By Clint Thompson
Cutting back on input costs will be cotton growers’ natural response to the low market prices. The Georgia Cotton Commission and Camp Hand, University of Georgia (UGA) Extension cotton agronomist, caution producers what they’re cutting back on.
“It’s all the planting stuff that gets cut. Really, that’s the stuff that’s going to hurt you in the long run if you cut it too much,” Hand said. “If you put out not enough seed and then you have a problem, guess what you get to do, you get to go replant. You just can’t shoot yourself in the foot right out of the gate.
“A lot of guys think about cutting right on the front end, whether it’s seeding rates, at-plant insecticides, stuff like that. It doesn’t always pay to do that.”
Hand said seed costs are among the most expensive inputs farmers utilize, averaging around $100 an acre.
Cotton Prices
Cotton prices are currently 67 cents per pound. Acreage is expected to drop this year as a result. Those producers with cotton this year are hoping for increased yields. Unfortunately, that usually means spending more on increased costs.
“Growers cannot put the seed in the ground and say, ‘I’m spending this amount of money and that’s it.’ They want to make the most. That’s what we have to do. In a situation where the price is (around) 68 cents, we’ve got to make more cotton. Making more cotton means you may have to spend a little bit more,” Hand said.
“We’re just going to have to hope that we have a really good year; 2022 was an incredible year for us. If we can have another year like that, then man we’d be doing really good. To break even, we’re going to have to average 1,200 pounds on dryland and 1,500 on irrigated as a state, and it’s not going to happen.”