An Analysis of the Economics of 30-Inch Row Spacing in Cotton Production in Louisiana

J. F. Denison, K. W. Paxton, and D. R. Lavergne


 
ABSTRACT

A relatively new production technology which is being adopted by Northeast Louisiana (NELA) producers is 30-inch row spacing cotton production. Thirty-inch row cotton production has increased substantially in Louisiana between 1991 to 1992 (6,674 to 4,350 acres). (1) With the development of narrow row spacing harvesting equipment, 30-inch row cotton production is a technically feasible option. This paper addresses the issue of the economics of 30-inch row cotton production using whole-farm analysis. Information on production requirements and yield response was obtained by surveying 30-inch row cotton producers in NELA and area researchers. Enterprise budgets were developed for 30-inch row cotton, soybeans and corn production using 10 row equipment and for conventional 40-inch row production using 8-row equipment. Data from the budgets were used as inputs into a whole-farm linear programming model. The model was structured to capture the long-run investment aspect associated with adopting 30-inch row technology. The model was designed to select the profit maximizing row-spacing technology for a typical NELA farm with resources to produce cotton, soybeans and corn. Results of the model indicated that even with no yield differences between 30-and-40-inch cotton, the 30-inch technology yielded higher net returns. Assuming a 1 percent yield advantage with 30-inch cotton, whole-farm returns were $37,846 higher using the 30-inch row technology.



Reprinted from 1992 Proceedings Beltwide Cotton Conferences pp. 438 - 441
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998