MARKETING, HAY THROUGH TERMINAL MARKETS. 13 



fore has developed that the marketing of hay direct from country 

 shipper to consumer is confined largely to shippers tributary to large 

 consuming sections or markets, or to shippers or associations with a 

 storage or a large volume of business well distributed throughout the 

 year. 



The terms of sale depend somewhat on the method employed in 

 making the sale. If the sale is by personal call or telephone, or even 

 by letter, the terms respecting grades are usually more descriptive. 

 Grade designations may not be mentioned, the sales being made on 

 description, using local terms, such as " good feeding hay," " half 

 and half," " good dairy alfalfa," " choice barn hay," etc., both 

 buyer and seller being familiar with the quality of the hay to which 

 the various terms are applied in their section or market. 



Sales by letter may be made on the same trade terms; but as sales 

 by letter are usually made when the buyer and seller are located at 

 more distant points, there may not be the same mutual understanding 

 of local trade terms. It is therefore generally necessary to use more 

 widely known terms, such as No. 1 timothy or No. 1 alfalfa. A de- 

 scription of the hay, however, is usually added in order that there 

 may be the best understanding possible. 



In sale transactions by telegraph, brevity and the use of code words 

 make it necessary to use grade designations only and both buyer and 

 seller must have a definite idea as to the character of the hay repre- 

 sented by the various grade designations. The lack of an understand- 

 ing of such grade terms on the part of some consumers is probably 

 partly responsible for their reluctance to buy hay in this manner. The 

 telegraph is most satisfactory in transactions between those who 

 have a thorough understanding of trade and grade terms and the 

 market needs of the various sections. It can be used advantageously 

 between dealers in markets or territories using the same grade stand- 

 ards and trade rules. 



The advantages to the country shipper of selling his hay direct to 

 the consumer may be summarized as follows : Better prices because of 

 the elimination of intermediate handling costs, including commis- 

 sions, inspection charges, etc. ; and less difficulty with grades because 

 of the absence of technical grading and because of a better under- 

 standing brought about by the use of terms descriptive of the char- 

 acter of the hay. 



The disadvantages are : The difficulty and expense of obtaining and 

 maintaining a good list of customers ; the difficulty of keeping supply 

 and demand equalized ; and the losses caused by refusals and rejections 

 for various reasons on the part of the buyers. 



Rejections are no doubt the cause of the greatest loss which the 

 shipper is likely to encounter. Some buyers reject hay unfairly when 

 conditions make it disadvantageous for them to accept it. Large 



