Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1930-02-13
McKELWE EXPLAINS
THE FARM BOARDS
MARKETING POLICY.

The subject uppermost in the minds
Of farmers is how they may take ad-
vantage of the agricultural market
ing act, and the first step is to join
a cooperative that deals in a spec
ific commodity such as grain, men,
bership in a local elevator, or some
larger unit such as a pool or termin-
al sales agency also fills the requir-
ments, but that membership is a
general farm organization is not nee
essary, said Mr.. McKelvie, member
Of the federal farm board in his ad-
dress given at Williston on Febru-
airy 7th before an audience of North
Dakota and Montana farmers and
business men that filled the hall; the
audience being enlarged by the broad
casting of the address from Wolf
Point radio station which was hooked
up by telephone.
The local cooperative unit is most
important in any large scale COOP
erative undertaking, said the speak
er. This unit is democratic in prin-
ciple and gives farmers an opportun-
ity to manage their affairs at home.
Unless this unit functions fully and
in complete harmony with a central
sales agency for all similar units
large scale cooperative marketing
cannot be successfully carried out.
There are over 400 farmers ele-
vators in this country. Largely they
are cooperative and meet the require
ments of the Capper-Volstead act;
that is they are farm owned and
and farmer controlled, pay not more
than 80 on their dividends, or per-
NIT but one vote per member, and
handle not more than 500 of the
grain of non-members. These in ad-
dition to pools and other commodity
sales agencies form the nucleus upon
which the Farmers National Grain
Corporation is being built.
No Direct Loans
The federal farm board does not
make loans direct to local cooperat-
ives. It deals with the Farmers
National Grain Corporation and the
money in turn is passed along to
members of the National, these mem
bers being group cooperatives such
as the Northwest Grain Association,
the North-D Dakota Montana Wheat
Growers Association and the Farm
ers Union Terminal, which are the
three groups operating in the spring
wheat region. No preference is
showing by the federal farm board
to any group, and it is up to the
local unit to join whichever group
it desires.
The loan policy of the federal farm
board is elastic at present, and chang
es will be made to meet requirements.
Before the Farmers National Grain
Corporation was set up loans were
made to two groups in North Dakota
and Montana, but now with the
Northwest Grain association in the
field. 1t is the hope of the Grain
Corporation to serve all grain far
mers when the next crop is ready to
market.
Due to the stock market collapse
last fall, an u~nwarranted decline in
grain prices made it necessary for
the federal farm board to loan to far
mers through their cooperatives the
full amount Of the cash price at ter
minal markets on the date of Octo-
Der 26th. 1t is understood that the
cooperatives in advancing this money
to farmer would make deductions to
cover freight and handling charges.
This was to apply on the 1929 crop
only. What may be done on future
crops will be determined by con-
ditions. Since then the Farmers
National Grain Corporation has been
buying country run wheat at the ter
minals on the loan basis announced
last fall. The extent to which these
things have been done is signiied of
the desire of the government to help
in every practical way SO that far
mer's might secure the largest pos
sible benefits in marketing last years
crop.
Eliminate Specializing
1t is the intention of the federal
farm board that the grain cooper
atives shall be placed SO completely
in control Of their marketing system
that speculation and gambling will
be eliminated The grower may mar
ket his grain on three options, namely
~ for cash on delivery at the local
elevator; (2) to be stored and an
ample advance made ON the storage
ticket; (3) to be pooled and an ad-
vance with subsequent payments as
the grain IS sold during the market
ing year Cash grain will be sold in
the competitive market; stored grain
will be held subject to the call Of tho
grower and will not be sold until he
so orders; pooled grain will be sold
according to the best Judgment Of the
central sales agency. All grain will
be sold under the direction Of the
Farmers National Grain Corpora