Friday, January 12, 2007 - 10:30 AM

Costs of Owning and Operating Module Trucks

Dale Harrison and Jeff Johnson. Texas Tech University, Box 42132, Lubbock, TX 79409

Hauling cotton modules from the field to the gin is a major expense for cotton gins throughout the Cotton Belt. With increasing operating costs, especially fuel and labor, this expense is no longer an insignificant input into the ginning process. In the Texas Southern High Plains, the cotton industry is changing with cotton acreage expanding into new growing regions and gins consolidating. With these conditions, many gin managers are retrieving cotton modules farther from their gins in order to increase the number of customers and increase the volume of bales through the gin. Considering these increasing costs, gin managers are reevaluating their investment in module trucks. The objectives of this study are 1) to determine the costs of operation and ownership of module trucks, 2) to develop a breakeven analysis of owning versus leasing module trucks, and 3) to develop a breakeven analysis of distance to travel to retrieve modules.

Recorded presentation