Post on 07-Jan-2016
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Analyzing the Current Returns and Potential Market by Harvesting Method for West Texas Cotton
West Texas have begun to use picker harvesters1.
• But, a key question is if doing this will be more profitable.
•Currently available economic analysis 2,3 does not take into
consideration the changes in ginning cost associated with harvest
method.
Yield lbs/planted acre in Texas
Yield share by states
•Short fiber content by number was low overall for picker harvest system.
•Trash content was significantly lower for picker harvesting and ginning method for all
three years.
•Nep size and Nep count were significantly lower for the picker harvest system for all
three years.
Short Fiber Content by No.(%X10)
Neps per Gram
Trash Content (Cnt/g)
Year Picker Stripper
2009 East/Memphis 2 Traditional
2010 East/Memphis 2 Traditional
2011 South Texas East/Memphis1
Hence, picker harvested cotton fibers can at least meet the
quality standards of market segment East/Memphis 2
(average premium 40).
Little difference in return by harvest system in traditional markets.
Picker harvested West Texas cotton quality meets higher segment.
Conclusion
Choice of harvest method in cotton production
surprisingly has many economic consequences by
altering economic returns and quality of final product.
In particular, picker harvest and ginning practices
1. Determine quality differences between by harvesting method.
2. Compare profits based on the CCC loan rate and AMS prices.
3. Determine if improved markets served is possible.
may be useful to preserve and enhance the fiber quality of long staple
varieties used in West Texas. This article looks at differences in cost and
price premium for sample drawn from cotton bales produced at
commercial quantities that were ginned based on harvest method, and
evaluated in the years 2009, 2010 and 2011. Results suggest cotton
farmers may want to reconsider typical stripper harvesting and ginning
practices for irrigated cotton because there seems to be potential for
reaching higher market segments. Comparatively, picker harvesting
is costly but provides the quality of yield in demand
by higher end market segments, especially in
demand for ring spinning purposes.
References1. Wanjura J. D., W. B. Faulkner, G. A. Holt, M.G. Pelletier, 2011. Influence of Seed Cotton Extractor Cleaners and Cleaning Rate on
Gin Turnout and Fiber Quality, American Society of Agricultural and Biological Engineers, 2011 Louisville, Kentucky,
August 7-10, 2011, 1111287.
2. Faulkner, W.B., Wanjura, J.D., Shaw, B.W., Hequet, E.F. 2009. Effect of harvesting methods on fiber and yarn quality from irrigated
cotton on the High Plains. Proceedings of the American Society of Agricultural and Biological Engineers International
(ASABE)Meeting. June 29-July 2, 2008, Providence, RI. Paper No. 083283.
3. Bowmen, R., and Kelly, M. 2010. “Picker Vs Stripper Harvest or Comparisons.” System Agronomic and Economic Evaluation of
Cotton Varieties in the Texas High Plains, 2010 Final Report: 20-40.
Product Flow from Field to Market by Harvest Method
• Global demand - fibers for
ring spinning applications.
• Texas - largest producer of
cotton in US but is producing
for rotor spinning.
• Some cotton producers in
Increased market needs to be met with sufficient volume .
Production of irrigated, picker harvested cotton appears promising.
Current Profit ($/acre)
Seed Cotton Yield(lbs/acre)
Lint Yield (lbs/acre)
Potential Market Segment
•On average, the picker system yielded 63.94 lbs/acre lint and 910.69 lbs/acre seed
cotton less than the stripper harvest system.
•The profit is not much different in the current market.
•Potential market analysis is important as the current market premium is certainly not
rewarding the quality differential of picker harvested cotton.
Yield and Profit by Harvest Method
Quality Difference by Harvest Method
PickerStripper
Higher return Higher quality specification
Cotton field ready to harvestPicker Harvest System Stripper Harvest System
“New varieties improved returns to West Texas cotton farmers by $ 1
million a year.” - Dr. Carl Anderson. But, are West Texas cotton farmers
receiving potential returns with traditional stripper harvesting methods ?
Rationale
Cotton is a natural fiber with substantial quality variability
P= f (Micronaire, Length, Length Uniformity, Strength, Leaf, Color
grade)
where, P is the base price adjusting for quality premium (or discount).
Using varieties with strong genetic potential
Irrigated production
Harvesting costs evaluated
Ginned with appropriate sequence to maintain fiber quality
Objectives
Methods
Abstract
Introduction
Market
Producer
Seed cotton yield with
• Less Trash
•More fiber per unit volume to be transported to the gin
Seed cotton yield with
• More Trash
• Less fiber per unit volume to be transported to the gin
Ginning sequence with one stick machine and one lint cleaner
Ginning sequence with two stick machine and two lint cleaner
Lint yield with
• Higher Micronaire
• Lower short fiber content
Lint yield with
• Lower Micronaire
• Higher short fiber content
Harvest Cost
Volume
Quality Premium
Market Pricing
Ginning Cost
The two systems differ in:
Is the quality difference recognized by current market ?
International Cotton Research Center
Janani R. Thapa, Conrad P. Lyford, Eric Hequet, Jeff JohnsonDepartment of Agriculture And Applied Economics
College of Agriculture Science and Natural Resources