Comparison of Costs and Returns for Alternative Cotton Harvest Methods in the Texas High Plains

1. Comparison of Costs and Returns for Alternative Cotton Harvest Methods in the Texas High Plains Jay Yates Extension Program Specialist - Risk Management Randy Boman Extension Agronomist – Cotton Mark Kelley Extension Program Specialist – Cotton Texas Cooperative Extension Alan Brashears Agricultural Engineer USDA-ARS

2. Situation in the High Plains • Shift in Varieties Planted • Improved Quality • Higher Irrigated Yields • Substantial Acreage of Subsurface Drip Irrigation and Rising • Loss of Domestic Market

3. Varieties Source: USDA-AMS

4. High Plains Color Grades11 or 21 1969-2006 Grade 11 or 21 (%) Year Source: USDA-AMS

5. High Plains Average Staple 1969-2006 Staple (32nds) Year Source: USDA-AMS

6. Percent of High Plains Bales with >34 Staple 1990-2006 Year Source: USDA-AMS

7. Percent of High Plains Bales with >35 Staple 1990-2006 Year Source: USDA-AMS

8. Percent of High Plains Bales with >36 Staple 1990-2006 Year Source: USDA-AMS

9. High Plains Average Fiber Strength 1980-2006 Fiber strength (g/tex) Year Source: USDA-AMS

10. High Plains Micronaire 1969-2006 (38 Years) Number of Years < 3.4 11 > 4.0 10 Micronaire (units) Low mic discount Year Source: USDA-AMS

11. High Plains Grass and Bark 1969-2006 Average Bark 27% Grass and bark (%) Year Source: USDA-AMS

12. High Plains Total Bale Production1969-2006 2006 ~4.01M TASS Districts 1N and 1S Bales (x 1M) 1969-2003 Average = 2.2M TASS Districts 1N and 1S Year Source: USDA-NASS

13. Irrigated Yields Have Increased 998 lbs 477 lbs Source: USDA-NASS

14. Subsurface Drip Irrigation • According to data gathered from dealers, irrigation districts and USDA-NRCS there are currently 250,000-300,000 acres in the Texas High Plains with 20,000-30,000 acres being added annually. • Danny Sosebee, Netafim-Texas (January 2007)

15. U.S. Domestic Mill Use 11.35 mb 1997/98 5.1 mb 2006/07 Source: USDA-WASDE

16. U.S. Cotton Exports 18.04 mb 2005/06 4.34 mb 1998/99 Source: USDA-WASDE

17. Do These Changes Make Picking Cotton an Economical Alternative to Stripping?

18. Project Design • 2-Factor Factorial Experimental Design • Two Common Picker-type Varieties • FiberMax 960 RR • FiberMax 989 RR • Two Harvest Methods • John Deere Cotton Stripper (7460 with field cleaner) • John Deere Cotton Picker (9910) • Three Replicates • Two Years • 2004 • 2005

19. Project Design • Data Collected • Seedcotton Yield • Lint Yield • Seed Yield • HVI Quality Grades • Texas Tech University International Textile Center • Additional fiber analyses (not reported) • Data Analyzed Using SAS v.9.1 for Windows

20. Stripper John Deere 7460 with 8 Row 40 in. 748 head and field cleaner MSRP $204,794 Annual maintenance1 $15,175 Performance rate1 4.5 acres per hour Picker John Deere 9996 with 6 Row PRO-16 40 in. MSRP $431,968 Annual maintenance1 $32,010 Performance rate1 6.7 acres per hour Comparative Harvesting Costs AssumptionsTexas Tech University Cotton Harvesting Cost Calculator 1 Annual maintenance and performance rates estimated using University of Georgia College of Agricultural & Environmental Sciences, Cooperative Extension Service, “Using Machinery Costs to Make Decisions”

21. Comparative Harvesting Costs AssumptionsTexas Tech University Cotton Harvesting Cost Calculator • Machinery Constants for Both Methods • Sam Stevens swinging drawbar boll buggy $23,500 ($1741 annual maintenance1) • Big 12 module builder $31,800 ($2356 annual maintenance1) • JD 8130 tractor $119,249 ($2125 annual maintenance1) • Percent of tractor hours spent harvesting 20% 1 Annual maintenance estimated using University of Georgia College of Agricultural & Environmental Sciences, Cooperative Extension Service, “Using Machinery Costs to Make Decisions”

22. Comparative Harvesting Costs AssumptionsTexas Tech University Cotton Harvesting Cost Calculator • Machinery Constants for Both Methods(continued) • Interest rate 6.9% • Salvage value 45% • Daily fuel cost $250 • Daily labor cost $70 • Cotton yield 1000 lbs. • Harvest hours per day 10 • Days to harvest 30

23. Comparative Harvesting CostsTexas Tech University Harvest Cost Calculator

24. Seed Cotton Per Acre B A B A

25. Lint Percent Turnout A B A A

26. Seed Percent Turnout A B A A

27. Lint Per Acre A A B A

28. Seed Per Acre B A B A

29. Seed Per Bale A A A A

30. Loan Value A B A A

31. Lint Value Per Acre A A B A

32. Ginning Cost Per Acre B A B A

33. Seed Value Per Acre B A B A

34. Total Value Per Acre A A B A

35. Harvest Cost Per Acre A A B A

36. Net Value After Harvest Per Acre A A B A

37. Color (first digit) A A A A

38. Color (second digit) A A A A

39. Leaf A A A A

40. Length (32nds) A A A B

41. Micronaire A B A B

42. Strength (grams per tex) A A A A

43. Uniformity A A A B

44. Conclusions • Lower yielding/lower quality cotton is more economical to strip. • Higher yielding/higher quality cotton can be picked for a comparable cost. • Micronaire had a consistent increase from picking over both years. • Could be the difference in having a crop that is more competitive in the export market.

45. Conclusions • Other factors affecting decision to switch to picking not included in this study. • 2005/06 cash difference between Phoenix and Lubbock for the same grade (31-3-36) was 292 points premium to Phoenix according to USDA-AMS Annual Price Statistics. • Pickers offer extended hours of operation in poor weather years. • 6-row picker can harvest more acres of higher-yielding cotton in the same number of days when compared to 8-row stripper.

46. High Plains Cotton Producer Perspective: Mike Griggs (Lamesa, TX) as quoted in the Southwest Farm Press December 28, 2006. "We averaged 3.8 to 3.9 bales per acre on irrigated cotton," he says.All that was on drip. He has no pivot or row water irrigation. Griggs says loan cotton that averages from 56 cents to 59 cents a pound "sure beats that old stripper variety we used to plant. Picker cotton and irrigation make a good combination. I get better yields and better grades." He uses a picker to harvest irrigated cotton.