6 BULLETIN B14:, U. S. DEPARTMENT OF AGRICULTURE. 



ADVANTAGE OF -BUYING AND SELLING ON A DRY-MATTER BASIS. 



Biiying and selling grain, flour, and cottonseed on the basis of 

 their comparative intrinsic values depending on the amount of dry 

 matter contained in a unit of weight is not only fair to the consumer 

 of these agricultm-al products but also gives the producer an incen- 

 tive for putting them on the market in a dry condition. 



Much of the grain and cottonseed is sold from the farm merely 

 as grain or cottonseed, and no premium is paid for these products 

 when delivered with a lower moisture content than the average for 

 the crop. The result of buying such products from the, farmer on 

 this basis is that it puts a premium on poor farming, in that it pays the 

 farmer to sell as much water as possible at grain or cottonseed prices. 



When a farmer in selling to the country elevator or other buyer 

 delivers grain or cottonseed which contains less moisture than the 

 average for the crop, he is entitled to a price which is higher than 

 the average price for the crop, because grain or cottonseed which 

 tests low in moisture has a higher intrinsic value than grain or 

 cottonseed which tests high in moisture. By paying the farmer 

 what his products are worth on the dry-matter basis when he de- 

 livers grain or cottonseed which contains a moisture content lower 

 than the average for the crop, a premium is put on good farming and 

 the result should be, with grain at least, that the farmer will have 

 an incentive to grow an early-maturing grain which wiU dry out 

 sufficiently on the farm to be in a marketable condition soon after 

 harvesting. He will also have an incentive to store his grain and 

 cottonseed on the farm in well-ventilated cribs and warehouses, 

 which will facilitate natural drying and at the same time protect 

 these products from rain and snow and thereby prevent much of 

 the deterioration from molds, fermentation, etc., that now occurs 

 in many cases. 



OTHER FACTORS TO BE CONSIDERED. 



The relation of the moisture and dry-matter contents to the in- 

 trinsic worth of grains makes Tables II to XII, inclusive, valuable in 

 applying the factor of moisture content in the fixing of grades and 

 also as a basis for fixing market values. In these tables, only the 

 factors of moisture and dry matter were considered in calculating 

 the relative values of grain on a dry-matter basis ; but, while these 

 factors are fundamental and the basis is an excellent one from which 

 to figure intrinsic values, other factors and circumstances affecting 

 these values must still be considered in computing market values, 

 among which, for grain at least, can be mentioned: (1) The relative 

 quantity of damp and therefore undesirable grain in the grain- 

 producing States that have a surplus, or in territory contiguous to 

 any given grain market, and the relative quantity of the market 

 receipts that is upon inspection placed in each grade; (2) the weU- 



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