Abilene weekly reflector., 1921-07-07
TO CONTROL MARKETING
Various Plans Are Being Promoted
in the Nation


Two grain marketing plans have
been offered to American farmers,
one by the u. s. Grain Growers, Inc,
the plan developed by the Commit
| tee of Seventeen; the other by the
National Wheat Growers Associa-
tiOn.
Membership in either grain mar
keting organization is contingent on
the signing Of fiveyear contract by
| the grower. In the case of the Ma
tional Wheat Growers Association
the contract signed Is with the state
association. The state association
later forms national association and
will i'm turn make contracts with II
in carrying out Of its agreements.
The farmer joining the L. s. Grain
Growers, Inc, contracts directly
with the local elevator or local asso-
citation which also is a member or the
organization and under contract with
it. In reality there are three parties
to the contract, the local elevator, the
l.. S. Grain Growers. Inc, and the
wheat grower or producer. The con-
tract Is binding on all three.
In turn the local elevator con-
tracts with the u. S. Grain Growers,
Inc. regarding the handling Of the
wheat il buys or takes on conslgn-
ment from the growers. No state or
ganization Is contemplated
The contract of the National
Wheat Growers Association provides
for only one method of marketing
the compulsory pool All wheat con-
tracted must enter the pool ana pc
sold through it. No grain can ne
sold separately.
Provisions for four methods or
marketing are made IN the contract
of the II. s. Grain Growers. Inc, the
grower choosing the method he pre-
fers when he delivers the wheat. He
IS not bound to use any one method
throughout the life Of the contract.
Under method A, known as the
individual sales method. there are
two options. Al provides that fhe
grower may sell for cash at price
offered by the. local elevator COM
pany. This is an outright final sale.
Method AZ provides that the
grower. singly or jointly with other
growers. may cOnsign grain through
the local elevator for sale by the Un-
tied states Grain Growers Inc, In
which case control Of time Of deiiv-
ery. shipment and sale shall remain
with the grower and the net pro-
ceeds of sale, less deductions for costs
of handling. shall be returned to the
grower. This IL straight consign-
mcnt selling. with the u. y. Gram
Growers, Inc, acting as selling agent
for the individual grower.
Method B, known as the pooling
method. also provides two options.
B.1 Ia the local pool. The grower
NAV have all or part Of his grain
oooled with grain Of other growers
and 1t shall be sold during such
period of time as may be fixed by
the growers. The pool shall be In
charge of local pooling committee
which will decide on date Of delivery.
storage and final sale OF the
wheat.
Provision For Joint Pools
Method BE-, known as the JOINT
Dool. provides that local pools may
iojn in creating district pool which
hall be administered by the sales
Of the y. s. Grain Grow
'rs. Inc. 49,
Both contracts contain penalties
which the grower In advance agrees
o as liquidated damages due the
organizations. In the eveht
hat he fails to meet his cOntractuai
These penalties consist
# a fixed amount on every bushei OF
rain the grower refuses to deliver
O the marketing organization.
The contract of the National
Wheat Growers Association provides
or the compulsory pooling OF all the
wheat the grower produces except
hat which is to be used for seed. He
5 not permitted during the five y.ar
eriod to sell wheat to any one except
he national association.
All wheat covered by contracts Is
laced in national pool. There are
o local pools. In delivering MS
heat TO the local elevator the farm {
r actually sells it TO the National |
Wheat Growers Association, recelv-
lg in payment wheat tickets stating .
nat he has a certain amount OF I
heat in the pool. II he must have G
honey the national association q
,akes an advance payment or loan
Mt OF money it has borrowed on all b
ne wheat pooled. The grower re-
living this advance must pay inter, I
st on 1t.
Controlling Resale "a
Resale Of the, wheat Is controiled 9
" the national associations sales
Except indirectly, the +
rover has nothing to say about s
hen his wheat is resOld or the price r
brings. The association Is only r
edged 10 sell for the best price OBJ d
Unable. h
From the resale price the associa- {