An Analysis of Factors Influencing the Profitability and Comparative Advantage of Cotton in Georgia

W. Donald Shurley


 
ABSTRACT

Cotton acreage in Georgia has increased substantially in recent years. The quality of Georgia and Southeast cotton is also improving. For the 1990 and 1991 crops, an average of over 70 percent of the state's crop has been renderable. Factors influencing the recent uptrend in cotton acreage include better varieties, improving yields, and increased use of irrigation; reduced pesticide problems and costs; higher profitability compared to alternative enterprises; and a favorable cotton government program with a relatively high target price and that allows base-building. Projections for 1992 estimate that irrigated program cotton will bring the highest Return to Land and Management. Non-program irrigated cotton is expected to bring the second highest net return. An examination of Breakeven Price and Yield for cotton compared to other crops indicates that cotton in Georgia may have a decided advantage over other crops in the foreseeable future unless economic conditions should change significantly.



Reprinted from 1992 Proceedings Beltwide Cotton Conferences pp. 452 - 455
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998