4 BULLETIN 1083, U. S. DEPARTMENT OF AGRICULTURE. 
Area "A" represents any area producing a surplus with a ter- 
minal market as the only outlet. If based upon the terminal quota- 
tions, deducting freight and handling charges will determine the farm 
price in this territory. The net farm price is 45 cents as indicated on 
the chart. 
1,000,000 Bushels, All 
to be marketed at 
Terminal Market 
Terminal Price $.50 
Ft. and Handling .05 
Net Farm Price .45 
SURPLUS PRODUCING AREA 'A" 
1,000,000 Bushels.to be marketed 
st Terminal and in Area *D* 
250,000 to Area *D" at $. 48 
Net Farm Price .40 
Avera g eTTeTTa r m Price S. 
■Surplus Producing Area 
Consuming Area 
SURPLUS PRODUCING AREA"C" 
Fig. 1.— Represents five marketing conditions, one of which in some modified form will be found at each 
market center. Each part of the figure (area) should be considered as a separate problem; the arrows 
indicate its relation to the others. 
Area "B" represents any area producing a surplus but without 
home demand and has the consuming area "D" and the terminal 
market for outlets. The crop of this section, if sold as indicated by 
the chart, would average 42 £ cents per bushel net; if sold at the 
terminal market, the price would be 42 cents net. 
