October, 1932 



THE I. A. A. RECORD 



Pa 76 Seven 



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Soybean Growers Annual Meeting 



More Than 400 Attend Rousing Session at Decatur, Hear Full Explanation 



of Marketing Operations 



AROUSING meeting of Illinois 

 soybean growers at Decatur, 

 Sept. 21 voted unanimously to stick 

 to their organization, the Soybean 

 Marketing Association, and carry on 

 in their efforts to establish better 

 markets for the grower. 



The snirit and confidence in the 

 co-operative principle expressed by 

 more than 400 growers who attended 

 the annual meeting were remarkable 

 in view of discouraging markets dur- 

 ing the past year: Although the As- 

 sociation could not sell all of its mil- 

 lion and a- half bushels marketed 

 during the year at top prices, it suc- 

 ceeded in getting the member grow- 

 ers more money for their beans than 

 the bulk of non -members got who 

 marketed their crop when prices 

 were at low ebb. 



Spontaneous applause followed the 

 detailed explanation of the market- 

 ing operations and the financial con- 

 dition of the Association by Earl C. 

 Smith, chairman of the management 

 board. Sentiment expressed from the 

 floor revealed confidence of the mem- 

 bers that their representatives had 

 done their best to find outlets for 

 the crop at favorable prices. 



We're Going To Stick 





> - Speaking for the larger growers of 

 soybeans, Frank Garwod of Chris- 

 tian county said: "My brother and I 

 grow 700 acres of soybeans. We are 

 satisfied that the Association did the 

 best it could in getting us a fair 

 price. We are going to stick to the 

 organization." 



"Lack of understanding is at the 

 bottom of criticism of our market- 

 ing association," said L. A. Moore, 

 another large grower of Christian 



':"-' county. "I am following men like 

 Frank Garwood. I believe the big 

 growers are for co-operative mar- 

 keting." 



In his report to the members 

 Manager W. H. Coultas stated that a 

 . statistical survey of market receipts 

 showed that 85 per cent of 1931 

 domestic soybeans had moved into 

 the terminal markets by November 

 20, and 65 per cent had left the farms 

 by November 1. At that time, he said, 

 country elevators were paying from 

 19 to 22 cents for soybeans. Most un- 

 organized growers sold at that price. 

 A few who held their beans and sold 

 later in the fall and winter secured 

 a substantially higher price largely 

 ; because of the European outlet for 



:., bpans resulting from the war be- 

 tMreen China and Japan which closed 



^ . Manchurian ports. 



Last year the Association handled 



1,538,723 bushels of members' soy- 

 beans. Ninety-four per cent of the 

 beans received by the Association 

 graded No. 2 or better. Members re- 

 ceived an average of 25% cents per 

 bushel net after all expenses were 

 paid. The crop marketed through the 

 Association brought an average price 

 of 32 cents a bushel. Approximately 

 3% cents of this went to country 

 elevators, two cents to liquidate long- 

 term loans, and three-fourths of a 

 cent for operating expenses. 



Exported First Cargo 



"Your Association exported the 

 first shipment of soybeans to Eur- 

 ope," said Mr. Smith. "The first cargo 

 of 50,000 bushels consigned to Ger- 

 many was sold to net us 38 cents a 

 bushel. This outlet was unforseen at 

 the beginning of the marketing sea- 

 son. It developed after most of our 

 beans had moved into storage at 

 Peoria." 



Before this sale beans had been 

 bringing around 20 cents a bushel. 

 Immediately afterward the price at 

 country points jumped to 38 

 cents. Much lower prices were secured 

 for beans sold earlier to domestic 

 processors. But as soon as the foreign 

 outlet opened up the entire complex- 

 ion of the market changed. 



In reviewing the operations of the 

 Association since its organization 

 Mr. Smith gave from memory details 

 about sales and prices. He discussed 

 frankly how the market on soybeans 

 steadily declined two years ago 

 after the Association announced its 

 original advance of $1 per bushel to 

 the grower. While the organization in 

 1930 expected around 700,000 bushels 

 of soybeans, more than 1,125,000 

 bushels were received. There is evi- 

 dence that non-members delivered 

 their beans in the name of members 

 to the Association because they could 

 get a better price. 



To protect itself last year, the As- 

 sociation entered into a profit-shar- 

 ing agreement with processors under 

 which the price received depended 

 upon the market price of oil and 

 meal. In the fall of 1931 the price of 

 soybean products continued their 

 downward course, oil bringing as low 

 as 2V4 cents a pound and meal $16 

 to $18 a ton. 



"I am pleased to announce here 

 that we have contracted to sell all 

 your beans of the 1932 crop at a 

 premium above the market based on 

 monthly average prices. The grower 

 was given the privilege of picking his 

 own market. Some chose to sell in 

 November or wait until spring while 



others decided to take the average 

 pool price for the period. We propose 

 to close the pool next year in April. 

 Some members expect the Associa- 

 tion to sell the entire crop at the 

 top of the market. But no man or 

 group of men are smart enough to 

 do this," said Mr. Smith. 



Answers The Critics 



S. S. Baughman, Christian county, 

 who raised 170 acres of soybeans last 

 year, charged that unfriendly coun- 

 try elevators were a source of much 

 opposition to the co-operative. "When 

 all other grains have been selling at 

 the lowest prices that anyone can 

 remember," he said, "why is it that 

 our enemies continually harp on soy- 

 beans. Let's give our Association 

 credit for finding a foreign outlet 

 for our crop at a good price. Sure 

 the non-members got the benefit 

 without paying a cent for it. And 

 now some of those who held their 

 beans and got the high price are go- 

 ing around the country damning the 

 Association. 



"Some of our members forget that 

 two years ago the Association paid 

 them a much higher price for beans 

 than they could get elsewhere. I 

 know because I held my beans until 

 all the terminal storage space was 

 filled. When I harvested the price 

 was around $1.25 a bushel, but I 

 finally took 70 cents a bushel when 

 the members of the Association got 

 $1 or more. You don't hear from the 

 fellows who got less than the Assoc- 

 iation paid. All you hear about is 

 some fellow who cashed in on the 

 fight made by the Association for a 

 higher price. 



Milnor Speaks 



George S. Milnor, manager of the 

 Farmers National Grain Corp., went 

 to the platform immediately upon 

 his arrival from Chicago early in the 

 afternoon. In introducing him Mr. 

 Smith said: "There has been no valid 

 criticism of the Farmers National 

 under his management. If farmers 

 will stick to the leadership of men of 

 his type and not let propagandists 

 lead them down blind alleys they will 

 win." 



Mr. Milnor spent some time ans- 

 wering critics of the Farm Board 

 and the National Grain Corporation. 

 "Eighty-five per cent of this abuse," 

 he said, "comes from the grain trade; 

 the other 15 per cent from other 

 business groups who have some spe- 

 cial privilege they wish to protect. I 



(Continued on page 18) 



