Imperial Valley press., 1920-11-17

reasonable profit on your invest
mcnt and your years labor?
You can absolutely expect the price
oficotton to remain low until the mills
are convinced that the acreage will be
drastically reduced and that the farm
ers will hold this years crop until a
iair price shad.
Higher Costs Coming
There is Il lot Of propaganda beng
rut forth at the present time to de-
ceive the farmer, and encourage him
to accept a big loss on MS years cot
ton crop-to the effect that prices OF
everything are coming down.
This is absolutely false.
Freight rates are higher. and will
be higher vet on some commodities.
You cannot afford to buy your feed.
The increased freight rates next year
will absolutely prohibit it. 1t is I'M
pelative that you net only supply
your own wants. but have at least
reasonable surplus.
Our dealers report that farm wag-
ona will be 20 per cent higher next
wear, that tractors and all kinds OF
tarm machinery tools, implements,
etc, will be 10 to 20 per cent higher.
The cnly reduction in price IN any
article necessary TO produce Gotten IS
an expected reduction OF possibly IL
per cent on leather goods.
From the above it Is very clear that
the expense of next years crop will
be fully as great as that of 1920, un-
less the price of farm labor can be
very largely reduced ID offset the IN
creased price of farm machinery, sup
plies and freight rates. At the pres
ent time fam labor IS fully 70 pei
cent higher than it was a year ago,
md il seems rather improbable that
drastic reduction will be made within
the next 90 days, at which time the
cotton acreage must be determined
It would appear to be good business
to follow the example of the cotton
mills ard produce only what you l;noV
Ga can sell at a profit.
Il means absolute disaster to every
cotton producer and every bushes
enterprise that is dependant upon the
cLtfon Producers tor its success, il
anything near normal acreage o.
cotton is planted the coming season.
Il IS claimed that the Cotton EX
change interprets' future conditions.
Thl, are now selling short cotton, &c
lie delivered next July, at 17.4o per
pCInd. which is less tn;.n one-haH the
average cost of production of THIS
shor. cotton. This simply means
t:!at they believe the farmer has not
the business Judgment to diversity MS
crops and make very material re-
| duction in his cotton acreage. Ii tn4l
reduction is not made it means that
the farmer will lose 5Gc out OF ever!
dollar expended to produce neN1
; years crop, and that the same amour;
/ win be lost on the greater part Of the
1920 crop.
n this connection we wish TO cal
years crop OF cotton on contract IN
stead Of producing it. In other words
they are simply taking advantage OF
the fact that they can buy their nex'
yea1 crop OF cotton, to be delivered
to them in western warehouses, a
/ less than one-half Of what 1t Wou!t
cos9 to grow it themselves. In the
meantime they have Il very small IN
vcstment to carry these contracts
OF course, when the cotton IS denver
ed. they must pay the balance of the
l7.4Oc per pound, while if they grow
this cotton en- their farms, they viii
have actually paid out, by the SAME
date, at least 35 to 40c per pound IL
their various costs Of production.
Reduction Contract
A copy of the contract that is being
1scd throughout the cotton belt, bind
,ng the growers to a definite rcduc
ion in acreage for the 1921 crop, ha
been sent to our auxiliary officers II
each district, and the members will
please call to see copies there OF a
our offices.
While we feel the absolute necessit,
Of a great reduction in cotton acreag
next year, we believe that thereafte
the acreage can be increased to tn
greatest limit consistent with goo
farming. There is no question bu
; that we have the best cotton countr
in the world, and furthermore tina