Discussion of Improving our expectation for Cotton Profits.
3-26-2025
Earlier this week is shared a birds eye view of my enterprise comparison which assumes your overhead has to be paid no matter what crop you plant. Therefore, the best crop to plant is what makes the most money over the variable cost of production and leaves the most money for overhead. Break even yield if you assume the crop planted on an acre must carry the overhead of the acre comes out like this:
Peanuts – 3600
Cotton – 1100
Corn – 180
Soybeans – 60
Just for argument sake, the overhead is the salaries + labor + equipment payments &/or depreciation + land payments / divided by the acreage of the operation.
There might be more meat on the bone for the enterprise of cotton production, but it also involves considering changes – A Discussion on Gaining efficiency. Some ideas save money, other ideas increase yield. You have to log into the 'ON-LINE NEWSLETTER' for the discussion:
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