MARKETING GRAIN AT COUNTRY POINTS. 4] 
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. 
