The recent inflationary spiral of costs accompanied by a sharp downturn in the farm economy has adversely impacted the competitive position of the Nation's farm supply cooperatives. One means of minimizing these adverse effects, as suggested by cooperative distribution managers, is to develop an industrywide program, stressing cost control and efficiency through the uniform application of productivity measurements and eventually productivity standards. Implementation of the program was preceded by an indepth analysis and appraisal of the policies, as well as the physical and operating characteristics of selected farm supply cooperatives for the purpose of determining similarities and differences which might impact upon the productivity measurements. Information was obtained on measurements, both financial and physical, which were already in use by some of the cooperatives. An implementation phase was recommended in which a small number of the financial and physical productivity measures would be selected for further development.