Economic Analysis of Picker Versus Stripper Harvested Cotton: Texas Trans-Pecos

Darrel Renfrow, Ronald D. Lacewell, Jaroy Moore, and Mike Murphy


 
ABSTRACT

This study represents an initial effort to analyze the economic implications of picked versus stripped cotton in the Trans-Pecos region of Texas. Using alternative irrigation and fertilization strategies adapted to Trans-Pecos cotton production, a comparison of net returns per acre was made for both picked and stripped cotton. Crop enterprise budgets were used to calculate returns for six alternative irrigation and fertilization strategies. Yields for these irrigation strategies ranged from 55 lbs. to 966 lbs. lint/acre. For this analysis, yields and pre-harvest variable costs for each irrigation strategy were held constant in order to reveal the effect of alternative harvest methods on returns to land, management and risk. Prices for picked and stripped cotton were obtained for the period of 1983 through 1990. Differences in prices primarily reflect the fluctuations in quality between the two harvest methods. A comparison of prices for picked and stripped cotton revealed that picked cotton has typically received a premium in price over stripped cotton, however, the costs of harvest with strippers are less than the costs for picking. The results of the crop enterprise budgets were input into a spreadsheet developed in Excel(g) from which economic analysis was performed. Returns to land, management and risk were calculated for alternative irrigation and harvest methods using prices for the 1983-1990 period. The results of this study indicate that Trans-Pecos growers must receive an additional .80/lb. of lint for picked cotton in order to obtain equivalent net returns per acre with stripped cotton. Implications for risk indicate that risk averse producers will prefer to pick cotton rather than strip.



Reprinted from 1992 Proceedings Beltwide Cotton Conferences pp. 394 - 398
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998