The Marketing of Farm Products

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At many points in the grain-growing sections there are from three to six local elevators where two or three would be required at the most. As a result each elevator gets a small amount of business and the cost of handling per bushel is high, and consequently the managers take as high margins as possible. If the farmers operate their own elevator at such a point, they can concentrate their business in such a way as to reduce imit costs, and thereby obtain for themselves a higher net price for th...eir grain. Although farmers' elevators constitute only about one fifth of all country elevators in Minnesota, they market about one third of all grain marketed in 412 THE MARKETING OF FARM PRODUCTS the state, and at the points where they are located they handle at least fifty per cent of the grain marketed.
In this way they are the means of saving the farmers from one to three cents (sometimes more) per bushel of grain, a saving which approximates $1,000,000 a year in Minnesota alone. This is not very comforting to the independent and line-elevator companies, but it marks a higher degree of efficiency in marketing which j deserves to prevail.


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