4 BULLETIjST 1083, U. S. DEPARTMEiSTT OF AGRICULTURE, 



Area ''A" represents any area producing a surplus with a ter- 

 minal market as the only outlet. If based upon the terminal quota- 

 tions, deducting freight and handling charges will determine the farm 

 price in this territory. The net farm price is 45 cents as indicated on 

 the chart. 



1,000,000 Bushels, All 

 to be marketed at 

 Terminal Market. 



Tei-minal Price $.50 

 Fr.and Handling .05 

 Net Farm Price .45 



SURPLUS PRODUCING AREA "A" 



1,000,000 Bushels.To be marketed 

 at Terminal and in Area'D' 



500,000 to Terminal at J. 50 

 Ft- and Handling OB 



Net Farm Price 42 



•Surplus Producing Area 

 ■Consuming Area 



SURPLUS PRODUCING AREA "C 



Fig. 1 .— Repr&sents five marketing conditions, one of which in some modified form will be found at each 

 market center. Each part of the figure (area) should be considered as a separate problem; the arrows 

 indicate its relation to the others. 



Area ''B" represents any area producing a surplus but without 

 home demand and has the consuming area "D" and the terminal 

 market for outlets. The crop of this section, if sold as indicated by 

 the chart, would average 42^ cents per bushel net; if sold at the 

 terminal market, the price would be 42 cents net. 



I 



