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re: Cotton farmers of the OB, have some questions

Posted on 9/28/22 at 9:03 pm to
Posted by White Bear
Yonnygo
Member since Jul 2014
16422 posts
Posted on 9/28/22 at 9:03 pm to
I understand. I’ve done the calculations plenty 10-12 yrs ago but nothing made sense for my situation which would be me vs the world. My wife was not supportive. but more importantly, neither were the banks.
This post was edited on 9/28/22 at 9:06 pm
Posted by Nome tiger
Member since Nov 2014
139 posts
Posted on 9/28/22 at 9:04 pm to
Just a general rule of thumb, non irrigated cotton direct and fixed expenses generally will run 800-1050/acre given recent fertilizer prices. Lots of variation between operations due to differences in equipment costs and living expenses.

Tennant farming is a constant struggle; working with “high quality” employees, keeping a landlord happy, working on worn equipment vs debt to JDCredit, keeping banks and suppliers off your arse and momma constantly needing the newest Denali to haul the kids to ball practice and 31a.

MSState publishes fairly accurate enterprise budgets annually for most crops and situations. Good luck
Posted by GREENHEAD22
Member since Nov 2009
20080 posts
Posted on 9/28/22 at 9:13 pm to
Thanks for the info. He is probably 50/50 on what he owns and rents. I could be wrong because he just made two large purchases in the past two years on large farms closer to his house.

As you know it is difficult to tell with farmers due to all the borrowed money but as best I can tell he does well, this is an older fella who is long established. The question is does he do well like $150-200k and year or considerably more, the other part of the operation is just as large or larger than the row crop side.

I also have the possibility of about doublng the amount of land he is working but it would be all rent land.
This post was edited on 9/28/22 at 9:17 pm
Posted by White Bear
Yonnygo
Member since Jul 2014
16422 posts
Posted on 9/28/22 at 9:24 pm to
Taking over a retiring dudes operation is a way for a po boy to get in though.
Posted by bpinson
Ms
Member since May 2010
2670 posts
Posted on 9/28/22 at 9:37 pm to
Simpson, Smith County?
Posted by Nome tiger
Member since Nov 2014
139 posts
Posted on 9/28/22 at 9:38 pm to
That is almost impossible to answer. I’d venture to guess he makes a monthly draw from his production loan to cover living expenses but what that amount is and if the operation can support it each year without carryover or burning equity depends on way too many variables to even speculate. Hell if he has other ventures he may not be drawing any salary from the farming operation. No way to tell without auditing his books. Honestly if you are looking to invest in or buy out his operation having your accountant review his books isn’t a unreasonable request.
Posted by GREENHEAD22
Member since Nov 2009
20080 posts
Posted on 9/28/22 at 9:39 pm to
He is in both of those, he is spread out a bit. To say Smith you probably know who I am talking about.
This post was edited on 9/28/22 at 9:40 pm
Posted by Trevaylin
south texas
Member since Feb 2019
8754 posts
Posted on 9/28/22 at 9:53 pm to


Got a close friend who does 25000 acres of cotton and grain south of corpus christi. He does good money but I guess that half of it comes from managing crop insurance
Posted by bpinson
Ms
Member since May 2010
2670 posts
Posted on 9/28/22 at 9:58 pm to
I really don't know. I live in Copiah and my family is from Smith. I know the area, been here all my 64 years. I will say this...I started an Ag Tech company last year at the request of a Deere dealer and I've done lots of research, met with many consultants, MSU, input retailers, irrigation providers, growers and equipment dealers. The one thing I have learned is if you don't really know your shite you will not do well. Input costs are at an all-time high, (fuel, fertilizer you name it). All industries are cut-throat, I get it. Ag is a whole nother deal because of the unpredictables, (commodity prices, input costs) and not to mention the weather. Unless you know your shite this is a major uphill climb, but hell it's an uphill climb for those that own the land and have been in the business for generations. Good luck. bpinson@pinsonag.com
This post was edited on 9/28/22 at 9:59 pm
Posted by GREENHEAD22
Member since Nov 2009
20080 posts
Posted on 9/28/22 at 10:06 pm to
Appreciate it and he has awhile until he retires, I would be working under him/partnered with him. No way in hell I would cut loose on cotton on my own. Unless you are limited by your soil type I don't know why anyone would do cotton over beans/corn. The prices have been in the cutter, the inputs are crazy and the crop works you to death with all the continuous spraying.


I am hoping the Auburn farmer will chime in, he farms a lot of cotton I believe but he is probably tied up with harvest and picking.
This post was edited on 9/28/22 at 10:09 pm
Posted by drakeT1217
Member since Jun 2010
765 posts
Posted on 9/28/22 at 10:20 pm to
In response to why anyone would do cotton over beans/corn. I grow a good bit of all 3 and the bean deal (for me) has become just as if not more risky than cotton the past few years. I’ve been through terrible cotton years and yea, they’re bad, but it’s hard to be any worse than our bean situation in nela is this year. I wish I could grow all corn but that’s just not happening. In my opinion if it’s possible, having all 3 is a good option as maybe one of them won’t flop!
Posted by GREENHEAD22
Member since Nov 2009
20080 posts
Posted on 9/28/22 at 10:28 pm to
Am I wrong on cotton being the most input, specifically chemical/pesticides and labor intensive? In regards to making a crop, cotton seems the hardest and beans the easiest.
Posted by drakeT1217
Member since Jun 2010
765 posts
Posted on 9/28/22 at 10:54 pm to
I think it all depends on what your growing situation is as well as your yield expectation is. We’re talking a little over $1,000/ acre to grow corn and cotton. At todays potash prices somewhere around $800 to grow soybeans. Now that’s for 70+ bushel beans 190+ bushel corn and whatever the hell happens cotton. What got us this year is expecting big bean yields and then getting hammered with damage which is going to cause us not to fill our contracts. Cotton I agree is a spray nearly every week with pix and plant bug dose but pix is cheap now and a few weeks worth of plant bug doses doesn’t cost much more than an expensive soybean fungicide and potential worm shot. We haven’t sprayed for worms in our cotton in 2 years since boll guard 3 came out. It’s all a gamble. Corn is by far the easiest for us because it will typically handle a storm the best. We quit growing cotton after rita until about 5 years ago and it’s been a pleasant surprise compared to soybeans. But hell we can’t win for losing. I just hate a soybean ha
Posted by GREENHEAD22
Member since Nov 2009
20080 posts
Posted on 9/28/22 at 11:16 pm to
Lordy, was that 1k an acre close to the same in 2020? If so there can't be anyone makin money. Energy priced were in the dirt so fert/chem were a lot cheaper.

The highest yield avg in 2020 was 1350lbs per acre and the average price for the year was 66.30 cents

You are looking at $895 per acre average for the highest yielding county.
This post was edited on 9/28/22 at 11:21 pm
Posted by deltafarmer
Member since Dec 2019
811 posts
Posted on 9/29/22 at 5:55 am to
$1000/$1100 per acre is a pretty typical cost for an acre of cotton.
Posted by White Bear
Yonnygo
Member since Jul 2014
16422 posts
Posted on 9/29/22 at 6:13 am to
quote:

$1000/$1100 per acre is a pretty typical cost for an acre of cotton.
Irrigated or dry land?
Posted by deltafarmer
Member since Dec 2019
811 posts
Posted on 9/29/22 at 6:41 am to
Irrigated is $40+ more expensive
Posted by White Bear
Yonnygo
Member since Jul 2014
16422 posts
Posted on 9/29/22 at 6:45 am to
quote:

Irrigated is $40+ more expensive
damn. I’m glad I let that dream die.
Posted by geauxbrown
Louisiana
Member since Oct 2006
22785 posts
Posted on 9/29/22 at 6:51 am to
I just can’t believe we allow Daniel to post on the OB. He’s turned the SECR into a cesspool.
Posted by tigerfoot
Alexandria
Member since Sep 2006
59146 posts
Posted on 9/29/22 at 8:16 am to
quote:

Lordy, was that 1k an acre close to the same in 2020? If so there can't be anyone makin money. Energy priced were in the dirt so fert/chem were a lot cheaper. The highest yield avg in 2020 was 1350lbs per acre and the average price for the year was 66.30 cents You are looking at $895 per acre average for the highest yielding county.
y’all are making this farming thing look awful sexy.
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