graded No. 1. One farm experiencing heavy damage to bags by rats stored 

 feed for longer periods than most farms. Another rather large farm had 

 practically no loss and only 2 percent of its returned bags graded as No. 2. 

 The data on gradings, together with estimated cash losses from a theoretical 

 return of 100 percent No. 1 bags, are presented in Table 6. These losses 

 do not include any costs incurred for rodent control. With metal-lined bins, 

 rodent control costs are largely avoidable. Where damage to bags is heavy 

 the savings from conversion to bulk-feed service would be substantial. If 

 purchases averaged several tons weekly, such savings might go a long way 

 toward paying for the costs of bulk bins. Under more favorable bag return 

 conditions, such savings would be nominal. 



Table 6. Estimated Percentages of Returned Grain Bags Graded as No. 1, No. 2, 

 and Loss (or No. 3) on 9 Poultry Farms 



No. Farms % No. 1 % No. 2 % Loss Annual cash loss on 



grain bags when pur- 

 chasing a ton of 

 grain per week- 



Total Wtd. Ave.i 9 92 5 3 $ 9.26 



^ Weighted by number of birds on each farm. 



^ If 100 percent of bags were returned as No. I's, and the credit was $.13 per bag, the producer 

 would receive $135.20 per year on the basis of returning the bags from one ton of feed purchased per 

 week (1,040 bags per year). The value of No. 2's is calculated at 3.03 per bag, and no value is given 

 to those reported under "loss". 



No data were obtained relative to loss of grain from pollution and 

 spillage. One company indicated some bags returned had one-third pounds 

 of grain still remaining in them. In a sample lot of 1,000 bags returned for 

 credit, they recovered $15 worth of discarded grain. At $4.74 per cwt. for 

 feed this would involve 316 pounds of grain, or the equivalent of 6.3 pounds 

 per ton. The same company estimates the residue from a bulk truck at 

 3-4 pounds, or with an 8-ton load, 0.5 pounds per ton. On a ton basis, and 

 using the preceding figures, a savings of 27.5 cents would be realized with 

 the bulk system of grain handling. Again, this figure would vary depending 

 on the care used in emptying bags of grain. 



Alternatives, Benefits, Costs. 



Blanket recommendations on the question of investment in bulk bins 

 and facilities are to be avoided. Sound decisions as to investment in equip- 

 ment and improvements on farms must take into consideration the par- 

 ticular circumstances on each farm. Many of the factors are personal and 

 the answer depends on the farmer and his family. An installation which 

 is financially sound for one farmer might be a mistake on a neighboring 

 farm. The operator needs to make investments in the projects that will give 

 the most favorable returns, and to select projects which can be carried out 

 with present resources without imposing a debt burden out of line with 

 ability to pay. 



9 



