MARKETING GRAIN AT COUNTRY POINTS. 41 



aged, and the dealer's cost of doing business is increased. Many 

 dealers are opposed to this practice, and in most sections all have 

 abandoned it, but places still remain where certain of the dealers 

 refuse to do so for fear of losing trade. 



FARMERS' COOPERATIVE ASSOCIATIONS. 



The cooperative-elevator movement, which has been attended by 

 both success and failure, has had a rapid development throughout 

 the surplus grain producing territory. Not infrequently the failures 

 have been caused by hasty and ill-advised action in organizing asso- 

 ciations. Many farmers enter cooperative elevator associations with- 

 out giving the matter careful and deliberate consideration. Hasty 

 action is sometimes caused by enthusiasm engendered by professional 

 organizers, who frequently urge the formation of an elevator associa- 

 tion without taking into consideration the needs of the individual 

 members and the facilities for grain marketing already available in 

 the community. Erroneous information regarding the cost of oper- 

 ating a plant and the profit from the grain business is sometimes 

 used in order to bring the enthusiasm of the producers to the point 

 of effecting an organization. Associations which have been formed 

 as a result of exaggerated statements regarding the profits that may 

 be expected usually experience considerable difficulty in placing the 

 business upon a successful basis. Not infrequently such efforts are 

 attended by complete failure. 



When the organization of a cooperative elevator association is 

 contemplated, careful consideration should be given to the needs of 

 the community for additional marketing facilities. Also definite 

 information should be obtained regarding the volume of grain 

 shipped from the station ; usually an average of a 5-year period will 

 furnish more reliable information than the shipments of a single 

 year. If there are established elevator businesses already at the 

 station, a conservative estimate should be made as to what percentage 

 of the total volume of grain shipped from the market will be handled 

 by the cooperative association. Usually the promotors of cooperative 

 associations place the estimate too high. It should be remembered 

 that the established plants will retain some of their former business, 

 and that the volume available to the new association will be reduced 

 accordingly. 



After making conservative estimates of the probable number of 

 bushels of grain that will be handled annually, the cost of operating 

 the plant should be estimated. The discussion on page 34 of the 

 cost of handling grain may be of assistance in arriving at a conserva- 

 tive estimate of the cost of operation. With the estimates of the 

 volume of business and the cost of operation as a basis, some deduc- 

 tions may be made regarding the profitableness of the enterprise. 



