The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1905-01-11
PLAN TO REDUCE
COTTON ACREAGE;
Laurens Plantert6 Utilize
Futures as Insurance.
WHAT PLAN INVOLVES.
VIII II Futur.s Sell Mt e. st OF Cotton
Production He Will Buy Con-
tract and Plant Other Crops.

Production He Will Buy Con-
tract and Plant Other Crops.
Laureps correspondence Meas and
Courier.
Laurens, Jan. 4-''If cotton drops to
six cents pound l shall not plant an
ecre"
The speaker was cotton grower
who produces usually about one hun
dred bales on his Plantation. He is,
moreover, calculating man who
knows precisely what he is doing on
his farm as well as in other lines of
business in which he is engaged. When
The News and Courier correspondent
questioned him as to the quoted de-
claration 1t was with some reluctance
that he replied, but here are his ideas
outlined:
L am not alone in this intention. l
know Of at least one other planter who
produces a crop of two hundred bales
who will pursue the same plan.
"What do 1 mean to dor" Why, l
shall buy contract for future delivery
of a hundred bales of cotton December
1, '05. L shall put my plantation in
other crops, mainly peas. Think it is
pretty safe to say that can realize
seveuty-tive cents the bushel for peas
next fall and of course l shall plant
plenty of corn, small grains, potatoes,
peanuts, sorghum and other provender
cror'. Moreover, L expect to have a
fair crop of hay, tut peas will be the
main product. OF course It will not be
necessary to use much ctm ner cial fer.
tiliz +, aid the plantation will be per-
manel tly betteted by the years rest.
Nothing, as is we'll known, improves
land more than pea crop. Moreover,
pea-vine hay is one Of our most valua-
BILE or ps.
eth. fac's are these. / can't grow
cotton for less than six cents pound.
This Is based on the carefully noted ex
par'ences Of ten years on this planta
tioD, AMI all the factors In the cost of
produc ion, labor, fertilizer, interest
on investment, wear and tear on live
stock and implements, etc, have been
courted. Thus can buy one hurdred
bales of cotton, at SIX cents, just as
cheap as l can possibly make them. If
undertake to raise the one hundred
bales aud the price drops two cents TIE
pound shall have lost that two cents
in the making. If it DRIP on the con-
tract two cents the pound, l shall, of
course, put up the nee ssary margins
and not let my contract be sacrificed. 1t
follows tn It cannot pcss bly, o g any
more on the contract than | would lose
in the actual production when the con-
tract is bought at a price iden ical
with the cost OF production The hrok-
erage commissions on the contrac are,
of course, q small incideat.
"Meanwhile.to to pr 3tec. myself against
the loss on the contract shall have
the profit on the peas and other pro-
ducts of the farm. am satisfied that
can at least make the farm s. If GUS
tanning as to its labor and $50 X by
other crops than cotton, and while
the profits would not be equal to those
in ten cent cotton crop they will be
more than those in six cent cotton
crop. In short think it fairly safe to
say that / can make as much profit out
of other crops as l can out of seven
cents cotton, and the improv, ment of
the soil dne TO the rest from cotton will
in itself be an additional met profit in
the long run.
hon ~ laa xuit III
ulators in buying this contract, but
with a cotton brokerage Fl m OF such
recognized standing that risk as to it's
compliance with the contract will be
practically eliminated.
"By pursuing this plan 1 shall for
one contribute to the reduction in the
cotton acreage which all intelligent
cotton producers regard as nee ssary
to maintain the price OF cotton at pro
fit paying basis in the coming years
"It seems to me-" added the planter,
in conclusion, THAT the planters Of the
South may avail themselves OF the
cotton future system to absolutely pro-
tect the cotton growing industry. Once
1t is known what it cos's to produce
cotton and at what cost other crops
may be produced, the cotton farmer
can tell exactly when to grow cotton
and when TO abstain from it. Once the
Southern farmer finds out that this is
not necessarily q ore crop country, he
will be independent, and the cotton fu-
turs systtm offers convenient exped-
lent in the way OF insurance. OF course
do not contemplate that the price OF
cotton will drop to four cents next
year, or even five cents. For every
point that it may 20 beyond SIX cents 1
shall rake down my profits on the con-
tract, and those profits on hundred
bales will be just rs much rs / can
earn on all the cotton that L can act
ually produce. No man can afford to
adopt this plan unless he has the capt.
tai to protect the contract, no matter
what margins may be called for. In
other words, he must buy the contran;
as an investment, and not as a specu-
lation, His motive must be simply to
Insure himself against possible loss
from failure to raise high-priced cot
ton, and when he buys the contract at
a price as low as the coast Of prodnc-
ti0a he can by no possibility lose dol.