Podcast
Questions and Answers
What percentage of the corn crop is exported?
What percentage of the corn crop is exported?
Which agricultural product has a higher farm value than cotton?
Which agricultural product has a higher farm value than cotton?
How much cotton was produced in 1911 in bales?
How much cotton was produced in 1911 in bales?
What is the primary difference in the preparation methods between cotton and other agricultural products?
What is the primary difference in the preparation methods between cotton and other agricultural products?
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Which States are among the leading producers of cotton?
Which States are among the leading producers of cotton?
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What percentage of lint cotton produced is sold in foreign countries?
What percentage of lint cotton produced is sold in foreign countries?
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Which statement is true about the other crops compared to cotton?
Which statement is true about the other crops compared to cotton?
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What was the farm value of the wheat crop in 1911?
What was the farm value of the wheat crop in 1911?
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What percentage of the world's cotton requirements does the United States supply?
What percentage of the world's cotton requirements does the United States supply?
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What is the annual increase in the world's cotton demand?
What is the annual increase in the world's cotton demand?
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What was the total contribution of cotton and cottonseed products to the foreign trade volume in 1911?
What was the total contribution of cotton and cottonseed products to the foreign trade volume in 1911?
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What was the crop size of American cotton in 1911?
What was the crop size of American cotton in 1911?
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What was the average price of South Carolina sea island cotton in 1911?
What was the average price of South Carolina sea island cotton in 1911?
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Which of the following commodities contributed the least to the volume of foreign trade?
Which of the following commodities contributed the least to the volume of foreign trade?
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What percentage increase did the cotton crop from 1904 to 1911 represent?
What percentage increase did the cotton crop from 1904 to 1911 represent?
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What was the balance of trade excess in 1911?
What was the balance of trade excess in 1911?
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How much did the cotton exported bring to the United States in exchange in 1911?
How much did the cotton exported bring to the United States in exchange in 1911?
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What factor primarily determines the condition of a bale after being compressed and resampled multiple times?
What factor primarily determines the condition of a bale after being compressed and resampled multiple times?
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What factor is essential for the successful growth of cotton in the U.S.?
What factor is essential for the successful growth of cotton in the U.S.?
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What was the original intention behind the farmer cutting a hole in the bale?
What was the original intention behind the farmer cutting a hole in the bale?
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What criticism is attributed to the packaging of American cotton?
What criticism is attributed to the packaging of American cotton?
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Which statement best describes the handling of bales 6 and 7?
Which statement best describes the handling of bales 6 and 7?
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What is a major disadvantage of using flimsy burlap for covering bales?
What is a major disadvantage of using flimsy burlap for covering bales?
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What is the average price of upland cotton for the crop of 1911?
What is the average price of upland cotton for the crop of 1911?
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What is the implication of using artificial moisture on bals of cotton?
What is the implication of using artificial moisture on bals of cotton?
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Which region in the U.S. is most associated with cotton production?
Which region in the U.S. is most associated with cotton production?
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Which of the following actions would most likely ensure better preservation of cotton bales during transport?
Which of the following actions would most likely ensure better preservation of cotton bales during transport?
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What observation can be made about the cotton bales marked X X?
What observation can be made about the cotton bales marked X X?
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What was the purpose of the strips applied to the sides of the bale with sample holes?
What was the purpose of the strips applied to the sides of the bale with sample holes?
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What may happen to a bale that is not protected from climatic conditions?
What may happen to a bale that is not protected from climatic conditions?
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Which condition supports the originality and quality of bales as they are shipped?
Which condition supports the originality and quality of bales as they are shipped?
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What is the primary benefit of sampling cotton for the buyer at distant points?
What is the primary benefit of sampling cotton for the buyer at distant points?
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What is referred to as the 'city crop'?
What is referred to as the 'city crop'?
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What main disadvantage do small farmers face due to sampling?
What main disadvantage do small farmers face due to sampling?
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How is the commission charged to farmers for selling their cotton typically structured?
How is the commission charged to farmers for selling their cotton typically structured?
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What is the average cost associated with conveying cotton to the compress?
What is the average cost associated with conveying cotton to the compress?
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What happens to the weight of cotton bales during recompression?
What happens to the weight of cotton bales during recompression?
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Why do railroad companies offer lower rates for recompressed bales compared to flat bales?
Why do railroad companies offer lower rates for recompressed bales compared to flat bales?
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What is a significant risk for farmers when dealing with merchants regarding grading?
What is a significant risk for farmers when dealing with merchants regarding grading?
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What role does the New York Cotton Exchange play in the classification of cotton grades?
What role does the New York Cotton Exchange play in the classification of cotton grades?
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What is a common financial burden on farmers when they take loans from merchants or factors?
What is a common financial burden on farmers when they take loans from merchants or factors?
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What financial disadvantage do farmers face concerning interest rates on loans?
What financial disadvantage do farmers face concerning interest rates on loans?
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What typically happens to the condition of samples after they are handled and transported?
What typically happens to the condition of samples after they are handled and transported?
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What is an inherent risk in the relationship between farmers and merchants concerning sample grading?
What is an inherent risk in the relationship between farmers and merchants concerning sample grading?
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What is the primary issue surrounding the marketing of cotton?
What is the primary issue surrounding the marketing of cotton?
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What is noted as a method of baling cotton that contributes to inefficiencies?
What is noted as a method of baling cotton that contributes to inefficiencies?
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What challenge does the vastness of the cotton industry pose?
What challenge does the vastness of the cotton industry pose?
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Why do merchants and factors continue the practice of pulling samples of cotton?
Why do merchants and factors continue the practice of pulling samples of cotton?
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How are farmers compensated after ginning their cotton?
How are farmers compensated after ginning their cotton?
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What factor exacerbates the inefficient handling of cotton from farm to market?
What factor exacerbates the inefficient handling of cotton from farm to market?
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What is a significant risk when cotton is not properly protected during storage?
What is a significant risk when cotton is not properly protected during storage?
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What system inadequacy is highlighted regarding the baling process?
What system inadequacy is highlighted regarding the baling process?
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Which group is affected by excessive costs in the cotton marketing system?
Which group is affected by excessive costs in the cotton marketing system?
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What can be inferred about the necessity for change in the cotton marketing system?
What can be inferred about the necessity for change in the cotton marketing system?
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What is the impact of the cotton marketing practices on spinners specifically?
What is the impact of the cotton marketing practices on spinners specifically?
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What is a notable characteristic of the cotton industry mentioned?
What is a notable characteristic of the cotton industry mentioned?
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What is a consequence of the current cotton sampling practices?
What is a consequence of the current cotton sampling practices?
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Who predominantly recognizes the need for changes in cotton handling methods?
Who predominantly recognizes the need for changes in cotton handling methods?
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What is the primary purpose of the compress in cotton packaging?
What is the primary purpose of the compress in cotton packaging?
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What issue arises due to the use of secondhand bagging for cotton bales?
What issue arises due to the use of secondhand bagging for cotton bales?
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Compared to new jute bagging, how does secondhand bagging affect cotton bales?
Compared to new jute bagging, how does secondhand bagging affect cotton bales?
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Which method is preferred for transporting cotton, according to a planter's perspective?
Which method is preferred for transporting cotton, according to a planter's perspective?
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What is one of the costs associated with conveying a bale of cotton to the compress?
What is one of the costs associated with conveying a bale of cotton to the compress?
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What happens to secondhand bagging that cannot be used for patching bales?
What happens to secondhand bagging that cannot be used for patching bales?
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What characterizes a bale that was poorly covered at the gin?
What characterizes a bale that was poorly covered at the gin?
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What is a key disadvantage of using older bagging for cotton bales?
What is a key disadvantage of using older bagging for cotton bales?
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How does the size and condition of bales affect their handling at the compress?
How does the size and condition of bales affect their handling at the compress?
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What is a common problem identified with the bale that is not patched and poorly covered?
What is a common problem identified with the bale that is not patched and poorly covered?
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What can happen to the value of a cotton bale if it is poorly maintained and handled?
What can happen to the value of a cotton bale if it is poorly maintained and handled?
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What is the impact of using inferior bagging for cotton bales?
What is the impact of using inferior bagging for cotton bales?
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What is the average estimated cost for conveying a bale of cotton from the farm to the compress?
What is the average estimated cost for conveying a bale of cotton from the farm to the compress?
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When is the transport time shorter for cotton bales?
When is the transport time shorter for cotton bales?
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Flashcards
Cotton's Economic Value
Cotton's Economic Value
Cotton is the most valuable agricultural product in the US, only surpassed by corn.
Cotton Growing Regions
Cotton Growing Regions
Cotton cultivation is limited to specific regions in the US.
Corn's Widespread Production
Corn's Widespread Production
Corn is grown in all states, making it a widespread agricultural product.
Importance of Corn & Cotton
Importance of Corn & Cotton
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Standardized Agricultural Practices
Standardized Agricultural Practices
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Cotton Marketing Inefficiencies
Cotton Marketing Inefficiencies
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Competition's Role in Market Efficiency
Competition's Role in Market Efficiency
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Missing Competitive Incentive in Cotton
Missing Competitive Incentive in Cotton
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Global demand for cotton
Global demand for cotton
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US as a cotton powerhouse
US as a cotton powerhouse
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Inefficient cotton marketing
Inefficient cotton marketing
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Lack of standardization in cotton marketing
Lack of standardization in cotton marketing
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Buyer's dilemma
Buyer's dilemma
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Cotton's economic impact
Cotton's economic impact
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Issues plaguing the US cotton industry
Issues plaguing the US cotton industry
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Record-breaking cotton harvest
Record-breaking cotton harvest
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Sea island cotton's role
Sea island cotton's role
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Fluctuating cotton prices
Fluctuating cotton prices
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Egyptian cotton's premium price
Egyptian cotton's premium price
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Weather's impact on sea island cotton
Weather's impact on sea island cotton
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Cotton's economic impact
Cotton's economic impact
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Potential for cotton expansion
Potential for cotton expansion
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Cotton's role in balancing trade
Cotton's role in balancing trade
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Cotton's Importance & Outdated Practices
Cotton's Importance & Outdated Practices
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Cotton's Inefficient Journey
Cotton's Inefficient Journey
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Inadequate Cotton Baling
Inadequate Cotton Baling
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Sample Pulling Damage
Sample Pulling Damage
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Farmers' Lost Rewards
Farmers' Lost Rewards
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Higher Costs for Spinners and Consumers
Higher Costs for Spinners and Consumers
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Resistance to Modernization
Resistance to Modernization
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Cotton's Journey: Farm to Ginnery
Cotton's Journey: Farm to Ginnery
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Ginner's Cheap Baling Practices
Ginner's Cheap Baling Practices
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Mutilation and Spoliation of the Bale
Mutilation and Spoliation of the Bale
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Recompression & Continued Damage
Recompression & Continued Damage
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Profits from Sample Pulling
Profits from Sample Pulling
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Inadequate Cotton Storage
Inadequate Cotton Storage
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Persistence of Sample Pulling
Persistence of Sample Pulling
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Losses due to Inefficient Handling
Losses due to Inefficient Handling
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Artificial moisture
Artificial moisture
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Moisture Absorption Location
Moisture Absorption Location
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Exuviation
Exuviation
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Detecting Artificial Moisture
Detecting Artificial Moisture
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Resampling
Resampling
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Sample Hole Damage
Sample Hole Damage
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Hook Handling Damage
Hook Handling Damage
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Deplorable Condition
Deplorable Condition
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Resampled Bale
Resampled Bale
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Standard Boxing
Standard Boxing
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Cotton Compressing
Cotton Compressing
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Secondhand Bagging's Impact
Secondhand Bagging's Impact
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Benefits of New Bagging
Benefits of New Bagging
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Old Bagging Recycling
Old Bagging Recycling
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Weakening of Secondhand Bagging
Weakening of Secondhand Bagging
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Patching Materials Used
Patching Materials Used
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Sugar Bagging's Use
Sugar Bagging's Use
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Cost of Transportation
Cost of Transportation
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Water Route Advantages
Water Route Advantages
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Cotton Marketing Stages
Cotton Marketing Stages
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Shipper Compressed Bale
Shipper Compressed Bale
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Secondhand Bagging Patched Bale
Secondhand Bagging Patched Bale
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Spongy Bale
Spongy Bale
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Damaged & Resampled Bale
Damaged & Resampled Bale
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Standard Box Bale
Standard Box Bale
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Cotton Sample
Cotton Sample
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City Crop
City Crop
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Country Damage
Country Damage
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Cotton Credit System
Cotton Credit System
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Factor's Commission
Factor's Commission
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Storage and Insurance Charges
Storage and Insurance Charges
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Grade Manipulation
Grade Manipulation
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Cotton Grading
Cotton Grading
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Cost of Conveyance
Cost of Conveyance
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Flat Bale
Flat Bale
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Recompressed Bale
Recompressed Bale
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Recompression
Recompression
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Jute Covering
Jute Covering
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Bagging Patches
Bagging Patches
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Study Notes
Cotton Packing and Marketing: Present Methods
- Cotton is the most valuable agricultural product in the US (except corn), cultivated in 18 states. Significant output comes from Arizona, California, Kansas, Kentucky, and New Mexico.
- 1911 corn crop: 2,513,488,000 bushels, $1,565,258,000 farm value.
- 1911 cotton crop: 16,250,276 500-pound bales, $1,000,000,000 total value, $1,200,000,000 including seed.
- 1911 wheat crop: 650,000,000 bushels, $600,000,000 farm value.
- 65% of US cotton is exported, contrasting with other products largely consumed domestically.
Comparison with Other Products
- Other farm products (corn, wheat, hay, sugar, tobacco) are carefully prepared, inspected, graded, and packaged for market to prevent damage during transport.
- This meticulous care is driven by strong competition, which is lacking in the cotton industry.
- Global demand for cotton is high, estimated at 20 million bales annually, growing by 400,000 bales annually.
- US supplies approximately 75% of global demand, a position unlikely to change due to natural advantages.
- Foreign demand necessitates accepting cotton in its current, inefficient form due to lack of alternative.
Inadequate Cotton Covering
- American cotton is poorly prepared and inadequately covered compared to other commodities in domestic/foreign trade.
- It's valued for its qualities but criticized for its presentation, a widely recognized problem.
- This inadequate care is considered wasteful and a source of conflict, often resulting in disputes and expensive litigation.
- Despite its value ($1 billion/year), cotton receives less care than other, less valuable commodities.
Cotton's Role in Foreign Trade
- In 1911, cotton contributed $517 million to US foreign trade alongside $42 million from cottonseed.
- Other major farm products had a combined value of $390 million in 1911.
- Iron and steel exports reached $250 million.
- 1911's cotton exports generated $559 million in foreign exchange, almost equal to the overall balance of trade.
Extent and Value of the Cotton Crop
- The 1911 cotton crop (with linters and running bales) was 16,109,349, the largest recorded in US history.
- Expressed in 500-pound bales, it exceeded the 1909, 1903 and 1904 crops.
- Average annual production for 1899-1903: 10,055,003 bales; 1907-1911: 12,706,823 bales (26.4% increase).
- Sea Island cotton (less than 1% of 1911 crop): 119,293 bales from South Carolina, Georgia and Florida.
- Average prices varied by region and season, affected by storms. Egypt prices were 18.75 cents.
Handling from Farm to Mill
- Current methods are outdated, inefficient, and expensive.
- Cotton is handled from the farm to the ginnery, then to the compress, with significant loss.
- Farmers haul cotton to ginners, who provide bagging and ties (avg. cost: $1 per bale).
- Ginners use cheapest materials for covering lint, resulting in the flat bale.
- Prior to recompression, cotton is sampled numerous times, leading to damage and loss, with resultant "city crop" ( $4 million annual value) of sampled cotton.
Issues with Sample Pulling
- Sample pulling is highly profitable for merchants and factors.
- This practice is entrenched due to long use and its profitability; buyers appreciate the ability to inspect quality.
- Sampling leads to significant losses for farm owners, especially small farmers struggling with limited capital.
Cotton Farmer's Situation - Loan system
- Small farmers heavily rely on merchant/factor advances for cultivation.
- Loans are conditional on producing a certain number of bales and delivering them for eventual sale.
- Commissions, interest, storage, and insurance charges are high, often exceeding the value of cotton sales, leaving many farmers in debt.
- Merchants can report a lower cotton grade than what was negotiated, causing a loss between $1 to $5 per bale for the farmer.
Baling Methods and Expenses
- Flat/irregular bales compared to the recompressed are not efficient
- Transportation costs to compress and then to markets are significant ($5/bale or more).
- Recompression reduces shipping costs and space but doesn't consistently improve the bale’s visual appeal or quality.
- Poor quality bagging, re-use of bagging, and poor bale patching are standard.
Illustration of Baling Methods (Figures)
- Images showcase various bale conditions: compressed and patched, poorly covered, wide bales, and bales with significant sampling damage.
- Shows poor packaging practices
Artificial Moisture and Country Damage
- Cotton is often deliberately exposed to moisture to increase weight.
- This practice is detrimental because fluctuations can cause problems with buyers discovering the moisture wasn't natural.
- Practices at farm level cause damage to cotton.
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Description
Test your knowledge on cotton production and its economic impact in agriculture. This quiz covers historical data, export percentages, and comparisons with other crops. See how much you really know about the agricultural industry!