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Cotton Production Costs and Returns: Fruitful Rim

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Cotton production costs and returns per planted acre, excluding Government payments, Fruitful Rim, 1998-2005 1

Item

1998

1999

2000

2001

2002

2003

2004

2005

  Dollars per planted acre
Gross value of production:
  Primary product: Cotton  $304.92  $537.30  $661.76  $346.50  $460.46  $774.61  $795.96  $662.75
  Secondary product: Cottonseed  $73.64  $85.26  $108.08  $87.60  $84.14  $123.55  $175.61  $159.38
    Total, gross value of production  $378.56  $622.56  $769.84  $434.10  $544.60  $898.16  $971.57  $822.13
Operating costs:
  Seed  $25.87  $23.18  $30.70  $38.01  $45.58  $27.28  $33.79  $38.67
  Fertilizer  2/  $41.75  $38.72  $40.77  $43.99  $36.75  $39.93  $42.41  $48.91
  Chemicals  $93.99  $92.11  $92.07  $87.46  $83.41  $88.27  $88.27  $88.27
  Custom operations  $28.34  $74.37  $78.46  $73.33  $74.93  $52.59  $53.02  $55.18
  Fuel, lube, and electricity  $49.14  $51.40  $63.80  $60.88  $50.16  $51.85  $65.67  $84.34
  Repairs  $26.50  $25.15  $26.56  $26.43  $26.53  $24.62  $25.17  $26.28
  Ginning  $42.20  $88.64  $91.40  $88.23  $90.01  $129.10  $177.27  $173.14
  Purchased irrigation water  $48.55  $46.02  $48.60  $44.57  $44.20  $22.45  $22.63  $23.55
  Interest on operating inputs  $8.54  $10.34  $13.62  $7.80  $3.76  $1.62  $2.61  $6.21
    Total, operating costs  $364.88  $449.93  $485.98  $470.70  $455.33  $437.71  $510.84  $544.55
Allocated overhead:
  Hired labor  $60.27  $61.03  $63.37  $64.50  $62.86  $31.19  $31.98  $32.98
  Opportunity cost of unpaid labor  $31.00  $31.86  $32.28  $34.07  $37.20  $48.64  $49.88  $51.44
  Capital recovery of machinery and equipment  $95.90  $98.01  $101.12  $104.76  $96.69  $78.50  $84.22  $89.94
  Opportunity cost of land  $119.70  $138.04  $155.02  $140.34  $131.19  $79.47  $79.47  $82.78
  Taxes and insurance  $15.22  $16.14  $17.12  $18.35  $17.75  $15.30  $15.54  $15.66
  General farm overhead  $31.15  $33.76  $34.70  $35.74  $35.74  $31.23  $31.93  $33.34
    Total, allocated overhead  $353.24  $378.84  $403.61  $397.76  $381.43  $284.33  $293.02  $306.14
 
Total costs listed  $718.12  $828.77  $889.59  $868.46  $836.76  $722.04  $803.86  $850.69
 
Value of production less total costs listed  $(339.56)  $(206.21)  $(119.75)  $(434.36)  $(292.16)  $176.12  $167.71  $(28.56)
Value of production less operating costs  $13.68  $172.63  $283.86  $(36.60)

 $89.27

 $460.45  $460.73  $277.58
 
Supporting information:
     Cotton Yield: pounds per planted acre 462 995 1,034

990

1,001

1,091

1,474

1,205

     Price: dollars per pound  $0.66  $0.54  $0.64

 $0.35

 $0.46

 $0.71

 $0.54

 $0.55

     Cottonseed Yield: pounds per planted acre 1,052 1,421 1,544

1,460

1,202

1,765

2,385

1,950

     Price: dollars per pound  $0.07  $0.06  $0.07

 $0.06

 $0.07

 $0.07

 $0.07

 $0.08

     Enterprise size (planted acres) 1/ 437 437 437

437

437

614

614

614

Production practices: 1/
     Percent irrigated 74 74 74 74 74 45 45 45
     Percent dryland 26 26 26 26 26 55 55 55
 
1/ 1998-2002 estimates developed from survey base year, 1997.  2003-2005 estimates developed from survey base year, 2003.
2/ Commercial fertilizer, soil conditioners, and manure.


Last Updated on 10/13/2006
Email:
econs@cotton.org