Q.How does warehousing help a farmer avoid a 'distress sale' of the crop?

A farmer's biggest financial vulnerability right after harvest is being forced to sell everything at once, at the lowest prices of the year — warehousing directly addresses this. …

Immediately after harvest, supply of a crop is at its peak, which typically pushes market prices to their lowest point of the year — a farmer without storage facilities is forced into a "distress sale," selling the entire crop at once at these low prices simply because there is nowhere to keep it and cash is often urgently needed.

Warehousing (particularly cooperative and public warehouses set up for agricultural produce) solves this in two ways:

1. The farmer can store the crop safely and sell it gradually, or later, once prices recover from the post-harvest glut.
2. If cash is needed immediately, the farmer can pledge the warehouse receipt with a bank to raise a loan against the value of the stored crop, without having to sell the crop itself at a distress price. …

Mentioning only storage and omitting the warehouse-receipt financing angle, which is exactly what removes the farme …