42 BULLETIN" 558, U. S. DEPARTMENT OF AGRICULTURE. 



Whenever practicable, associations should purchase existing plants 

 rather than construct new ones, thus avoiding duplication of facili- 

 ties, with the resulting high cost of operation and reduced profits. 

 In negotiating for the purchase of an old plant the association should 

 secure the services of one or more experienced men to appraise the 

 property. 



As a general rule farmers should investigate fully the business 

 circumstances which are to surround the new enterprise before affili- 

 ating themselves with the organization. Moreover, it is usually 

 unwise to place too much confidence in what outsiders may say re- 

 garding the profits to be derived and the cost of operating a country 

 elevator. 



CONCLUSIONS. 1 



1. Price and other factors being equal, farmers should patronize 

 houses remaining open throughout the entire year. 



2. The producer of high-quality grain often receives less than it is 

 worth in order that an equal price may be paid to a grower of grain 

 of inferior quality. 



3. The farmer who delivers clean, dry, sound grain should receive a 

 premium over the price paid to his more careless competitor. Farmers 

 who deliver grain of inferior quality should be willing to submit to 

 a discount. 



4. Under the present methods of distribution the middleman 

 renders a service to the seller in locating the most favorable outlet 

 for his grain and securing for the buyer grain of the quality desired. 

 However, the number of middlemen may be increased to the point 

 where their efforts become a burden and add needlessly to the cost 

 of marketing. 



5. The factors that must be considered in determining the price 

 paid to the producer are so numerous and complicated as to require 

 wide experience and good judgment. Under normal competitive con- 

 ditions the farmer usually receives full market value for his grain. 



6. Market quotations and predictions relating to the probable trend 

 of prices as they appear in some newspapers and market-news letters 

 are often unreliable and should not influence unduly the judgment of 

 elevator managers or farmers. 



7. While the " scoop-shoveler " is usually a disturbing element, 

 often causing loss to farmers and others having business relations 

 with him, it is undoubtedly true that he frequently acts as a restrain- 

 ing influence upon the country dealer. 



1 Much of the text of this bulletin is devoted to a discussion of methods of marketing 

 at country points for the purpose of affording general information which does not lend 

 itself to definite conclusions. 



