The Bismarck tribune., 1930-08-27
COOPERATIVESTO
ADVANCE MONEY ON
GRAIN IN STORAGE
Loans Up to 70 Percent Of Value
Contemplated; Flax Is
Included

st. Paul, Aug. a. Flax growers
may borrow up to IS per cent on flax
in approved storage from member
cooperatives of the Farmers National
Grain corporation as q result of an
agreement reached by representatives
of the cooperative at meeting yes
terday
The meeting was attended by Sam
r. McKelvie, grain member of the
federal farm board The position ot
the grain corporation affiliateS on
loans to be made on wheat also was
discussed with the cooperatives by
Mr.. McKelvie.
The Farmers Union Terminal as
sociation, one of the marketing
agencies represented In the flax
agreement. announced recently il
would make loans Of up to 70 per cent
of the net market value, of wheat dur
ing the handling Of the 1890 crop.
The flax loans are to be made on a
basis of 10 per cent OF the local ele-
vator card prices, less any accrued
storage costs, with the maximum set
at $l.25 bushel
The money. will be advanced on
flax against which storage tickets
have been issued in licensed and
bonded warehouses. either in the
country or at terminals, or on flax in
approved farm storage.
The cOoperatives announced they
will require delivery to the extent
that all flax ON which loans are made
will have to be kept in collateral po-
sition either in local elevators, at ter
minals, or in approved farm storage
The cooperativeS represented were
Farmers National Grain corporation;
Farmers Union Terminal association;
Northwest Grain association; Mime
sofa Wheat Growers association;
North Dakota Montana Wheat Grow
ers association. and the South Dakota
Wheat Growers association.
Union Announces Plan
Farmers Union officials said their
loans will be available whether the
grain is stored on the farms I'm
North Dakota and Montana only-ir
the country elevator, In transit>or in
terminal elevators. The reason that
farm storage loans are available only
to farmers Of North Dakota and Mon.
tana is that the legislature of those
two states are the only ones which
have passed laws permitting such
storage certificates to be issued BY
the state.
"The loans will be generally on the
basis Of 70 per cent OF the net value
of the grain at the farmers local sta
tion,' M. w. Thatcher, union man.
ager. said. However, it does no,
make particle Of difference where
the grain Is, just so 1t Is properlj
cared for or stored. The loans Of II
per cent of the net value are available
whether the grain is on the farm, ir
the country elevator, in transit or ir
terminal warehouses.
"The Farmers Union Terminal as.
sociation made loans of approximate.
ly $4,000, 900 in handling the 1926
crop. Practically unlimited funds are
available for loans to growers on the
1880 crop. We expect to handle ad.
ditional millions of bushels on a loar
oasis 1Or farmers CIOS year.
Farm Storage Urged
Storage on farms presents the
cheapest method by which a farme,
may hold his grain in the hope that
prices will be higher when he desires
to SELL The insurance, storage and
carrying costs are the cheapest of any
method of storage. The storage oi
grain on farms prevents that grain
from showing up in visible supply fig.
ures and further depressing prices
Without advising the farmers te
hold their wheat for higher prices OF
to sell it at the present or any other
time, if they desire to hold it, the farm
storage method is the cheapest and
most to their advantage.
Machinery for the making ol
loans to farmers on farm-stored grair
Is now ready to be set In motion. The
machinery has been well overhauled
oiled and should perform much more
smoothly than . year ago. when the
plan was entirely new. Application