Cotton Production Costs and Returns: Heartland

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Cotton production costs and returns per planted acre, excluding Government payments, Heartland, 2007-2009 1/

Item

2007

2008

2009

 

Dollars per planted acre

Gross value of production:
Primary product: Cotton

$556.74

$613.20

$478.44

Secondary product: Cottonseed

$133.36

$194.81

$114.64

  Total, gross value of production

$690.10

$808.01

$593.08

Operating costs:
Seed

$95.09

$106.04

$121.43

Fertilizer  2/

$75.44

$115.24

$113.16

Chemicals

$78.17

$81.81

$91.50

Custom operations

$13.02

$13.02

$14.18

Fuel, lube, and electricity

$48.16

$63.15

$40.72

Repairs

$41.14

$42.24

$43.06

Ginning

$145.81

$154.86

$135.53

Purchased irrigation water

$0.00

$0.00

$0.00

Interest on operating inputs

$7.78

$4.27

$0.81

  Total, operating costs

$504.61

$580.63

$560.39

Allocated overhead:
Hired labor

$16.60

$17.16

$17.54

Opportunity cost of unpaid labor

$25.97

$26.85

$27.44

Capital recovery of machinery and equipment

$152.19

$164.14

$177.69

Opportunity cost of land

$76.82

$85.99

$96.67

Taxes and insurance

$6.69

$7.43

$7.96

General farm overhead

$13.10

$13.45

$13.71

  Total, allocated overhead

$291.37

$315.02

$341.01

Total costs listed

$795.98

$895.65

$901.40

 
Value of production less total costs listed

($105.88)

($87.64)

($308.32)

Value of production less operating costs

$185.49

$227.38

$32.69

 
Supporting information:
Cotton Yield: pounds per planted acre

1031

1095

886

Price: dollars per pound

$0.54

$0.56

$0.54

Cottonseed Yield: pounds per planted acre

1,667

1,771

1,433

Price: dollars per pound

$0.08

$0.11

$0.08

Enterprise size (planted acres) 1/

861

861

861

Production practices: 1/
Percent irrigated

61

61

61

Percent dryland

39

39

39

 
1/ 2007-2009 estimates developed from survey base year, 2007.
2/ Commercial fertilizer, soil conditioners, and manure.

Last Updated on 10/05/2010