Full Text
(40 K)

Cost of Ginning Cotton

William Mayfield, Herbert Willcutt, Roy Childers


Gin managers compare their component costs to industry averages to identify areas to focus cost cutting efforts. Potential gin investors use cost estimates to help determine the economic feasibility of purchasing ginning systems. Variable costs from 137 gins for the 1994 crop were determined by survey and grouped according to cotton production region and according to gin capacity. Fixed costs were estimated by using a traditional economic model. Straight line depreciation over useful lives of 10 and 20 years and a 10 percent annual interest rate were assumed. Property taxes, insurance, and miscellaneous costs were also included. The cost of seed cotton transportation, which gins incur in most areas, are not included in these estimates.

Reprinted from Proceedings of the 1996 Beltwide Cotton Conferences pp. 1609 - 1618
©National Cotton Council, Memphis TN

[Main TOC] | [TOC] | [TOC by Section] | [Search] | [Help]
Previous Page [Previous] [Next] Next Page
Document last modified Sunday, Dec 6 1998