MARKETING GRAIN AT COUNTRY POINTS. 43 



8. Contracts with farmers for future delivery of grain should be 

 entered into only after the interests of both parties concerned are 

 safeguarded by a written contract clearly and concisely setting forth 

 all the details of agreement. 



9. In order to determine whether it is profitable to store grain on 

 the farm, it is necessary to consider the interest on the investment, 

 interest on the grain in store, natural shrinkage and loss by rodents, 

 convenience of marketing, condition of roads at time of delivery, 

 price at harvest time, and the probable price at some future date. 



10. In the past the natural shrinkage in corn has been so great as 

 to show little profit from storage, while if a long-time average is 

 taken into consideration, oats and wheat have been stored at a 

 profit. 



11. It is likely that the standardization of grain produced in a 

 community would not only result in a reputation for uniform quality 

 which at times may command a premium over general market prices, 

 but also reduce the cost of handling grain through the local elevator. 



12. Many misunderstandings and oftentimes erroneous conclusions 

 regarding the business ethics of parties to a transaction are based on 

 weights secured from farm or elevator scales, the accuracy of which 

 has not been verified for a considerable period of time. 



13. When many elevators serve a community bad practices are 

 usually introduced into the business, which increase the cost of mar- 

 keting the farmer's grain and depreciate the value of all houses in 

 the town and surrounding territory. Cooperative associations, as 

 well as independent dealers, who desire to enter the business should 

 purchase existing plants if this is practicable rather than build 

 new ones. 



14. Losses from shrinkage and overgrading are usually ignored 

 by country elevators. Managers should maintain a system of book- 

 keeping which shows accurately these as well as all other expenses, 

 and a study of the results obtained should enable them to conduct 

 their business in an economic and profitable manner. 



15. Grain speculation is always hazardous, especially for those 

 who are so situated that they obtain only a limited amount of in- 

 formation relative to the world's production and markets. The risk 

 is usually greater when speculating with cash grain than in the future 

 markets. 



16. The management of a country elevator is a more complicated 

 business undertaking than it would appear to be upon cursory ex- 

 amination. The business is attended by many hazards, all of which 

 should be weighed in advance by those contemplating such activities. 



IT. When the organization of a cooperative-elevator association is 

 contemplated, careful consideration should be given to the needs 



