fies such a refund, but no refund is paid on seed sold at distributor prices. The member cooperatives or farmers marketing the seed through M. F. C. do not receive refunds, but they generally receive prices as high or higher than they I could get elsewhere. If it becomes necessary to market large quantities of locally produced seed, M. F. C. may use a pooling plan with the growers.

M. F. C. has long realized the need for better seed processing facilities in the State. It has encouraged installation of small seed cleaning plants in about a dozen counties. Although these plants served a use

ful purpose in stimulating production of seeds for market and home use, the State needed at least one large plant to completely process (clean, dry and treat) its various kinds of grasses, legumes, and field crop seeds. Adequate plants were available for cotton seed.

In 1950 M. F. C. purchased a large furniture factory at Canton, Miss., covering approximately 2 acres, converted it into a warehouse, and installed one of the most complete seed processing plants in the South. Its seed laboratory can furnish a complete analysis on all types of seeds. The State Crop Improvement Association approved the plant for processing, bagging, and tagging certified seed. Later a seed corn drying plant was added. Because of the size of the warehouse, other seed can be taken from combines and spread out thinly on the floor to dry.

Cost value of the warehouse, land, and plant on May 31, 1953, was $150,491 and its depreciated value was $134,579. The equipment represented about $57,500 of the cost, and the seed drying plant and equipment represented about $11,500. The main kinds of processing equipment include: Four 7-screen Clipper cleaners, two dodder mills, one gravity table, three disc cylinder separators, one other grain separator and cleaner, a huller and scarifier, a scalper and aspirator, two sewing machines, an air compressor, a moisture tester, and other miscellaneous equipment.

The processing equipment is installed on platforms at four levels with all storage space on the ground

floor. Four main elevators each with 5 spouts and all equipment are controlled from the main floor. All spoutings are metal and the hoppers are lined with metal and constructed at a 45-degree angle to permit all types of seed to flow by gravity. An air compressor is available for cleaning the equipment. The scarifier is mounted on coasters so that it can be rolled under the separator. The treater and sewing machines are also on coasters.

The corn drier consists of six bins through which air heated by a gas burner is forced. It can dry 600 bushels per bin in a 48-hour period. The corn is dried to a minimum of 14 percent moisture and then hand graded, shelled, and run through a cleaner, rocket grader, link grader, gravity table, treater, and finally to the bagging and sewing machine.

Growers can store seed placed under Government loan in approximately 15,400 square feet of floor space designated in 1951 as a bonded warehouse.

They can obtain a loan based on the support price of the seed and receive negotiable warehouse receipts, facilitating seed marketing. A minimum of about 600 tons can be stored in this space. Seed can be insured at the option of the patron at a small charge per month. At the request of farmers, M. F. C. puts analysis tags on the seed at an extra charge. The warehouse became bonded too late for seed to be stored under loan in the fall of 1951

but it did store 412,603 pounds in the 1952-53 fiscal year. Representatives of M. F. C. believe that this will be a good service to growers

Seed processing equipment, mounted on threelevel platforms, is controlled from the ground floor in M. F. C.'s plant at Canton.

and that seed stored under the loan will help M. F. C.'s wholesale program-from the standpoint of savings on transportation and by having seed available when it is needed.

Customer-owned seed brought in to be custom cleaned has automatic free insurance for 15 days from the time it is received in the plant. Also free storage is granted during this 15-day period. All seeds are stored in separate lots. A schedule of rates and storage charges in effect in 1952 is shown in Appendix

table 8.

Quantity of seed processed has

increased greatly since acquiring this plant-from 1 million pounds in 1950-51 to 3.4 million pounds in 1952-53. (See table 8.) The increased production of fescue in the Delta and more rye grass, wild winter peas, and oats were responsible for the great increase the past year. Field grains such as oats and corn have constituted a large volume each year.

In addition to the superintendent, who has 3 assistants and some office help, the plant employs from 8 to 25 laborers. During the heavy seasons two shifts are operated.

Volume and Operating Results

Seed purchased by patrons has

been above a million dollars 4 of the last 5 years compared with only $221,474 in the 1935-36 fiscal year. (See table 9.)

Gross margins have ranged from about 4 to 6 percent most years. Net margins for the seed department after allocation of general expenses were not determined. The seed cleaning plant in 1952-53 had receipts of $45,547 and a net loss of $3,085 after depreciation and State office overhead expenses. (See table 10.)

The quantity of legume and grass seed purchased by patrons has ranged from 5 million to 6 million pounds during the last 3 years. (See table 11.) The volume of field