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Analyzing the current returns and potential market by harvest method for west texas cotton

Analyzing the current returns and potential market by harvest method for west texas cotton. Janani Thapa, Conrad Lyford, Eric Hequet, and Jeff Johnson Texas Tech University, Lubbock, Texas Project Funded by International Cotton Research Center at Texas Tech University. Cotton Market.

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Analyzing the current returns and potential market by harvest method for west texas cotton

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  1. Analyzing the current returns and potential market by harvest method for west texas cotton Janani Thapa, Conrad Lyford, Eric Hequet, and Jeff Johnson Texas Tech University, Lubbock, Texas Project Funded by International Cotton Research Center at Texas Tech University

  2. Cotton Market Figure 1: Average production and export of cotton • Global demand -- ring spinning applications • Market prefers highly uniform fibers with less neps (000) bales Source: www.nass.usda.gov

  3. Texas in US cotton production Figure 2: US cotton belt • Texas is the largest producer of cotton in US. • Traditional use of West Texas cotton is rotor spinning. Figure 4: Yield share by states US cotton belt Figure 3: Yield lbs/planted acre in Texas • Due to introduction of long staple varieties. Source: www.nass.usda.gov

  4. Texas Cotton Farmers 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 using traditional stripper harvesting methods

  5. The Analysis • Using varieties with strong genetic potential • Irrigated production • Harvesting costs evaluated • Ginned with appropriate sequence to maintain fiber quality

  6. Objective Will shifting to picker harvest be financially rewarding for farmers: • Determine quality differences • Compare profits with returns based on the CCC loan rate and AMS prices • Determine if improved markets served is possible

  7. Data Yield and quality data of fibers from actual field (irrigated, variety Fiber Max) for three cotton marketing years - 2009, 2010 and 2011 under picker harvest-picker ginning and stripper harvest-stripper ginning sequence.

  8. Product Flow from Field to Market by Harvest Method

  9. Quality Differences Short Fiber Content by No. (%) Trash Content (Cnt/g) Neps per Gram

  10. Harvesting and Ginning Cost Picker Higher cost from stripper Stripper

  11. Seed Cotton Yield Picker Higher seed cotton yield from stripper Stripper

  12. Lint Yield Picker Higher lint yield from stripper Stripper

  13. Current Revenue: AMS Market Prices Picker Higher revenue from stripper Stripper

  14. Current Profit Picker Little difference in overall profit Stripper

  15. SJV South Texas E/M 1 E/M 2 Traditional MarketSegments by Quality Demands Higher return Higher quality specification

  16. Potential Market Access Hence, picker harvested cotton fibers can at least meet the quality standards of market segment E/M 2 (average premium 40).

  17. Summary • Little difference in returns from picker and stripper harvesting methods in traditional markets • Picker harvested West Texas cotton meets higher segment market quality including short fiber content, neps • Increased market access needs to be met with sufficient volume to be noticed by the market • A focused effort to produce irrigated, picker harvested cotton appears to be promising

  18. Thank You Happy New Year

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