Because agricultural production is seasonal, the products have to be stored for distribution later. The storage function involves risks -- risks of deterioration of products and risks of fluctuating market prices. Elaborate precautions are taken to guard against any deterioration of products from excessive moisture, heat, contaminating metals, bacteria and fungi, insects, and rodents and against loss from fire and theft. Whether a stored commodity is held by a farmer, a warehouseman, a processor, a wholesaler, or a retailer, the risk of a drop in the market price is always present. Various devices are used to shift the.
