A Case Analysis of the Cost and Returns of Cotton Production in the Ouachita Valley of Louisiana

J. F. Denison, J. Barnett


The study centers around a case analysis of the direct cost per acre associated with a 28 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 past two seasons. 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 $431.86/acre. This cost included a land rent charge of $122/acre. The yield level for the case was 880 pounds of lint cotton. Using the 1992 USDA Loan Price ($0.52/lbs.) yielded a gross return of $457.60/acre. The breakeven yield to cover direct cost per acre was 830.5 pounds. Cost per pound of lint was $0.37/pound. Gross revenues decreased by $97/acre due to a 188 pound/acre drop in production while direct expenditures per acre increased by $37/acre.

Reprinted from Proceedings of the 1994 Beltwide Cotton Conferences pp. 519 - 520
©National Cotton Council, Memphis TN

[Main TOC] | [TOC] | [TOC by Section] | [Search] | [Help]
Previous Page [Previous] [Next] Next Page
Document last modified Sunday, Dec 6 1998