30 BULLETIN 558,, U. S. DEPARTMENT OF AGRICULTURE. 



careful consideration of the factors causing the spread in price and 

 because of unreliable newspaper reports. Frequently all of the facts 

 regarding the market conditions are not available or are not correctly 

 interpreted. 



Many elevator managers raise the original price offered the farmer 

 if he objects to it, often at their own financial loss. Other managers 

 refuse to increase their bids, but offer to ship the grain on the 

 farmer's account, usually making a charge of 2 cents per bushel for 

 handling the grain through the elevator. The charge for handling 

 through the elevator may or may not reimburse the elevator manager 

 for the cost of the service. Sometimes the service is rendered free 

 of charge. When the returns for the grain are received from the 

 central market the entire amount, less the handling charge of 2 cents 

 per bushel, is turned over to the farmer. Sometimes such transac- 

 tions result in profit to the farmer, but quite as often they are disap- 

 pointing. 



The farmer who does not have a carload of grain to market at one 

 time can not take advantage of this practice, because the freight and 

 central market charges on less-than-carload lots would be prohibitive. 



ADVANTAGE OF GROWING UNIFORM VARIETIES. 



Grain is handled most economically through the country elevator 

 when uniform varieties are produced in large amounts by the con- 

 tributing territory. When this condition exists, the elevator manager 

 is able to handle the grain on narrow margins which eventually 

 result in a higher price level to the producer. In many sections of 

 the country, however, several varieties and colors of the same kind 

 of grain are produced and marketed at the country elevator. This is 

 especially true in the wheat-growing region of Oklahoma and in 

 States where white, yellow, and mixed corn and various colors of 

 oats are produced. 



When an elevator must handle two or three varieties of the same 

 grain, more bins and capital are required than when uniformity pre- 

 vails. Moreover, when different colors of the same sort of grain or, 

 as in some sections, when barley, rye, kafir, and other grains are 

 raised in limited quantities and are received at the elevator in small 

 lots, it is necessary to hold the various grades until a carload is ac- 

 cumulated. Xot only is supplementary bin space essential, but more 

 capital is required to finance the business, because the elevator man- 

 ager is forced to expend cash for grain upon its arrival and he is 

 unable to dispose of it immediately and thus regain his capital for 

 future use. Neither is he able to protect himself against price fluc- 

 tuations by hedging, since the quantity of grain in store is not suf- 

 ficient to form the basis for future contracts. The result is that the 



