MARKETING GRAIN AT COUNTRY POINTS. 29 



lowest (August) to the highest point (May). In the past the nat- 

 ural shrinkage in corn has been so great as to show little profit from 

 storage, while oats and wheat, if a long-time average is taken into 

 consideration, have been stored at a profit. 



It should be remembered, however, that relatively low prices at 

 harvest time are due to the fact that a large amount of grain is 

 placed on the market at this time, thereby establishing an over- 

 supply for immediate needs, overtaxing local elevators and trans- 

 portation facilities, and congesting the central markets. If farmers 

 generally withheld their surplus grain from the market at this time, 

 it is quite likely that values would not decline to a point as low as 

 is reached under present methods. Also if farmers generally held 

 their grain until the month at which values are the greatest under 

 present conditions, it is quite likely that prices would not reach as 

 high a level. Probably ideal conditions would maintain and uni- 

 form prices would prevail if the grain were stored on the farm and 

 placed on the market as it is needed for consumption. Under this 

 ideal condition the lowest price would prevail at harvest time, with 

 progressive increase in values until the next crop became available. 

 Theoretically the increase in values would be in proportion to the 

 cost of storage, or the "carrying charge." The obvious objection to 

 this practice is that farmers would not release the grain as needed, 

 but would withhold it from the market merely to cause a scarcity 

 and thus force up the price. 



One of the principal reasons why grain is now marketed in such 

 large quantities at harvest is because of the necessity of obtaining 

 cash to pay off previously incurred obligations and for operating 

 expenses. It is likely that farm storage of grain will not be practiced 

 generally until some system of credit, based on farm-stored grain, 

 has been inaugurated. The matter of interest on borrowed money, 

 based on stored grains, will not become an added item of expense 

 because this item must be considered, whether available in cash or in 

 the form of stored grain. 



HANDLING GRAIN FOR FARMERS. 



Occasionally elevator managers ship grain to the central market 

 for the account of the producer. This procedure is not general, but 

 its practice is increasing, particularly in the West Central States. 

 The reason for the practice usually is to be found in the belief on 

 the part of the farmer that the local buyer is exacting too much 

 margin. The producer arrives at this conclusion from a study of 

 price quotations from the central markets and a comparison with 

 the prices offered by the local elevator. Sometimes the farmer is 

 justified in objecting to the price offered by the country elevator. 

 Frequently, however, this conclusion is reached because of a lack of 



