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Cotton farmers of the OB, have some questions

Posted on 9/27/22 at 10:38 pm
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/27/22 at 10:38 pm
With out getting too long winded on why I am asking. How lucrative is a roughly 2500 acre operation on what would probably be considered marginal/average ground, south central MS.

To play it safe let's say it's all rented, 2 yrs cotton one year peanut rotation. I know prices have been all over from in the dumps to record highs in the past 5 years or so. Let's say on a average year for price and yield.

2.2 bales an acre at 1065lb average.
This post was edited on 9/27/22 at 11:49 pm
Posted by texag7
College Station
Member since Apr 2014
37472 posts
Posted on 9/27/22 at 11:31 pm to
Not lucrative at all if you’re renting land on average ground

A good way to barely make equipment payments if you’re lucky and then begin stressing about next year. Do not recommend
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/27/22 at 11:33 pm to
After looking at the USDA number it is above average for the state so better ground than I was assuming. 2 bale and acre average is good just about anywhere.

It is not all rented land, just assuming that to play it conservative.

I know the operation as a whole makes money but the row crop is just one part, I have an idea what the rest makes just not the row crop.
This post was edited on 9/27/22 at 11:41 pm
Posted by deltafarmer
Member since Dec 2019
486 posts
Posted on 9/28/22 at 4:57 am to
Lucrative is a term not usually associated with operating a farm.
Posted by bigolecatfish
God's Country
Member since Jan 2007
1314 posts
Posted on 9/28/22 at 5:49 am to
Such a loaded question. Jumping in with no equipment and having to purchase/lease everything day 1? What kind of rental terms? Dryland or irrigated? Yeah 2.2 bale average is solid, but if it doesn’t rain for 65 days and it’s the hottest summer in decades, then it rains 20 inches in two weeks when bolls are all opening up, you won’t make half that and will lose your arse and set you back years even after you did everything right…
Posted by White Bear
Yonnygo
Member since Jul 2014
13794 posts
Posted on 9/28/22 at 6:02 am to
No. Tenant farming fkn sucks. All of it does unless you’re wealthy.
This post was edited on 9/28/22 at 6:05 am
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/28/22 at 7:25 am to
This is an existing operation, turnkey, just trying to ballpark what the row crop generates net wise. If he is grossing 2.5M what is net, inputs are what I don't know.
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/28/22 at 7:27 am to
I wouldn't go that far, big delta operations that own all the land they work make out alright. Granted these are multi generational farms that own the land out right.

But yes in general a complete tenant operation is hard to make it on.

This post was edited on 9/28/22 at 7:29 am
Posted by GITiger66
Member since Dec 2019
225 posts
Posted on 9/28/22 at 7:53 am to
I don’t know anything about cotton, but have been around enough other types of business and ag deals to know that the details are what hurt. Good luck
Posted by jpcajun
Member since Nov 2010
1201 posts
Posted on 9/28/22 at 3:11 pm to
depends what row crops are being farmed. What is being farmed as far as row crops?
Posted by Outdoorreb
Member since Oct 2019
2509 posts
Posted on 9/28/22 at 4:33 pm to
2.2 bales ain’t getting you far
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/28/22 at 5:13 pm to
75% cotton/peanuts the rest beans.

As far as the 2.2, the 1065 per acre was above average for the state.
Posted by deltafarmer
Member since Dec 2019
486 posts
Posted on 9/28/22 at 5:15 pm to
If the farm is paying land and equipment costs on top of inputs, labor, insurance and other overhead, the expenses are going to eat up most, all or more than that gross. Two bales an acre would ring the bell 10 years ago. Now it takes substantially more than that for a typical cotton farm. Without land and equipment costs it’s a different situation altogether
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/28/22 at 5:25 pm to
It keeps being said that 2 bales, or 1065lbs an acre isn't going to make money but it is above average yield for the whole state of MS with the only counties toppings the prime delta counties.

Just pointing that out.

It is a long running operation, a new picker but most other equipment isn't new nor necessarily very old.
Posted by deltafarmer
Member since Dec 2019
486 posts
Posted on 9/28/22 at 6:14 pm to
Your original question is very difficult to answer. All farms are different. Its all about getting maximum production with minimum costs. I would suggest you spend some time looking at MS State’s ag website. There will be a lot of economic information there for a typical delta cotton farm.
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/28/22 at 6:20 pm to
I guess I should have done just input cost, yes I know that can vary dramatically as well but there has to be a min input cost that can be ballparked.
Posted by Tear It Up
The Deadening
Member since May 2005
13478 posts
Posted on 9/28/22 at 7:09 pm to
Crystal Springs area?

I’m not sure I’d want my livelihood to depend on marginal ground in Copiah County.
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/28/22 at 7:50 pm to
East a county or two.
Posted by White Bear
Yonnygo
Member since Jul 2014
13794 posts
Posted on 9/28/22 at 8:33 pm to
So you’re thinking of taking over the tenant’s operation on leased ground?
Posted by GREENHEAD22
Member since Nov 2009
19583 posts
Posted on 9/28/22 at 8:54 pm to
Not quite, but something similar possibly. Partnership but there is more than just row crop. Just thinking and evaluating not actually pursuing it.
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