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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 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 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
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
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
The Analysis • Using varieties with strong genetic potential • Irrigated production • Harvesting costs evaluated • Ginned with appropriate sequence to maintain fiber quality
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
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.
Quality Differences Short Fiber Content by No. (%) Trash Content (Cnt/g) Neps per Gram
Harvesting and Ginning Cost Picker Higher cost from stripper Stripper
Seed Cotton Yield Picker Higher seed cotton yield from stripper Stripper
Lint Yield Picker Higher lint yield from stripper Stripper
Current Revenue: AMS Market Prices Picker Higher revenue from stripper Stripper
Current Profit Picker Little difference in overall profit Stripper
SJV South Texas E/M 1 E/M 2 Traditional MarketSegments by Quality Demands Higher return Higher quality specification
Potential Market Access Hence, picker harvested cotton fibers can at least meet the quality standards of market segment E/M 2 (average premium 40).
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
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