16 BULLETIN 977, U. S. DEPARTMENT OF AGRI-CULTURE. 



who should keep closely in touch with the pressing. Terms of sale 

 by which the shipper does the baling should be very specific con- 

 cerning the baling of hay in any way off-grade, so that the pro- 

 ducer will not make trouble regarding the rejection by the presser 

 of any hay that would cause the consignment to be graded down 

 when it arrives in a terminal market. 



Terms regarding payment. — Terms regarding method of payment 

 for hay should be clearly understood when the transaction is made. 

 Considerable hay is sold by verbal agreement, and if all of the 

 terms are not made clear, trouble may arise later, especially if there 

 is a change in the market. If the price goes up very much some 

 producers will try to break the agreement. The same holds true 

 with some shippers when the market declines. 



In some instances it is good Business for the shipper to make a 

 small initial payment and take a receipt, so that he will have some- 

 thing to show in case trouble arises. It is not customary to pay in 

 full for hay before it is delivered unless it is measured in the barn 

 or stack at the time the sale is. made. Speculators are often able 

 to contract for the delivery of considerable hay without paying out 

 any money, but a payment of a dollar per ton should be just as 

 binding as if three-fourths of the agreed price were paid when the 

 sale is made. It is fair to both parties if the balance is not paid 

 until the hay is delivered. 



Terms regarding time of delivery. — Terms regarding time of deli v-* 

 ery are usually very important. A sale wherein the producer agrees 

 to deliver the hay whenever notified is likely to be unsatisfactory to 

 both parties. It may be rightly assumed that the shipper will ask 

 for delivery of hay when he can sell it advantageously unless he 

 has plenty of storage space, in which case the producer would be 

 allowed to deliver the hay as soon as he pleased. If the price of 

 hay drops soon after the producer sells, it may be several months 

 before he will be asked to deliver it. Shippers sometimes want 

 hay delivered on very short notice. This may happen at a time 

 when the roads are almost or entirely impassable or when there is a 

 rush of farm work that must be done by the farmer. Again, the 

 shipper may delay the delivery until the new crop is ready to cut 

 and the farmer needs his barn room for storing the new crop. Other 

 instances could be cited to show the necessity for a clear understand- 

 ing regarding the importance to both parties as to the time of de- 

 livery. 



Terms regarding place of delivery. — Terms regarding place of de- 

 livery are sometimes important. Farmers naturally do not wish 

 to haul any farther than necessary, although instances can be cited 

 where it might be to the shipper's advantage to insist on the longer 

 haul, as to a siding where wagon scales are accessible. If the hay 



