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Farmers Grain Marketing Patterns in the North Central Region (Classic Reprint)
by:Lowell D. Hill
A ternative outlets for farm sales of grain are essential to a competitive system of pricing where the producer is assured of a price equal to the value of his grain. As a result of technological and institutional developments in the grain industry, the number of economically viable choices of market outlets has increased in recent years. The development...
A ternative outlets for farm sales of grain are essential to a competitive system of pricing where the producer is assured of a price equal to the value of his grain. As a result of technological and institutional developments in the grain industry, the number of economically viable choices of market outlets has increased in recent years. The development of subterminal elevators that accept grain from farmers as well as from country elevators, improved transportation from the farm to central markets, and increased volume per farm have provided many farmers with alternatives to the local elevator in their choice of market outlet. The objectives of the research reported in this study are (1) to describe the alternative market outlets available to farmers in the sale of their grain; and (2) to identify the characteristics that facilitate or limit access to these alternatives. The 1971 data reported in this study were obtained from a survey of a sample of farmers in theN orth Central states conducted in 1972. This survey was a part of a regional study of vertical systems in grain markets. Sampling and interview procedures for each state are described in the appendix. ALTERNATIVE OUTLETS FOR GRAIN The country elevator was the major outlet for all grains in all the states included in the study (T able 1). The percent of the total grain sold that moved directly to the country elevator varied from a low of 53 percent of the corn in Missouri to a high of 94 percent of the soybeans in Minnesota and 99 percent of the wheat inN orth Dakota. Although the traditional market channel from farm to country elevator to terminal elevator still persists, significant quantities of some grains are now bypassing the country elevator. In I ndiana, 18 percent of the corn sold in 1971 moved directly to terminal elevators, and another 9percent moved to grain processors and feed dealers(Typographical errors above are due to OCR software and don't occur in the book.)
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