  Take this scenario. At the time you are making your planting
decisions, December cotton futures are trading in the high 50s.
You know if cotton prices continue to trade no higher than the
mid 50s during the government’s 12-month marketing season, which
begins next August, you will likely receive your full 13.73
cents in CC payments. You also know if prices go up your
payments will be at risk. In order to protect those payments,
you decide to plant your base.  During the growing season,
market fundamentals change and prices do go up. December futures
trade to 70 cents per pound. Your buyer calls and tells you he
can give you a 10-cent equity contract if you sign up today. You
know that 70 cents is an important price point in cotton and a
10-cent equity is the best contract you have seen in years. You
decide to take him up on his offer, giving you an expected cash
price of 62 cents.  The weather cooperates, and you end up
making an average crop, spending about what you expected to
spend. Once all of your cost