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John H. Davis:
Architect of the Agribusiness Concept Revisited
ALAN E. FUSONIE
The year 1904 was a significant one indeed. Among other things,
year in which John H. Davis, the man who would one day defi
120-acre self-sufficient family farm which was located about a half mil
upon home consumption and the sale of hogs, cattle, and sheep, inclu
Aristotle who noted that good habits developed during one's youth m
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all the difference in later life. Davis never forgot those early on-the-farm
years: "We were healthy and at about age eight we were doing chores and
each year our responsibilities increased.... Our first field work with horses
was cultivating corn, using a horse-drawn cultivator....at age 13 or 14, we
operated a two bottom gang plow, using four to six horses hitched abreast.
Then we'd run the field mower and hay rake when the hay was ready to
Time passed, and eventually Davis became a full participant in the annual
threshing time, an experience that impressed upon him the economic and
was completed. It was hard work, and Davis came to appreciate the
importance of the Huber threshing machine to a farm community. "The
that the smoke stack was back of the boiler. It did a good job. Finding
enough water for the engine was often a problem?each farmer provided
water and coal to run the engine."3 A time of shared work and shared
friendships which culminated in a final pot luck picnic with homemade
ice cream made a lasting impression upon Davis.4
1. Alan Fusonie, "John H. Davis: A Career in American Agriculture: An Oral History Interview,"
(11 November 1983 through February 1984), 1, John Davis Papers, National Agricultural Library,
Beltsville, Md. [hereafter cited as JDP, NAL].
4. Ibid., 3.
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and demanding; having two mature, hard-working sons who could maintain
equipment and manage the livestock was critical to the farm's success. As
Davis recalled:
most of what we produced was for sale.... In large part, the corn that
we grew was fed to hogs, cattle, and sheep. In the fall of the year we
usually purchased one or two carloads of feeder lambs and one carload
of ewes for breeding, usually from Wyoming or nearby areas. We had
our own rams and produced lambs for market in the spring. In the fall,
usually in September, the sheep were turned into the cornfield to graze
on corn leaves and the grass growing between rows. The sheep did not
touch the ears of corn as long as there was plenty of green grass and
corn leaves. Then later we would pull back the shucks on a few ears to
start them eating corn. Once they started on the corn there was no
stopping them. We would put up a temporary fence to hold the sheep
in a limited part of the field. By snow time they would have harvested
the corn in this area. The sheep ate the shucks off of the ears and then
the kernels of corn off of the cobs, leaving the cobs still attached to the
stalk.5
value on education, and their high school English teacher, Nettie Getty,
encouraged the two boys to go to lowa State College although the boys
continued to live at home and help their father farm during their freshman
and sophomore years. During their junior and senior years, Davis and his
brother became partners with their father, renting an eighty-acre farm and
6. See files marked "Biographical Sketch," "Qualifications," and "Notes" for background
statement on John H. Davis's farming and commodity experience, JDP, NAL
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With the Depression years approaching, when jobs would become scarce
to non-existent, life in small farm communities in lowa began to change.
Davis saw this exemplified in the no-win situation at the local grain elevator
in the town of Jordin: "corn sold one week at a price as low as eight cents
per bushel. If you had to hire help to shuck it, you had to provide two
horses and a wagon, feed the man, and pay him two or three cents a bushel
for his work. Obviously, the farmer lost...."7
The local school board authorized the use of a rubber hose, the end of
which was split into six or eight strips about twelve-inches long. As was
expected of any new teacher, Davis was soon tested by several rowdy
students and found that he had no problem meeting the challenge of
disobedient students in the classroom, on the court, or in the parking lot.
County, lowa."
Leaving the Douds-Leando school system, Davis traveled to Washington,
8. Ibid., 13-14.
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plans and loan papers, as well as field inspection trips to the states of
Virginia, West Virginia, North Carolina, Kentucky, and Tennessee. Davis
also reviewed loan dockets from all regions of the United States. The
Resettlement Administration programs provided several approaches to the
problems of farm families and poor submarginal land. In the spring of 1938,
with lowa State College, and an evening adult education program, Davis
found that his new position provided an interesting educational opportunity
From 1939 to 1941 Davis completed the course and residency require?
ments for his doctorate in Agricultural Economics and Business Administra?
The outbreak of World War II not only created a farm labor shortage
10. See John H. Davis, "Cooperative Marketing," University of Minnesota, 1939, JDP, NAL;
see also "Financial Analysis of Midland Cooperative Wholesale For Years 1935-1940," (1939) and
"Written Preliminary Examination for the Doctor of Philosophy Degree," (University of Minnesota,
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In June 1941 Davis again accepted employment with the United States
Department of Agriculture in its Cooperative Research and Service Division
was progressing in his career with the USDA, he was called upon to use
his talents yet again in the challenging, high profile leadership role of
executive secretary for the National Council of Farmer Cooperatives.
In late December 1943 Davis was contacted by Ezra Taft Benson, then
executive secretary of the National Council of Farmer Cooperatives. The
two men met outside the office of Secretary of Agriculture Claude Wickard.
Benson, who had served from 1939 through most of World War II,
explained that he was returning to Salt Lake City to become a member
ofthe Quorum of Twelve Apostles in the Mormon Church, that John Davis
had been recommended as a possible successor, and that Davis's name had
Davis, who had not yet made up his mind whether to accept the offer,
attended the meeting. To his surprise, Davis was introduced to the delegates
as the "new Executive Secretary." Realizing that there would be no interviews,
11. Glen T. Barton, "Technological Change, Food Needs, and Aggregate Resource Adjustment
(1940-58)," Journal ofFarm Economics 40 (December 1958): 1430; Wayne Rasmussen, "The Impact
of Technological Change on American Agriculture, 1862-1962," Journal of Economic History 22
(December 1962): 588; also Alan Fusonie, "The Development of the American Food Supply: A
Selective Historical Overview," Journal ofNAL Associates 5 (January/June 1980): 10.
12. Joseph G. Knapp, "The Boom in Agricultural Cooperatives: 1941-1945," chap. 22 in The
Advance of American Cooperative Enterprise: 1920-1945 (Danville, 111.: Interstate Printers and
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in the 20's and 30's [and he] hoped a similar situation can be avoided this
time."15
Agricultural Cooperation 4 (February 1944): 10; Davis, "Chapters From My Life," 22-23, JDP,
NAL.
16. John H. Davis, "The Present and Future Contributions ofthe Farmer Cooperatives in New
England Agriculture" (address given before the third New England War Conference, Boston, 17
November 1944), JDP, NAL.
17. Ibid.; see also John H. Davis, "Farmer Cooperative?A Safety Valve for Private Business,"
National Council of Farmer Cooperatives News Service Press Release, 16 October 1944.
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more than 6 million farm units averaging less than one hundred acres each.
For Davis, the challenge was to encourage vitality, direction, unity, and
growth within the farmer cooperatives at the local level. While on the road
one cooperative. He also mentioned that the family farm unit made up
over 95 percent of all farms in the country.19 During the next nine years,
Davis would often extol the principles of the family farm along with the
principles of the farmer cooperatives. To mention the importance of the
family farm unit was to pay tribute to one of the most time-honored
lifestyles in American society.
The major crisis facing Davis shortly after he assumed his duties in 1943
was the intensive and vicious campaign mounted against the tax-exempt
status of farmer cooperatives. Historically, the legal status of cooperative
and the Agricultural Marketing Act of 1929.20 Now, as the nation prepared
18. John H. Davis, "Farmers' Self-Help," Official Yearbook of the National Council of Farmer
Cooperatives 12 (1945): 6.
19. John H. Davis, "Cooperation Among Farm People During Reconversion" (speech given
before the Kentucky Farm and Home Convention, Lexington, Ky., 29 January 1946), JDP, NAL.
20. Knapp, Advance of American Cooperative Enterprise, 25-26, 88-95, 120-22; see also Joseph
Knapp, Farmers in Business, Studies in Cooperative Enterprise (Washington, D.C: American Institute
Well-Being (Washington, D.C: Farmer Cooperative Service, USDA, 1963); Ewell Paul Roy,
Cooperatives: Development, Principles and Management (Danville, 111.: Interstate Printers and
Publishers, 1981), 41-62; for biographical sketches by different authors of 101 major pioneers in
the cooperative movement in the United States, see Joseph Knapp, Great American Cooperators
(Washington, D.C: American Institute of Cooperation, 1967); for a brief overview treatment of
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for war and tax rates began to rise rapidly, proprietary organizations bore
other key people to defend the position of farmer cooperatives and to keep
existing laws from being abolished, changed, or modified. Davis entrusted
Karl D. Loos with this responsibility. Two other key people in defense of
1978), 200-202.
22. Knapp, Advance of American Cooperative Enterprise, 522.
23. The 1944 Blue Book of the National Council of Farmer Cooperatives, vol. 11 (Washington,
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1946, Davis wrote a timely column in the Sunday Star entitled "How Co-ops
View Tax Issue." Intended for the congressional readership and the general
From the beginning, the tax issue had clearly illustrated to Davis the
urgent need for more effective educational programs on the importance
of cooperatives in American agriculture. Speaking in Seattle, Davis told the
"Farm Co-op Tax," the studies initiated by the Treasury Department and
and taxes were widely distributed and reached such printed media as
Kiplinger's The Changing Times?0
26. Christian Science Monitor 25 November 1944; see John H. Davis, "The Cooperative Tax
Issue As Viewed From the Nation's Capital" (address given before the Consumer Cooperative
Association, Kansas City, Mo., 26 November 1945), JDP, NAL; see also W. L. Bradley, "Taxation
of Cooperatives," Harvard Business Review 25 (Autumn 1947): 576-86; Howard W. Selby, "Farmers'
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a good image for the farmer cooperatives reminding them that "the big
job to be done is at the crossroads and in the local communities" not just
in Washington, D.C.31 In the year that followed, the tax issue and the
opposition from such organizations as the National Tax Equality Association
In the decade following World War II, Davis not only articulated the
position of the farmer cooperatives on taxes but, more importantly, tried
to keep the membership informed on the rapidly changing face of American
actually felt the Republicans would get the farm vote. In the post-election
analysis, Davis commented to the press, "Mr. Truman and the Democratic
Party have demonstrated their willingness not only to support but also
33. Davis, "Cooperation Among Farm People During Reconversion," 3, 6, 7; also "Co-ops Can
Solve the Surplus Problem," Dairymens League News, 3 June 1947.
34. See Star Gazette (Elmira, N.Y.), 5 November 1948; Daily Times Herald (Dallas), 14 January
1949; Times-Union (Rochester, N.Y.), 5 November 1948.
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our people engaged in agriculture...."36 Davis's message sounded hardnosed, yet he realized only too well that the economic forces of integration
in American agriculture were on the verge of even further acceleration.37
need to "again view farm problems looking toward our national capital
rather than from it."38 As word of Davis's announcement spread, initial
36. John H. Davis, "The National Council at Work'* (address given before the Annual Meeting
of the National Council of Farmer Cooperatives, Edgewater Beach Hotel, Chicago, 111., 9 January
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and rural life in the United States: "You have always had a broad point
of view which recognized the general welfare of all people on the other.
You have also thought much deeper about the non-material values in life
than most people in the busy world of today."43
41. Howard A. Cowden, president, Consumers' Cooperative Association, Kansas City, Mo., to
John Davis, 26 May 1952; Charlie McNeil, general manager, Mississippi Federated Cooperatives,
Jackson, Miss., to John Davis, 4 June 1952, JDP, NAL.
42. O. E. Zacharias, Jr., general manager, Southern States Cooperative, Richmond, Va., to John
Davis, 26 May 1952; see also F. G. Ketner, secretary-treasurer and general manager-producer,
Livestock Cooperative Association, to John Davis, 28 May 1952, JDP, NAL.
43. M. L. Wilson, director of Extension Work, USDA, Washington, D.C, to John Davis, 25
June 1952, JDP, NAL. Today, the National Council of Farmer Cooperatives represents about 90
percent of the more than 6,200 farm cooperatives in the nation with a combined membership
of nearly 2 million farmers; for a brief analysis of cooperatives, see Randall E. Torgerson, "The
Environment In Which Cooperatives Find Themselves in the 1890's" and Donald R. Davidson,
Donald W. Street, and Roger A. Wissman, "Trends in the Financial Makeup of the 100 Largest
Cooperatives," both articles in American Cooperation (Washington, D.C: American Institute of
Cooperation, 1982), 10-13 and 40-46, respectively. For statistical data and charts on farmer
cooperatives see also USDA, 1984 Handbook of Agricultural Charts: Agricultural Handbook No. 637
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Dean David explained that the role of the advisory committee was to
assist in program development, identity research topics, and select faculty
to David, for he was most pleased with the idea of the Harvard School
of Business Administration moving into this important and too-longneglected field.46
The outbreak of World War II had been an initial catalyst for revitalizing
Program started with an endowment of $300,000 from the George W. Moffett Estate, donated
on 22 December 1951, JDP, NAL.
45. Alan Fusonie, "Oral History Interview with Dr. Ray Goldberg," professor of the Moffett
Program in Agriculture and Business, Harvard Business School, 17 March 1989, JDP, NAL.
46. John H. Davis, National Council of Farmer Cooperatives, to Donald K. David, dean, School
of Business Administration, Harvard University, 30 June 1952, JDP, NAL; see Rasmussen, "The
Impact of Technological Change," 578-91.
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Europe and Asia in the form of farm commodity surplus and farm income
decline at home. Under the authority of the 1942 Stabilization Act, the
could give agriculture was to liberate the private sector economic forces
of production and marketing from government controls. Only hours after
tion (Lincoln: Nebraska University Press, 79), 2-5, 19; see "Benson to Regroup His Department
Into 4 Units in Major Overhauling," Wall Street Journal 23 January 1953; "Benson to Speed Up
Plans For Revamping Department," Washington Post, 10 August 1953; for an overview see Edward
L. Schapsmeier and Frederick H. Schapsmeier, Ezra Taft Benson and the Politics of Agriculture: The
Eisenhower Years 1953-1961 (Danville, 111.: Interstate Printers and Publishers, 1975).
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price supports. During the next year, although Davis's relationship with
must continue to utilize fully both the existing price supports and other
types of farm aid. With falling incomes, surplus production, and declining
to the depression during the 1920s and 1930s? How was a surplus always
a bad thing when it assured the country enough to eat? Throughout his
brief stay in the department, Davis was always quick to defend his
supervisor, Secretary Benson, against political attacks, yet in agricultural
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who, in a letter to Davis dated 8 January 1954, commended him for his
in the days of the New Deal and who had reached their prime in the
1950s.50
30 June 1953; "The Curse of Abundance," Wall Street Journal, 1 July 1953; "Mr. Davis Makes a
Rash Suggestion," Hartford Courant, 6 July 1953; "USDA Official for Fewer Controls," Capital Times,
4 February 1954; years later, Davis would view the Commodity Credit Corporation as a stabilizing
force providing agriculture with a financial structure and cash flow that has fed this country and
much of the world with fewer persons working on the farms?see Fusonie, "John H. Davis," 27,
JDP, NAL.
49. Ezra Taft Benson, secretary of agriculture, to John H. Davis, 8 January 1954, JDP, NAL.
51. See Des Moines Register, 20 January 1954; Washington Post, 20 January 1954; New York
Times, 20 January 1954; Boston Herald, 20 January 1954; see also Davis, "Chapters From My Life,"
57-58, JDP, NAL.
52. John H. Davis to George Peer, executive secretary, Harvard University, Graduate School
of Business, 25 June 1954; John H. Davis, assistant secretary, to Earl L. Butz, head, Department
of Agricultural Economics, Purdue University, 2 July 1954, JDP, NAL.
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ness" was born in a speech Davis gave before the Boston Conference on
Distribution entitled "Business Responsibility and the Market for Farm
Products." During this presentation, Davis touched upon "income anemia"
and the pressures for farm programs, but he also spoke of "new direction,"
"closer teamwork," "interdependency," and "unified function" involving a
modern relationship of agriculture and business.57 Davis told his audience
that a new word was needed, and that word was the term agribusiness.
53. Gilbert C. Fite, American Farmers: The New Minority (Bloomington: Indiana University
10 June 1955); John H. Davis, "A Policy For Agriculture and Business" (excerpts of an address
given before the National Grain Trade Council, 13 September 1955), JDP, NAL.
55. See John H. Davis, "Thinking Ahead: The Farm Problem," Harvard Business Review 33
(May/June 1955): 19-24.
56. Fusonie, "John H. Davis," 40, JDP, NAL.
57. John H. Davis, "Business Responsibility and the Market for Farm Products" (address given
before the Boston Conference on Distribution, 17 October 1955), JDP, NAL.
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Davis said that by definition agribusiness meant "the sum of all farming
the new term and its inventor. Davis followed up his new word with an
article, "From Agriculture to Agribusiness," which appeared in the Harvard
Business Review and received immediate demands for reprints.59 In 1957
the technical book, A Concept of Agriculture, which was co-authored with
colleague, Ray Goldberg, was published and widely distributed throughout
the agricultural community. This work both enriched and reinforced the
agribusiness definition and included detailed charts and graphs that focused
on the future in terms of developing agribusiness research and policy. From
the first time these two men met, they had much in common, and their
ability to work together was something to watch.
1956): 107-15.
60. Fusonie, "Oral History Interview with Dr. Ray Goldberg," JDP, NAL.
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Earl Butz read the book while on a business trip from San Francisco to
When Davis left the Harvard Business School, his successes there were
speak out on the technological revolution, the food and fiber front,
agribusiness research, vertical integration, and marketing functions.62 In
January 1978 Davis was asked to speak to the United Egg Producers
Management Conference about the future of agribusiness?its opportunities
and problems. After hitting the high notes of achievements, entrepreneurship, greater skill, and better management, Davis said, "I believe that it is
H. Davis, director, Program in Agriculture and Business, Harvard University Graduate School of
Business Administration, 28 May 1957, JDP, NAL.
62. See John H. Davis, "A Forward Look at Technology and Institutions Affecting New England
Agriculture" (summary of address before the Second Annual Meeting, New England Agricultural
Economic Council, College of Agriculture, University of Connecticut, Storrs, Conn., 27 June 1957);
John H. Davis, "Research in an Agribusiness Era" (address before the Experiment Station Section
ofthe Land Grant College Association, 12 November 1957); John H. Davis, "Farm Problems and
Opportunities" (highlights of an address given before the ninety-first Annual Session ofthe National
Grange, 13 November 1957); John H. Davis, "Vertical Integration of Production and Marketing
Functions in Agriculture*' (paper prepared for a hearing before the Subcommittee on Agricultural
Policy ofthe Joint Economic Committee of Congress, 15 December 1957), JDP, NAL.
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About seven years later, on 9 July 1984, John Davis and his good friend
Oris V. Wells did a taped conversation about some of their agribusinessrelated activities. Wells, while serving as administrator for the Agricultural
Marketing Service from 1953 to 1961, had provided, along with his staff,
council and assistance in assembling some data used in the book, A Concept
of Agribusiness (1957). Wells also served with Davis on the Harvard School
of Business Advisory Committee and later as deputy director general for
64. John H. Davis, interview of Oris V. Wells, conducted in Davis's study, 9 July 1984, JDP,
NAL.
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ing, agrees and asks us to ponder for a moment how a greater photosynthetic efficiency on a light-sensitive plant such as corn would allow this
plant to be grown closer together so that ears of corn could grow successfully
within each other's shadow instead of using the traditional spacing. This
is only one example of scientific breakthroughs influencing international
agribusiness. Another broader example can be seen in Peoria, lllinois, where
the United States' envious position: "In the U.S....only 10 percent ofthe
66. Ray A. Goldberg, "A Global Agribusiness Market Revolution" Yearbook of Agriculture?
Marketing US. Agriculture (1988): 18, 23.
67. Fusonie, "Oral History Interview with Ray Goldberg," JDP, NAL.
68. Robert Fraley, "Sustaining the Food Supply" Bio/Technology 10 (January 1992): 40-43; Susan
McCarthy, "USDA's Plant Genome Research Program," Bulletin of the Medical Library Association
81 (July 1993): 278-81; G. Terry Sharrer, "The Health Factor: Biotechnology and World Economy"
(Plenary Lecture, Korean Society for Applied Microbiology, 30 April 1993); "Industry Consorts With
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