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Excerpts from the report: This study was undertaken to determine inventory management policies and practices of farm supply cooperatives and their effect on operating efficiency. It is the fourth in a series of area studies on this subject conducted by Farmer Cooperative Service. Specifically the objectives of this study were to: 1. Determine purchasing policies and practices affecting inventory acquisition. 2. Determine successful handling and storage practices. 3. Determine sales policies and practices affecting inventories. 4. Recommend useful policies and practices for efficient inventory management. Representatives of Farmer Cooperative Service interviewed 23 local farm supply cooperatives to determine their inventory policies and practices and to obtain operating data pertaining to inventory management.

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