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Improves cash flow position of producers through the provisions of an initial payment for the product delivered,
allowing them to meet their short-term financial obligations, and through better returns for the product resulting from
the more professional marketing approach possible in a cooperative marketing situation;
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Provides equal returns to producers for products of like grade, variety and type;
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Helps improve the producers' farm income
by allowing the marketing of their crops over an extended season
when market conditions are better thus achieving orderly marketing
of these products;
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Encourages producers in forming their own marketing
agency to take advantage of marketing opportunities;
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Helps the marketing agencies lock-in a minimum rate-of-return for their members and protects
them from unexpected declines in the marketplace;
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Provides marketing agencies with a
price guarantee which can be used as security when obtaining
credit from lending institutions for initial payments to producers;
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Enables the marketing agency to profit from economies of scale;
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Single desk selling with a pooled price;
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