historical evolution of agricultural system in USA, especially in the end of 19th
Century, had led to forming dominated micro-peasant cultures to face the unfair
soul of the very nature of the capitalism.
price deflation of the crops, economic stagnation, inflation, and rural
poverty, these had proven that the current banking system are not only
incapable but also has no commitment.
despite of high quality seed, high level of mechanization, agricultural innovation,
and consequently highly yield of agriculture, farmers were suffering from crop
deflation. The high rate of immigration,
sever frosting of the end of 80s, purchasing the family farms by the companies,
and high rate of transportation due to the exclusiveness of the rail transportation.
needed to form a farmers' organization to solve their problems. Philadelphia
association was the first organization, developed in 1810 that was handling the
diary products, vegetable and horticultural cropping.
movement, as one of the first farmers’ organizations developed in 1867 by
Oliver Hudson Kelley. Aiming to improve the farmers’ life standards, Grange
movement reshaped based Rachedil principles.
After the Civil
War, seven States had approved the “Grange Act” to promote a fair farming system
among south and north farmers. Consequently, the warehousing and transportation
cost was drastically decreased .However, the lack of a scientific and
comprehensive accompanied by the demagogic leaders led to fail of Grange in
In 1875 , the
south farmers union, developed Agriculture Supported Community (CSA) and
American shareholders association in Wisconsin . Adopting opponent approach of the Grange,
these organizations were inhibiting populism and acquiring Parliament political
objecting to the monopolism of rail transportation and wheat silages, they
united the USA farmers against the discriminatory Laws of trade.
assembly of the populist was held in 1892 in Nebraska that issued a statement, demanding
the conviction of injustice, bias, moral, economic and political corruption and
requesting to end of the domination of elites.
delegations by this statement, asked the government to farmers' engagement in
the decision-making, decreasing Custom tariffs and nationalization of the
union of farmers was developed in the very nature of the agricultural extension
education system in 1902. Along with this the private organization of the USA
farmers supported the logistic cooperatives through approval of the Federal and
State Act. The largest agricultural of USA including cereal marketing
cooperatives, rural insurance companies are the next generation of these two
been providing raw material s for multi-national companies.
government granted farmers long-term low-interest loans to purchase farms.
spring of 1990, the government founded "Farm Credit System" to
facilitate purchasing agricultural machinery, development of warehouses, and cold
chains. From 1865 to 1920, many of the States approved the "Cooperative
Act". The limited shareholding, the membership dependency voting right,
and each member is eligible for one vote is the same principles of Rachedil.
managers of the American national association allowed farmers to adopt the
convergent policy of pricing, many jobbers have tried to fight against it.
According to the Sherman Antitrust Act, many marketing agents of the
cooperatives were sued and many CEO was arrested.
In 1897, the
agriculture sector was exempted from this Act. According to this Act, many
farmers' organizations that developed for mutual aims and have no capital are
exempted from taxation Act. Approved in 1922, The "Capper-Volstead Code
led to forming 12 small and medium credit banks.
the public capital raising, these banks provided State bonds that led to
accelerating the financial sources needed for development of transportation
cooperatives and storages.
link of the agricultural cooperatives and market exchange helped to improve
agricultural marketing; consequently, in 1945, the crisis of agricultural
overproduction was a meaningless concept. By great development of the
cooperative movement, a modern institutionalization of pre and post chains of
the crops was developed that succeeded to access the emerging markets.
Hossein Shirzad is the deputy minister of Jihad-Agriculture and
CEO of CORC [i]