Z A Picture of the Grain ~ Industry BY. W. J. SPILLMAN MARKETING GRAIN | ‘LESSON 1 Ah The American Institute of Agriculture A PICTURE UF THE GRAIN INDUSTRY Crop Areas = Buyi.. Areas - Future of the Industry By W. J. SPILLMAN Consulting Specialist, Bureau of Agricultural Economics, U. S. Department of Agriculture * * ok 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 5 a Sp — Pn 4 rk { . b SA e 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. A PICTURE OF THE GRAIN INDUSTRY 3 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 peniculvural Economics, U. 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 4 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 ll 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 5 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 6 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 togethers; one on Part VIII; one on Part IX 3 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 Relative Importance of the Seven AreaS..-...e. Regions of Dense Population. .cscccccceccceces Europe, the World's Greatest Buying Area..... Eastern North America, the World's Greatest PrOClUIGH Ie: ATIOAl ne)clcle cles) clelelclelclclels) cleleleclciele'c oe How Rainfall Influences Production...-..ceces PART ITI Wheat, The World's Most Important Bread Crop Western Europe the Biggest Producer, Yet the HO Aav-LOS ti DUViClne eles cle cicleele elcle/slclelelc sislclc ccs ee « India Produces the Third Most Wheat.cccceccee Australia Exports Much Wheat. .ccccecccccccvcce Central North America, the World's Second WG at Arr Cal toile) cree’ es) 0c cic clels)eie/cle/e o/c! e eles 6-0) e/s1e Argentina Exports Over 60% of Her Wheat..... The United States Leads the World in Wheat.. How the World War Affected the Commerce in Wheat @eegeeoeoeeeseeoeaevevseaoeeeeeveeew eceeveeeveeertrteoeeet eet @ @ Competition with North American Wheat Will DEGREAS Ci clcleleiel clelelclelclclclcllelclelciclslclelel ere) oie! cie «cle « Canada Destined to Lead the World in Wheat.... How the United States Has Increased in Wheat ACTCAZE sccccce ces cc vec onc ecco ce ccetccccee Why Low Prices May Be Expected for Wheat..... Where Wheat is Grown in the United States.... The Central States Grow Winter Wheat..ceccoce The Heart of Winter Wheat Production. ...ceoce.s The One Great Spring Wheat Section...ccecccrvce PART III The United States Leads the World in Corn Most of Our Corn is Fed to Live Stock. .ccccce Eastern Europe is Second in Production....oe. Argentina is Our Biggest Competitor in Exporting Corn eeeoevgngnea082H20202028020980008078088088808 8 8 @ @ Sl 8 GRAIN LESSON 1 STUDY OUTLINE—(Continued) India a Big Producer, But Not an Exporter..... Where Corn is Grown in the United States..... Which Farmers) Sela \Corn srs «sie cieie ei crerevel cvelelslerere The Fluctuation in the Price of Corn..ccccece Why Corn Growing is Likely to be More Profitable eeoocoeeseesoeosescsceeeseeoeoeeaeaeseeesesmpeeeoeeeeee @ PART IV The United States Leads All Nations in Oats South America Now the Biggest Exporter of Oats Only Four States of the United States Grow Oats Extensively for Market.cccccccccccece Where Oats Yield the Best... .cccccccccccccsse PART V Where Barley Is Grown Barley May Grow in Importance. .cccccccccccces Why Barley Is Such an Important Crop....e... Germany, the Greatest Importer of Barley.... PART VI Why Rye Is Valuable in Some Sections Where Rye Is Grown in the United States..ccoce Michigan Leads in Rye Acreageececccccccccces Rye More Important in Europe. .ccccccccccccces. Two Nations Grow Most of the Export Rye.cececeoee PART VII Not Much Buckwheat Marketed PART VIII Flax As a Market Crop Why the Price of Flaxseed Fluctuates Violently Four States Produce Most of our Flaxseed..... Why Acreage Rises and Falls. ccccccccccccccecs The United States Imports Flaxseed...cccecece Where Flax Is Grown for Fibrecceccccccccccecece 43 A PICTURE OF THE GRAIN INDUSTRY STUDY OUTLINE—(Continued) PART IX Four Sections Grow Rice India Is the Greatest Producer of Rice..-.... The United States Is Tenth in Rice Production. Development of the American Rice Industry.... How the United States Changed From an Importing to an Exporting Nation.