Table 1. Value of cottonseed and cotton lint, assumed values. A = acre. Value of
Cottonseed and Cotton Lint. Figure 1. Value of cottonseed in dollars per ton ...
Value of Cottonseed and Cotton Lint
Increase Demand for Cottonseed As demand for cottonseed increases so has the price (Figure 1). According to the 2010 United States Department of Agriculture Prices Report, the October price received for cottonseed was at $158 per ton3. The reported price received for cottonseed in September 2011 was $245 per ton3. Reduced cotton and soybean production for 2011 has increased the demand for supplemental feed. Cottonseed prices have been reported as high as $340 per ton in the Texas South Plains due to feed shortages from drought conditions4. When crop planning for 2012, it is important for producers to calculate their potential profit by estimating the price of cotton lint and cottonseed. Table 1 provides assumed values for an average cotton crop including profit potential for cotton lint and cottonseed. For a field that produces 2,631 lbs of seed cotton/ acre with 38% turnout, the field will produce approximately 1,000 lbs lint/acre. Assuming the seed cotton also has about 300 lbs of trash per acre about 1,331 lbs of fuzzy cottonseed is produced per acre. Cottonseed sold at $350/ton ($0.175/lb) will net $232.93/acre in this scenario. Calculating in approximately $60 for ginning costs will leave the producer with a value of $172.93/ acre for the sale of the cottonseed, which the producer will typically see as a gin rebate. The total value of the lint and the fuzzy seed from a 1,000 lbs/acre cotton crop is estimated at $1,123/acre including the lint and the fuzzy seed value in this example. Sources: 1Frequently asked questions. 2009.National Cotton Council. http:// www.cotton.org (verified 11/15/11). 2 Cotton from field to fabric: Economics of Cotton. www.cotton.org. (verified 11/15/11). 3 United States Department of Agriculture National Agricultural Statistics Service. ISSN:1937‐4216. 31 October 2011. 4 Burns, R. Cotton seed prices nearly double as its demand for livestock feed soars.Texas crop, weather for 1 November 2011. AgriLife Today. http://agrilife.org (verified 11/15/11). 5 United State Department of Agriculture National Agricultural Statistic Service. Quick Stats. http://www.nass.usda.gov/ (verified (11/15/11).
200 Cottonseed ($/ton)
Cottonseed is an often overlooked component of cotton production. Cottonseed constitutes about two thirds the weight of a harvested cotton crop1. While cotton fiber is the main source of profit, producers also profit from the sale of cottonseed. Each year in the United States, about 6.5 billion tons of cotton seed is produced and sold as cottonseed meal for livestock feed, or crushed to produce oil for products such as margarine or salad dressings2.
Figure 1. Value of cottonseed in dollars per ton ($/ton) according to the United States Department of Agriculture National Agricultural Statistics Service5.
Value of Cotton—Cottonseed and Lint (assumed values) • Lbs of seed cotton/A= 2,631 • Price of cottonseed/ton = $350.00 ($0.175/lb) • Gin cost = $30.00 /bale
• Cotton turnout = 38% • Lbs trash/A = 300 • Seed value = $0.175/lb
Value of Cotton Seed Calculation 2,631 lbs seed cotton/A * 38% turnout = 1,000 lbs lint/A 2,631 lbs seed cotton/A - 1,000 lbs lint/A = 1,631 lbs 1,631 lbs - 300 lbs trash/A = 1,331 lbs fuzzy cottonseed/A 1,331 lbs fuzzy cottonseed/A * $0.175/lb = $232.93/A $232.93/A - $60 gin cost = $172.93 Estimated Value of Cottonseed = $172.93/A
Total Seed and Lint Value 1,000 lbs lint/A * $0.95/lb = $950.00 Estimated Value of Cotton Lint = $950.00 $172.93 + $950.00 = $1,122.93 value from cottonseed and lint Table 1. Value of cottonseed and cotton lint, assumed values. A = acre
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