MARKETING BROOM CORN. 15 



SMALL MANUFACTURERS. 



The bulk of the broom corn is used by small factories that are too 

 small to keep a regular buyer in the field and yet are large enough 

 to justify early purchasing. The small manufacturers often go to 

 the producing sections and either purchase their supplies themselves 

 or get resident or traveling buyers to purchase them. In either case 

 the personal inspection of the broom corn at points of origin is the 

 thing desired. The small manufacturer is usually a good bidder. 

 He enters the field to buy his year's supply, which may amount to 

 only two or three cars. Formerly he purchased from a dealer, pay- 

 ing the extra price for the privilege of being supplied when his 

 needs demanded. With him it is a case of purchasing quickly with 

 the least possible overhead expense and returning with his purchase 

 to the factory. These buyers usually prefer a street market. 



TIME OF MOVEMENT. 



Broom corn is first available in Texas. The movement begins in 

 the Rio Grande Valley usually between July 1 and 10. The season 

 of heaviest movement from country points extends from this time 

 until the Colorado broom corn moves in October. 



Under present methods of marketing there seems to be a decided 

 tendency among growers to turn this commodity into money as soon 

 as baled. There are several reasons for this. Farmers, as a rule, 

 borrow money to raise or harvest the crop. This usually is short- 

 time paper, drawing 10 per cent interest. The banker is therefore 

 financially interested and, while usually willing to extend credit, 

 more frequently advises early selling, particularly if prices are at all 

 favorable. If prices are decidedly unfavorable and large amounts 

 have been lent to farmers, the banks often feel forced to protect 

 their depositors by calling on the growers to liquidate their indebted- 

 ness. This they do by selling at whatever price they can obtain. 



Uncertain trends of market prices make the holding of broom corn 

 with a view to greater profits decidedly problematical. Farmers gen- 

 erally show little inclination to hold their product if it is possible to 

 obtain what they consider a reasonable price. This tendency often 

 prevents their receiving a fair price, since the markets are frequently 

 glutted by their efforts to effect early sales. A glutted market is 

 invariably a weak market, which reflects lower tendencies, and this 

 often creates a fear of still lower prices and increased offerings — a 

 condition favorable to dealers but decidedly unprofitable to growers. 



Another factor which has stimulated early selling is the opportu- 

 nity presented to growers to sell early in the season. As the first aim 

 of all dealers and manufacturers is to purchase brush that meets their 

 particular requirements, the importance of being in the field to buy 



