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MARKETING GRAIN AT COUNTRY POINTS. OF 
The burden of insurance and the loss by shrinkage sometimes lead 
a manager to ship out the grain received for storage soon after de- 
livery, selling it to the central market. In order to protect himself 
| against price fluctuations he goes into the future market and pur- 
chases a hedge for a like amount. When the farmer informs him 
that he is ready to sell the grain, which the farmer supposes is in 
: » storage, the elevator manager closes out his hedge, pays the farmer 
the market price for the grain, and bears the cost of the hedging sale | 
himself. By shipping out the stored grain, however, the manager 
not only has relieved himself of the expense of insurance and the 
loss by shrinkage, but he has also been enabled to use or to loan the 
farmer’s money, thus profiting by the interest earnings. 
Shipping out the grain delivered for storage 1s practiced also when 
a storage charge is made. In this case the elevator derives a profit 
from the storage charge in addition to the interest on the money 
received from the grain. 
The hazard of storing grain in the country elevator, from the 
standpoint of the farmer, depends upon the degree of integrity and 
the financial standing of the elevator manager. Occasionally the 
grain dealer announces a business failure with limited resources and 
the farmers whose grain is supposed to be in store are the chief credi- 
tors. While such cases are not general, they have sometimes been so 
frequent as to result in the enactment of a State law placing the 
storage business under State supervision and requiring the elevator 
owner to give bond for the protection of his patrons. 
The United States warehouse act, recently enacted, authorizes the 
Secretary of Agriculture to license warehouses for the storage of 
erain, flaxseed, cotton, tobacce, and wool for interstate or foreign 
commerce. This act is permissive only and no warehouse is re- 
quired to be licensed. The act also authorizes the Secretary to in- 
spect warehouses which are licensed under this law or which apply 
for license. 
FARM STORAGE. 
From the standpoint of the producer the logical place to store 
orain is on the farm. Several facts, however, must be considered 
in determining whether such a procedure is profitable. In the first 
place, it is necessary to provide suitable granaries and cribs, which 
will require an original outlay of capital upon which interest and de- 
preciation must be considered. It is necessary also to consider 
natural shrinkage. The amount of shrinkage that may be expected 
will depend of course upon the nature of the storage, the condition, 
and maturity of the grain at the time of harvest, and also the length 
of time it is held in store. As a general rule the small grains may 
be expected to shrink from 1 to 3 per cent in weight, while the 
