Ag Econ has prepared a suite of cotton industry gross margins since 2017, that are now prepared biennially. They are funded by Cotton Research Development Corporation (CRDC) and provided by CottonInfo for those within and outside the industry, to gain an understanding of the operations, production costs and margins for the cotton industry.
The gross margin budgets provided represent the difference between the gross income and variable costs of producing a cotton crop under a range of scenarios. They do not take into account risk, overhead costs (such as machinery depreciation, interest payments or permanent labour) and they do not calculate farm profit. The below budgets are indicative only as in practice, operations vary from field to field, between farms and regions.
The most recent gross margin budgets, notes & assumptions used during the calculations and a customisable gross margin spreadsheet are available on the CottonInfo website. Click below
