The Donaldsonville chief., 1921-10-22
LA. RICE AT $3.50 A BAG.
Growers Will Need This Amount TO
Pay Expenses.

At the meeting of the directors
of the American Rice Growers AS
sociation held in Lake Charles re-
Gently, Il. G. Chalkey, president Of
the association made a statement in
which he declared that the farmers
would need $3.50 sack for their
rice to give them a fair margin of
profit over and above the actual cost
OF production. His statement follows:
"The American Rice Growers AS
sociation in setting price of $3.50
on Standard Numbers l and 2 Blue
Rose rice, did so after thoroughly
canvassing the general rice situa-
tion, particularly from the growers
/ standpoint. Tt must be borne in
mind that in all probability COM
paratively small percentage of rice
on account of quality, in either Lou
isiana or Texas, will reach $3.50.
Probably the majority of rice sold
on this basis will bring from $3.75
| to 81 a barrel.
1t is generally conceded that this
year the farmers have raised one of
the cheapest crops in years and
while it has been often stated that
this crop has not cost more than
1880 a bag to raise, that this price
| Is only the actual out of pocket
fcost, leaving very little, if any
money for the farmer extra, for
living expenses, and no money for
depreciation, interest on capital in
vested, taxes, etc. The majority of
farmers have this year at least two
years taxes to pay, SO that even If
the average price that the farmer
will receive is 81, he will have very
title f any money left to pay on
account of his debts.
The average yield per acre for the
average farmer this year will be
smaller than usual, so that the gross
treturns per acre will be much less
than the average.
"The object of Farmers Co
operative Association is to stabilize
price and also see that their crop
lis marketed in an orderly manner
1T is not expected that all the rice
will move from the farmers hands
in few weeks, and the farmer is
Iready and willing to hold his rice
as long as necessary, seeing only
| that reasonable quantity Of rice
! goes on the market in order to keep
the market supplied and through the
Isplendid cooperation of the banks,
the farmers are assured through the
Federal Reserve bank of ample
funds to enable them to hold their
surplus rices until the market is
ready to absorb same.
i TN no case will the grower be-
come specuiator and hold his rice
iagainst expected high prices. The
farmers are only asking for a price
which will enable them to pay the
lcost of production including thei,
Interest and tax charges and small
lprofit that will enable them in from
three to five years to get out of debt
, land be practically in the same po
! sition they were two years ago.
Il The grower feels that with the
Ierop this year of about so percent
7 of last year and with a distribution
!. of from $1,000 to 100000 sacks {
month, the rice situation should b.
very strong provided the farmers d.
mot force all their rice ON the mar
: ket in a~ few weeks, but are salts
: flied to distribute their crop over
E Iperiod of months, there is no reasol
e lwhy they should not receive a rea
!. Isonab1e price for their product fror
i the commencement of the season un
II It'll next March or April, and tn
J farmer, after he has put his tim
f and money into the growing Of th
gicrop, should receive a reasonable n
o turn on his investment and labor al,
If not allow profiteers and Speculation
Iwho know that this years crop
short, and who do not invest cel
le LOT their capital, to make larg,
10 profits out Of the sweat of the gros
err