Results of a study of West Texas cotton ginning costs are reported. Ginning cost estimates are based on statistical analyses of three years of accounting data developed from audit reports for 77 cooperative gins in West Texas. Ordinary least squares multiple linear regression techniques were used to measure the association of per bale ginning costs with (a) utilization of plant capacity and (b) plant size or capacity measured in bales per hour. Under utilization of plant capacity is the major cause of high ginning costs. Actual per bale average cost and costs for each of five gin sizes (8, 10, 12, 16 and 26 bales per hour) for 100 hours to 2,500 hours of annual operation in 100 hour increments are presented. Producers and gins need to work together to examine ways to lengthen the ginning season which could increase capacity utilization levels and achieve lower ginning costs. Per bale ginning costs can be controlled or reduced if producers and ginners concentrate on proper use and short-term storage of moduled seed cotton, rather than increasing hourly ginning capacity.