Illinois Grain Looks Ahead to '36 



V; 



Plan to Extend Cooperative Mar- 

 keting Service to More Growers 



Two hundred farmers' elevators or 

 about one-half of all those in Illi- 

 nois are members of Illinois Grain 

 Corporation. 



These elevators are fairly evenly dis- 

 tributed in tljjB grain producing sec- 

 tions of the state. Yet in many local- 

 ities there are many farmers who have 

 no local facilities for marketing their 

 grain co-operatively. Many of these 

 grain growers would like to sell co- 

 operatively through Illinois Grain and 

 Farmers National Grain Corporations. 

 They want something done about it. 

 What can be done? This was one of 

 problems given consideration at the 

 annual meeting of Illinois Grain Corpo- 

 ration in Peoria February 12. More 

 than 300 people attended the meeting. 

 In some localities there are no farm- 

 ers' elevators and in others there are 

 farmers' elevators which have not yet 

 joined the co-operative movement. 

 "We have solved the first situation in 

 some localities," President Lyle John- 

 stone said in his annual address, "by 

 setting up new co-operatives. In some 

 instances privately-owned co-opera- 

 tives have been converted into co-op- 

 eratives. All of these new co-opera- 

 tives are functioning well and they are 

 finding it to their advantage to sell a 

 large percentage of their grain through 

 their state and national affiliates. 



WUl Meet Problem 



"The second situation is more diffi- 

 cult to handle. Illinois Grain Corpo- 

 ration is founded upon the farmers' 

 elevator as the necessary unit in a 

 system of co-operative marketing. But 

 if a large number of these elevators do 

 not give the farmers of their respective 

 communities an opportunity to market 

 their grain co-operatively then another 

 outlet should be provided for these 

 growers. A farmers' elevator which 

 forgets its obligation to its community 

 is in the same class as a private eleva- 

 tor which has only the profit motive. 

 Some communities are requesting that 

 outlets be made available to them. We 

 propose to meet this problem during 

 the coming year." 



Commenting upon the Commodity 

 Exchange Bill, which the meeting later 

 endorsed in a vigorous resolution, 

 Johnstone said "the bill provides for 

 the correction of many practices on the 

 Exchanges which are not in the inter- 

 est of producers nor the public. It 



also provides that co-operatives be 

 given a hearing when charged with in- 

 fraction of Ebcchange rules to prove 

 their innocence or guilt before .being 

 expelled. Under present rules a co- 

 operative is expelled and tried after- 

 wards. Also at present the Board of 

 Trade may dictate the kind of contract 

 which a co-operative may make with 

 its regional members in payment of 

 services rendered. The new bill pro- 

 vides that no rules should interfere 

 with normal and customary relation- 

 ships between a co-operative and its 

 regional members. We are also de- 

 manding that deliveries on future con- 



tracts of grain from federal licensed 

 warehouses be eligible. 



"A recent experience the Farmers 

 National Grain Corporation had with 

 the Cargill Grain Company in regard 

 to delivery of grain on futures contracts 

 emphasizes the need in this amend- 

 ment for the Futures Act. 



"Every thinking farmer familiar with 

 the farmer's elevator movement is now 

 aware from experiences during the past 

 few years that the Farmers Grain Deal- 

 ers' Association of Illinois and the Na- 

 tional Farmers Grain Dealers' Associa- 

 tion are assisting the private trade, par- 

 ticularly the Chicago Board of Trade, 

 in every possible way to hamper or- 

 ganized farmers in building an effec- 

 tive co-operative terminal marketing 

 agency. 



"These Grain Dealers' Associations, 



AT THE ILLINOIS GRAIN CORPORATION MEETING PEORIA 

 Standing, left: C. E. HuH; (right) Harrison Fahrnkopf Seated, left: G. C. Johnstone, 

 Chas. SchmiH. 



"We Expect a Bigger Year in '3tf." 



(right) 



1(S 



I. A. A. RECORD 



