operating Costs of Retail Grain Stores 

 in New Hampshire 



By E. H. RixEAR 



The economical distribution of grain is of great importance to both 

 farmers and dealers in New Hampshire. The farmers spend seven or 

 eight million dollars a year for feed, according to agricultural census 

 reports, and individual accounts show the grain bill constitutes from 

 30 to 50 per cent of total farm expenditures. The dealers have large 

 amounts of capital invested in warehouses, equipment, stock inven- 

 tories and accounts receivable and are interestecl in securing a fair 

 return for their capital and labor. 



Similar studies* elsewhere have shown a wide range in the operat- 

 ing costs of grain stores, and it seemed desirable to investigate the 

 situation in this state. The main objects of the study were: first, to 

 analyze the costs of New Hampshire grain stores; second, to set up 

 operating ratios of efficiency; and third, to point out the important 

 factors which cause differences. 



PROCEDURE FOLLOWED 



In starting the investigation, an attempt was made to call on all 

 the stores in the state which were selling feed and grain, and the deal- 

 ers were interviewed personally. They approved of the study in 

 practically all instances and discussed theii problems freely, especially 

 when assured that all information would be confidential as to source. 

 The whole state was canvassed in this manner and information col- 

 lected for the year 1926 regarding total tonnage, sales, operating costs, 

 margins, services, etc., from 197 stores. 



After tabulating and analyzing these data it was evident that more 

 detailed figures and a uniform system of accounting would be nec- 

 essary before definite conclusions could be drawn. In view of this, 

 and the importance of the information already gathered, it seemed 

 best to call a meeting of the grain dealers. Accordingly, a meeting 

 was held at Durham with good attendance from all sections of the 

 state. 



The facts resulting from the state-wide sur^•ey were presented at the 

 meeting. As the result of discussion, the group requested that a com- 

 mittee be appointed to work with the Station to draw up a cost ac- 

 counting outline which would be adaptable to a retail grain business. 

 Later, these outlines were mailed to all the dealers, who were re- 

 quested to use them in summarizing their business for 1928. The out- 



♦Cornell Station Bulletin 471. 

 Ohio Experiment Station Bulletin 416. 



