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Abstract

During the farm debt crisis of the 1980s, grain elevator failures became a common occurrence in many rural communities. In recent years, elevator failures have occurred as a result of abuses with respect to hedge-to-arrive contracts and improper or unauthorized activity in futures markets. Presently, the severe decline in the farm economy has placed additional stress on elevators. With the recent news of the failure of the largest agricultural cooperative in the state of Kansas the issue of grain elevator failures has received renewed attention along with its impact on grain depositors and on the agricultural community.

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