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Impact of Quality on the Profitability of Irrigated Cotton Production on the Texas High Plains

Megan L. Denning, Octavio A. Ramirez and Carlos Carpio


 
ABSTRACT

Production function models for cotton lint yield, seed yield, and lint quality characteristics (e.g. micronaire, staple length, and fiber strength) are developed. The models are used to evaluate the effect of lint prices, seed prices, lint quality premiums/discounts, variable input costs, and weather conditions on a set of profit-maximizing crop management decisions involving variety, fertilizer application method, and input (water/nitrogen and phosphorous fertilizer) use levels. Both expected returns and variability of profit are considered in the analysis. The main conclusion of the study is that knowledge and consideration of the effect of management decisions on lint quality can substantially increase expected profitability and reduce profit variation.





Reprinted from Proceedings of the 2001 Beltwide Cotton Conferences pp. 208 - 216
©National Cotton Council, Memphis TN

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Document last modified XXXXXX, XXX XX 2001