A Picture of the Grain 
 Industry 
 
 BY W. J. SPILLMAN 
 
 MARKETING GRAIN 
 LESSON 1 
 
 The American Institute of Agriculture 
 
A PICTURE OF THE GRAIN INDUSTRY 
 Crop Areas - Buyi^ Areas - Future of the Industry 
 
 By W. J. SFILLMAN 
 
 Consulting Specialist, Bureau of Agricultural 
 Economics, U. S. Department of Agriculture 
 
 MARKETING GRAIN 
 LESSON 1 
 
 "Every Lesson by a National Authority" 
 
 Confidential Edition 
 Issued for Members 
 
 * * 
 
 Copyright, 1922 
 
 THE AMERICAN INSTITUTE OF AGRICULTURE 
 
 CHICAGO 
 
THE MAN WHO CONDUCTS THIS LESSON 
 
 §> 
 
 WILLIAM J. SPILLMAN 
 
 It seems to be the fashion now-a-days for men's 
 minds to concentrate on individual activities of 
 life. One man's inclination is toward railroading, 
 another is toward dairying, and another is toward 
 mining. It is very apparent that the mind of W. J. 
 Spillman has been very much concentrated on the 
 grain industry. 
 
 For several years owning a farm of his own in 
 Missouri, Mr. Spillman has had the practical ex- 
 perience of a farmer in finding the best market for 
 his grain. In 1902, he was a specialist in the De- 
 partment of Agriculture known as an agrostologist 
 (an agrostologist is one who is a specialist in 
 grains and grasses). His title was changed in 1905 
 to "agriculturist," and this title he had until 
 1915, when he became Chief of the Office of Farm 
 Management of the U. S. Department of Agriculture. 
 In this office he was more specifically concerned 
 with the marketing of grain than with production. 
 
 In the course of his work in the Department of 
 Agriculture, he prepared many bulletins and super- 
 vised the preparation of many others. All of the 
 time his work was kept practical by the fact that he 
 had the practical farm problems of a farm owner to 
 settle almost every day. 
 
 ©cuesens ^ 
 
 *HS> 1 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
 The Office of Farm Management was later merged 
 with other departments, and now the work formerly 
 conducted by the Office of Farm Management is con- 
 ducted by the Bureau of Agricultural Economics, of 
 which Mr. Spillman is a member, 
 
 SUMMARY OF WILLIAM J. SPILLMAN'S TRAINING AND EXPERIENCE 
 
 EXPERIENCE: Consulting Specialist, Bureau of Agricultural Economics, D. S. 
 Department of Agriculture, since 1921 
 
 Associate Editor, "Farm Journal, ' ' 1918-1921 
 
 Chief, Office of Farm Management, U. S. Department of Agriculture, 1915 
 -1918 
 
 Agriculturist, U. S. Department of Agriculture, 1905-1915 
 
 • Agrostologist, U. S. Department of Agriculture, 1902-1905 
 
 Professor of Agriculture, Washington State College, 1894-1901 
 
 Professor of Science, Oregon State Normal, 1891-94; Vincennes, 1889-91; 
 Missouri State Normal, 1887-89 
 
 Fellow, A. A. A. S. 
 
 President, American Farm Management Association 
 
 MEMBER: National Academy of Science; Society for the Promotion of Agri- 
 cultural Science; American Society of Agronomy; American Genetic 
 Association 
 
 AUTHOR: "Farm Grasses of the United States"; "Farm Science"; also 
 various bulletins on agricultural subjects; contributor to scientific 
 journals; editor, heredity section, "American Naturalist, " 1908-15 
 
 EDUCATION: B. S., University of Missouri, 1896; M. S., University of 
 Missouri, 1889; D. Sc, Temple University, Philadelphia, 1907 
 
 -r> 
 
GRAIN LESSON 1 
 
 HOW TO STUDY THIS LESSON 
 
 You may not have realized that the grain in- 
 dustry is so huge and complicated as it is, unless 
 you already know most of the facts in this lesson. 
 From the study outline, you will see that there are 
 11 parts, but do not be misled by this number. A 
 separate part is devoted to each of the grains, and 
 that is why so many divisions are made. 
 
 First. Master Part I 
 
 Part I is, in a way, a review of some of the 
 things you learned in Lesson A, but with these facts 
 applied specifically to the grain industry. 
 
 Second, Familiarize Yourself with Wheat 
 
 Part II is devoted to the world's most important 
 bread crop — wheat. While wheat is not the largest 
 crop in the United States, it is of more importance 
 in world commerce than any of our other crops. 
 And so you should spend a considerable amount of 
 time on Part II. 
 
 Inasmuch as the fluctuation in the price of 
 wheat affects prices of many other farm products, 
 it is particularly important that you know how the 
 crops and the demand in certain foreign coupntries 
 are likely to affect the price of wheat in America. 
 
 When you have thoroughly mastered Part II, you 
 will be able to explain just what competition we 
 have in the world's wheat markets. 
 
 Third, Familiarize Yourself with Our Largest Crop 
 
 Part III is also exceedingly important, because 
 it deals with the largest crop in the United States 
 — corn. Corn is not so important in the world's 
 commerce as wheat because a much smaller amount is 
 moved from one country to another. Much the larger 
 percentage of corn is consumed right where it is 
 produced. And so you should be sure to have clear 
 when you finish with Part III the entire situation 
 of corn production and marketing in the United 
 States. 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
 Fourth, Study Parts IV to VII 
 
 Part IV treats of oats, and oats are somewhat 
 similar to corn in that they do not enter into world 
 commerce nearly so much as wheat. Foreign pro- 
 duction of oats is not nearly so important as home 
 production. And so you should pay particular 
 attention to the facts given in Part IV about the 
 production and marketing of oats in America. 
 
 Practically the same thing is true of barley, 
 treated in Part V; rye, treated in Part VI; and 
 buckwheat, treated in Part VII. 
 
 Fifth, Study the Flax Section 
 
 There is one little paragraph in Part VIII that 
 is, perhaps, more important than any other. This 
 paragraph has the heading, "The United States 
 Imports Flaxseed." In that paragraph you will 
 learn of the countries from which we buy flaxseed. 
 And you will understand, of course, that it is im- 
 portant to keep informed as to the production of 
 flaxseed in those countries and as to the imports 
 from those countries in order to be able to judge 
 as to the prospective change in price for flaxseed 
 here in America. 
 
 Sixth, Study Part IX on Rice 
 
 Rice is one of the least important crops in 
 America. However, there are many interesting facts 
 in Part IX which treats not only of American pro- 
 duction, but also of production in other parts of 
 the world. One of the important facts to remember 
 in this part is concerned with the consumption of 
 rice. If you understand where rice is needed and 
 where it is produced, you will be able to judge as 
 to the probable future of rice growing in America. 
 
 Seventh, Master Part X 
 
 Do not slight Part X, because it gives you the 
 beginning of a great deal of knowledge you will 
 acquire in this course regarding the specific 
 methods used in marketing grain. 
 
 Eighth, Learn the Eating Habits of Nations 
 
 Part XI provides you with the information that 
 is so essential to understand in marketing of grain; 
 that is, the eating habits of the various nations. A 
 knowledge of the consumption of the various grains 
 
GRAIN LESSON 1 
 
 in various parts of the world is exceedingly im- 
 portant, and after you have gone farther with the 
 course, you will appreciate this more than you do 
 now. That is why you are warned to familarize 
 yourself thoroughly with Part XI. 
 
 Spend Four Study Periods on This Lesson 
 
 You will probably accomplish most by attempt- 
 ing to master Parts I and II first. Part I ought to 
 be easy, because it is little more tha na review. 
 But Part II will require more time. Certainly you 
 ought not to spend less than an hour on these two 
 parts. 
 
 Probably you will find it better to consider 
 together Parts III to IX inclusive. But it may be 
 difficult to master all of these parts in one study 
 period. The chances are, you will find it best to 
 study all of them together for two study periods. 
 That is, get all you can the first hour, and then 
 finish the work in the second period. 
 
 You ought to be able to master Parts X and XI 
 in one period, because both of those parts are short. 
 However, don't overlook the fact that both of them 
 contain a great deal of very valuable information. 
 
 How to Make Paper and Pencil Help You 
 
 Use your paper and pencil in studying this 
 lesson. Tabulate the figures here contained in 
 different ways in an effort to make the situation 
 more clear to yourself, and also to make it eaiser 
 for you to remember the various facts. 
 
 Many students find it of great value to write 
 short compositions on various phases of each lesson. 
 If you want to attempt to do that ,it would be a good 
 idea to write one composition on Part I ; another, 
 on Part II ; one on Part III ; one on Parts IV, V, VI, 
 and VII taken together; one on Part VIII; one on 
 Part IX ; one on Part X ; and one on Part XI . 
 
 There probably will be no good use you could 
 make of these compositions after they are finished, 
 but the value you will get from writing them is that 
 the facts will be more firmly fixed in your mind 
 than if you have not written what you have learned. 
 Do not send these compositions to the Institute. 
 
 In writing such compositions, be sure to avoid 
 using the same expressions found in the lesson. Use 
 your own words always. 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
 STUDY OUTLINE 
 
 A Picture of the Grain Industry 
 
 PART I 
 
 The Seven Crop Production Areas 11 
 
 Relative Importance of the Seven Areas 13 
 
 Regions of Dense Population 13 
 
 Europe, the World's Greatest Buying Area 14 
 
 Eastern North America, the World's Greatest 
 
 Producing Area 14 
 
 How Rainfall Influences Production 15 
 
 PART II 
 
 Wheat, The World's Most Important Bread Crop 16 
 
 Western Europe the Biggest Producer, Yet the 
 
 Heaviest Buyer 16 
 
 India Produces the Third Most Wheat 18 
 
 Australia Exports Much Wheat 18 
 
 Central North America, the World's Second 
 
 Wheat Area 18 
 
 Argentina Exports Over 60% of Her Wheat 19 
 
 The United States Leads the World in Wheat.. 19 
 How the World War Affected the Commerce in 
 
 Wheat 22 
 
 Competition with North American Wheat Will 
 
 Decrease 22 
 
 Canada Destined to Lead the World in Wheat.... 23 
 How the United States Has Increased in Wheat 
 
 Acreage 24 
 
 Why Low Prices May Be Expected for Wheat 25 
 
 Where Wheat is Grown in the United States.... 25 
 
 The Central States Grow Winter Wheat 26 
 
 The Heart of Winter Wheat Production 26 
 
 The One Great Spring Wheat Section 28 
 
 PART III 
 
 The United States Leads the World in Corn 28 
 
 Most of Our Corn is Fed to Live Stock 29 
 
 Eastern Europe is Second in Production 29 
 
 Argentina is Our Biggest Competitor in 
 
 Exporting Corn 31 
 
GRAIN LESSON 1 
 
 STUDY OUTLINE — (Continued) 
 
 India a Big Producer, But Not an Exporter 31 
 
 Where Corn is Grown in the United States 32 
 
 Which Farmers Sell Corn 33 
 
 The Fluctuation in the Price of Corn 33 
 
 Why Corn Growing is Likely to be More 
 
 Profitable 35 
 
 PART IV 
 
 The United States Leads All Nations in Oats 36 
 
 South America Now the Biggest Exporter of Oats 36 
 Only Four States of the United States Grow 
 
 Oats Extensively for Market 37 
 
 Where Oats Yield the Best 37 
 
 PART V 
 
 Where Barley Is Grown 38 
 
 Barley May Grow in Importance 39 
 
 Why Barley Is Such an Important Crop 39 
 
 Germany, the Greatest Importer of Barley. ... 39 
 
 PART VI 
 
 Why Rye Is Valuable in Some Sections 40 
 
 Where Rye Is Grown in the United States 41 
 
 Michigan Leads in Rye Acreage 41 
 
 Rye More Important in Europe 42 
 
 Two Nations Grow Most of the Export Rye 43 
 
 PART VII 
 
 Not Much Buckwheat Marketed 43 
 
 PART VIII 
 
 Flax As a Market Crop 43 
 
 Why the Price of Flaxseed Fluctuates Violently 44 
 
 Four States Produce Most of our Flaxseed 45 
 
 Why Acreage Rises and Falls 46 
 
 The United States Imports Flaxseed 46 
 
 Where Flax Is Grown for Fibre 47 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
 STUDY OUTLINE™ (Continued) 
 PART IX 
 
 Four Sections Grow Rice 47 
 
 India Is the Greatest Producer of Rice 48 
 
 The United States Is Tenth in Rice Production. 49 
 
 Development of the American Rice Industry.... 49 
 How the United States Changed From an Importing 
 
 to an Exporting Nation 50 
 
 What Is the Future of Rice Growing in America? 50 
 
 Orientals Eat the Most Rice 50 
 
 America Not a Big Rice Consumer 51 
 
 High Milling Charges Discourage Rice Planting. 51 
 
 PART X 
 
 Development of Methods of Marketing Grain 51 
 
 How Transportation Built Up Marketing 52 
 
 Handling and Storage Facilities Important.... 53 
 
 Present Local Grain Handling Facilities 53 
 
 Market Reports a Big Aid 54 
 
 When Grading Began 54 
 
 What Cooperation Has Done 55 
 
 PART XI 
 
 Per Capita Consumption of Edible Cereals 55 
 
 The United States Uses More Corn and Oats 
 
 Than Any Other Nation 56 
 
10 GRAIN LESSON 1 
 
 INTRODUCTION TO LESSON 1 
 
 With the background you have secured by master- 
 ing Lessons A and B, you are prepared to proceed 
 with the details of handling the marketing of grain. 
 
 You learned in Lesson A of the various services 
 that are commonly performed upon farm products as 
 they pass from producer to consumer. In Lesson B 
 you learned of the men who perform those services. 
 And now, in this lesson, you will get a very definite 
 understanding of the present situation in the mar- 
 keting of grain. 
 
 Be sure to keep in mind what you have already 
 learned as you study each page of this lesson. 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
 Crop Areas - Buying Areas - Future of the Industry 
 
 By W. J. SPILLMAN 
 
 Since grain is an article of world commerce, it is 
 difficult to understand the grain industry of any one 
 country without a general knowledge of the grain in- 
 dustry of the world. This lesson will, therefore, 
 attempt to give a general picture of the world indus- 
 try, followed by a more detailed presentation for this 
 country, 
 
 PART I. 
 
 THE SEVEN CROP PRODUCTION AREAS 
 
 There are seven general regions in the world, 
 four in the Old World, and three in the New, in which 
 the rainfall is sufficient to permit the development 
 of agriculture on an important scale. These are as 
 follows: (Refer to the world may, Fig. 1, in 
 Lesson A. ) 
 
 1. From the standpoint of world agriculture, by 
 far the most important American rainfall area con- 
 sists of that portion of the United States and Canada 
 lying east of about the hundredth meridian. At 
 present this area is less important than the one in 
 Europe, but the two areas have about equal possibili- 
 ties, and it will not be many generations until they 
 will be equally important. The more southern situa- 
 tion of this area as compared with the European, 
 makes it the great corn growing center of the world. 
 
 2. The southeastern part of Asia, and the 
 islands adjacent thereto, make up the great rice 
 producing area. This includes most of India, Siam, 
 Cochin China, China, Japan, Sumatra, the Philip- 
 pines, and numerous smaller islands, Java and 
 Borneo. 
 
 11 
 
12 GRAIN LESSON 1 
 
 Rice is the dominant grain in this region, and 
 takes the place largely of the bread making grains. 
 This is the so-called monsoon area of southeastern 
 Asia, and the heavy rainfall in many localities is 
 due to the general prevalence during the warm half of 
 the year of extensive wind currents from the warm 
 ocean waters to the south and east toward the interior 
 of Asia. 
 
 In part of the area, the rainfall is so heavy as 
 to interfere with farming and some crops cannot be 
 grown. 
 
 3. The third area, and by far the most important 
 Old World production area from our standpoint, lies 
 in western Europe and includes all of Europe except 
 parts of Russia, Finland, Spain, and Norway. Here 
 the great mass of the bread eating (Caucasian) races 
 is concentrated. 
 
 This entire region is so densely populated that 
 its agricultural production is far less than is re- 
 quired to meet its needs. For this reason, by far the 
 greater part of the grains that enter into world 
 commerce are sent to this region from the less popu- 
 lous producing areas, 
 
 4. The most extensive region of heavy rainfall, 
 and the region of heaviest rainfall, in the New 
 World, covers all of northern and eastern South 
 America as far south as northeastern Argentina, its 
 center of heaviest rainfall being the Amazon Valley, 
 where occurs the largest region in the world with 
 rainfall of more than 80 inches a year. The southern 
 extension of this region in Argentina is an important 
 grain producing region, and because of its small 
 population, is one of the most important grain 
 exporting regions in the world. A northern extension 
 of this area covers Panama, Central America, and part 
 of Southern Mexico. 
 
 5. New Zealand and the eastern and southern 
 coasts of Australia make up the fifth area. Although 
 
A PICTURE OF THE GRAIN INDUSTRY 13 
 
 commerce, especially in dairy products. Taking 
 New Zealand and Australia together, and comparing 
 them with the nations of the world, they stand seventh 
 in butter production, fourth in butter exports, and 
 fifth in exports of cheese (1909-13 figures). 
 
 6. The sixth area of sufficient rainfall lies in 
 equatorial Africa, south of the great Sahara Desert. 
 The tropical climate of this region has hitherto 
 prevented the development of an important agriculture 
 here. A part of the area has an over-supply of rain. 
 
 7. The seventh rainfall area consists of a nar- 
 row strip of land along the western margin of North 
 America from Southern California to Alaska. A very 
 narrow strip occurs also along the southern part of 
 the coast of Chile in South America. 
 
 Relative Importance of the Seven Areas 
 
 Two of these seven areas (the African and the 
 South American) and part of a third (Asian) lie in the 
 tropics, and in parts of these sections rainfall is 
 .too heavy for the best development of agriculture and 
 the industries. Their possibilities are a matter 
 largely for the future, although enormous amounts of 
 human food and of useful fibres are obtained from 
 them. The grain of these regions is principally 
 rice. The possibilities in the way of the production 
 of sugar, cocoanuts, bananas, and numerous other 
 tropical fruits have hardly been touched. 
 
 The three areas lying in the north temperate 
 zone, and part of the southeastern Asian area, have 
 from time immemorial been the home of civilized man. 
 It is here that human population is largely concen- 
 trated, and both agriculture and the manufacturing 
 and transportation industries have had their greatest 
 development. 
 
 Regions of Dense Population 
 
 The human population of the world is largely con- 
 centrated in three of the great rainfall areas men- 
 
14 GRAIN LESSON 1 
 
 tioned above. By far the greatest number of people 
 live in the Asiatic rainfall area, in which there are 
 five more or less distinct centers of population, 
 namely, India, China, Japan, Korea (Chosen), and 
 Java. This is the great rice eating population of 
 the world. No bread is used by most of these people. 
 
 Europe, the World's Greatest Buying Area 
 
 The second center of world population is the 
 European rainfall area. Caucasian civilization 
 originated along the eastern edge of this area, and 
 has had its most marked development in the western 
 portion of the area. From this center it has radiated 
 to all parts of the world. The population of this 
 area far exceeds its food producing possibilities, 
 and so food and raw materials for the industries are 
 brought hither from all parts of the world. In fact, 
 the greater portion of world commerce consists in 
 transporting food and raw materials to this region 
 and carrying the products of industry from it to other 
 parts of the world. 
 
 Eastern North America, the World's Greatest Pro- 
 ducing Area 
 
 The third great center of population is the rain- 
 fall area of eastern North America. This region is 
 not so densely populated as the two mentioned previ- 
 ously, and has for more than two centuries been the 
 principal outlet for emigration from the other two 
 areas of dense population. 
 
 The expansion of agriculture in this region dur- 
 ing the past century has been one of the most remark- 
 able phenomena in the history of the human race. It 
 has far exceeded the growth in population in that 
 area, for which reason it became the most important 
 center in the world from which human food is exported. 
 Its cotton is also the most important source of fibre 
 in the world. But this agricultural expansion has 
 already reached the point where its rate is very 
 
A PICTURE OF THE GRAIN INDUSTRY 15 
 
 materially checked. At the same time, the population 
 goes on increasing, so that the surplus for shipment 
 to other parts of the world is diminishing, and in time 
 may largely disappear. 
 
 How Rainfall Influences Production 
 
 The rainfall regions along the western margin of 
 the American continents, particularly North America, 
 are new, and their possibilities as yet are hardly 
 touched. 
 
 The southern portion of the rainfall area of 
 eastern South America and all of the Australian and 
 New Zealand rainfall areas are important agricultural 
 regions with relatively small population and hence 
 are important regions for production of human food 
 for export. 
 
 It is thus seen that rainfall and other elements 
 of climate, particularly temperature, are at the 
 foundation of agriculture and industry and that the 
 distribution of rainfall and population over the 
 earth are dominant factors in determining the course 
 and character of world commerce. 
 
 Table I. Comparative Importance of Various Grains 
 
 The world's seven most important grains, in the 
 order of quantity produced, are: (based on 1909-13 
 figures) 
 
 1. Wheat 5. Rye 
 
 2. Corn 6. Barley 
 
 3. Rice 7. Flax 
 
 4. Oats 8. Buckwheat 
 
 This order is different, however, for the United 
 States, the order of production being as follows: 
 (based on 1909-13 figures) 
 
 1. Corn 5. Rye 
 
 2. Wheat 6. Rice 
 
 3. Oats 7. Buckwheat 
 
 4. Barley 8. Flax 
 
16 GRAIN LESSON 1 
 
 From the standpoint of the amount exported from 
 the United States, the order of amounts is as follows : 
 (based on 1909-13 figures) 
 
 1. Wheat 4. Oats 
 
 2. Corn 5. Rye 
 
 3. Barley 6. Rice 
 
 Part II. 
 WHEAT, THE WORLD'S MOST IMPORTANT BREAD CROP 
 
 There are three important wheat producing regions 
 in the Old World and three in the New World. 
 
 The most important of all, is the region extending 
 from southern Russia westward along the northern 
 border of the Caspian, Black, and Mediterranean Seas 
 to the Atlantic Ocean. It includes a small portion 
 of northern Africa and has an extension of consider- 
 able importance eastward into Siberia. 
 
 Western Europe the Biggest Producer, Yet the 
 Heaviest Buyer 
 
 More wheat is produced in this area than in any of 
 the other areas, but only the eastern half of it pro- 
 duces a surplus, the western half of this area being 
 the most important wheat importing region in the 
 world. It not only buys the wheat from the eastern 
 portion of this area, but it imports most of the 
 surplus from all the other important wheat areas in 
 the world. 
 
 The countries in this area that produce a surplus 
 of wheat (or rather did before the World War) are: 
 Russia, Roumania, Bulgaria, and Hungary. Other 
 important European wheat producing nations are: 
 France, Italy, Germany, Spain, and England. But all 
 of these, except Spain, are large importers, and 
 Spain imports a small quantity. Belgium and the 
 Netherlands also import most of the wheat their 
 enormous populations consume. The same is true of 
 Switzerland. 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
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18 GRAIN LESSON 1 
 
 India Produces the Third Most Wheat 
 
 The next most important Old World wheat pro- 
 ducing area is central and northwestern India. 
 India is the third most important wheat producing 
 country in the world. The population lives largely 
 on rice and a considerable proportion of the wheat 
 is exported. 
 
 Australia Exports Much Wheat 
 
 The third Old World wheat producing area is 
 Australia. Around the southeastern margin of this 
 island continent is a narrow strip of land eminently 
 adapted to wheat production. The population being 
 small, about 60% of the wheat produced is exported, 
 thus making Australia one of the important exporting 
 countries, although its production is only one- 
 eighth that of the United States. 
 
 There is a small amount of wheat produced in Japan 
 and Manchuria, but it is consumed locally, and there 
 is no important commerce in wheat between this region 
 and other parts of the world, although some flour and 
 wheat are imported from western North America. 
 
 Central North America, the World's Second Wheat 
 Area 
 
 In the New World, by far the most important wheat 
 producing area is in central North America along the 
 western margin of the eastern rainfall area of that 
 continent. This area extends northward into Canada, 
 southward into northern Texas, and in middle 
 latitude, eastward to the Atlantic Coast. 
 
 Next to the great European wheat area, this is the 
 most important in the world. As already stated, the 
 production is here greater than the needs of the 
 population, and much of the grain is exported, 
 although by far the greater quantity of it is simply 
 moved from the center of the continent to the region 
 immediately eastward. 
 
 The Columbia River Basin of the Pacific North- 
 west is another small but important wheat producing 
 
A PICTURE OF THE GRAIN INDUSTRY 19 
 
 region. Formerly, much wheat was produced in the 
 Willamette Valley of Oregon and in the central basin 
 of California, but the crop is less important there 
 now than it was a quarter of a century ago, largely 
 because of the development of more intensive forms of 
 agriculture. 
 
 Argentina Exports Over 60% of Her Wheat 
 
 The third of the American wheat producing areas is 
 in Argentina. While the amount of wheat produced 
 here is less than one-fourth of that produced in the 
 United States, the export of wheat is nearly equal to 
 that of the United States, constituting 60.5% of the 
 total production, while our exports (for 1909-13) 
 were only 14.3% of our production. 
 
 The United States Leads the World in Wheat 
 
 Producing and exporting more than any other 
 nation, (now that Russia is producing little) the 
 United States is easily the leader of the world in 
 wheat. It may be surprising to many to know that 
 wheat is not the largest crop in the United States, 
 however. It is exceeded in number of bushels pro- 
 duced by corn. 
 
 Practically all of the world's exported wheat is 
 sent to Europe, the largest amount being taken by the 
 United Kingdom. The second largest amount is im- 
 ported by Germany, the third largest by the Nether- 
 lands, and the fourth largest amount is taken by 
 Belgium. 
 
 So you see, America's principal export wheat 
 market is represented by the United Kingdom, Germany, 
 the Netherlands, and Belgium. There are some other 
 countries that buy from us, but they also are largely 
 in western Europe. 
 
 Our present competition in selling to Europe is 
 mainly from Argentina, Canada, and India. 
 
20 
 
 GRAIN LESSON 1 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
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22 
 
 GRAIN LESSON 1 
 
 How the World War Affected the Commerce in Wheat 
 
 The principal effect of the European War upon the 
 wheat industry was the entire elimination of Russia 
 from world commerce. During the period immediately 
 preceding the war, Russia and Siberia together ex- 
 ported an annual average of 162 million bushels of 
 wheat, 31% of their entire production. There was 
 also a very large decrease in production in Roumania 
 and in France, and a smaller decrease in Hungary, 
 Bulgaria, and Italy. England greatly increased her 
 production of wheat, but is now back practically to 
 normal production. 
 
 In time, all these nations, with the possible 
 exception of Russia, should resume their normal rela- 
 tion to the wheat industry. In fact, most of them 
 have already largely done so. The future of the 
 Russian situation is so uncertain that discussion of 
 it would not be fruitful. It is possible that for a 
 generation or more, Russia may remain segregated from 
 the rest of the world's commerce, although there are 
 also possibilities that she may, within that time, 
 resume production and export. 
 
 Table II. Rank of Nations in Wheat (Based on 
 1909-13 figures) 
 
 Production Exports Imports 
 
 1. United States 1, Russia (pre- 1. United King- 
 
 2. Russia (pre- war) dom 
 
 war) 2. United States 2. Germany 
 
 3. British India 3. Argentina 3. Netherlands 
 
 4. France 4. Canada 4. Belgium 
 
 5. Austria-Hun- 5. Netherlands 
 
 gary 6. Roumania 
 
 8 . Canada 
 
 7. India 
 
 Competition With North American Wheat Will 
 Decrease 
 
 Practically all but two of the great wheat pro- 
 ducing areas of the world have been developed approxi- 
 
A PICTURE OF THE GRAIN INDUSTRY 23 
 
 mately to the extent of their possibilities. These 
 two are Canada and the United States. (This leaves 
 Russia out of consideration.) 
 
 Argentina in 1910-11 grew 14,514,000 acres of 
 wheat. Her crop for 1920-21 was 14,817,000 acres. 
 Her maximum, however, during the World War was 
 17,875,000 acres. The production of wheat in 
 Argentina will probably not increase materially in 
 the future, but the population there is increasing 
 rapidly, so that the export of wheat from that country 
 will probably decrease rather than increase during 
 the next generation. 
 
 The wheat area in Australia in 1910-11 was 
 7,372,000 acres; in 1919-20, it was 6,396,000* The 
 maximum acreage during the World War was 12,845,00 
 acres. 
 
 There is little possibility of any further great 
 extension of the wheat area in Australia and, as the 
 population there is increasing, the export of wheat 
 from Australia should be a less important factor in 
 world commerce in future than it has been in the past. 
 
 Canada Destined to Lead the World in Wheat 
 
 The story of Canada is quite different. The 
 average acreage of wheat in Canada in the years 
 1907-10 was 7,420,000. In 1911-15 it was 11,700,000 
 and in 1916-20, 16,970,000. It is claimed by some 
 enthusiastic agricultural authorities in Canada that 
 that country has 250 million acres of possible wheat 
 land not yet put into cultivation. This is equal to 
 the present total wheat acreage of the world. 
 
 It is very doubtful whether this enthusiastic 
 claim is fully justified, but even if there is one- 
 fifth of this area still available, there is little 
 possibility of a shortage in wheat production for one 
 or two generations to come. 
 
24 GRAIN LESSON 1 
 
 How the United States Has Increased in Wheat 
 Acreage 
 
 The following table shows the gradual increase in 
 wheat acreage in the United States since 1866. There 
 is only one check in the gradual and rapid increase 
 and that occurred during the period of low prices in 
 the latter part of the eighties. 
 
 During the World War, under the influence of 
 patriotic propaganda, the wheat acreage in this 
 country rose in 1919 to the unprecedented figure of 
 75,694,000 acres. This great increase unbalanced 
 the agriculture of the country very seriously and we 
 have now returned approximately to the normal 
 acreage for our present period of development. 
 
 Table III. WHEAT ACREAGE IN THE UNITED STATES 
 5-YEAR ANNUAL AVERAGES 
 
 Periods 
 1866 - 1870 
 1871 - 1875 
 1876 - 1880 
 1881 - 1885 
 1886 - 1890 
 1891 - 1895 
 1896 - 1900 
 1901 - 1905 
 1906 - 1910 
 1911 - 1915 
 1916 - 1920 
 
 Thousands of Acres 
 18,076 
 22,864 
 31,886 
 36,979 
 35,882 
 39,117 
 48,989 
 50,194 
 45,766 
 51,910 
 58,685 
 
 It is not possible to say just what the future 
 wheat acreage of the country may be. The figures in 
 the table, as they stand, do not indicate the near 
 approach of a check in the increase of acreage, yet 
 well informed agriculturists are of the opinion that 
 we are approaching an era when this expansion of acre- 
 age can not continue, at least at its present rate. 
 
A PICTURE OF THE GRAIN INDUSTRY 25 
 
 W hy Low Prices May Be Expected for Wheat 
 
 Certain possibilities of acreage expansion for 
 wheat in Canada, and the probable possibility of con- 
 siderable further expansion in this country, justify 
 the assertion that for a good many years to come, the 
 world's possibilities of wheat production will 
 exceed the world's requirements for this cereal. We 
 may, therefore, expect in the future occasional over- 
 production and low prices for wheat. 
 
 Fluctuation in production of wheat is accentu- 
 ated by the fact that approximately one-half of the 
 wheat area of the world is grown with less than 30 
 inches of rainfall. In all regions with rainfall so 
 low as this, periods of exceptionally light rainfall 
 will occasionally reduce production very materi- 
 ally. Therefore, we may expect to fluctuate be- 
 tween over-production and under-production of 
 wheat for many years to come. 
 
 Where Wheat Is Grow n in the United States 
 
 There is a small area in western New York which has 
 always been an important wheat producing region 
 because the soils of that region are eminently adapted 
 to this crop. 
 
 To the south of this in Pennsylvania, New Jersey, 
 Delaware, Maryland, and Virginia, is another region 
 where wheat has always been, and is yet, an important 
 crop. Here, again, we have good wheat soils and very 
 excellent climate for winter wheat, except that the 
 rainfall is rather heavy. In spite of the develop- 
 ment of more intensive farming near the great cities 
 of the East , wheat has retained an important place in 
 the agriculture of this region. 
 
 The next wheat area westward covers Ohio, In- 
 diana, and Southern Michigan, with outlying districts 
 in Kentucky and Tennessee. The climate is here 
 favorable to winter wheat with the exception of the 
 last two mentioned states where it is rather warm for 
 
26 
 
 GRAIN LESSON 1 
 
 this crop. The crop fits in well in the rotation 
 practiced and wheat has been an important crop here 
 since transportation facilities first became avail- 
 able. 
 
 Fig. 4. THE STATES THAT BUY AND SELL WHEAT 
 
 Compare this map with Figure 4, and you will see that although 
 Illinois is second in production of wheat, she does not produce enough 
 to meet her own needs. The same thing is true of Ohio 
 
 The Central States Grow Winter Wheat 
 
 We find a large acreage of wheat in western Illi- 
 nois and adjacent parts of other states. If the 
 soils of northern Illinois and Iowa were well 
 adapted to winter wheat, it seems certain that this 
 crop would occupy a much more important place than it 
 does in the local agriculture. 
 
 An extension of the Illinois wheat area runs up 
 through the Missouri counties flanking the Missouri 
 River. The loess soils along that river are pecu- 
 liarly adapted to wheat. 
 
 The Heart of Winter Wheat Production 
 
 The greatest winter wheat area extends from east 
 central Nebraska southward through central Kansas, 
 western Oklahoma, overlapping to a slight extent 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
 27 
 
 Fig. 5. THE PRINCIPAL WHEAT PRODUCING STATES 
 Each dot represents the production of 200,000 bushels; the numbers 
 in the states indicate the rank of states in order of production. Compare 
 this map with Figure 5 
 
28 GRAIN LESSON 1 
 
 into northern Texas. Wheat is a dominant crop here 
 largely because the rainfall is somewhat light for 
 corn. The relatively large acreage of oats in this 
 section does not represent commercial production. 
 The oats are needed as a supply crop because of the 
 relatively small acreage of corn. 
 
 The One Great Spring Wheat Section 
 
 Passing now to the spring wheat country, we find 
 the largest and most important spring wheat region in 
 America in south central Minnesota, extending north- 
 westward, taking in eastern South Dakota, western 
 Minnesota, and practically the whole of North Dakota, 
 with its greatest development in the Red River Val- 
 ley of North Dakota. The climate here is eminently 
 adapted to spring wheat. Oats are at home and are 
 grown extensively as a supply crop, but most of this 
 region is too far from market for oats as a commercial 
 crop. Flax is an important crop here, as are also 
 barley and rye, for reasons that will be mentioned 
 later. 
 
 Finally, we have the limited but important wheat 
 growing region of the Upper Columbia Basin in the 
 Pacific Northwest. About two-thirds of the wheat in 
 this area is fall sown; the remainder being sown in 
 the spring. 
 
 Part III. 
 
 THE UNITED STATES LEADS THE WORLD IN CORN 
 
 There are four important corn growing regions in 
 the world, and a few other regions where the crop is of 
 some importance. First, and by far the greatest, is 
 the central and eastern portion of the United States. 
 This region produces 70% of the entire corn crop of 
 the world. We export only 1.6% of our corn crop, and 
 that goes chiefly to Europe, as do the corn exports 
 of practically all other countries. 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
 29 
 
 Table IV. Rank of Nations in Corn (Based on 1909- 
 
 13 Figures) 
 Production 
 
 1. United States 
 
 2. Austria-Hun- 
 
 gary 
 
 3. Argentina 
 
 4. Mexico 
 
 5. Roumania 
 
 Export 
 
 1. Argentina 
 
 2. United States 
 
 3. Roumania 
 
 Imports 
 
 1. United King- 
 
 dom 
 
 2. Germany 
 
 3. Netherlands 
 
 4. Belgium 
 
 Most of Our Corn Is Fed to Live Stock 
 
 The great bulk of our corn crop is condensed into 
 animal products on the farms where the corn is grown. 
 About 85% of our crop is used in this manner. Only 
 18% of the crop ever enters commerce as corn, and of 
 this, a large proportion is consumed by farm animals. 
 
 FED TO CATTLE, 
 
 ON FARMS 
 
 15% 
 
 AVERAGE PRODUCTION * 
 
 (1912- 1921) 
 
 2,816,672.000 BUSHELS 
 
 Fig. 6. WHY WE EXPORT LITTLE CORN 
 From this chart, you will see that most of the corn we produce 
 is fed on farms. Our exports amount to ony 1.5% 
 
 Ea stern Europe Is Second in Production 
 
 The second most important corn region lies to the 
 north and, west of the Black Sea and along the northern 
 border of the Mediterranean Sea. In Europe, Hun- 
 gary, Italy, Roumania, and Russia are the principal 
 
30 
 
 GRAIN LESSON 1 
 
A PICTURE OF THE GRAIN INDUSTRY 31 
 
 corn producers. Hungary and Italy import corn, but 
 Roumania and Russia export considerable quantities 
 of it. This is mainly because the standard of living 
 of laborers in these countries does not permit them 
 to eat much meat. The other nations of Europe are all 
 importers of corn. 
 
 A rgentina Is Our Biggest Competitor in Exporting 
 Corn 
 
 The third corn area is Argentina. The produc- 
 tion of corn in that country is small, averaging 
 175 million bushels for the five year period from 
 1909-13; but the population is small, which permits 
 the exportation of 66% of the total production. 
 Argentina exports more corn than any other nation. 
 This exportation to Europe, and occasionally to the 
 United States, is made possible by cheap water trans- 
 portation and the fact that the corn in Argentina is 
 grown within a short distance of the point of export. 
 
 CORN PRODUCTION AND EXPORTS OF 
 
 THE UNITED STATES AND ARGENTINA 
 
 YEARLY AVERAGE 1900-1920. 
 
 UNITEO STATES 
 
 □□□□annnnnnnana 
 QaQnaaoaannnnana 
 nannnnnnnnnnnnnn 
 Qaaan 
 
 Da 
 
 Fig. 8 WHY ARGENTINA OUTSTRIPS US IN CORN EXPORTS 
 Although we produce many times as much corn as Argentina, we 
 use so much more that our exports (the black bag) are much less than 
 those of the South American country 
 
 India a Big Producer, But Not an Exporter 
 
 Next in order of corn production is India, the 
 average crop for that country for 1909-13 being 87 
 
32 
 
 GRAIN LESSON 1 
 
 million bushels. This corn is practically all con- 
 sumed locally. India has twice as many cattle as the 
 United States, and more than twice as many human 
 beings, so that that country has need for all its corn. 
 
 Small quantities of corn are grown in south- 
 eastern and eastern Africa, and along the eastern 
 coast of Australia. Small areas in Egypt and along 
 the northern coast of Africa may be considered as 
 outlyers of the southern European corn region. The 
 only semi-permanent effect of the World War on the 
 commercial corn industry was the elimination of 
 Russia as a factor. 
 
 DESTINATION OF 
 CORN EXPORTS 
 
 AVERAGE 1905-1914 
 
 Fig. 9. U. S. EXPORTS 
 The proportion of corn exports purchased by various countries is 
 here graphically shown 
 
 Where Corn Is Grown in the United States 
 
 Corn is limited in its distribution northward by 
 temperature and by length of growing season, the line 
 of 66° mean summer temperature corresponding very 
 closely with the northern edge of the corn growing 
 region. 
 
 Westward, the acreage of corn is largely limited 
 by rainfall, there being very little corn west of 
 where the mean summer rainfall is eight inches. Most 
 irrigated lands are at too high an altitude for corn, 
 while in the Southwest, alfalfa is a more efficient 
 
A PICTURE OF THE GRAIN INDUSTRY 33 
 
 producer of forage, and this occupies the major por- 
 tion of the acreage that might otherwise be devoted 
 to corn. 
 
 Throughout the territory to the eastward of the 
 line of eight inches summer rainfall and south of the 
 line of 66° summer temperature, corn is grown almost 
 universally, the heaviest acreage being found in 
 Illinois, Iowa, southeastern South Dakota, eastern 
 Nebraska, central and eastern Kansas, central 
 Oklahoma, western Ohio, and central Indiana. 
 
 In other portions of the corn territory, corn 
 frequently occupies a relatively larger proportion 
 of the total crop area than it does in these regions 
 of denser distribution. Throughout this territory 
 corn is mainly a supply crop, being grown for the 
 animals kept on the farm and to supply local markets. 
 
 Which Farmers Sell Corn? 
 
 The only sections of the country in which any 
 considerable proportion of the crop is marketed is 
 east central Illinois, near the great corn market of 
 Chicago, and in northwestern Iowa and adjoining 
 parts of other states. Sales in other parts of the 
 country are mainly for local markets. 
 
 The Fluctuation in the Price of Corn 
 
 From 1866 to 1886 there was a rapid increase in 
 corn acreage in this country. Settlement at that 
 time was going on in the western Corn Belt states. 
 But this was a period of falling prices. In 1885 the 
 average price of corn on the farm in December, was 
 only 33 cents, and this fall in price continued until 
 1896. From 1886 to 1894 the low price of corn pre- 
 vented further extension of acreage of this crop. 
 
 ' There was, in fact, a large increase in corn acre- 
 age in the western portion of the Corn Belt, but there 
 was a corresponding decrease in the eastern portion. 
 Farmers found it more advantageous to devote their 
 land to other crops. When the great panic of the 
 
34 
 
 GRAIN LESSON 1 
 
 Fig. 10. RANK OF STATES IN CORN PRODUCTION 
 Each dot represents the production of 500,000 bushels; the number 
 in the states indicates the order of rank in total production. Compare 
 this with Figure 11 
 
 "' 
 
 
 
 
 
 
 CORN SOLD OR TO BE SOLD 
 1919 
 
 EACH DOT REPRESENTS 
 500,000 BUSHELS 
 
 
 
 CORHSOLDOR TO BE SOLD ^ Lr— -S 
 
 AND PES CENT OF TOTAL CROP, 1919 
 
 J ^^^~»V 
 
 , ls~^c-~— — \-&&^ 
 
 ■••iiJiS^T! — 1 ( 
 
 r~ "Mm-- si 
 
 
 \ ^_^ «^i~~»^ • <s? 
 
 
 CORN SOLO OK 10 
 B£ SOLD— Coal. 
 
 
 SUTI 
 
 bosuns 
 
 ,',:', 
 
 Ed 
 Sj. 
 ft . 
 Colo 
 Ki 
 CiH 
 fa.. 
 Ah. 
 
 SJB9J505 
 
 5,067.706 
 4,184,561 
 3,973,23) 
 3^37.481 
 2J95.624 
 2.170.411 
 I&4.5II 
 1 .0S.903 
 
 13.161.725 
 
 « 
 
 24.0 
 57 
 94 
 
 32.0 
 5J 
 
 62% 
 361 
 
 39: 
 i; 
 
 «t»te 
 
 BUSHELS 
 
 :::, 
 
 STATE 
 
 BOSKETS 
 
 : u :. 
 
 HI... 
 
 nZ ! 
 
 Ind .. 
 
 Olio . 
 S.D.H 
 
 117.260,785 
 106,347,801 
 48,297,859 
 26.862.498 
 24,173.497 
 20.016,300 
 
 41 1 
 
 28.7 
 30 1 
 16.9 
 16.1 
 290 
 
 Mo .. 
 
 Tt„.! 
 Pa... 
 
 Okb . 
 
 18,016,300 
 14.203.S7S 
 13,125,467 
 
 IOJ69.06S 
 10.2S9.634 
 8,609,269 
 
 12.3 
 23.8 
 15.7 
 9.6 
 1K2 
 16 
 
 u s 
 
 461,997,131 
 
 I9« 
 
 Fig. 11. ONLY A SMALL AMOUNT OF CORN IS SOLD 
 By comparing this map with Figure 10, you will see that much 
 more corn is produced than sold. Each dot on this map represents the 
 same number of bushels as in Figure 10 
 
A PICTURE OF THE GRAIN INDUSTRY 35 
 
 nineties occurred, this advantage disappeared and 
 farmers went back to normal acreage of corn in 1895. 
 From that time onward, the price of corn increased 
 rather rapidly and the increase in acreage was re- 
 sumed, although at a lower rate than had prevailed in 
 the two decades following the Civil War, 
 
 This increase continued to 1912, since which time 
 there has been a slight but rather steady decrease in 
 corn acreage. The large acreage in 1917 was due to the 
 fact that there was an abandonment of 31% of the total 
 winter wheat acreage from winter killing, a consider- 
 able proportion of the land thus vacated being planted 
 in corn. 
 
 Why Corn Growing Is Likely to be More Profitable 
 
 The fact that for the past 10 years corn acreage 
 has remained steady or has decreased slightly, in the 
 face of continually rising prices for corn, is a 
 matter of great significance for corn growers in the 
 United States. We have reached the approximate limit 
 of easily available corn acreage ; but the demand for 
 corn and corn products, including beef and pork, goes 
 on increasing as population grows. 
 
 It appears safe, therefore, to assume that, 
 except for times of financial depression, corn 
 must be a more profitable crop in the future than 
 it has ever been in the past. And this can not 
 be said with certainty of any other important 
 crop grown in the United States. The corn grower 
 is, therefore, in an exceptionally strong position. 
 
 What effect the European corn borer, which, it 
 appears certain, will invade the entire corn country 
 in time, may have upon the profitableness of this 
 crop can not, of course, be ascertained in advance. 
 Indications are, however, that injury from this pest 
 will not be very serious, though its presence will 
 undoubtedly call for some modification in farm prac- 
 tice, particularly in the matter of leaving corn 
 stalks in the field all winter. 
 
36 GRAIN LESSON 1 
 
 Part IV. 
 
 THE UNITED STATES LEADS ALL NATIONS IN OATS 
 
 There are two great oat growing regions in the 
 Northern Hemisphere, and one small and two very small 
 ones in the Southern Hemisphere. The most important 
 oat region in the world is in Europe, and lies along 
 the northern edge of the European wheat growing 
 region. The crop has its highest development in 
 central Russia, Roumania, Poland, Austria-Hungary, 
 
 Germany, Denmark, the Netherlands, Belgium, northern 
 France, and the British Isles. The only countries in 
 this area that grow more oats than are needed for 
 home use are Russia and Roumania. The World War 
 eliminated Russia from world commerce. It reduced 
 production in Roumania, but that country will doubt- 
 less recover. The United States has the largest 
 acreage of any one country, f ollowed by Russia, 
 Germany, Canada, France, and Austria-Hungary. 
 
 The second great oat area lies along the northern 
 edge of the North American wheat growing region in 
 the United States and Canada, both of which countries 
 export small quantities of this grain. 
 
 South America Now the Biggest Exporter of Oats 
 In the Southern Hemisphere, Argentina is the 
 principal producer of oats, although the production 
 of oats there is only 52 million bushels as compared 
 with 1,131 millions in the United States. The small 
 population of Argentina, and cheap water transporta- 
 tion, enables that country to export practically her 
 entire crop. This places her in the position of the 
 world's largest oats exporting nation. 
 
 Very small acreages of oats are found in south- 
 eastern Africa, southeastern Australia, and in New 
 Zealand. In general, the oat crop of the world, at 
 least in the Northern Hemisphere, is grown under 
 climatic conditions slightly cooler than those best 
 adapted to wheat and corn. 
 
A PICTURE OF THE GRAIN INDUSTRY 
 
 37 
 
 It will be observed that very few countries 
 export any of this crop. Since the elimination of 
 Russia, Argentina stands first in oat exports, the 
 average for the years 1911-13 being slightly greater 
 than the average total production for the years 
 1909-13. All of the importing nations are in Europe. 
 England, France, Switzerland, Germany, Netherlands, 
 Italy, and Belgium are the leading importing nations. 
 
 Table V. Rank of Nations in Oats (Based on 1909- 
 13 figures) 
 
 Production 
 
 1. United States 
 
 2. Russia (pre- 
 
 war) 
 
 3 . Germany 
 
 4. Canada 
 
 5. France 
 
 6. Austria-Hun- 
 
 gary 
 
 Exports 
 
 I mports 
 
 1. Russia (pre- 1. United King- 
 
 war) 
 
 2. Argentina 
 
 3. Netherlands 
 
 4. Germany 
 
 5. Canada 
 
 6. United States 
 
 dom 
 
 2. Netherlands 
 
 3. Germany 
 
 4. France 
 
 O nly Four States of the United States Grow Oats 
 Extensively for Market 
 
 While oats are widely grown in the United States, 
 they are grown extensively for market only in 
 Minnesota, Wisconsin, Illinois, and Iowa. The large 
 acreage of oats in those states is due in part to the 
 poor adaptability of some of the soil to wheat and its 
 excellent adaptability to oats, but more particularly 
 to the presence of great market centers. 
 
 Where O ats Yield the Best 
 
 The fact that the western Mountain states produce 
 much larger yields of oats of much greater weight 
 per bushel than other sections of the country, 
 would appear to justify the statement that manufac- 
 turers of oatmeal might find it advantageous to locate 
 their mills in that region. They could get their 
 grains more cheaply, of better quality, and the manu- 
 factured product would be sufficiently high in price 
 
38 GRAIN LESSON 1 
 
 to make the cost of transportation to other sections 
 of the country a negligible factor. The only diffi- 
 culty at present apparently is the possible high cost 
 of labor, machinery, building materials, etc. 
 
 Part V. 
 W HERE BARLEY IS GROWN 
 
 There are three important barley producing 
 regions in the Old World. The most important of 
 these consists of southern and western Europe, and 
 adjacent portions of the continent of Africa. The 
 second is in northern India. The third is Japan. 
 
 In the New World, barley is grown rather exten- 
 sively along the northern edge of the Corn Belt, par- 
 ticularly in the drier portions to the west ; and in 
 the Mountain and Pacific Coast states. There is also 
 a small production in Argentina and Chile. 
 
 Barley has never been an important commercial 
 grain in this country aside from its use by the 
 brewing industry. Since the prohibition amendment 
 to the Constitution, its use is limited practically 
 to feeding live stock, in which use it is a substitute 
 for corn. 
 
 Table VI. Rank of Nations in Barley (Based on 
 
 1909-15 figures) 
 Production 
 
 1. Russia 
 
 2. United States 
 
 3 . Germany 
 
 4. Austria-Hun- 
 
 gary 
 
 5 . Japan 
 
 6. Spain 
 
 Corn, oats, and barley are widely substituted 
 for each other in growing or maintenance rations. 
 Because of this, the prices of these three cereals 
 tend to fluctuate together. 
 
 Exports 
 
 Imports 
 
 1. Russia 
 
 1. Germany 
 
 2. Netherlands 
 
 2. United King- 
 
 3. Austria-Hun- 
 
 3. Netherlands 
 
 gary 
 
 dom 
 
 4. India 
 
 4. Belgium 
 
 5. Roumania 
 
 
 6. United States 
 
 
A PICTURE OF THE GRAIN INDUSTRY 39 
 
 Barley May Grow in Importance 
 
 In the greater portion of the oats producing 
 territory of this country, barley produces more feed 
 to the acre than do oats. It is probable, therefore, 
 that as the shortage of corn begins to be felt, the 
 acreage of barley in this country will increase and 
 that it will ultimately become one of our major crops. 
 
 Why Barley Is Such an Important Crop 
 
 In Farmers' Bulletin, 968, H. V. Harlin says: 
 "Barley should be more widely grov/n in the 
 Northern and Western States. It is a protection to 
 our grain supply, as it produces a good, non- 
 glutinous flour and can be milled by wheat mills with 
 little change of machinery. 
 
 "It is an excellent grain feed for stock, being 
 almost the equal of corn. It, however, competes with 
 corn in few places, as it is mostly grown outside the 
 limits of profitable corn culture. It produces more 
 pounds to the acre than oats or wheat. If necessary, 
 it can be seeded later than spring wheat, and hence, 
 interferes little with the wheat acreage in the 
 spring wheat region. It supplies the needed grain 
 feed necessary for the increase of live stock, which 
 sometimes must come with diversified farming in the 
 areas where grain farming is now the only enter- 
 prise. 
 
 "The best lands for barley are well-drained 
 soils that are not sandy. The best returns are 
 obtained from early seeding. The best methods of 
 preparation are fall plowing in the humid-spring 
 region; disked corn ground on the great plains; and 
 summer fallow in sections where the crop is winter 
 seeded. The grain should not be thrashed too close, 
 as broken kernels lower the market value. 
 
 "The best-yielding varieties are Tennessee 
 Winter in the humid-winter region, Manchuria and 
 Oderbrucker in the humid-spring region, and Coast 
 Hannchen, Mariout, White Smyrna, Chevalier, and 
 Trebia in the arid region." 
 
 Germany, the Greatest Importer of Barley 
 
 Russia has, in the past, been the largest 
 exporter, and Germany the largest importer of barley. 
 The World War eliminated Russia. There is no other 
 
40 GRAIN LESSON 1 
 
 important exporting nation, although India, 
 Roumania, and Austria-Hungary in the years 1909-13 
 exported an annual average of 17 million bushels 
 each. Aside from Germany, the most important 
 importing nations are: England, Belgium, the 
 Netherlands, and France. 
 
 It is of interest to note that Japan is a very 
 large producer of barley, standing fourth in the list 
 of nations, not counting Russia. But the barley 
 produced in Japan does not enter world commerce, nor 
 does this nation import or export any considerable 
 quantity. 
 
 Part VI. 
 
 WHY RYE IS VALUABLE IN SOME SECTIONS 
 
 Rye has three characteristics which render the 
 crop of great value in certain sections of the world. 
 In the first place, it is the hardiest of the winter 
 cereals and can thus be grown farther north than any 
 other of them. In the second place, it is indifferent 
 to a wide range of rainfall, thriving under condi- 
 tions either too wet or too dry for wheat. In the 
 third place, rye is pre-eminently adapted to light, 
 sandy soils, and to poor soils generally. 
 
 The grain of rye is not so desirable as wheat for 
 bread making purposes, and rye does not compete with 
 wheat ordinarily except under conditions where one 
 or more of the above-mentioned characteristics of rye 
 give it a marked advantage over wheat. In feeding 
 value, it is similar to barley and is relished by all 
 farm animals. 
 
 Rye is valuable as a pasture plant for early 
 spring. Another very important use to which it is 
 put in this country is as a green manure crop, 
 particularly on light soils in fruit and vegetable 
 growing regions in the East. It hardly has a rival 
 in the northeastern quarter of the United States as a 
 winter crop for this purpose. 
 
A PICTURE OF THE GRAIN INDUSTRY 41 
 
 Where Rye Is Grown in the United States 
 
 The principal centers of rye production in the 
 United States are eastern New York adjacent to the 
 western boundary of Massachusetts, where there is an 
 extensive area in which rye is very commonly grown. 
 Considerable rye is also grown in the wheat growing 
 country of western New York. Central and north- 
 western New Jersey and eastern and southern Penn- 
 sylvania constitute an important rye growing region, 
 particularly the region about Trenton, N. J. From 
 here, the crop extends down the valleys of the 
 Appalachian Mountain system into northern Georgia. 
 
 Michigan Leads in Rye Acreage 
 
 Rye is an important winter crop throughout 
 nearly the whole of the Southern Peninsula of 
 Michigan. It is somewhat less important in northern 
 Indiana, in western Ohio, north central Kentucky, 
 and central Tennessee. 
 
 Michigan stands first in rye acreage, with 
 660,000 acres harvested in 1920. Wisconsin and 
 Minnesota are practically tied for second place with 
 about 480,000 acres each. Indiana is third, with 
 310,000 acres. 
 
 In Wisconsin, rye growing is concentrated more or 
 less in three localities, one being along the eastern 
 margin adjacent to Lake Michigan; another being in 
 the south central portion of the state ; the third, 
 that section of the state adjacent to Minneapolis 
 and St. Paul. Around these two latter cities there is 
 a very extensive development of rye culture in both 
 Minnesota and Wisconsin. 
 
 From there the crop extends westward and north- 
 westward into the Red River Valley and westward to 
 the center of North Dakota. Another branch extends 
 through southeastern South Dakota, central and 
 western Nebraska, into eastern Colorado and western 
 Kansas. 
 
 Smaller areas of rye are found in most of the 
 Mountain states. 
 
42 GRAIN LESSON 1 
 
 In the main, the crop is distinctly a northern 
 crop. Its absence from New England is to be attrib- 
 uted to economic conditions. In Pennsylvania, New 
 Jersey, Michigan, Wisconsin, and Minnesota, where 
 the largest development of the crop occurs, its 
 presence is largely attributable to the fact that 
 there are considerable areas of sandy soils in those 
 states, more suitable to rye than to wheat. 
 
 Like corn, oats, and barley, rye is a low-priced 
 cereal, for which reason it does not constitute a 
 very important commodity in world commerce. 
 
 Rye More Important in Europe 
 
 Rye is a much more important crop in Europe than 
 it is elsewhere in the world, particularly in Russia, 
 Poland, Germany, and Austria-Hungary. Russia before 
 the World War produced more than 20 times as much rye 
 as does the United States, the average for the years 
 1909-13 being 791 million bushels. For the same 
 period, the average crop of rye in Germany was 445 
 million bushels; in Austria-Hungary, 164 million; 
 and in Poland, 90 million. In general, the greatest 
 development of the rye crop in Europe lies to the north 
 of the great wheat growing region, which, in turn, 
 lies slightly to the northward of the corn growing 
 region, although overlapping it considerably. For 
 the most part, the rye and oat growing regions of 
 Europe are nearly identical. 
 
 Table VII. Rank of Nations in Rye (Based on 
 1909-13 figures) 
 
 Production Exports Imports 
 
 1. Russia 1. Germany 1. Netherlands 
 
 2. Germany 2. Russia 2. Germany 
 
 3. Austria-Hun- 3. Netherlands 3. Finland 
 
 gary 4. Roumania 4. Norway 
 
 4. Poland 5. Bulgaria 5. Denmark 
 
 5. France 6. Belgium 6. Belgium 
 
 6. United States 7. United States 7. Russia 
 
 7. Spain 
 
A PICTURE OF THE GRAIN INDUSTRY 43 
 
 Two Nations Grow Most of the Export Rye 
 
 Only two nations export any material quantity of 
 rye, Germany and Russia. Roumania, Canada, and the 
 United States are the only other nations that export 
 as much as a million bushels. The imports of rye are 
 confined to those nations in Europe that do not pro- 
 duce enough for their own needs. 
 
 The World War practically stopped the export of 
 rye. Germany will doubtless return to her former 
 commanding position in respect to this crop. The 
 Russian situation is not so hopeful. 
 
 Part VII. 
 NOT MUCH BUCKWHEAT MARKETED 
 
 The most distinctive character of the buckwheat 
 crop is its ability to thrive on poor land. The great 
 bulk of the crop produced in this country is found on 
 the poor uplands in the hill country of New York and 
 Pennsylvania. The acreage of the crop in the United 
 States has changed very little in the last 40 years. 
 Except in the two states mentioned, it is quite 
 unimportant as a market commodity. 
 
 Part VIII. 
 FLAX AS A MARKET CROP 
 
 Flax produces two valuable products. By far the 
 larger part of the world's acreage is grown for the 
 seed. But in some parts of the world, particularly 
 in Asia and Europe, it is grown for the fibre which 
 occurs in the bark of the stem. In the United States, 
 it is grown for seed because the production of flax 
 fibre is practicable only where hand labor is 
 abundant and cheap. 
 
44 
 
 GRAIN LESSON 1 
 
 Table VIII. Rank of Nations in Flax (Based on 
 
 1909-13 figures) 
 
 Production 
 
 For Seed 
 
 For Fibre 
 
 Exports 
 
 1. Argentina 
 
 2. India 
 3 • Canada 
 4. Russia 
 
 1. Argentina 1. Russia 
 
 2. India 2. Austria-Hun- 
 
 3. Russia gary 
 
 4. United States 3. Belgium 
 
 5. Canada 4. Poland 
 
 5. France 
 
 6 . Japan 
 
 The fibre is used in making linen cloth, the word 
 linen being derived from the Latin word for flax, 
 "Linum." The seed is valuable chiefly for its high 
 content (30% or more) of linseed oil, which is one of 
 the best of the drying oils. Its principal use is in 
 the manufacture of paints, varnishes, linoleum, etc. 
 The cake left when the oil is extracted, is an 
 exceedingly rich nitrogenous feeding stuff greatly 
 relished particularly by cattle, and it is widely 
 used as a means of balancing the dairy ration. Small 
 quantities of it are also fed to sheep, hogs, and 
 horses. 
 
 The flaxseed crop illustrates well the economic 
 position of a commodity which has only one use and for 
 which there is no satisfactory complete substitute. 
 Attention has already been called to the fact that 
 the prices of corn, oats, and barley are always closely 
 related because any one of these grains may be sub- 
 stituted for the other within wide limits, the 
 cheaper one having the preference. This prevents 
 the price of any one of these grains from rising or 
 falling much above or below the comparative level of 
 the others. 
 
 Why the Price of Flaxseed Fluctuates Violently 
 
 This is not the case with flaxseed. When more 
 flaxseed is produced than is sufficient to meet the 
 demand for linseed oil, the price falls very rapidly, 
 
A PICTURE OF THE GRAIN INDUSTRY 45 
 
 and even the resulting low price does not greatly 
 stimulate the use of the commodity. 
 
 On the other hand, if the supply is not sufficient 
 to meet the demand, substitutes are largely lacking, 
 and the price rises to very high levels. Moreover, 
 these high prices do not materially reduce the demand 
 for the seed. 
 
 There are certain oils that, within narrow 
 limits, can be substituted for linseed oil in most of 
 its uses. They are the semi-drying oils, the prin- 
 cipal of which are soy bean oil and sunflower seed 
 oil. Twenty to 30% of soy bean oil may be substi- 
 tuted for linseed oil in the manufacture of paints, 
 varnishes, etc., without materially reducing the 
 quality of the product. Somewhat smaller quantities 
 of sunflower seed oil may also be used in a similar 
 manner. But the amount of substitution thus possible 
 is not sufficient to affect materially the influence 
 of supply and demand on the price of flaxseed. 
 
 There is thus very great uncertainty in the flax 
 crop. In 1905 the average farm price of flaxseed on 
 farms in the United States on December 1, was 84.4 
 cents, the corresponding price in 1910 was $2,317. 
 In 1919 it rose to $4.38, while a year later it had 
 fallen back to $1.76. 
 
 Table IX. 
 
 UNITED 
 
 STATES : 
 
 PRODUCTION AND PRICE 
 
 Year 
 
 
 Bushels 
 
 
 Price 
 
 1902 
 
 
 29,285 
 
 
 $1.05 
 
 1905 
 
 
 28,478 
 
 
 .84 
 
 1910 
 
 
 12,718 
 
 
 2.31 
 
 1912 
 
 
 28,073 
 
 
 1.14 
 
 1915 
 
 
 14,030 
 
 
 1.74 
 
 1919 
 
 
 7,661 
 
 
 4.38 
 
 1920 
 
 
 10,990 
 
 
 1.76 
 
 Four States Produce 
 
 Most of 
 
 Our 
 
 Flaxseed 
 
 Because of this wide fluctuation in price, there 
 is very marked fluctuation in acreage of flax. The 
 
46 GRAIN LESSON 1 
 
 crop in the United States is practically confined to 
 western Minnesota, the two Dakotas, and eastern 
 Montana. This area has an important extension into 
 the adjacent province of Canada. A much less 
 important producing area is found in eastern Kansas 
 and western Missouri. 
 
 Why Acreage Rises and Falls 
 
 Flax is highly subject to certain fungous dis- 
 eases, particularly when grown frequently on the 
 same land. It thrives best on land newly put into 
 cultivation, and in flax growing sections it is 
 known pre-eminently as a new land crop. 
 
 Much less new land is available now than for- 
 merly, and the acreage of flax in general is smaller 
 than it was a decade or so ago. On account of uncer- 
 tainty of rainfall in the flax growing region, the 
 yield per acre also fluctuates markedly. 
 
 About a decade ago, the acreage of flax had 
 fallen so low that the price had become very high. 
 The principal users of linseed oil put on a vigorous 
 campaign for the extension of flax acreage, result- 
 ing in 1912 in a crop of 28 million bushels, as com- 
 pared with a 13 million bushel crop in 1910. As a 
 result, the price per bushel of the seed fell from 
 $2.32 in 1910 to $1.15 in 1912, In 1920 the crop 
 amounted to only 11 million bushels and the year 
 before that it was less than 8 million bushels. 
 
 Stabilization of production is a serious neces- 
 sity in the case of this crop. The experience of 
 flax growers has made them afraid of the crop, for 
 which reason, it takes two or three years for high 
 prices to tempt them to any material extension of 
 acreage. 
 
 The United States Imports Flaxseed 
 
 At the present time, the United States is not 
 producing enough flaxseed to meet our needs and 
 
A PICTURE OF THE GRAIN INDUSTRY 47 
 
 imports on a considerable scale are coming from 
 Argentina and Canada. Russia and India are also 
 important exporters of flaxseed. 
 
 Where Flax Is Grown for Fibre 
 
 In the production of flax fibre, Japan is an 
 easy leader, or was in 1918. There was a very heavy 
 increase in the production of flax fibre in Japan 
 between 1913-18. For the five-year average, 
 1909-13, Russia produced much the largest amount 
 of flax for fibre, in fact, her production was 61% 
 of the world's crop. Russia was second in 1918, 
 followed closely by Austria- Hungary. Then come 
 Belgium, Poland, and France in the order named. 
 
 Part IX. 
 
 FOUR SECTIONS GROW RICE 
 
 Rice is the world's largest cereal crop and is 
 the great cereal crop of southeastern Asia and 
 adjacent islands. Statistics are available for all 
 the principal producing countries except China, 
 Cochin China, and parts of India. The absence of 
 statistics from China, which is undoubtedly one of 
 the large producers of rice, must be kept in mind in 
 reading the following comment on the rice crop. 
 
 There are only three other localities in the 
 world where rice production is of any importance, 
 although in each of them the crop is insignificant 
 compared to the position it occupies in southeastern 
 Asia. These three localities are: the Nile Delta, 
 the Valley of the River Po in northern Italy, and the 
 United States. Small areas are cultivated in 
 southwestern and southern Louisiana, southeastern 
 Texas, east central Arkansas, California, and in a 
 narrow fringe along the south Atlantic Coast. 
 
48 GRAIN LESSON 1 
 
 Table X. Rank of Nations in Rice (Based on 
 1909-13 figures) 
 
 Production Exports Imports 
 
 1. India 1. India 1. Dutch East 
 
 2. Japan 2. French Indo- Indies 
 
 3. Java and Madura China 2. Singapore 
 
 4. Siam 3. Siam 3. Germany 
 
 5. Korea (Chosen) 4. Singapore 4. Ceylon 
 
 5. Netherlands 5. Netherlands 
 
 Of the great producing countries in southeastern 
 Asia, only three produce a surplus. These are: 
 India (the world's largest producing nation), Siam, 
 and Indo-China; all of them situated on the Bay of 
 Bengal, or on the peninsula lying to the east of this 
 Bay. China, Japan, the Philippines, Ceylon, and 
 the Dutch East Indies (Java and Sumatra), all im- 
 portant rice producing regions, are extensive 
 importers. 
 
 In this part of the world, rice takes the place 
 of the bread grains and bread is practically unknown 
 among the native inhabitants, 
 
 India Is the Greatest Producer of Rice 
 
 Remembering that statistics of production are 
 not available for China, nor for Indo-China, one 
 of the principal exporting nations, of the total 
 world production of cleaned rice amounting to nearly 
 111 billion pounds, India in 1909-13 produced over 
 75 billions, or more than 67% of the whole. But of 
 this total production, India exported only about 
 6%, rice constituting the principal food of her 
 natives. 
 
 Japan stands second in production, with 14 
 billion pounds, but imports 656 million pounds. 
 
 China, which probably produces more rice than 
 Japan, imports about 700 million pounds of this 
 cereal. 
 
A PICTURE OF THE GRAIN INDUSTRY 49 
 
 The United States Is Tenth in Rice Production 
 
 Rice culture was introduced into South Carolina 
 in 1694. By 1718, the south Atlantic Coast was 
 producing nearly five million pounds of cleaned rice 
 a year, about two-thirds of which was exported. The 
 production of rice increased rapidly on the flood 
 plains above salt water along streams flowing into 
 the Atlantic Ocean until at the beginning of the 
 Civil War the total production amounted to over 
 100 million pounds annually, about half of which was 
 exported. The Civil War almost destroyed the 
 industry, and it was 15 years after the close of 
 that war before rice culture on the south Atlantic 
 Coast regained the commanding position it had 
 previously occupied. 
 
 Development of the American Rice Industry 
 
 About 1885, the cultivation of rice began to 
 spread rapidly on the level prairies of south- 
 western Louisiana and southeastern Texas. Later it 
 developed on a large tract of prairie land in east 
 central Arkansas. In these localities, the nature 
 of the land was such that the use of modern farm 
 machinery was practicable in handling the crop. 
 On the Atlantic Coast, the rice soils are so soft that 
 most of the work must be done by hand. When horse 
 power is used, the animals must wear large marsh 
 boots. Heavy machinery can not be taken onto the 
 land. 
 
 In recent years California has become an 
 important rice growing state. 
 
 Since the beginning of the Civil War, until 
 very recently, we have been importing large quan- 
 tities of rice. But shortly after the beginning 
 of the twentieth century, the development of rice 
 culture had become so extensive in the Southwest, 
 where production was considerably cheaper than 
 on the Atlantic Coast, that overproduction was 
 threatened and prices fell to the point where the 
 
50 GRAIN LESSON 1 
 
 Atlantic Coast region was practically eliminated 
 from rice production. During the period of high 
 prices incident to the World War, there was a 
 renewal of rice growing in the Carolinas, but fall- 
 ing prices since the war have again practically 
 eliminated this region as a producer of rice. 
 
 How the United States Changed From an Importing 
 
 to an Exporting Nation 
 
 The high prices that occurred during the World 
 War stimulated rice production in the United States 
 enormously. Up to and including 1918, we were 
 importing very large quantities. By 1919 production 
 had risen to the point where the exports greatly 
 exceeded the imports, since which time we have been 
 a rice exporting nation. Since in exporting rice, 
 we are in competition with the cheap labor of the 
 Orient, the rice industry is far less profitable 
 than when we were still an importing nation. 
 
 What I s the Future of Rice Growing in America? 
 
 Central California has proved to be excellent 
 rice territory and shortly preceding and during the 
 World War, there was a very extensive development 
 of rice production in that state. 
 
 The future of the rice industry is more or less 
 uncertain. We have much more good rice land than 
 can be profitably devoted to the crop. The demand 
 is not enough to use as much rice as could be grown. 
 
 Orientals Eat the Most Rice 
 
 The Year Book of the Department of Agriculture 
 for 1920, page 608, gives the following statistics 
 relating to the per capita consumption of rice in the 
 leading rice-using nations for which statistics are 
 available. In the Orient, the per capita consump- 
 tion of rice rises to about 280 pounds per capita. 
 In the principal nations of Europe it stands at from 
 about 10 to 17 pounds per capita. In the Netherlands 
 for the years 1909-13 the figures show 50 pounds, but 
 
A PICTURE OF THE GRAIN INDUSTRY 51 
 
 this is probably the result of a deficiency in sta- 
 tistics. It is probable that a considerable propor- 
 tion of the rice which the figures indicate was 
 consumed in the Netherlands was re-exported to 
 other nations in Europe. For the years 1914-18 the 
 annual consumption in the Netherlands was only 17 
 pounds. The figure for the United States is less 
 than 10 pounds per capita. 
 
 America Not a Big Rice Consumer 
 
 The American people, except in the rice growing 
 sections of the South, have never been great 
 consumers of this cereal. One reason is probably 
 the very general practice of American rice mills of 
 removing from the surface of the rice grain the 
 entire aleurone layer, which reduces the flavor of 
 the grain and removes most of the protein it contains. 
 From this country, the practice of polishing rice 
 spread to the Orient. 
 
 High Milling Charges Discourage Rice Planting 
 
 When the rice grain is harvested, it is covered 
 by a rough, flinty shell or hull which must be 
 removed by a special milling process before the 
 grain is marketable. 
 
 The ownership of the rice mills of this country 
 is concentrated in a few hands, and so the owners of 
 the mills are in a position to take large toll and they 
 have, at times, by their exactions, greatly dis- 
 couraged the growing of rice. Cooperative milling 
 may some day remove this obstacle. 
 
 Part X. 
 DEVELOPMENT OF METHODS OF MARKETING GRAIN 
 
 Settlement of the Ohio and Mississipi River 
 Valleys preceded by many years the development of 
 transportation facilities. The lack of such 
 facilities made it impossible for farmers to market 
 most of their products. 
 
52 GRAIN LESSON 1 
 
 They were limited practically to the production 
 of what could be utilized on the home farm. Lack 
 of transportation facilities led to the projection of 
 very extensive systems of canals for the purpose 
 of connecting interior points with the Great Lakes 
 and with the Ohio and Mississippi rivers. 
 
 How Transportation Built Up Marketing 
 
 By 1832 the construction of these canals had 
 become the dominant development of the region. 
 But a few years later, railroads began to extend 
 westward from the Atlantic Coast region into the 
 Ohio Valley. The extension of railroad lines into 
 this region during the middle decades of the nine- 
 teenth century is one of the most remarkable indus- 
 trial developments in the entire history of the 
 human race. 
 
 The presence of these railroads made it possible 
 for the farmers in the interior to reach the markets 
 of the world with their products. The export of beef, 
 pork, wheat, and corn occurred faster than the 
 world's needs for these commodities increased, and 
 so an era of low prices prevailed, with consequent 
 hardship for people on western farms. 
 
 It was not until about 1895 that the world 
 demand for the products of the Mississippi Valley 
 began to exceed the supply, and the hard times of the 
 previous half century began to give way to the 
 better times that have prevailed since. 
 
 This story is recited to show that transporta- 
 tion facilities are the leading factor in the mar- 
 keting of farm products. The railroads have now 
 expanded into all portions of the country and have 
 almost ceased further expansion. 
 
 The Government subsidized many of the transcon- 
 tinental lines by gifts of enormous tracts of lands. 
 The income from the sales of these lands enabled the 
 railroads to transport farm products very cheaply. 
 But, beginning about the end of the first decade of 
 
A PICTURE OF THE GRAIN INDUSTRY 53 
 
 the present century, this source of income had prac- 
 tically been exhausted and it was necessary for 
 transportation lines to obtain their income more 
 largely directly from the goods transported. 
 
 Since that time, there has been a gradual rise in 
 the cost of transportation, followed by enormous 
 increases during and following the World War. 
 These increases in cost of transportation have 
 thrown agricultural production more or less out of 
 balance. Unless there is marked reduction in 
 transportation costs within the next decade, there 
 is bound to be more or less redistribution of the 
 various agricultural enterprises. 
 
 From what is said, it is clear that a course in 
 marketing of farm products must cover quite fully 
 the entire problem of transportation, and other 
 lessons in this course will do this. 
 
 Handling and Storage Facilities Important 
 
 Next to transportation facilities, come facili- 
 ties for handling the products, such as elevators, 
 storage space, warehousing, and the like. These 
 usually develop as the production of a product 
 develops in a region. Full consideration of such 
 facilities are a necessary part of a course in 
 marketing, and some of the lessons in the course 
 will be devoted entirely to this subject. 
 
 Present Local Grain Handling Facilities 
 
 Grain buying at local points is commonly divided 
 between three types of elevator operators: 1. the 
 individual owner; 2. the line elevator; 3. the 
 farmers' cooperative elevator, 
 
 The individual elevator is owned by one man or a 
 company of men, and usually the ownership includes 
 only one elevator. Line elevators are owned by a 
 syndicate or large company that operates many ele- 
 vators, usually located along one line of railroad. 
 
54 GRAIN LESSON 1 
 
 Farmers' cooperative elevators are owned by 
 corporations made up of farmers. One corporation 
 usually owns only one elevator, and tnis elevator is 
 maintained primarily for marketing the grain of the 
 owners. 
 
 In the development of the local elevator 
 industry, individual owners and line companies came 
 first. As a protest, largely against the line 
 elevator, the farmer-owned companies came into the 
 field. 
 
 Line elevators are operated chiefly in new 
 territory in the Central West. But it is common to 
 see individual owned elevators, line elevators, and 
 a farmers' cooperative in the same town, all three 
 competing for the grain of the community. 
 
 The operation of a local elevator will be dis- 
 cussed in detail in later lessons. 
 
 Market Reports a Big Aid 
 
 The third important element in marketing is the 
 development of organizations that will enable both 
 buyer and seller to know what the proper price of any 
 given commodity is at any time and place. The actual 
 marketing of grain is involved here. One of the most 
 important factors is the standardization of products, 
 for without such standardization it is impossible 
 for either buyer or seller to know the real market 
 price of a commodity until it has reached its ulti- 
 mate destination. 
 
 When Grading Began 
 
 It will be surprising to many farmers and dealers 
 in grain to learn that the very first attempt at the 
 grading of grains in the world took place at Chicago 
 in 1857. This first attempt consisted merely in 
 distinguishing two grades of red winter wheat, the 
 one known as Red Winter and the other as No. 2 Red 
 Winter. Up to that time, wheat had been merely 
 "wheat," and corn merely "corn," without reference 
 to its quality. 
 
A PICTURE OF THE GRAIN INDUSTRY 55 
 
 It is easily seen that refinement in grading 
 renders marketing possible on much lower margins 
 than would otherwise be possible because the dealer 
 knows more accurately the price he can afford to pay 
 for a given sample of a commodity. Some of the most 
 important lessons of this course will deal with the 
 entire subject of standardization of farm com- 
 modities* 
 
 What Cooperation Has Done 
 
 In recent years, the cooperative marketing of 
 farm products has risen to prominence. The principal 
 service to be rendered producers by cooperative 
 marketing is in the dissemination of more intimate 
 knowledge of the grades of farm products and of the 
 relative value in the markets of the world of these 
 grades. 
 
 Cooperative marketing, when sufficiently devel- 
 oped, can also prevent to a large extent the 
 manipulation of markets in farm products, for a 
 large and properly financed cooperative organiza- 
 tion can market a commodity in an orderly manner; 
 that is, as the commodity is needed for consumption. 
 By thus keeping the ownership of the commodity in the 
 hands of the producer until it is needed for con- 
 sumption, the markets should tend to be steadier 
 and each producer should come more nearly getting 
 the true market value of his commodity. 
 
 Part XI. 
 
 PER CAPITA CONSUMPTION OF EDIBLE CEREALS 
 
 In the per capita consumption of wheat, France 
 leads, with Belgium a close second. Then follow 
 Italy, the United Kingdom (England, Scotland, 
 Ireland, and Wales) , and the United States. In the 
 other countries of Europe and particularly in the 
 Orient, the consumption is much lower because of the 
 more extensive use of other cereals. 
 
56 GRAIN LESSON 1 
 
 Germany leads in the consumption of barley, 
 followed by Austria- Hungary, Belgium, the United 
 Kingdom, and the Netherlands in the order named. In 
 these countries, barley is used largely in the 
 manufacture of beer. 
 
 T he United States Uses More Corn and Oats Than 
 Any Other Nation 
 
 In per capita consumption of corn, the United 
 States far outstrips any other country. The reason 
 for this is that, in this country, by far the greater 
 part of the corn crop is used for stock feeding. In 
 the other consuming countries a much larger propor- 
 tion is used directly as human food. 
 
 The United States also leads in per capita con- 
 sumption of oats. This grain is also used in large 
 part as a feed for stock, particularly horses. 
 Germany is a close second and France, a close third. 
 Belgium and the United Kingdom follow next in order. 
 
 Germany leads in the consumption of rye, followed 
 by the Netherlands, Belgium, and Austria-Hungary, in 
 the order named. 
 
 In the order in which the cereals are consumed, 
 wheat stands first in France, with oats a close 
 second. In Belgium, wheat is first; oats, second; 
 and rye, third. In Italy, wheat is first, with corn 
 second. In the United Kingdom the order is: wheat, 
 oats, barley. In the United States, corn leads, 
 followed by oats and wheat, in the order named. Rye 
 is the leading cereal in the Netherlands, followed 
 closely by wheat, Oats leads in Austria-Hungary, 
 followed closely by corn and wheat. In Germany, oats 
 lead, with rye second, barley third and wheat fourth. 
 
 Statistics are not available for the purpose of 
 determining real secular trend in the per capita 
 consumption of the various edible cereals. About all 
 that may be said on this subject with confidence, is 
 that there is a tendency for wheat to displace the 
 other bread-making cereals when the price of wheat is 
 
A PICTURE OF THE GRAIN INDUSTRY 57 
 
 not so high as to make substitutes decidedly cheaper. 
 
 The enormous population in the Orient appears 
 to be well satisfied with its rice, and there is no 
 immediate prospect that any large amount of this 
 cereal will be displaced by wheat. 
 
58 GRAIN LESSON 1 
 
 NOW, WHAT ABOUT STANDARDIZATION? 
 
 You will remember that in Lesson A you learned 
 that standardization is usually the first marketing 
 service performed upon crops. Consequently, the 
 next lesson in this course will treat of this first 
 marketing service. As a matter of fact, a very large 
 part of the wonderful improvements in marketing farm 
 products that have been wrought during the past few 
 years, have been brought about by standardization. 
 
 There is still much to be done, but marketing 
 grain is a much more certain and profitable occupa- 
 tion now than it was when grain was offered to buyers 
 in a hit or miss fashion. 
 
 Does standardization pay? 
 
 Does the increased price pay for the work of 
 grading? 
 
 Should we have more grades of grain, or less? 
 
 Who should determine standard grades? 
 
 Can we have one set of grades that will apply to 
 all sections of the country? 
 
 Does grading have anything to do with our foreign 
 trade 
 
 Is standardization something that should be 
 confined to manufactured goods? 
 
 These, and dozens of other questions will be 
 answered in the next lesson. And after mastering 
 it, you will be prepared to take your first step as 
 a real leader for better marketing in your community. 
 
A PICTURE OF THE GRAIN INDUSTRY 59 
 
 GLOSSARY OF MARKETING TERMS 
 USED IN THIS LESSON 
 
 Inasmuch as a glossary is provided with each lesson, no attempt is 
 made either to give complete definitions in each glossary, or to give all 
 the possible meanings of each term when used in different connections. 
 
 The definitions here given explain the meanings of the term as applied 
 to marketing farm products, and more specifically the meaning as used in 
 this lesson. 
 
 It iB difficult to find in dictionaries satisfactory definitions of 
 many marketing terms as used in a commercial sense. In fact, it would be 
 difficult to find a definition for some of these marketing phrases in any 
 other place except in this glossary. 
 
 cooperative elevator, An elevator owned by the 
 producers of grain, whose ownership is primarily 
 for the purpose of gaining an advantage in market- 
 ing their own grain. 
 
 financial depression, A period in which loans 
 are difficult to secure except upon the basis of 
 liberal collateral and for short periods. Rates 
 of interest on loans generally increase and buying 
 in general is reduced. 
 
 fluctuation, n. More or less violent changes ; 
 usually used to refer to changes in prices of any 
 commodity. 
 
 green manure plant, A plant grown for the purpose 
 of plowing under while green to fertilize and im- 
 prove the physical condition of the soil. 
 
 intensive agriculture, The growing of crops that 
 require much labor, and that produce very large 
 returns from a given acreage. The raising of grain 
 only is usually considered to be "extensive" agri- 
 culture. The growing of grain and the feeding of live 
 stock when carried out on the same farm, constitute 
 more intensive agriculture. Fruit growing and 
 truck farming are intensive. 
 
 line elevator. An elevator owned by a corporation 
 that also owns many other elevators, usually all 
 located along one principal line of railroad. 
 
60 GRAIN LESSON 1 
 
 manipulation of markets. This term is used to 
 refer to the actual or apparent influence over 
 prices that may be exerted by a man or group of men. 
 It is usually used to refer to an unfair or artifi- 
 cial influence exerted primarily for the benefit 
 of the persons exerting the influence. 
 
 nitrogenous, adj . Containing nitrogen. As used 
 in connection with crops, this usually describes 
 a plant that contains a comparatively high percent- 
 age of nitrogen. 
 
 over production, n. When more is produced than 
 appears to be wanted by the buyers of the country, 
 the condition is referred to as over-production. 
 This condition may be due to a bumper crop, to a 
 decreased demand, or to increased acreage. Over- 
 production usually results in lowered prices and is 
 often followed by decreased production, resulting 
 at times in under-production and rising prices. 
 
 pasture plant, A plant used as pasture for live 
 stock, such as blue grass, clover, alfalfa, etc. 
 
 secular trend, A general movement in one direc- 
 tion, determined by drawing a straight line through 
 a broken line that wavers up and down, showing the 
 general rise or fall, over a long period, of the 
 quantity represented by the broken line. Thus, the 
 secular trend of price after the civil war was down- 
 ward till about 1895, upward after that time. 
 
 stabilization of production, This phrase is used 
 to refer to that condition when production is com- 
 paratively uniform for a period of years. It is 
 usually assumed that the quantity of production is 
 very near to the actual demand for the product. 
 
 supply crop, (the opposite of cash crop) A crop 
 grown primarily to supply feed for the live stock 
 raised on the same farm, or food for the farm 
 family. 
 
 under producti o n, n. When less is produced than 
 appears to be wanted by the buyers of the country, 
 the condition is referred to as under-production. 
 This condition may be due to a partial crop failure, 
 to an increased demand, or to insufficient acreage. 
 Under-production usually results in rising prices 
 and is often followed by increased production, and 
 sometimes by over-production and falling prices. 
 
 12-22-2M