Structural Characteristics and Financial Performance of U.S. Cotton Farms, 1991-92

P. Johnson and C. Dodson


Over the 1991-92 period, U.S. cotton production was dominated by specialized farms, farms with annual sales greater than $250,000, and farms located in the Delta/Southeast production region. Approximately two-thirds of cotton farms had positive net farm income in 1991 and 1992. Low yields, especially in the South Plains region, appeared to be a major factor explaining the negative net farm incomes. Despite the large number of cotton farms experiencing low incomes, a limited number of commercial farms were experiencing severe financial stress which was indicated by the combination of a debt/asset ratio greater than 0.40 and negative net farm income. The proportion of commercial cotton farms experiencing severe financial stress was greater than other major farm types.

Reprinted from Proceedings of the 1994 Beltwide Cotton Conferences pp. 475 - 482
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998