An Evaluation of Cotton Cost of Production in the Mid-South

The cost of cotton production can vary from year to year and also from producer to producer. This paper uses data from individual producers over the last five years to examine the cost of cotton production in Mississippi and to help explain what might be causing the price differences. Every year 50 to 100 producers are surveyed for their production practices used to grow cotton. These practices are collected on a per trip basis across the field and include machinery and other inputs used. From this data, cost estimates are developed. Thus differences within year and between year can be analyzed. The analysis for this paper will mostly consist of descriptive statistics to highlight the cost of production variability. The results should be useful to anyone interested in cotton profitability as they can see if their own farm’s cost of production is in the ranged of the survey farmers from Mississippi.