Rensselaer Union, Volume 8, Number 2, Rensselaer, Jasper County, 30 September 1875 — Holding Crops for Higher Prices. [ARTICLE]

Holding Crops for Higher Prices.

There has been much discussion and probably will be as much more on the advisability of farmers holding crops for higher prices. As it seems to us, this is one of the' questions concerning which no positive, invariable rule can be laid down. Circumstances may make it advisable to hold one year and to sell promptly the next. - Those who held their last year’s crop of wheat until within a few weeks made money by so doing, but to use this as an argument-for so doing in all years would be very unwise.- The rise in the price of grain wgs mainly from causes which could not have been predicted. Had there been favorable weather throughout Europe and this country instead of destructive floods; had grasshoppers, chinch-bugs and other insect pests not made their appearance, prices for wheat might have remained as low as they were last year. Our own view is that, taking one year with another, it is better for a farmer who is poor and in need of money to sell his products promptly. The holder runs risk. Prices may not rise; loss by Are, thieves, rats, shrinkage, rain, etc., may come. If the farmer does not need money for the payment of debts or for improvements really essential to his best success or the comfort of himself or family, he may do as he sees fit. If a farmer has 1,000 bushels of wheat and would expect to place at interest the money ob- s tained for it if sold, he is fully justified in holding his crop if he thinks the probability is that prices will advance so as to give him a good profit. If, on the other hand, he would use the m->nev in paying a debt on which he is paying 10 per cent, interest, there ought to be almost a certainty ot a rise to make it wise tor him to hold the crop. Aside from the question ot interest, it is a good rule for a man to pay his debts as soon as possible. Too much stress is sometimes put on the price being above the cost of production as the determining question as to whether a farmer should sell his cjop. It is very important that a farmer should make a profit, but a more important question, incoming toadecision, than whether the price will give a profit, is the question whether there is a probability that a higher price can be secured. If there is a certainty that a higher price can soon be obtained, it is wise to hold, even if a good profit could be had by selling at once. If it seems certain than prices w ill not advance, it is better to sell at a loss than to hold and meet a greater loss. Because a bushel of wheat has cost only a dollar is no conclusive reason for selling at a dollar and a quarter, if the farmer’s sure he can obtain a dollar and a half—within a month. Because it cost a dollar is not a conclusive reason why he snould sell it at ninety cents, if there be good reason to believe no higher prices can be obtained for a long time to come. That a fair profit can be made is a good reason for selling, although not a conclusive one, and, as the future is very uncertain, a prudent farmer who has need of money will generally sell as soon as-hecan market his products if the price is a fair one, ami he will be w'ise in so doing.—Western Rural.

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