The growth of the movement in the last nine years under the fostering care of the I.A.O.S. is highly satisfactory.  By the autumn of this year (1903) considerably over eight hundred societies had been established, and the number is ever growing; of these 360 were dairy, and 140 agricultural societies, nearly 200 agricultural banks, 50 home industries societies, 40 poultry societies, while there were 40 others with miscellaneous objects.  The membership may be estimated—­I am writing towards the end of the Society’s statistical year—­at about 80,000, representing some 400,000 persons.  The combined trade turnover of these societies during the present year will reach approximately L2,000,000, a figure the meaning of which can only be appreciated when it is remembered that the great majority of the associated farmers are in so small a way of business that in England they would hardly be classed as farmers at all.

These societies consist, as has been explained, of groups of farmers who have been taught by organisers that certain branches of their business can be more profitably conducted in association than by individuals acting separately.  The principle of agricultural co-operation with its economic advantages will, as time goes on, be further extended by the combined action of societies.  With this end in view federations are constantly being formed with a constitution similar to that of the societies, the only difference being that the members of the federation are not individuals but societies, the government of the central body being carried on by delegates from its constituent associations.  The two largest of these federations, one for the sale of butter, and another for the combined purchase by societies of their agricultural requirements, have been working successfully for several years.  Federations, too, are being formed, as societies find that their business can be conducted more economically, for example, in dairying by centralising the manufacture of butter, or in the egg export trade by the alliance of many districts to enable large contracts to be undertaken.  In the near future a further development of federation will be required to complete a scheme now under consideration for the mutual insurance of live stock.  Such a scheme involves the existence of two prime conditions, a local organisation for the purpose of effective supervision, and the spreading of the risk over a large area.

In all such enterprises and economic changes the Organisation Society is either the initiator, or is called in for advice, and its continued existence in a purely advisory capacity as a link between the societies where concerted action is required, will be necessary even when the organisation of farmers into societies is completed.  The economic life of rural communities is in continual need of adjustment.  Now it is an invention like a steam separator which revolutionises an industry.  At another time the crisis created by a change in