Cotton Production Costs and Returns: Fruitful Rim

Cotton production costs and returns per planted acre, excluding Government payments, Fruitful Rim, 2009-2011 1/

Item

2009

2010

2011

Dollars per planted acre

Primary product: Cotton

$584.60

$1,026.04

$879.01

Secondary product: Cottonseed

$119.70

$161.48

$195.30

  Total, gross value of production

$704.30

$1,187.52

$1,074.31

Operating costs:

Seed

$76.16

$83.32

$99.98

Fertilizer  2/

$121.50

$94.17

$123.74

Chemicals

$98.98

$95.41

$95.41

Custom operations

$61.52

$63.50

$64.68

Fuel, lube, and electricity

$75.13

$95.28

$117.65

Repairs

$36.57

$37.51

$38.67

Ginning

$180.20

$219.79

$137.56

Purchased irrigation water

$35.89

$37.04

$37.73

Interest on operating inputs

$0.99

$0.73

$0.36

  Total, operating costs

$686.94

$726.75

$715.78

Allocated overhead:

Hired labor

$27.43

$27.72

$28.01

Opportunity cost of unpaid labor

$32.81

$33.17

$33.52

Capital recovery of machinery and equipment

$149.18

$154.56

$163.97

Opportunity cost of land

$115.32

$118.74

$128.03

Taxes and insurance

$10.20

$10.55

$11.10

General farm overhead

$27.04

$27.73

$28.59

  Total, allocated overhead

$361.98

$372.47

$393.22

Total costs listed

$1,048.92

$1,099.22

$1,109.00

Value of production less total costs listed

($344.62)

$88.30

($34.69)

Value of production less operating costs

$17.36

$460.77

$358.53

Supporting information:

Cotton Yield: pounds per planted acre

740

908

671

Price: dollars per pound

$0.79

$1.13

$1.31

Cottonseed Yield: pounds per planted acre

1,197

1,468

1,085

Price: dollars per pound

$0.10

$0.11

$0.18

Enterprise size (planted acres) 1/

507

507

507

Production practices: 1/

Percent irrigated

57

57

57

Percent dryland

43

43

43