SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS
JULY, 1973
PRODUCER BARGAINING: ITS CURRENT STATUS AND
DISTRIBUTION OF BENEFITS
Calvin R. Berry
“It must be considered that there is
nothing more difficult to carry out,
nor more doubtful of success, nor
more dangerous to handle, than, to
initiate a new order of things. For
the reformer has enemies in all
those who profit by the old order,
and only lukewarm defenders in all
those who would profit by the new
order, this lukewarmness arising
partly from fear of their
adversaries, who have the laws in
their favor; and partly from the
incredulity of mankind, who do not
truly believe in anything new until
they have had actual experience of
it.”—
Niccolo Machiavelli [11]
These observations by Machiavelli on the nature
of human behavior seem most appropriate when
reviewing the current status and distribution of
benefits of producer bargaining. While the concept of
bargaining by farmers is not new, it has experienced a
resurgence of interest of unprecedented magnitude in
recent years. This increased emphasis has led some to
refer to agricultural bargaining as a “concept whose
time has arrived.” Also, this development suggests the
possibility-if not the promise-of the initiation of a
“new order of things” to many of those who have
observed it. The ensuing debate among some of these
observers, regarding the possibility and/or advisability
of obtaining significant gains for farmers through
increased bargaining strength, has revealed broad
differences of opinion which remain largely
unresolved, or even uncompromised. Finally, in
keeping with Machiavelli’s observations, the
difficulties encountered in efforts to bring about
increased bargaining strength for farmers have proved
great enough to test the convictions of even the
strongest defenders of this concept. However,
benefits realized through producer bargaining have
been sufficiently evident to give hope to some of
those who had failed to believe.
Both professional and popular literature are
replete with discussions of agricultural bargaining,
and the verbage devoted to this subject has noticeably
increased in recent years. For example, a cursory
review of publication dates recorded in a relatively
recent bibliography on Cooperative Bargaining for
Farmers [12] reveals that the number of articles
written on this subject during the first half of the
1960’s was more than one-third greater than was
recorded in the previous decade. Factors associated
with the various aspects of agricultural bargaining are
much too numerous and complex for exhaustive
treatment here.1 However, in deference to their
importance to an evaluation of the status and benefits
of producer bargaining, a brief treatment of some of
these factors is included.
The revival of interest in farmer bargaining is but
another outgrowth of the technological revolution
which has occurred in all sectors of American
agriculture, especially in the past 25 years. Factors
associated with this change and the resulting rapid
decline in farm numbers and the increased size of
farm units have been repeatedly recorded and are well
understood. But the requirements of a highly
mechanized, capital intensive farming system for
Calvin R. Berry is professor of agricultural economics at the University of Arkansas.
1See [S] and [17] for an especially well-developed discussion of the subject. In addition, numerous articles relating to
various aspects of agricultural bargaining are reported in the Proceedings - National Conference OfBargaining Cooperatives, FCS,
USDA, Washington, D.C., 1957-72.
37