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Financial and marketing risks in cotton farming operations are much greater than a few years ago. Narrow margins of earnings and wide swings in prices and income are causing farmers and their lenders to take a new look at the payoff for developing marketing plans and implementing well managed marketing strategies. Successful operators are sharpening their skills in marketing. Price movements in cotton carry a great deal of uncertainty because of changes in weather, in foreign and domestic policy and in supply and demand factors. Price variability has always been a major source of risk facing cotton producers. Typically, farmers are in a better position to manipulate the factors that determine yields than the factors that determine price. The producer cannot control price, but he can control how and when he prices. Farmers gain flexibility and increase their chances for a better price by when they price. TAMPRICE can be used by cotton farmers to gain an understanding of (1) enterprise budgeting; (2) marketing plans; (3) the mechanics of some of the available pricing alternatives; and (4) the factors which move the market. The program will assist in calculating a breakeven price, in comparing the possible results of several pricing alternatives, and in considering an appropriate time to price. |
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©National Cotton Council, Memphis TN |
Document last modified Sunday, Dec 6 1998
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