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 Brohtable 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 podehts 
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 lieve 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. 
17. When the organization of a cooperative-elevator association 1s 
contemplated, careful consideration should be given to the needs 
