Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-10-30

The Farmer Must Have a Profit
There are about 100000 farms in
Georgia. Cotton is the main crop
on the majority of them. Cost fig
ures obtained from 534 Georgia farms
through the joint effort of the Geor-
gia State College of Agriculture and
| the bureau of farm management
United States department of agri-
culture, indicate that cotton was
grown in 1919 at a profit on Sc per
] cent of the farms in Georgia and at
loss on Al per cent.
The average cost Of cotton pro-
duction in 1913 was approximately
E12.2 cents. The cost range varies
from five to fifty cents pound. The
Ecost on so per cent of the farms was
ffrom ten to fourteen cents per pound.
/ The average price of cotton in 1913
was 1872 cents. In order to have
made cotton a profitable crop on
about IS per cent of our farms, the
| bulk line price necessary would have
! been sixteen cents.
The average cost of raising cotton
lin 1918, according to the survey on
4 534 Georgia farms. was 27.6 cents
1 per pound. The cost range during
| that year varied from eleven to sew
senty-one cents per pound. The cost
ION SO per cent of the farms varied
from twenty to thirty cents. The
bulk line price necessary in that
year to have afforded IS per cent of
1.-The farms a profit would have been
4 thirty-tWo cents.
I AS a matter of fact, the average
selling price of cotton was 27.6 cents
per pound, so that again cotton was
grown at a profit on only about Sc
! per cent of the farms in Georgia, and
! at a loss on A per cent. These fig
ures are presented to show that cot
ton has been grown at a loss on many
of our farms.
Theoretically, no one is concerned
about this but the individual VINO
| suffers the misfortune of a loss.
! Practically, every one in the world
| who uses cotton is affected. There
is an idea in the minds of most peo-
pie that if certain farmers can raise
cotton at a profit, an attitude of in
difference should be exercised to-
ward all others who may be con-
cerned with raising it.
| This is a mistaken conclusion to
draw. and constitutes a gross eco
tnomic error as well. 1t also proves
| the fallacy of depending on average
cost figures because they are un-
doubtedly misleading and have pre-
vented our reaching a correct under
standing relative to the price nee
| essarv to put cotton cultivation on a
Just, fair and reasonably profitable
basis to the landowners of the south.
Average figures are misleading be-
cause they are below the costs and
the prices which must be obtained
in order to encourage production on
! a sufficiently broad basis to meet the
requirements of the public for a CIV
en- commodity.
| careful study of the situation
revealed this fact to the food admin
istration early in the war and soon
led to the establishment of figure
for the food raisers based on what
is known as the bulk line OF pro-
duction. This, roughly speaking,
would be about So per cent, and 1t
will be necessary for US to base the
figure which the farmer must re-
ceive for his cotton in the future
not on average cost, but on the bulk
line production basis of IS per cent
Unless we do this, the volume of
cotton will be insufficient to meet
the need of the public because no in
dustry and no line of agriculture
can prosper whom conducted on an
unprofitable basis.
! Moreover, the grower OF COTTON
who has been subject to unjust eco
nomic pressure all his life is entitled
TO a fair increment over the cost OF
raising his crop Cost plus IS now
accepted as basi entity in CONNER
cial industries. The time has ar
rived when cost plus must be APP
piled to farm crops. There is no IN
Idividual in the south, great or small
farmer, laborer or capitalist, who is
not concerned in the planters receiv-
ing a fair profit on his cotton. We
must, therefore, institute and en-
courage farm surveys as rapidly as
possible SO we may obtain accurate
cost figures, add a reasonable and
Just profit thereto, and put the cul-
ttivation of our greatest and most
important and essential economic
crop on a fair and just basis to the
lgrower and the consumer. Upon the
correct solution and the just dispo-
sition of this problem depends the