63 



The purchaser, which was a large grain company, came back and 

 demanded the test be run on an individual car basis, which was 

 late on a Friday afternoon, which was impossible at that point. So 

 our cooperative ended up getting demurrage charges at that point. 



They had to try to resell it on the next Monday. The market had 

 already dropped 15 cents per bushel, and the tests were also run. 

 The vomitoxin tests were run by the same company as was done 

 before on a single car. 



The commission firm offered 40 cents less than what they had 

 on the Friday contingent, now worrying about the vomitoxin test. 

 When the results did come back, the tests were 3.2 parts per mil- 

 lion, which was actually over the standard of two parts. They of- 

 fered then 70 cents less. 



Our cooperative rejected that offer and had the train reprobed. 

 The train still graded No. 1, came back on single cars at 1.3 parts 

 per million. At that point, the No. 1 Spring Wheat was $4.73 to 

 $4.93 per bushel. The first bid was $4.35 a bushel. 



We refused the bid and continued to bargain back and forth and 

 finally ended up with $4.67, which we incurred over a $3,000 de- 

 murrage charge and received 29 cents a bushel less than what we 

 had originally felt we should get, which amounted to $25,520, close 

 to $29,000 on that actual unit train. 



Two things I would like to point out with this is the fact that the 

 No. 1 wheat market is very unstable, offering huge discounts on 

 very unreliable tests, and also the fact, if you trace the grains as 

 they go through the process, you will find — I am sure you will find 

 that the wheat ends up at the same place. 



And so that is one point I would like to make, that we are very 

 concerned in how the marketing of our products is being done, and 

 also the point that was made earlier that scab does happen every 

 year and there is vomitoxin grains every year. As for this, it was 

 1992 grains. 



One other point I would like to make — again this is not in my 

 written statement; I will make it short and brief because I know 

 everybody is on time restraints — we are looking at deficiency pay- 

 ments on wheat being figured on the actual selling price of grains. 



In our particular area — and I think you will find it in the whole 

 Spring WTtieat areas — that the grains are going to be cleaned and 

 tried to process — or sold in a manner that would warrant the best 

 dollars per bushel. 



In other words, in particular places what we are doing ourselves, 

 we are cleaning our wheat and we are able to market our wheat 

 $1 more a bushel. But we are actually cleaning 20 to 25 percent 

 of our product out. So our net is probably in the neighborhood of 

 30 cents a bushel over what we would have being as how we have 

 to sell our clean out as screenings. 



How is that deficiency payment going to fit? We are selling our — 

 we actually are selling our products for less. The total volume is 

 netting us less dollars than what in actuality the deficiency pay- 

 ment is going to show us. We are selling 80 percent of our crop for 

 $1 less — for a $1 more than we would have if we would have sold 

 it otherwise. So the 20 percent is sold as screenings or at $30 a ton, 

 which is only 90 cents a bushel. 



