The Cotton Situation in the United States

October 24, 1927

Report Outline
Special Focus

A substantial recovery in the condition of the cotton growing industry of the South has been brought about by the prospect of a reduction of nearly 5,300,000 bales in this year's cotton crop and the consequent increase in prices to levels well above those received by the growers last year. The present situation is practically a reversal of that which prevailed a year ago when the largest cotton crop in the history of the country was harvested, prices were driven down to within half a cent of the lowest level reached in a dozen years, and emergency measures were undertaken to cope with distressed conditions in the cotton growing states.

The revenues of ginners and of southern railroads will suffer from the reduction of nearly 30 per cent in the cotton crop, but the loss to cotton producers will be more than offset by an increase of 60 to 70 per cent in cotton prices. The cost of producing this year's cotton, furthermore, shows a considerable reduction in many sections, so that the net return to growers should be substantially in excess of that received a year ago. The increase in the purchasing power of the cotton producers may work to offset the losses in freight revenues collected by the railroads for the transportation of cotton, and should have a beneficial effect upon business conditions in other sections as well as in the South.

Many factors have contributed to the striking changes that have taken place in the cotton growing industry during the last twelve months. Analysis of the causes of some of these developments will throw light upon both the present condition and the future prospects of the industry.

ISSUE TRACKER for Related Reports
Cotton and Textiles
Oct. 11, 1985  Textiles Push for Protectionism
May 13, 1953  Troubles of the Textile Industry
Sep. 10, 1945  Plight of Cotton
Jul. 09, 1943  Civilian Apparel
Sep. 01, 1939  Cotton Exports and Export Subsidies
Mar. 22, 1937  World Stabilization of the Textile Industry
Oct. 12, 1934  Cotton Exports and Crop Reduction
Jul. 15, 1929  Labor in the South
Oct. 24, 1927  The Cotton Situation in the United States
Farm Produce and Commodities