THE I. A. A. RECORD 



Page Seventeen 



Lynch Gives Reasons 



For Low Butter Price 



Dairyman's Meeting at Otta-wa Ap- 

 plauds Storekeepers for Co-Op- 

 eration in Selling LaSalle 

 County Butter 



A RESOLUTION urging the LaSalle 

 County Farm Bureau to continue 

 its program of assisting local dairymen 

 in merchandising their products to bet- 

 ter advantage and in encouraging the 

 home consumption of LaSalle county 

 butter, was passed at a meeting of 40 

 dairymen held in Ottawa on June 2 5. 



The resolution expressed the appre- 

 ciation of the dairymen present for the 

 co-operation of the many store owners 

 of the county in increasing the sale of 

 LaSalle county butter. A. D. Lynch, 

 director of dairy marketing for the 

 Illinois Agricultural Association, who 

 addressed the meeting, asserted that 

 butter consumption for the past five 

 years has decreased 2 per cent, whereas 

 the consumption of butter substitutes 

 has increased nearly 66 per cent. Mr. 

 Lynch gave this fact as one of the 

 causes for the low cost of butter. 



The speaker advised the dairymen to 

 keep careful records on each cow in 

 the herd and to sell all cows producing 

 less than 2 50 pounds of butterfat in a 

 year. He stated that more than 50 per 

 cent of the milk produced is sold as a 

 fluid product, 33 per cent is used for 

 butter, 5 per cent goes into cheese, 3 

 per cent is condensed, 3 per cent is 

 made into ice cream, and the remaining 

 3 per cent is wasted. Mr. Lynch 

 pointed out that there were nearly 50 

 million pounds of butter in storage on 

 the first of June, almost twice as much 

 as the average amount in storage on 

 that date for the past five years. 



Farm Board News 



A STATEMENT advocating that 

 wheat farmers do not market the 

 1930 crop direct from the combine or 

 thresher, but that they hold it on fhe 

 farm wherever possible, was issu:d on 

 July 1 by the Federal Farm Board. 



"The rushing of such a large per- 

 centage of the crop to market frequent- 

 ly results in congestion of storage at 

 the terminals to the extent that owners 

 of private elevator space are enabled to 

 fill their bins at prices substantially be- 

 low the current market value at the 

 time the wheat is shipped," said the 

 statement. 



"This process also has the further 

 disadvantage of putting much of the 

 available supply of grain in the show 

 windows where the buyers, realizing 



- - ' ■•■.....■ ■ •■ - ■; {Continued from page 16) ■■•.■( • ■ I ..'. ' •■ 



The figures in Column II are the actual values received by Pool members 

 for street wheat delivered to Pool elevators, and are made up in identically the 

 same manner as explained heretofore. 



The Western Grain Dealers' average discounts under straight No. 1 Northern 

 for tough, rejected and smutty No. 1 Northern wheat were 8 3 5c, 15'/2C and 

 17 3, 5c per bushel respectively. The corresponding Pool discounts were: 3/4c 

 on tough and S'/zC on rejected. The Pool average discounts for "tough," "re- 

 jected" and "smutty" under straight grade, for grades No. 1 Northern to feed 

 were 4.5c, 6.8c and 8c respectively. 



The North- West Grain Dealers' discount for No. 1 Amber Durum under 

 No. 1 Northern was 1 1 '/4C, while the corresponding Pool discount was 7c. The 

 North-West Grain Dealers' average discount for tough No. 1, 2 and 3 Northern 

 under straight grade was 7c, while the corresponding Pool discount was 5 l/6c. 

 The North-West Grain Dealers' average discount for tough on grades lower 

 than No. 3 Northern was 6 l/5c, while the corresponding Pool discount was 

 4 1/lOc. 



The high margins in the Pool's favor shown here are typical of the margins 

 between Pool and Grain Trade street prices for many other grades. On tough 

 wheat alone, non-Pool farmers lost a sum running into millions of dollars, as 

 approximately 180,000,000 bushels of the 1927-28 wheat crop was classified 

 "No Grade," due to excessive moisture; and as shown above the Pool's discount 

 for all tough wheat was from two to four cents per bushel less than the Grain 

 Trade's discount for tough street wheat. 



TABLE II— CROP YEARS 1923-24 TO 1927-28. 



1923-24 1924-25 1925-26 1926-27 1927-28 



No. 1 Nor. No. 1 Nor. No. 3 Nor. No. 1 Nor. No. 3 .Vor. 



Alberta Pool price $0.79 j/j $1.46 $1,25 1/8 $1.23 l/S $1,12 1/8 $1,28 3/10 $1,113/10 



Grain Trade price .74 1/2 1.43 3/4 1.19 5/4 1.17 3/4 1.07 4/5 1.18 3/4 1.05 1/2 



The figures in Table II, showing comparative Pool and Grain Trade street 

 wheat prices over a period of five years, were arrived at in the manner already 

 described. They account for the remarkable increase in membership of the 

 Canadian Wheat Pools during the past year, and indicate the ever-increasing 

 cash toll paid to the private grain trade by the non-Pool farmers of Western 

 Canada. 



Pool and Non-Pool Consigned Wheat Prices 



The only way to find out exactly how much non-Pool farmers received for 

 consigned, or carload wheat would be for the grain dealers to publish the actual 

 prices they paid for it. To date the Trade has not seen fit to publish this in- 

 formation, although farmers would like these figures to compare them with the 

 prices paid by the Pool. The Trade has this information, of course, and while 

 we cannot be sure of their reasons for withholding it, we can form our own 

 conclusions. We respectfully suggest to the Grain Trade that such informa- 

 tion would be more enlightening than anonymous misleading advertisements. 



Until the Trade publishes the prices paid for non-Pool consigned wheat, we 

 have to be satisfied with a close estimate. We do not know when all con- 

 signed wheat is spld, as some of it is sold at the country elevator, some on 

 track and on its way to the terminal, and seme after it reaches the terminal. 

 It is generally agreed, however, that most farmers have sold their consigned 

 grain by the time it reaches the terminal. Consequently, the fairest estimate 

 of the average price paid for non-Pool consigned wheat is obtained by weight- 

 ing the Winnipeg weekly average cash prices by weekly receipts at the Head of 

 the Lakes. By use of this method, the following estimated Grain Trade average 

 prices were obtained. The Pool prices, basis Fort William, are given as a com- 

 parison. 1923-24 1924-25 

 No. 1 Nor. 



Non-Pool consigned • 



wheat av. price $1.00 $1,65 4/5 $1.43 $1,43 1/2 $1,43 3/5 $1,22 1'$ 



Gross Pool price 1.02 1.68 3/4 1.47 3 4 1.44 3 '4 1.45 1.28 



Grain producers who want more information about the success of real co- 

 operative grain marketing in Canada may secure it by addressing the Canadian 

 Wheat Pool. Winnipeg. Canada. 



1925-26 1926-27 1927-28 



No. 1 Nor. No. 1 Nor. No. 3 Nor. 



that somebody is paying money to 

 carry this wheat every day it is there, 

 have the advantage of knowing they 

 can get it quickly and too frequently 

 buy at their own price. Therefore, 

 we feel that the present tendency on 

 the part of farmers to keep more of the 

 wheat at home is a movement in the 

 right direction." 



DURING the month of May 12,825 

 herds of cattle containing 130,167 

 animals were tested in Illinois. Only 

 3,038 reacted to the tuberculin test. 



Forty-seven Illinois counties are now 

 recognized as modified, accredited areas. 

 More than a million and a half cattle 

 are under state and federal supervision 

 in Illinois. 



