182 Cooperation in Agriculture 



COOPERATION IN THE COTTON INDUSTRY 



The annual cotton crop of the United States amounts 

 to twelve million bales. It is grown on thirty-six million 

 acres, Texas, Georgia, Alabama, Mississippi and Okla- 

 homa and Indian Territory ranking foremost in importance 

 among the cotton-growing states. The annual value of 

 the cotton crop, including the lint and the seed, amounts 

 to more than three-quarters of a billion dollars. The 

 value of the exports of American cotton equals half a 

 billion dollars, or approximately one-half the total annual 

 value of the exports of all domestic farm products. 1 



Conditions Surrounding the Cotton Industry 



One of the greatest economic problems that has faced 

 the South is the annual financing of the cotton farmer. 

 There are several kinds of farmers engaged in cotton grow- 

 ing, the large land-owner, who manages his own property, 

 the large estate that may be sublet to tenants or is man- 

 aged under some form of superintendence, and the small 

 farm managed either by an owner or by a tenant. The 

 large land-owner usually is able to finance his operations 

 through regular banking channels, but with the small 

 farm owner or the tenant the case is different. The aver- 

 age small farmer has no surplus capital with which to 

 develop his place or to carry on his annual operations. 

 His assets are small, and he can furnish little security for 

 credit except the growing cotton. He usually obtains 

 credit from the local storekeeper and gives a lien on the 

 crop as security for the bill which he accumulates during 



1 Year Book, U. S. Department Agriculture, 1911. 



