- MARKETING GRAIN AT COUNTRY POINTS. 29 
lowest (August) to the highest point (May). In the past the nat- 
ural shrinkage in corn has been so great as to show little profit from 
storage, while oats and wheat, if a long-time average is taken into 
consideration, have been stored at a profit. 
It should be remembered, however, that relatively low prices at 
harvest time are due to De fact that a large amount of grain is 
placed on the market at this time, thereby establishing an over- 
supply for immediate needs, overtaxing local elevators and trans- 
portation facilities, and congesting the central markets. If farmers 
generally withheld their surplus grain from the market at this time, 
it is quite likely that values would not decline to a point as low as 
is reached under present methods. Also if farmers generally held 
their grain until the month at which values are the greatest under 
present conditions, it is quite likely that prices would not reach as 
high a level. Probably ideal conditions would maintain and uni- 
form prices would prevail if the grain were stored on the farm and 
placed on the market as it is needed for consumption. Under this 
ideal condition the lowest price would prevail at harvest time, with 
progressive increase in values until the next crop became available. 
Theoretically’ the increase in values would be in proportion to the 
cost of storage, or the “carrying charge.” The obvious objection to 
this practice is that farmers would not release the grain as needed, 
but would withhold it from the market merely to cause a scarcity 
and thus force up the price. 
One of the principal reasons why grain is now marketed in such 
large quantities at harvest is because of the necessity of obtaining 
cash to pay off previously incurred obligations and for operating 
expenses. It is likely that farm storage of grain will not be practiced 
generally until some system of credit, based on farm-stored grain, 
has been inaugurated. The matter of interest on borrowed money, 
based on stored grains, will not become an added item of expense 
because this item must be considered, whether available in cash or in 
the form of stored grain. 
HANDLING GRAIN FOR FARMERS. 
Occasionally elevator managers ship grain to the central market 
for the account of the producer. This procedure is not general, but 
its practice is increasing, particularly in the West Central States. 
The reason for the practice usually is to be found in the belief on 
the part of the farmer that the local buyer is exacting too much 
margin. The producer arrives at this conclusion from a study of 
price quotations from the central markets and a comparison with 
the prices offered by the local elevator. Sometimes the farmer is 
justified in objecting to the price offered by the country elevator. 
Frequently, however, this conclusior. is reached because of a lack of 
