l a rge r or smaller farm* The average ac tua l s i ze i s 100 a c r e s , of which about 75 acres are t i l l a b l e , and t h i s i s too large to be profitable* managed by one man. Since the land i s cap i t a l i zed a t a very high value i t i s necessary t o make a g rea te r r e tu rn per aors^and there fore the holding of land which i s ac tua l ly 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 im i l a r for farming purposes i t i s found tha t i n Ontario the avarage c a p i t a l i z a t i o n i s |195*00 per a c r e , while i n B.C. i t la $325.00, . This makes i t necessary for the B*C* farmer t o invest flO.OO per acre more, and to obtain #75*00 gross r e t u r n s , #25*00 more than h i s Ontario competitor* Hia only means of equal i s ing cost of production la through good crops and higher production per cow, which the climate stakes poss ib le* To t h i s end both good breeding and good feeding are necessary , the former being of g rea te 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 for 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 years show t h a t 1922 was the worst year in da i ry farming and po in t to the factlerirt i f the Industry su f f e r s from the v a r i a t i o n s of the business cyc l e , if i t i s now on'Jup grade* Prospects look b r igh t for the next few years . 5he da i ry farmer ought to 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 ke ly to make a for tune* The following f igures show t h a t he has by no means done so in fehe past* Allowing for wages to the operator a t $960*00 per year* he received i n t e r e s t on h is investment a t the following r a t e a : 1919 Q% 1920 4 ^ 1S21 1.3% 1922 *5$ 1923 2*4% l o r the year 1922 the average net income received by the farmers was $1039*40 while in 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 in the group of from 26*45 acres* v.'hen I n t e r e s t was charged a t &k% a i l made plus labor incomes* 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 in 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 for the farmer to make a good labor Income* 7% I s what fee would have to pay for a mortgage, on the 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 he bank and receive i n t e r e s t a t &%$ f o r i t * Ha should not demand a g rea te r r e tu rn for i t when invested in h i s own bus iness , find a t 3£# moat of the farmers made a p lus labor income however sma l l . I f ha rece ives 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 capi ta l investment which he i s not compel lad to pay to himjt s e l f . Second the labor of h is family which i s seldom p a i d . Third, h i s own l abor , and four th the deprec ia t ion upon bu i ld -Ings and equipment* I t should ba remembered tha t ne t revenue -gross expanses deducted from gross r e c e i p t s — i s the important t h ing . The average farmer does no t analyze the source of h i s income, and cares l i t t l e whether he i s l i v ing on hia labor in-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 $325,00. of t h i s , land represen t s 54%, the dwelling 15$, farm bui ldings 12$, machinery ?$ and l ives tock l £ # , Heturns average 12800*00 or §75*00 par a c r e , Expenses should be kept below f1200.00 or ( I ) The value of the house is included in the farmers t o t a l investment, but house ren 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 credi ted to the farmer, so t h a t hia labor income does no t suffer from a deduction for 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 in 1923* * 27 * $$£+00 per a c r e , aa there ajuat be a la rge return per aore a t a low expense in order to make the 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 ren t land i n B.C. for 4.3% of i t a cap i t a l i zed value* That ia exclusive of taxes , which must be paid* howeveryshether the f^rm i a owned or r e n t e d . Under these 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% than i t i s t o borrow the purchase pr ice a t 7%. HIS labor income would be considerably higher in the ease of the rented farm espec ia l ly as he has no c a p i t a l i n land and bui ld ings . Onder these circumstances one might expect to f ind more rented farms, ba t from the l a n d l o r d s ' view point r en t i ng I s not ao p ro f i t ab l e as he r ece ives a lower r a t e of i n t e r e s t on his investment than If he operates h i s farm himself* on the other hand by r en t i ng and working a t some other occupation he may receive 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 the 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 ca re fu l management he may increae the labor income he rece ives from the farm.turn the sca le in the favour of ownership* There are not many rented farms* The percentage in 1921 was 17*5%. As far aa markets are concerned the dairy farmers , a re for tunate in having In Vancouver a market which absorbs the g rea te r p a r t of t h e i r production* '4iere ia a su rp lus of milk, but the Praaer Valley Milk Producers* Associat ion has - 28 * undertaken to dispose of i t * Aa far as batter and cheese are concerned there la pract ica l ly no export trade* on the other band B*0* imports huge quantit ies of butter* BUTTEfi IMP0RT3D* 1920 4 mi l l ion lbs* 1921 f * • 1922 8 • " 1923 9 * • The Bill: surplus varies greatly* I t i s largest in Hay and Jane, anal l e s t in February. Proa the vi ewpoint of the In-dividual farmer* the Important factor i s the increase in the production of butterfat per cow* In 1915 B.C. produced 2& million lbs of butterfat* and th is has increased to 6& mil l ion 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 foreign products. Therefore the B.C* producer ia i n competition with the Ontario and United States producer* There are three Go-operative Associations among the dairymen in B.C. The Comox Creamery Association for Vancouver Island* and the Vancouver Island Milk Producers* Association in Victoria merely assemble the product* They simply provide a central wholes -le s tat ion to which the milk la 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 — in the same d i r e c t i o n , t h a t of eo-opera t ion< The fa ture of the dai ry indus t ry depends la rge ly upon the type and i n c l u s l v e -neea of the co-operat ive organizat ion which ia developed* The farmer ' s f i r s t problem i s t h a t o£ p roduct ion , but oioae upon i i t s heels cornea tha t of marketing, and co-opera t ive marketing ; ia e s s e n t i a l id the success of the dairy industry* Owing t o the f^et tha t B*C# has ao l i t t l e export trade* the high United S ta tes t a r i f f has l i t t l e e f fec t* Also our own lower t a r i f f i s augmented by unwri t ten agreements between the loca l co-operat ive and those south of the l i n e ; to »ae af fec t t ha t we w i l l keep oat of t h e i r market i f they w i l l keep out of o u r s , This agreement has proved e f f ec t i ve dur ing s l i g h t overproduction in the State of Washington, but i f t he i r exportable surplus became too g rea t t h e i r co-opera t ives could not hope t o prevent the invasion of the B,C* market* These agreements poin t t o an important development, t h a t of co-opera* t ion between co-operat ive 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 organizat ions gain in s t rength* The da i ry farmers of B»C» have a great d i f f i c u l t y to surmount in the high c a p i t a l i z a t i o n of land , which puts 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 r ^ Capital invested in land* As already s t a t ed t h i s r,akes necessary a grea ter i n t ens i ty of cu l t i va t i on* But B»C» farmers have on* inestimable advantage which .makes i t poss ib le fo r them to • 31 * equalizes namely, t h e i r c l ima te : The mild and favorable oiimata of t i e Pac i f i c s lope leads to high production per cow, which i s the important f a c t o r . Also crops are very good* The com-* parat ive crop y i e l d s i n oa ts 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 provinces , This permits the dairyman to increase h is r e t u r n s per acre* 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 re i s l a rge ly in h is own hands* That i t was poss ib le to make p r o f i t s even during the bad year of 19E2 i s shown by the f a c t t h a t some farms showed a s u b s t a n t i a l operators* 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 re leaving 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 i t and move ou t , which shows t h a t the 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* therefore the dair;/ farmer cannot afford to pay as high \ a ra te of i n t e r e s t a s can the :>oultr,yiaen on a smaller i nves t -ment* Nevertheless he ma;,1 make a good l iv ing and save a t l e a s t a l i t t l e * 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 fojth-coming 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 Moo 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 bes t only j u s t managing to r.iake t h e i r expanses, / Pr ices have been Tary low, but they a re gradual ly improving, The beef now produced on the American cont inent i s not su f f i c i en t to feed the popula t ion . Pr ices f e l l so low a f t e r 1 1920 t h a t many cattlemen were forced out of business* t h e r e - j fore although the per cap i t a consumption of beef on t - I s continent has decreased* the demand i s s t i l l g r ea t e r than the *apply# and t h i s tends to r a i s e the p r ice although the import-a t i on of eecf from the Argentina has h i t h e r t o succeeded In keeping i t down* B,C« catt lemen have shared in a depression f e l t a l l over the cont inent . Their cost of production has not differed mate r i a l ly over the l a s t f ive y e a r s , There are three important th ings 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 th i rd good management, The necess i ty of good breading h s been largely recognized and the scrub bu l l almost e n t i r e l y e l imina ted . One drawback i s the f a c t t ha t packer does not pay a s u f f i c i e n t l y high premium on exce l l en 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 i ordinary . Hence the incent ive t o high f in i sh tooth from a breeding und feeding s tandpoint i s absent , She seeond f ac to r , a c c e s s i b i l i t y of range, the B,C. catt lemen have* The t h i r d , good management, depends e n t i r e l y u. on the ope ra to r . I t was found poss ib le by c lever and economical management on a few farms, to make money even when the o the rs in the industry were los ing i t . On the whole the c a t t l e farmer I s l e s s to be blamed * 34 ^ f o r poor management than other a g r i c u l t u r a l i s t s , i f only for the sake of his la rger investment . There i s no 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 spr ing whan p r i ces are much higher i t would he g rea t ly 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 in Alberta and dfa t ten them through the winter on a l f a l f a which gives a slower and cheaper bat not so high a f in i sh* The L i l l o o e t , Karaloops and Okanagan d i s t r i c t s grow ; l f a l f a , l a rge ly as a cash crop, s o tha t i t can be obtained f a i r l y e a s i l y . The Vies t e rn Paci f ic Slope w i l l never become a g rea t grain f i n i s h i n g centre as i t cannot hope to compete wi th 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 ro f i t ab l e for many 3 .0 . farmers oould they afford i t . The great need of the catt lemen i s an organized cen t ra l market* At present moat of the stock i s bought in Alberta , where there are large stockyards and plenty of oppor tuni t ies for choice, and i s brought in here to be f inished* The c a t t l e a re sold d i r e c t l y to 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 sh ipping , but he hos to take the p r i ce offered to him. The B,C« Stockbreeder 's Association has been a g i t a t i n g for the establishment of a government stockyard in th i s province, bat a t present the supply of ca t t l e i s not great enough to warrant i t , and un t i l there i s a central market the supply i s not likely to increase t o any appreciable extent . Anot&ar diff icul ty in the way of a central market is the opposition of big concerns such as Saift and Burns* At present they have pract ica l ly no competition and they are no t likely to want any market which would compel them to bid against others for their beaf* The ca t t l e industry throughout Canada i s suffering j from the prohibitory t a r i f f of the United States* The States i are the natural market for the prair ie 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 direct ly affected by the t a r i f f . Some store ca t t l e are %eing shipped to England now, and there ia a possibi l i ty that with the reduction of ocean ra tes on l i ve -stock a trade in beef ca t t l e may be buil t up with the or ien t . But this i s a mere possibi l i ty and a t present low prices pre-vail throughout Canada as a resul t of the high United Statas tariff* B,<3« cattlemen are in a more advantageous position ' than t lpse 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 ra tes which the home product escapes. The prices that are received for beef in B.C. are - 36 -from i&/ to Zi lb more than in Calgary, However the p r a l r i e a hate the advantage of large sca le p roduc t ion . Pr ices in B.C* have gradual ly Improved s ince 1921 and 1922* They a re now S.75 per 10G l b s , and were from \4 t o lj?/ lb l e s s in 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 future would seem b r igh t for B*C* c a t t l e farmers, but i f tha t remains in force i t w i l l n e c e s s i t a t e f inding other mark-its, which w i l l take some t ime . x here i s l i t t l e the oattlemen can do except t o manage the i r farms as ec moral ca i ly as poas ib le 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. Sheep are at present paying very -well, either as individual flocks, or as a sideline upon the range or on general farms. Both wool and mutton are fetching a wry 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 ke ly to remain high for some t i n e * Sheep farming In Canada has never been as 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 Aust ra l ia d i f f i c u l t . So* however Canada's wool I s put on the market on a graded bas i s which gives a chance for f a i r compet i t ion. I t seems l ikely t h a t there w i l l be a large increase In the number of sheep kept In Canada and a lso in 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 de l i ne sheep may help to steady ptoduotion in other l ines and thus aid in the development of ag r i cu l tu re as a whole. • 38 -liiS SUALli gaUIT IffS03T:-ff* Chapter 6 . I t has bean found impossible to obtain f igures for the 8mail F ru i t Industry for the l a ^ t th ree years* The r e s u l t s of a Snail P r a t t SurTay viera published in 1921, but s ince then although data has bean col lec ted froi:. the farmers i t has no t been assembled* In consequence a l l s tatements made hsra must be of a very genera l and often t e n t a t i v e nature* I t i s poss ib le however to po in t with a f a i r degree of accuracy to general development and tendencies for the years 192£» 1923 and 1924* and tha 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 su i t ab l e* In future the production of a t ra isberr ies w i l l ba large I. oonfinad to Vancouver I s land , while the Eraser Valley d i s t r i c t appears isteal for r a spber r i e s* O h^ere are c e r t a i n other l o c a l i t i e s in 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 rea t importance, and has one g raa t advantage over the eoaavt d i s t r i c t s , in t h t i t i s much nearer to the p r a i r i e markets* Bafora the war tha B.C. small f r u i t s indus t ry was small , s e l l i n g p r i ces lav?* and few ac res davotad t o production* Baring the viar p r i ces roaa an<3 the industry began to expand, then baing an enormous increase both in acreage and number of growers Mi between 1916, tha f i r s t .year for which f igures ara o b t a i n * * ^ , - 39 -and 1921* Prices in IS 19 and 11)20 were except ional ly high, almost r i d i cu lous ly so In sotoe ea se s , and aa a r e s u l t there was an enormous increase i n production s+iraulated by the high r e -turns the growers isere rece iv ing* farmers a l ready in the business Increased the number of ac res under c u l t i v a t i o n , and new men began to f lock in to the i ndus t ry . . Tho acreage i n -creased enormously: In 1920 there were 500 acres on Vancouver Island and 3000 in B. C. as a whole and t h i s inoreaaod to 16X50 acres on the Island and 6000 in B. 0. in 1924, The value of the output increased from #989,672*00 in 1920 to $1185^442.00 in 1921 and thiB^taking into aeeount the decreased p r i c e s , shows an enormous increase in product ion . The 4uraber of grovsars i n -creased dar ing I 20-21, but decreased l a t e r when the period of depression came* Than a large number went out of business and others cu r t a i l ed t h e i r production* The indus t ry seams now well on the *3ay to recovery, the f igures from 1920~19£4 showing a s u b s t a n t i a l increase in acreage . The average percentage of in -crease i s 136.2#« This in d e t a i l i s as fo l lows: E?iKJ3aT •&! OJ? IH0HMS3 IB AC3EA3F 1920 - 1924. S t r a w b e r r i e s . . • . . . « . , . . . * • 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% R h u b a r b . . . . . . . . . . . . . 103 .OX There are fewsr growers in 19 24 than in 1920 showing th&t „ spec i a l i s a t i on is g rea te r than i t was then. 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* Growers obtained as much as 19/ per lb. for jam berries* 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 fornex-porting 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 whan-iwr 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 ea rn had: to ga in t h e i r knowledge through be t t e r experience* Farming i s a spec ia l i zed occupation and r e q u i r e s a spec ia l ized knowiedge>and that n e c e s s i t y has been overlooked in the p a s t . If the farmer i s to make any p r o f i t s he must out down his cos t of production* and t h i s man,; of the new men did net know hon to do* They bought expensive land and did no t c u l t i v a t e i t with s u f f i c i e n t i n t ens i t y* The boom years of 19 20 and 1921 did do one se rv ice in int roducing some business methods, and the bad year of 1922 and 1923 eliminated most of the u n f i t . The farmer on the margin* • * 1 - . •••> , ( 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 are studying t'js beat methods of product ion . They have learned t h e i r lesson in p a r t , but there la s t i l l room for improvement in the way the i r farms are managed, both from the technica l and business s t and-poin ts* 4* Tha High Cap i t a l i za t ion 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 inf la ted* Man? farmers paid twice what the land was worth and are s t i l l hindered by the necessi ty of paying i n t e r e s t on theraoney which they borrowed as purchase pr ice* Land values have f a l l e n considerably and would have f a l l e n s t i l l fu r ther were i t not for trie f ac t tha t the farmer i s unwi l l ing to admit h i s loss and continues to ouots Ms land a t somewhere near the p r i ce he paid for i t : Many men paid 11000 per acre for land on Vancouver Island which i s n o t worth m 4 4 m nearly t h a t today* This gives tfae farmer a heavy i n i t i a l handicap in 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 in t ens ive ly* Some idea of the handicap which t h i s pu t s upon the farmer maybe gained by consider ing 1924 condi t ions* Exact f i gu re s are no t yet a v a i l a b l e but I t i s est imated tha t without al lowing 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 iv ing wage, while when i n t e r e s t payments are allowed for* the majority show minus labor incomes* There i s an advantage which may possibly 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 cu l t iva t ion* otherwise the farmer cannot make any Labor income, and t h i s in tens ive c u l t i v a t i o n ieaaa to grea ter s p e c i a l i z a t i o n and a study of condi t ions 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 in the form of dairying* This , of course , proved very •^prof i tab le and they a re r e a l i z i n g t h e i r mistake* A small f r u i t farmer should apee ia i i ze and c u l t i v a t e h is land in tens ive* ly , and there la an inereaaing 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 igh taga ins t a Met*, disorganized market* and tfc«*e e f fo r t s have resu l ted in too many attempts a t reorganiz ing . There has been a new manager - 45 -p r a c t i c a l l y every year in the co-operat ive 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 ency . Owing to the fac t t h a t t h e i r product i s per i shable and must be soon marketed, at tempts have been made to s tab H i s s the p r ice by means of Co-operative S o c i e t i e s , and there 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 resen t bids f a i r to become a s t rong and successful o rgan iza t ion . I t has had to face great d i f f i c u l -t i e s i n the p a s t but seems to be surmounting most of them, on Vancouver Island there i s another a s soc ia t ion which h i t h e r t o has refused to jo in t ha 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 are suf fer ing under a heaver overhead as 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 tha t the two organiaat ions may combine a f t e r the revela t ions of the Duncan Report, in which case they w i l l be able to con t ro l a cuoh larger proport ion of the supply, There are s t i l l a large number of independents who r e -fuse to jo in the co-operativea^and they are reaping the benef 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 ce s without assuming the i r share of the o b l i g a t i o n s . A great disadvantage tha t ifche co-operat ives labor under i s t h e i r i n a b i l i t y to obtain money ex-cept on very shor t time loans . This con t r ibu tes to t h e i r enormous overhead which the independents are unwil l ing t o ahara . However, Since the Vancouver Island Co-operative Association gave i t s - 4 6 -members 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 to production for the f resh f r u i t market. The Barry Growers* Co-operative haa eatabliah8d a cannery a t Miaaion and i s consider ing the purchase of a jam f a c t o r y . This i s undoubtedly a move in the r i g h t d i r e c t i o n and qu i te apar t from the s teadying o f f se t i t w i l l have on the market, should prove a p ro f i t ab l e business venture* But here again the Co-operat ive I s being hampered by :t&e neces s i ty of r a i s i n g money on shor t time l o a n s . The money borrowed t o pay for fee cannery was on a year loan* therefore 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 industry is as ye t very ne\^ there are few subs id ia ry i n d u s t r i e s and any s teps i t takes are necss- \ 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 re the r e s u l t of mis-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, espeoia l iy a t t h i s ea r ly stage of the i n -ves t iga t ion , to est imate jus 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 exp lo i t a t i on by brokers and jobbers as exposed in the luncan Report. However i t i 3 safe to Say tha t bad condi t ions were ce r t a in ly sad a worse. The grower in many oases ac tua l l y did not receive the sum to which he was en-t 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-operat ive s o c i e t i e s , and prevented any one o r -ganisa t ion from securing the support of a i l the growers. If t h i s - 48 -eacj»&oltation and Interference oaa be eliminatad the f r u i t farmers wi 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. 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. but t h e t h r e e most impor t an t c e n t r e s * thoae cons idered in the U n i v e r s i t y Extens ion Surveys , a r e t h e Okanagan, Salmon Arm, and Eeremeoa d i s t r i c t s . Actua l f i g u r e s a r e a v a i l a b l e only up t o 1923, t h e l a t e s t survey c o n s i d e r i n g and oomparing the t h r e e y e a r s 19£1, 1922, and 19£3« "During those ; .eara the growers su f f e red heav i ly from a g r e a t f a l l i n p r i c e s whi le t h e r e Baa no co r r e spond ing decrease i n c o s t of p r o d u c t i o n , P r i c e s were exceed ing ly high in 1919 and 1920 and t h e drop came suddenly g i v i n g l i t t l e chance f o r r e ad ju s tmen t t o meet the new s i t u a t i o n * 1922 was the worst year and s i n c e then c o n d i t i o n s have been g r a d u a l l y Improving . The ave rage p r i c e p e r box of marke tab le f r u i t r e ce ived by t h e growers a f t e r a l l o u t s i d e cha rges were pa id was 7 5 / i n 1221, 2 7 . 5 ^ i n 1922 and 3 8 . 8 / i n 1923. The f o l l o w i n g t a b l e shows average r e t u r n s pe r box r ece ived 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 th o t h e r expenses of p r o d u c t i o n . 3 c t a l l o w i n g 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 wages . I n t e r e s t IBAB. p r o f i t or Lnas . P r o f i t or Los s . ZtQtiX QJ LoBi3,«?r°£ l t 1 ,o r .1920 1.937 1921 .27 1922 - .162 1923fBat 1 mate) $*0 > Average 10 : f r s . - » 0 1 5 (D 1 9 2 3 ) . 5*60 .01 9 .405 - . 2 4 - . 279 f .425 - . 1 3 - . 5 2 6 - . 3 5 - . 3 2 8 1.09 - .39 - . 8 4 3 - . 6 4 - . 6 2 2 L o s s . H •v ' ;S f , : ' tf • « rdi : T '•V ' - 50 -In t h i s table interest ia allowed at 7% and wagea to the operator at §960 per year, Family labor la allowed for 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 interest the average farmer received a minus inoome in 1922, and a negl igible one i n 1922, while i f both wagea and interest are charged there waa a plus inoome i a no year since 1920. i t moat be remembered however that conditions during these yeara were not normal. After war nrosparity last ing unt 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 fa ir ly 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 in values due n ia part to the f a i l in 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) Interest on the house If charged at 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 ec t the farmer's labour income* - 51 * "toe value of t h e i r land on what s imi la r land was s e l l i n g fo r in 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 farms- Jtefrteerds which leave room for grea t i n -accu rac i e s , The i d e a l t e s t of a farm's value would ba i t s p ro -spect ive earning power over a Long period of time and that far Ttaither aa lesman nor purchasers considered. 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, in pa r t a t l e a s t , by the following f a c t o r s : 1* The productive value of the land during good yea r s . I t i s an t ic ipa ted t h a t be t t e r condi t ions w i l l p r e v a i l and the value of the land i s thus based in p a r t upon an est imate of i t s future earning power* 2* The advantages both c l ima t i c and soc ia 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 loca ted , 3* The outlay required in improving new land . An unfortunate consequence of the high value of land i s t h a t only those men with plenty of c a p i t a l can safely enter the f r u i t business as long aa the overhead charges a re so heavy, Those who brought during inf la ted 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 he 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 as the others since they are not compelled to pay I n t e r e s t to themselves during bad years although i t i3 a legi t imate charge . Taxes and water r a t e s which represent 10% of the grower*a expenses have shown no reduct 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 in 1922 were not I su f f i c i en t to 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 to the grower. Bonks grew wary, and i t was almost impossible t o obtain any fur ther c a p i t a l . One r e s u l t of th is 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 increased . Farms w i l l fas I in the future the in ju r ious e f fec 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 ths a t t e n t i o n they needed, The investment once made, an es tabl ished orch rd j j farm does n o t r e a d i l y lend i t s e l f t o sadden change, 2his la \ true to a degree o$ a l l farms, but e spec ia l ly ao of t r ee f r u i t . On poul t ry or da i ry farms the stock can be moved and t h e i r value r e a l i z e d . Fru i t t r e e s cannot bo removed nor can they be i n -creased or decreased eas i ly* ihe only way to decrease the sup-ply i s t o p u l l out ths 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 lanted , the farmer depending on future crops and on the ineressed value of the land for r e -compense. Once planned, then, f r u i t t r e e s cannot be considered apar t f ros the land as can s t o c k . For t h i s reason ths number of acres in 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 pas t four y e a r s . From 1921 to 1923 there was very l i t t l e new p l a n t i n g . - 53 -The average a l a s of t h e farm I s 22*8 a o r s a . The bulk of the c a p i t a l i n v e s t e d , 77%t l a In l a n d , and of t h a t land 95% l a dn o r c h a r d s the r e g a i n i n g 5% be ing snore o r l e s s u n p r o d u c t i v e : 1'he average 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 tock 1.5%. This s h o i s t ha t the f r u i t farm i s very h igh ly s p e c i a l i z e d . The average o r c h a r d i s t i n v e a t a |2500 i n h i s house showing t h a t he in t e d s tha 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 s tock such a s p o u l t r y or b a s s , which do not 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 ex -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 expenses . 2EBCBETAG.S OF TOTAL SXPUSSSS. Year* 1921 1922 1985 Average* U) Labor f o o t i n c l u d i n g owner 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 % Hired l a b o r dec reased g r e a t l y a f t e r 1921 showing t h a t the f a rmers were c u t t i n g down expenses and s u b s t i t u t i n g t h e i r own and t h e i r f a m i l i e s . ! labor 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 not o f f e r s t e a d y employment f o r l abo r t a r o u g h the ; e a r , and t h i s b r ings up the q u e s t i o n of s i d e (1) 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 pa id* 26% 26% 26% 14% 12% 15$ 10% 10% 10% 9% 10% 9% 41% 42% 40% - 54 -l i n e s which could be profi tably ca r r i ed on a i t h the f r u i t farm, and would allow of a more economical employment of l abo r . 2«Iaay growers waste labor because the# do not keep s u f f i c i e n t working stock or machinery, and ara compelled t o do much rasohantoal work themselves . This may be the resul t of poor management o r i t may be dua to an ac tua l lack of working c a p i t a l , fhe average farmer i s very ca re l e s s about his too l s and machin-ery and frequent ly does not take deprec ia t ion i n to account a t l a l l . I t takes f152*78 par 5ear on the average farm to pay for depreciat ion of working equipment* l a reducing cos t of production the moat Important fac tor i s inc reas ing the y ie ld per co re . 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 ha t of the specia l ized f r u i t farms in the State of Washington* Coat of production va r i e s g r e a t l y . One farm showed a cos t of 17 / per box while another was aa high a s #1.34 per box. During 1922 and 1923 not even the high producing farms made an 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 qua l i ty f r u i t . B.C. f r u i t farmers are spec ia l ized and therefore the f r u i t can show uniformity of pack and conform to d e f i n i t e s tandards of grade and 00lour , a i l of which go to make i t e a s i l y marketable* Variety i s a very Important quest ion to 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 ea r ly and o thers which keep throughout the w i n t e r . B.C. has 65% of i t s apples in ea r ly v a r i e t i e s which must be handled quickly or put into cold s to r age , whereas only 30% of the Washington and Oregon apples are ea r ly 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 overstock-ing a t ona t lme and a lack of supply l a t e r in the win te r . The grea t need of the Tree f r u i t growers is a s t ab l e organized market, and the only p r a c t i c a l way to obta in t h i s i s by co -opera t ion . The h i s to ry of the e f f o r t s made in t h a t d i r e c t i o n i s not encouraging up to 19L4« The f i r s t a t t empt to con t ro l the B.Ct supplv came from the okanagan United f?ro a r s formed in 1913* This a s soc i a t i on became bankrupt in 1922 p a r t -ly because of the vary poor condi t ions in the f r u i t business a f t e r the war and p a r t l y beoauoe of local mismanagement. This f iasco helped to make the condi t ion of the ind iv idua l growar s t i l l worse, and tended to d i s c r e d i t co -opera t ion . However the extremity was g r e a t ; and ind iv idua l marketing resul ted in a ruinous chaos, markets being gUitted in 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 Associat ion was formed, and in 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 ready r e -ceiving much b e t t e r r e tu rns than formerly. I t con t ro l s about -. 56 -'9&j» of the supply of marketable t r ee f r u i t s i n B.O*, and i s endeavoring t o build up safe and substant ia] , marke t s , There are t^o big disadvantages tha t the B.C. Grower most f ace . One i s the f a c t that h i s best and neares t market i s the p r a i r i e p rov inces , and that he i s therefore unavoidably in -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* Shis can only be avoided by develop* Ing other markets , 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 to two weeks ahead of t ha 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 ava i l ab le* The f r u i t grovgers are anxious for Pro tec t ion to prevent t h i a . They des 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 ha t of reducing h i s cost of production and is e n t i r e l y an indiv idual mat te 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 ab le 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 tha to f marketing which i s a more ser ious matter to the 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 cu r t a i l ed if p r i c e s are not adequate . The only so lu t ion of t h i s problem appears a t present to l i e i n oo-operat i e marketing, and on the success of the B«C. f r u i t Grower's Association hangs the p rospe r i ty 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 Agr icu l tu re" , but i t haa taken more than f if ty years for that r a t a t o gain recogni t ion in ag r i cu l t u r e throughout the world, fhe f i r s t "productive* co-operat ive socie ty ;ms founded in ^ermaay i n 1671, a«d today in 1925 there are 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 ae re ly spoken of aa dea i reable Or put i n t o p rac t i ce by way of experiment. Co-operative Soc ie t i e s may be divided i n t o two main c l a s s e s : Associat ions of Producera and Associations of Gonsumera. I t ia the former i . which the farmers are largely in teres ted 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-operat ive s e l l i n g organisa t ion or I t may aiao undertake production in t he usual sense of the word. A co-operat ive dai ry takes the milk and changes a large p a i l of i t in to bu t t e r and cheese before s a i l i n g i t , A co-operat ive f r u i t cannery changes the form of the f r u i t . As a r u l e , however, the co-operat ive noeiety has for i t s main objact the marketing of the product . Dair ies and canneries are merely aide i lnaa which are a ta r t ed aa a ru le to dispose of an un-marketable s u r p l u s , here are on l j two ways in which eo-operat ion may davelofj aa a r e s u l t of neceaa i ty , or of education along co-operat ive l i n e s . The fiiff l e n i t i e s which the Agr icul tura l and - 58 -Indus t r i a l devolutions created for the fanner, and the general depression from which ag r i cu l tu re has been suffer ing have made the former reason , the most important* Because farmers produce individual ly they are not prepared for group s e l l i n g , vrtiich cornea SB the na tu ra l r e s u l t of group production in the i n d u s t r i a l f i e l d . The farmer in the past has not been a business man, h i s ro le war to produce, to s e l l hia product for what he could get and then re tu rn 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 in iqu i tous shortages in o the r s , a l l because the farmer*s business was merely to produce j4^:^^%;^!|^p0#HJ^pa»to 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 is product . 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 ind iv idua l ly* "The farmer i s the only producer who produces without informing himself careful ly as to future demand; who s e l l s a t the prico the buyer i s w i l l i ng to pay; who does not condi t ion hi3 products careful ly 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 harves t ; and who therefore pays high charges of a l l s o r t s to o ther people to do wh*it he ought to do himself ," The aim of co-operation i s to co r rec t a l l t h i s by introducing a system uhioh prevents waste and specu la t ion , and insures tha t the man v.ho p ro -duced farm products s h a l l have a chance to merchandize them and to make a l i v ing 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 su l t of experiment,aa the condi t ions /hioh govern i t 3 establishment d i f f e r with d i f f e r en t l o c a l i t i e s . IPhe general oha rao t e r i a t i c a which have been found necessary to success in the pas t a re as fo l lows ; I* i'he primary purpose la marketing on a commodity bas la i £» The commodity .lust be marketed aa a vihole and n o t by l o c a l -i ty* Experience has shown tha 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 t o grade and s t andard i se the product* SI* The co-opera t ive a s s o c i a t i o n must be based on l ega l binding cont rac ts with the formers, otherwise agreements are apt to be broken in t inea of d i f f i c u l t y and the a s soc i a t i on f a l l s to p ieces* 4* Products must be pooled according to grsde and s i ze e t c . This leads to ins i s t ence on qua l i t y and e l iminates 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 ro -vided. This makes poss ib le nore extensive a d v e r t i s i n g . Canadian stockbreeders and poul "toymen are very lucki1 In t h i s r e s p e c t , as the Dominion Government rraintainsAr igorous system of grading by which a i l farmers are invi ted to p r o -f i t , and which gives co-operat ive a s soc i a t i ons 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 product . This gives the - 60 -individual farmer the advantage of spec ia l i sed fcusinass s k i l l and Information in s e l l i n g such as i t ?ould be next to im-possible for him to acquire himself. 7* The oo-operat ivea should operate on a non-prof i t b a s i s , merely handling the products and paying the farmer the s a l e pr ice loss the coat of ope ra t ion . Thus by e l imina t ing middlemen the farmer ge t s a much l a rge r proport ion of the consumer's d o l l a r than ever before . 8* The a s soc i a t i on should be operated as a semi-public *ody» i t s records should be open to the p u b l i c , and farmers kept advised of i te a c t i v i t i e s and given frequent f i nanc i a l s t a t emen t s . 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 prac t i sed by individual farmers , When the farmer sold his crop he usua l ly put i t a l l on the neares t market immediately a f t e r ha rves t i ng . If b e t t e r markets and p r i c e s ex-i s ted elsewhere he did no t know i t . Under co-operat ion i t i s the buesiness of a spec ia l ized lisnager to keep in touch isith markets throughout the ^ o r l d . If the product i s non-per ishable i t Is stored and released as demanded, a process involving a g ,'od deal of c a p i t a l . I f the roduct i s highly per i shab le i t la shipped over d i f f e r en t routes to d i f f e r en t market?, to avoid g l u t t i n g . In the merchandizing of some per ishable products s torage and rou t ing are both used to insure a s tab le market . The advantages of merchandizing in place of dumping a r c . - 61 -i* I t organizes the market . 2 . I t reduces the coa t of market ing. All la done through one c e n t r a l agency. Instead of sany. 3* I t broadens the market through a d v e r t i s i n g , f requent ly by the use of a t rade mark. The experience of the Fun Maid Haiain Growers i s an excellent examnle of v*hat may be done to c rea te a market* 4 . I t improves the qua l i ty of the product , The salesman « i l l refuse to accept anything not up to s t andard . One g r e a t r e q u i s i t e for success i s con t ro l of the l a r g e s t p a r t of the supply. The p rospe r i ty of co-operat ive marketing depends la rge ly 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 to e l iminate the indef pendents . The l a rge r the Associat ion, the g rea te r the number of | | growers among vshora t o divide the overhead* i s t ruggle wi th the independents and \3ith the specula t ive s e l l i n g i n t e r e s t s I s inevi tab le in the ou t s e t , and any organiza t ion must be prepared l i 1 to face l t » % | $ From the consumers poin t of view i t i s often claimed tha t the co-operat ivee are dangerous a t l e a s t po ten t - ak i a i l y so . In so far as the? ranfee for a more s t ab l e market and a more s t ab l e p r i ce l8Vel» they a re doing a servlsse to the vihola | community. I t la undoubtedly t rue th».t ^hen the market i s Ji flooded through unorganized s e l l i n g , the consumer reapa the jjjf banf i t In low p r i ces* but h« haa to pay high pr ices l a t e r in the season because of the shortage of p roduc t . A more s t a b l e pr ice 1 - 62 -leve l would benef i t r a t he r than Injure him, Statementa are frequently published showing the difference between the pr loe received by the farmer and t h a t paid by the consumer. Thia difference I s l a rge ly el iminated by co-opera t ion . xhe farmer receives what the consumer pa.ya less s e l l i n g expenses. Before the establishment of the Fraser Valley MiUc Producer ' s Associat ion the da i ry farmers of the Fraser Valley received only about 4 0 / of the consumer's d o l l a r ; they now receive 65jf. The farmer i s anxious to obta in the p r o f i t s which have h i t h e r t o gone to the middleman. Thia w i l l increase his r e t u rn s without Injuring the consumer. Assuming t h a t pr loea must be ra i sed to give the farmer a return for his labour , sure ly t h i s la more des i rab le than the cont inual ex is tence of a s i t u a t i o n under which the general pub l ic enjoy loser p r i ce s a t the expense of a decant standard of l i v i n g for the farming popula t ion . This ho.ever , has not been the general expaalanoe. Vhere oo-oparat ion has been es tabl ished the consumer does not a s a ru le pa /^ nora for h i s product; in some cases he even pays l e a s . The ex t r i r e tu rns of the farmer are a r e s u l t of a sane and business Ilk* marlcet-i<g» of the e l imina t ion 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 tha t a oo-operatlve tends t o become a cont ro l led monopoly which w i l l exp lo i t tha publ ic by t ak ing advantage of i t s control of the supoly to f i x p r i c e s . Thia accusat ion contains enough t r u t h to mate I t - 63 -dangerous to the co-opera t ive movement. In the f i r s t place a co-operat ive s e l l i n g 3ociet, la a monopoly in ao far as i t can g i ln cont ro l of the suppl produced within i t s d i s t r i c t . In the second place i t does f ix p r i ces but no more so than !ihe average business f i rm. Hitherto the farmer has taken h i s p ro -duction to market and askada, "'Jhat w i l l you give ne for i t ? " And the buyer f inding other farmers a l s o wait ing with t h e i r products raad^ for s a l e has given a pr ice whioh in many oases did not cover cos t of production* The co-operat ive knows a p -proximately whnt supply wi l l be, and i s a l so In a pos i t ion to est imate demand, and i ts pr loe i s fixed with reference to both exactly as a raanuficturs* decides '.*hat p r ice he wi l l charge for hi*, goods* If the pr ice be too high pa r t of the supply wi l l be l e f t on h i s hands. The co-opera t ive , then, does not f i x i t s pr ice anymore a r b i t r a r i l y than ao:s the ordinary business man* As to the oo-oparutive becoming a control led mono-poly 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 organisa t ion maintains i t s purely co-operat ive charac te r and does not at tempt t o con t ro l individual production* Co-operat ives which hiVe taken advantage of t h e i r con t ro l of t he supply to r a i s e the p r i ce soon found t h a t higher p r i c e s led to such an lnoreaae in production on the pa r t of 1fae fnrmers t vat they oould not market the s u r p l u s . They defeated the i r ova ends and not only did p r i ces fell but a largo p a r t of 1he product aa wasted .Po ten t i a l competit ion by independents if the pr ioe beoones too high is another obstacle in t he way of increas ing i t . As long as the connection with the indiv idual farmer i s l imited t o - 64 -marketing h i s product and giving him technica l information which a ids hira to maintain a high standard of q i ia l i ty , the consumer is s a f e . The danger l i e s in the p o s s i b i l i t y tha t the co-operat ive ma; gain cont ro l of a larger enough port ion of the supply to he more or less safe from competi t ion, and tha t i t will then use i t s po^er to exp lo i t the mibi ic . Hitherto tha t has not been the exper ience, possible- because farmers are not as eas i ly cont ro l led as business f i rms . Fven if the co-oper-a t i ve s do tend to become exp lo i t ing monopolies, s t a t e regu la t ion may be es tabl i shed to check t h e i r e v i l t endenc ies . At a i l events of the two ev i l s^ s^ poss ib le monopoly aetr c e r t a i n d i s a s t e r t o a large pa r t of the farming populat ion, th-s former seems the lesser a t present* Co-operation In B, 0, I t has been estimated th t co-operat ion in general represents one tenth of the f a rmer ' s problem. i1he other n ine -tenths are problems of product ion . In B.C. today the s t a t i s t i -cian vuuld probably find tha t i t meant more than t i a t . As far a l production I s concerned the farmer c>n hold h i s own* He has to face the usual pioneer d i f f i c u l t i e s of a nev* country, with an especial disadvantage in the high c a p i t a l i s a t i o n of land, but to counterbalance tha t he has a e l l : a t e which i : exce l l en t ly sui ted for high product ion . B.C. Fresh Zggs are recognized a i l over the cont inent as of the highest 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 to the - 56 -English market -where they a re r ap id ly rep lac ing these in b a r r e l s . Yet i n sp i te of the undoubted excellence of the p r o -duct , f a m i n g i n the l a s t f ive years has passed through a ds -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 posaibie exception of those in tha dairy indust ry , the majority oould be pointed to as thoroughly unsuccessful . A very large pa r t of t h i s f a i l u r e can be la id a t the door of non-co-opera t ion . Oo-operation has baen t r i e d in severa l d i a t r i c t a in B.C. and in seve ra 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 extremity, the l a s t hope of th6 farmers. I t i s always in the nature 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 teps 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 wi l l ingness of ind iv idua ls to co-opera te , and t h i s i s uhat has been d i f f i c u l t to ob ta in . 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 to make farming supplement the i r small incomes. In e i t he 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 are not dependent on t h e i r farms. These men are often stumbling blocks to the co-operat ive movement. I t i s not absolu te ly 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 indiv idual marketing, and do not l i ke the pooling of t h e i r produce with t ha t of t h e i r - 66 -neighbors* A3 ona o f f i c i a l expressed i t : HThe younger farmers are easy to isork with, but the older ones are hope less ITl So f a r the most successful example of co-operat ion in B*C, i s to be found among the dairymen, The Fraser Valley Milk Producer*a Associat ion was s t a r t ed in 1913 as a bargaining aeaoeiat ioa» I t next became a marketing copoperat iva; operat -ing p lan t s and handling the surplus milk, '.Today i t opera tes the l a rges t r e t a i l milk business in Vancouver through the f r a se r Valley Dair ies Ltd*, a subs id iary co-operat ive devoted merely to d i s t r i b u t i n g . Dis t r ibu t ing costs are very iovj and the farmer ge 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 receive Zfa% more of the con-sumers* money than they did in the days of independent market-i ng , The surplus of milk which var ies in d i f fe ren t seasons, i s taken cure of by the co-operat ive in 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 in to Vancouver, About one f i f t h of the c a p i t a l of the Association i3 required to finance these p l a n t s . Good qua l i ty milk i s Ins i s ted on, and must be maintained if the Co-operative i s to keep up i t s r epu ta t ion 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 Co-operative i s too firmly es tabl i shed to be se r ious ly menaoed by then* The cai ryasn\eajoy an exceptional advantage in having in Vaaeotsrsr so large a market for ahoie milk, b t the " f igh t iag - 67 -funds" necessary to ensure successful competition had reduced the i r incomes to almost no thing in the dsys before co-operation was es tab l i shed . The true fcest of a co-operat ive soc ie ty i s "Hora fa r i s ihe o rganiza t ion soc i a l l y benef ic ia l and economically p r o f i t a b l e ? " 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 tha t the 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 pa s t f ive years , and t h a t the da i ry industry i s the only one in ahieh co-operat ion i s firmly e s t a b l i s h e d . The s i t u a t i o n in the Poultry industry has n o t yet bean s u f f i c i e n t l y s e r ious to neces s i t a t e co-opera t ion . 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 ed in 19L3 as 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 t ime, and no pa 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 presents a j k i r i y s t ab le market for eggs* Unti l the surplus increases to such an e.rtant tha t i t e x i s t s throughout the year* i t i a doubtful whether co^operat i till I again be t r i a d and u n t i l tha 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 except ional ly successful o rgan iza t ion . In ap i t a - 68 -of I t s youth and heavy ovarhesd expenaaa i t ia a l ready raaking p r o f i t s for i t s mesibars by the aa la of high grade a e t t i n g eggs and baby ohiolra. I t has 391 an except iona l ly high standard based on the Dominion Government B#Q#I-. r e g u l a t i o n s , and i t i s pu t t ing on a tremendous a d v e r t i s i n g campaign vjlth the gain of extending i t a market throughout the world. I t s immediate auccaas would seem to ind ica t e thnt ona of thcs r e s u l t s of co-opera t ion vsill be the g r a t e r importance and development of t h i s br .neh of the pou l t ry bus iness , o r i g i n a l l y only s aide l ine of egg producing, while the l a t t a r indus t ry r e l a t i v e l y d e c l i n e s . The s to ry of co-oper': t i on among the t r e e f r u i t growers ia an unhappy one. Desperation led those in the Okanagan Valie.-; to forn the Okanagan United Growers In 1913, This , a f t e r the pre l iminary d i f f i c u l t i e s were surmounted appaar-ed on the road to success* Iviarkets were extanded, and the famous "O.K." brand i n s t i t u t e d . One g rea t obs tac le \saa the lock of s i z e . 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 rea te r pa r t of the B.C, supply i t had not s u f f i c i e n t con t ro l of no rka t a . The g rea t drop in 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, a l ready su f fe r ing from tr.ismaii^gement, could s tand, and in 19E2 i t became bankrupt . The growers, in despera t ion inv i ted Mr. Aaron Sapiro the Cal l fornlan au tho r i t y on co-opera t ion t o come to B.C. and consider the problem of organizing 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 rganiza t ions were formed dur i g 19 £2, the r.iajority - 69 -of whioh joined the B.C.. ^ssocis ted F r u i t Growers, the successor of the i l l fa ted 0*U.G» This a s s o c i a t i o n had grea t obstaciea to face; i t *ms formed during a period of io^ p r i c e s , and i t had g rea t d i f f i c u l t y in 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 his place ^as taken by a loca l man who has succeed-ed in p u l l i n g the organ iza t ion 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, notwi ths tanding the heavy overhead. Tha fu ture of tha t r e e f r a i t indus t ry undoubt-edly depends upon the success of the Associated Growers. The small f r u i t mea have been organised in to a number of co-opera t ive s o c i e t i e s * no one of which i s large enough t o con t ro l the supply . In add i t ion the*e have been numerous loca l d i spu te s nnd constant charges of management, a s s i s t e d , i t la uon be l ieved , by the Influence of the hash combine of brokers and jobbers . The evidence put forward in the Duncan Ileport s t r e s s e s again the necess i ty of d i s t r i b u t i o n of the product by the farmers thamaalvos. The middlemen ..iere not content a i t h the ordinary p r o f i t bo be obtained from Speculation in 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 r e tu rns 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* 3mall f r u i t s are so pe r i shab le t ha 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 rou t ing to markets ^here tiiey are - 70 -needed and t o avoid overaupply. At p resen 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 unwi l l ing 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 organ iza t ion by proving tho i n t e g r i t y of I t s Manager, and hopes a r e expressed tha t the two w i l l com-bine* The immediate r e s u l t of t ^ e i r union should be the e s -tablishment of an adequate c e n t r a l marketing system which would el iminate a la rge p a r t of the expense involved In sh ipping , and would ensure t h a t a l a r g e r share of the p r i ce pnld by the consumer goes to the p roducers . The c a t t l e and sheep indus t ry in B.C. has g r o a t need of the es tabl i shment of some cantr- 1 market vithout ahlch the formers cannot increase t h e i r r tock to any apprec iable ex-t e n t . I t r e 3 i s with them to increase t h e i r s tock when p r i c e s are ba t t e r end form a co-opera t ive a s s o c i a t i o n which TJ :>uid en-able members to 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 nuffar i r^ from lack of oo-opera t lon . The oa l j Industry which i s caking even small r e t u r n s Is the dairy Indus t ry . r!a.;t br noh oJ! the r c u l t r y Indsutry which h^s es tab l i shed co-operat ion h .3 inf n l t e i : b e t t e r prospects than th t whicb h s n o t . lack of oo-operat ion i s proving v.. g r ea t disadvantage to the 0 t t i e farmers . The f a i l u r e of oo-opere t ion in f r u i t farming i s not to be a t t r i b u t e d - 71 -to f a u l t s of co-opera t ion per s e . Had co-oper t l o n been mora firmly es t ab l i shed 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 far mora adequately met. :3s ya^t the a s soc ia t ions are only in the exper imental stages., and experience i s a hard teacher a l b e i t a good one. F ina l ly , mismanagement h a a \ feeen daa in 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 ou t s ide , 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 are r e l u c t a n t to pay. If a loca l man i s appointed the chances are heavi ly aga in s t h i s having the r e q u i s i t e business knowledge, which i s no t such (1) as i s required of the average farmer . Tae p o s i t i o n seams to demand spec ia l i zed business experience and a t the same time a knowledge of loca l farming. Co-operat ion, then seems to be badly needed by a g r i c u l t u r e in B.C. But a word of earn ing i s necessary . Co-operat ive 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 ro-ve l e n t e v i l s t ha t the farmer must face today. Their success d e -pends upon the vj i l l ingneas of the ind iv idua l f a r ce r s to main-t a i n ind improve the qua l i ty cf the re p roduc ts , and to sinlr t h e i r p e t t y qua r re l s and d isputes xcr the good of a g r i c u l t u r e as a whole* Without co-opera t ion agricultures in 3 , 0 . in doomed t c f a i l u r e ; with i t there are s t i l l many l ions in the path towards 3uoc,eas« f i ) The man who ha3 put the Associated Growers on I t s f ee t Is a Summer land farmer* - 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* fa rmers must f&se i s / i the essaptioiially high, valuation that ia set on land in th i s . • I Prov ince* 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 produce l a r g e l y f o r a domes t i c and t h o s e 'which produce main I;, f o r a f o r e i g n m a r k e t . The farmer p roduc ing fo r a f o r e i g n market must penmate w i th fa rmers 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 fo r the domes t i c market must a l s o f ace f o r e i g n c o m p e t i t i o n a l t h o u g h i n d i r e c t l y fo r i f he cha rges 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 impor ted from e l s e -where* Thus the B.C. fa rmer has 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 t o face* s i n c e land i s h i s f i r . i t n e c e s s i t y , For 1922 B.C. s tood f i r s t in t h e Dominion i n t h e average va lue of occupied farm l a n d s . The average i n B.C. was §120 as opposed t o Onta r io $64 .00 , ^uebee $58 .00 , P . E . I . 345 .00 . 3*3* 354*00, H .B . and Man. $22 .00 , Sask . $25 .00 , and A l b e r t a 3 2 4 . The a v e r a g e va lue of o rchard and f r u i t l ands ( i n -c l u d i n g b ldgs e t c ) f o r U ' £ l and 1922 w a s : Year* 1921* 19 £2* J ova S c o t i a - ) l lTO0 per oro "v3.00 Onta r io 137.00 127.00 3 . C. S;iO*00 3£0 .00 3 . 0 . be s ides having by f?.r the h i g h e s t va lue p a r oasu , shows a n i no reaae from U'2 l to 10 22 whi l e the o t h a r two i r u i t p r o v l a c a g show a d i s t i n c t d e c r e a s e * ?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 the land i s c a p i t a l i s e d in On ta r io a t - 73 -#195*00 per a c r e , while s i n i l a r lands in B.C. s e l l fo r $325.00 per a c r e . If the high value of B.C. land la baaad upon i t s super ior Income y ie ld ing power then i t should prove no d i s a d -vantage t o the farmer . If i t ha3 i n any way to Inf la ted va lue . than i t I s a s e r ious drrwbaok. • < Bent la the term uaua i ly used to denote tha income derived from tha ownership of land. In d i s cus s ing the r e tu rns yielded by land as n f ac to r of reduct ion the term "land tnc me" i s mors comprehensive. I t include a a l l the re' .urns both mater ia l and psychic t h - t the ucorn ob ta in , such «o s i t u a t i o n , des i r ab le soc i e ty and c i i ^ - t e . I t i s tha "land Incoro" in 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 ma te r i a l r e t u r n s th t a given piece of land a i l l y i e ld , 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 ce of the l and , *The s e l l i n g p r i c e equals' the success ion 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 presen t (2) worth of a pe rpe tua l income." Very of ten t h i owner of toe land ovsrratea tha future inoo e and dema/ids tuo i.uc'u lo r h i a land. The purchaser f inds hi: .self handicapped by t i e noosas i ty of pac-ing i n t e r e s t , e i t h e r to h imsei : ox to another on an investment Hi Tly: Coat3 and Income i n "lane U t i l i z a t i o n P . 10 . (2) Ely* Coats and Income in land U t i l i s a t i o n ?» 3 2. - 74 -which f i e l d s a smal ler r e t u r n than naa a n t i c i p a t e d . This has baen tha emparlance of many B.C. f a rmers . 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 wi 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 ld ing pow.r of the l a id w s lass than the.y expected. 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 considerably overes t imated . The land income depends on many th ings qu i te o a t -s ide the owner*s c o n t r o l , Conjuncture! gains or losses are im-p o r t a n t . Ihone v/ho bought land in 11 £0 paid a pr ice baaed on the income R a i d i n g powers of the land a t t a u t t ime . But the future inc cms \tas overes t imated; i t «as assumed tha t the year ly income ^sould remain approximately constant 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, qui te apa r t from any ac t ion of the ov»n.r. Any Increase in tha p r i ce of products i s l i k e l y , o ther thing;: being equa l , to inc re se the land incorsa* Similar ly any decrease in the p r ice of products i s l ike I, o ther th ings being equal , t o r e -duce the land income. I t fol lows tha t any g r ea t increase in populat ion by inc reas ing the demand for a g r i c u l t u r a l p roduc t s , w i l l tend to increase tha land income ^nd therefore land v a l u e s . Simi lar ly a decrease in populat ion w i l l tend to decrease l*ud v a l u e s . Conjuuctural gain3 and losses tend to move in o.voles. Shi ie p r i c e s aro high lanci inc J a i s h igh , and when p r i e e s a re - 75 -low land income ia low. and other things being equal, land values wi l l follow the course of the business cycle. \ The value of each acre of agr icu l tu ra l land in ^Lo« ia based on conditions which apply to i t in pa r t i cu la 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 , cl imate, topography, access ib i l i ty to markets ate* Land which i s valuable for small f r u i t s ia not necessari ly so for dairying. I t is d i f f i cu 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 defini te factors which snake for high values. On the whole, the value of agr icu l tu ra l land in B.C. has not changed g rea t ly . I t rot:e over one whole of" the Province a f te r the war. but th is may be accounted for by the inf la t ion (I) of the currency. But in cer ta in d i s t r i c t s land used for speci-f ic purposes increased in value considerably after the war. Land suitable for poul t ry , t ree f ru i t s and small f ru i t s in-creased greatly in va lue because of an accelerated demand, but even here i t v;a;- only i n cer ta in 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 fa i l in the Boundary d i s t r i c t . To obtain an accaratG resu l t each small d i s t r i c t would have to be studied by i t aa 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 suff icient accuracy to rake possible any comparison between price movements, :ind movements of land values. - 76 -the change in tho purchasing power of money. Fa i l i ng t h i s the bea t t h a t aen be done i s t o po in t out some of the important f . ictors a f f e c t i n g land values and incomes. S'hejfcEaetcrs mak*f^for high v3 lues of a g r i c u l t u r a l Innd. 1 . .Txeeptional demand. 2* High ooat of improvement. 3 . Climate. 4 . Specula t ion , 5 . THailke of Ind iv idua l s to admit l o s s . &• The case of lend near populat ion c e n t r e s . 1 . 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 supply . "Ultimately the increase or tSaorease in the r e n t a l value of land depends, other th ings being equa l , on the r e l a t ion between the r te of the inc rease in the economic land supply, and the r a t e of the growth of pop-f l ) u i a t i o n . " The demand fo r farming land in c e r t a i n d i s t r i c t s of B.C. «aa enormously affected by the war. In IS 19, 1920 and 1S21 a large number of re turned 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 farmers , e spec i a l l y those engaged in pou l t ry farming a«3 f r u i t gro?i;:g« The nBaci£ to the Land" movement jas fos tered by the government through the - o i d l e r ' s Sett lement Board. At the 3ame time are la rge number oi imni-grants froi. toe B r i t i s h I s l e s who -3era d i a inc l ined t o r e t u r n to t h e i r pre-war occupat ions , 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 rea t de -mand, accordingly i t s p r ice rone , arid many farna changed" hands. (1) i i ly: Costs and Income in Land U t i l i s a t i o n r . t>0. - 77 .... Unfortunately for the purchasers thay bought during e. period of pr ice 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 i n 1919 and 1920 \7ore l a rge ly the r e s u l t of that i n f l a t i o n ; ;:hen the general p r i c e l a v s l f a l l the p r i ce of farm products f e l l with i t . Production had been enormously increased both in the h o r t i c u l t u r a l .nd pou l t ry i n d u s t r i e s &.s a r e s u l t of the tempor-ary boom. This helped to g l u t xaarkets and forced the p r i ce s t i l l i o a e r . Therefore land inc otaas ware considerably reduced, and the farmers found tha t thay had paid for a fu ture income which was not fortheoming. Accordingly the value of the land f e l l * 2* High cos t of improvement. fIhe aeooni f a c to 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 cost of improving land. B.C. i s a ne*vs country and a mountainous onm9 consequently there are g rea t expenses involved In the c l e a r i n g and improving of the l and . In soma d i s t r i c t s drainage i s necessary and in others i r r i g a t i o n . There i s land In the South Okanagan t h a t cos t s ap-proximately 1600.00 per acre to cle«ir and Improve, the earning power of which* based on p resen t p r i c e s , would be only about $500.00. The reason such land i s c leared at a l l l i e s i n the f a c t tha t i t s value to i t a ovmer depends on i t s fu ture earning powar. da a n t i c i p a t e s an increase in the value of the land as i t s land income i n c r e a s e s . The bes t time to purchase land l a when p r i c e s are low and the expense of improving comparatively s n a i l . The man who inves t s h i s money in such land today mnat no t expect an immediate r e t u r n . He expects to receive h i s • 78 -raturns In the future when there ia a greater demand fo r land and i t s produoo. Uo unw hi ie his lnvestmont i s s a fe , h i s land cannot disappear, -:van i f he cannot r eu 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 i3 in -creased because i t villi yield an i .come of soma so r t immediately ad ia therefore ia 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 ve i l sal ted t o poul try, dairying and f ru i t farming, while in the i n t e r i o r are d i s t r i c t s sal ted to almost every other t^.po of ug r i cu l t u r e . In addit ion 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* to invest pa r t of his cap i t a l in a sm 11 form, finds a favorable s i tua t ion on Vanoouve* Is land , 'fhe oliraate onsuros a fairLy s te idy demand for ag r i cu l tu ra l land and t h i s keeps up the p r i c e . 4 . S p e c u l a t i o n A gre t deal of land in B.C. wan bought up many years ago by speculators who real ised t h a t the population and demand for land wore bound t o Increase . They have had a monopoly of the best land in cany locations and have used i t to - 79 -obta in an exhorb l t an t p r i c e , fibnj bought: land jua t before tha general r l s a a f t e r the war, r e a l i s i n g tha 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 ce* 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 wi l l hold i t u n t i l i t s value r i aea» Y.'hen the specu la to 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 the re fo re the height t o allien values r o s e ; ami by producing thGy added to the g lu t on the markets t>£ the anoraous f a l l i n p r i ce r e a u l t l n g from i t * i'haae in^la^ace i n B. 0 . haa not been for 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 reason t h a t land values in genera l did no t f a l l mora rap id ly a f t e r i$2l* can be found in the d i s l i k e of the average farmer to admit a loss* lie hud paid too high a p r ioe for Vila land, but he was unwil l ing to admit i t ; he did not l i k e to f aa i himself a poor business man. In consequence he con-inuad to quote hla land a t the p r i c e ha paid for i t , r ega rd -l e s s of tha f a a t t h a t he could not s e l l for anyth i .e l i k e t h a t sum* a i s example reacted upon h i s neighbors who refuaad t j ad-mit tha t t he i r farms were wo rth leas than h i s* I t was n o t u n t i l i t came to tha po in t of a c t u a l l y s e l l i n g h i s farm tha t his va lues oould be questioned* A*tuaiiy very fevj farms h^ve changed handa wi th in the l a s t th ree years* Tee condi t ion of a g r i c u l t u r e haa no t been such as t o encourgge prospec t ive farmers to parohasa* - ao -Also the aaaiviat thing for tha firmer who has paid too much for iila land i s to hold i t and hope for the boat* I t in wry un-l ikely tha t he w i l l receive an adequate re turn on his whole In-vesimentj pa r t of i t must be wri t ten off as l o s a . But by r e -maining on the farm he hue a t l e a s t a sport ing chance of r e -ceiving an Income which w 111 par t ly racom ense him, w he re as If ha se 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 ce 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 Tle tor i s and su i t ab le for small f r u i t s sold for vary high pr ices 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 increase . The increase does not come from i t s value as 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 iden t i a l s i t e , ifirt of the increase in value is an unearned increment, although par t may ha a t t r ibu ted to fo res igh t . Dr. Marshall s t a t e s t ha t "Land near to a glow-ing town, which is s t i l l used for agr icul ture 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 ant ic ipated in i t a capi ta l va lua | and further i t i ownership la l ike ly to yield on 1 come of s a t i s f ac t ion out* ( I ) side of the Bonay rent received for i t . * (1) Marshal l! Pr inc ip les of Economics, 6th ed i t ion , London 1900 ??. 799 and 800. - 31 -Tile ad are the moat important fac tors causing nigh / a l i a t iou of alnd l a 3*G« In ao fa r aa they h.vo tended to laaie contract ren 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 re turn on Vie investment which has been Mala. I t la a recognised faot tha t normally an investment in land a l i i give a monetary return rather los:i than that afforded by other i n -vestments. A re turn of 3J7I to 4% i s onaidored good* That snouid be taken into account in examining the returns oi the University extension surveys the f igures of which were uaed in '.he ea r l i e r par t of th i s ea^ay. In t e res t on investment was charged In c r ry oase a t 7,1 unless expressly s ta ted 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 re turns on an investnent in land are smaller than those on an Invaj.ment in other indus t r ies 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 pa r t i cu la r advantages which the owner of land enjoys, and in tho olreomatances which d i f f e ren t i a t e agr icu l tu re from any other industry or occupation* One reason why land yields a smaLl re turn la t ha 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 in-vestment in o p i t . I goods because i t cannot dlaa, pear or so wholly nasi ap . I t may be usod for one purpose i f no t for - 82 -another* and tiiere i a always the cnanoe o± a sodden increase in 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 . There i s of course , a l s o the p o s s i b i l i t y of an unearned decrement, and an an t i c ipa t ed increase ma^ not oome for some time therefore the r e tu rn which land w i l l give to the Inves tor 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 be-cause of i t a g r e a t e r sa fe ty and of the advantages which the farmer may enjoy and the man in indus t ry cannot . In the f i r s t p lace he i s enabled to l i v e a t home and work with h i s f ami ly . . Business and soc ia l l i f e aro bound up toge ther whereas in o ther occupations they are e f f ec t i ve ly separa ted , 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 suf fer no i n t e r f e r ence 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 ea rne r . The f irmer i s both c a p i t a l i s t and l abore r , and reaps the advantage of h i s double capaci ty in bad t i n e s , when i f he does not rece ive enough t o pay himself wages he can 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 fami ly . If he succeeds in improving the i ' L ) condi t ion 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 tbs l and . (1) This la assuming tha t he is the owner of the l and . ?here i a comparatively l i t t l e tenancy in B. G. - 83 -The ownership of land oarriaa with I t a cer ta in p res t ige , i s a safe form of inveatment, and gives a chanoe for oonjunotural f a in s , therefore although I t requires more care :nd yields lower re turns than other forms of investment, i t i s considered dea i rab le . .hen the farmer has capital ized a i l hid advantages; the quali ty of tae s i l , c l i . iu te , locat ion , t ranspor ta t ion and marketing i i . o i l i t i o s , aooiai op o r tun i t i e s e t c . , hi a chances for gain a ruduced to 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 is 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 ea t c a p i t a l In the most advant-geo a way* tha t separates the successful farcer from the unsuccessful. If tiiere is a continual tendency In agr icul ture to yield low re turns I t shows tha t too much labor and cap i t a l is invested in agr icu l ture end those farmers producing on the mar-gin should seek other occupations* Bat poor re turns ua., be due to unstable p r i c e s , and attempts should be made to correc t th i s through the be t te r adjustment of production to demand, and by bettor marketing methods. Agricul tural experts in 3.C. do not believe that there ia too nuoh production, or that toe number of men ong^ged in farming should b reduced* The,, point to the uisorgunization both in production and marketing that has p r e -vailed h i the r to and maintain tha t t h i s dan b remedied and the f^rrmr thereby reootva greater 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 po l ic : ; , "'he limn of suoh a poligjy should bo th ree , v i z : feetter Production, b e t t e r d i s t r i b u t i o n and b a t t e r popu la t i on . The ~ominion Sovarnraant is at tempting to fur ther the f i r s t tvio a?m3 b;, making ava i l ab 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 product ion. 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 to co-operat ive 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 , '"he th i rd problem, t h a t of popula t ion la of g re« t importance in B.S* tod a.v. Undoubted 1,7 a l a rge r populat ion i s needed for the development of the resources of the Province, but vie have at the same time unemployment an e v i l which ought to be diminished not increased, Hi ther to the pol icy of land se t t lement followed by the ^CTerament has bean l a rge ly 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 oans , This scherae has not ^orV-ed well in eT?ry c a s e . 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 su i ted to i t , Conditions were very bad a on a f t e r t he i r purchase making i t d f f f i c u l t in many coses to pay off t h e i r l oans . In an i t e of obs tac les many of them succeeded as f a r as could be expected in the face of ad-verse cond i t i ons , o thers with the ;?ame oppor tun i t i e s gave up t h e i r farms. These farms hr;ve oo^e back to the rovernment and a new scheme has been devised to s e t t l e them. This apparent ly - 85 -doea away with the greates t objection to the old, by vary care-ful select ion of the imnigrants. Through an arrangement between the Bri t i sh and Cmadlan Government's, families whloh huva had farm experience and have, so f i r as can he ascertained, the necessary qua l i t i es 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 sui table* Tae soheme is 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 care-ful 3eiscUan of the quali ty of the immigrants. - 86 -CuIiC kUSXun* Chapter 10* There are two d i f f l o u l t i e s t h a t tne B*C. farmer must f ace , which have h i t h e r t o been Mentioned only i n c i d e n t a l l y but which are of g r e a t impor tance . The f i r e t i s the ques t ion of P ro tec t ion* and the aaoona that of f r e i g h t B a t e s . Agr i cu l tu r e throughout t&a frevince is Buffer ing from the very high t a r i f f levied by the United s t a t e s on a g r i -c u l t u r a l p roduoa . This of course has d l f f r e n t i f f a c t s on t he d i f f e r e n t types of fanning* but whenever tho re la any expor t* ab l e aurplus 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 marka t . i'he farmers a s a whole are no 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 ike some check to be pu t n the damping of low o lasa produce i n t o Canada by ' the United St- tea p roduce r s . Also they would l ike 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 to pu t t int of B.C. on the marke t s , in the endeavour to do away wi th the advantage of an e a r i i o r soaaon r*hioh i 3 poaseaued by t h e i r ooc-p e t l t o r a south of the l i n e . - The ques t ion of f r e i g h t r a t e s haa received oons lde r -a b l e a t t e n t i o n of l a t e . Suffice i t t o aa.? he Is t ha t the B.C. farmer does labor under a cons ide rab le handicap when he br ings in 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 coa t ot p roduc t ion* Agr icu l tu re In B.C. h_ , on tho whole, been a * 87 -f a i l u r e during the puat four y e o r s , as fur as mnklng a good l i v i n g 1B concerned. An a t t empt hae been made to enumerate t he 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 thnt I l e a l a r g e l y In the hands of the farmers themselves• I t la educa t ion , more educa t ion , and a t 111 more 3duontlon«N The farmer must ca t donn h i s ooet of prodnet ion 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 ob ta in ing i n -formation have been throvm open to the f a r m e r s . There are f ive dominion Government TxpaFtment-*: I * t a t l ona in B .C . . s i t Kited a t jBrorraare, Tunrearland . i g n s s l s , S idney, and Salmon Arm, the l a s t named being a s u b s t a t i o n . The Information obtu inod throagh the experiments mode on tha3e farms la a t the d i sposa l of the farmers . Both Dominion and Br ovine la I Departments of Agr loal tnre r n b -l i a h s t a t i s t i c s and Informat ion r e l a t e d to p roduc t ion , "he §x-tenai:<n repar tment of the Oo'lege of Agrioul tura a t the Univer-s i t y 13 doing e x c e l l e n t work among the farmers* In t roduolng the r.ost modern methods of p r o d u c t i - n . The animal ex tens ion a irve^s £lve the farme* aorae i dea of hov» ho a t and e , a ad show hlra what he f requent ly 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 educa t ion the firmer needs I n s t r u c t * Ion in btLsinsnn a a t h o d a . r.'an.y farmers do not 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. They-cannot t e l l whloh of t h e i r under tak ings " re p r o * j f l t i b l e and which a re n o t . 9 i t h a ne t of books, no t n e c e s s a r i l y e l a b o r a t e , they can fajfe o l l t 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 dif ferent factors of production i e l d . The farmer frequently claims that he hug aotime to keep books. If he anent a l i t t l e less time po t t e r ing round his out-hnl ldings , he would have enough ocportunity not only t o keep a simple se t of b o k s but a l so to keep his teahnloai and general education op t o data* So business firm would for an ins tant con-s ider operating without any accounting ayatem, but t h i s is ex-ac t ly 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 so l a t ion" la over. Mot be t te r or for oorse ao is no a a specialized uni t in the product-ion 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 ea l i ze t n i s , they cannot e s -tab l i sh the i r industry upon a firm basis* and education* vshother I t Qjmes through bet ter experience or more e a s i l y . Is what l a needed to induce co-operat ion. The effect of education on the younger generation of farmers >vho acre not reared l a tha i n -d iv idua l i s t atmosphere of the i r f a the 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 sez - fa i r e regime who object ao strenuously to any interference in the methods which they have ouraaed throughout the 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 rea l i ze i t , the ba t te r for them and for the whole Province. 

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