Cotton Production Costs and Returns: Heartland

 

Cotton production costs and returns per planted acre, excluding Government payments, Heartland, 2016-2018 1/

Item 2016 2017 2018
  Dollars per planted acre
Gross value of production:
Primary product: Cotton $669.30 $753.06 $900.09
Secondary product: Cottonseed $157.00 $147.68 $159.60
  Total, gross value of production $826.30 $900.74 $1,059.69
Operating costs:
Seed $100.33 $98.97 $97.81
Fertilizer  2/ $82.42 $74.06 $71.04
Chemicals $108.32 $105.46 $104.54
Custom operations $29.25 $28.44 $28.97
Fuel, lube, and electricity $44.92 $52.23 $56.80
Repairs $75.42 $76.77 $79.41
Ginning $222.85 $254.20 $279.83
Purchased irrigation water $0.00 $0.00 $0.00
Interest on operating inputs $1.53 $3.62 $7.51
  Total, operating costs $665.04 $693.75 $725.91
Allocated overhead:
Hired labor $34.26 $35.21 $37.34
Opportunity cost of unpaid labor $38.36 $39.42 $41.81
Capital recovery of machinery and equipment $227.07 $231.99 $234.16
Opportunity cost of land $114.82 $114.82 $121.51
Taxes and insurance $11.54 $12.30 $12.38
General farm overhead $15.07 $15.34 $15.86
  Total, allocated overhead $441.12 $449.08 $463.06
Total costs listed $1,106.16 $1,142.83 $1,188.97
 
Value of production less total costs listed ($279.86) ($242.09) ($129.28)
Value of production less operating costs $161.26 $206.99 $333.78
 
Supporting information:
Cotton Yield: pounds per planted acre 970 1141 1233
Price: dollars per pound $0.69 $0.66 $0.73
Cottonseed Yield: pounds per planted acre 1,570 1,846 1,995
Price: dollars per pound $0.10 $0.08 $0.08
Enterprise size (planted acres) 1/ 300 300 300
Production practices: 1/
Percent dryland 16 16 16
Percent irrigated 84 84 84
 
1/ 2015-2017 estimates developed from survey base year, 2015.
2/ Commercial fertilizer, soil conditioners, and manure.

Last Updated on 5/1/2019