ABSTRACT
This study centers around a case analysis of the direct cost per acre associated with a 30 acre cotton demonstration on the Page Farm in Columbia, LA. Information concerning production activities, input usage, equipment usage, input prices, and other specific parameters were collected throughout the season. From this information, direct cost of production and associated returns to ownership cost and management were calculated for the situation. Direct cost of production per acre was $394.82/acre. This cost included a land rent charge of $116/acre. The yield level for the case was 1,068 pounds of lint cotton. Using the 1992 USDA Loan Price (very reasonable for this year) yielded a gross return of $555.36/acre. Returns to ownership cost and management were $160.54/acre. The breakeven yield to cover direct cost per acre was 759 pounds which is just below the 800 pound parish average. Results indicate that at loan level prices, area producers must be able to produce levels of cotton in the two bale range to cover cost.
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