The world has changed and the price U.S. farmers will get for
their cotton has drastically fallen, all in just two short
months.
At Christmas, a farmer could get about 66 cents for a pound of
cotton. Now, that farmer can get only about 59 cents. This isn't
good
news for farmers trying to decide how much land to plant in
cotton
in 2001.
For each 1-cent drop in the cotton price, Georgia farmers lose
about $9.6 million in income. For each 1-cent drop, Georgia's
economy loses about $28.8 million, says Don Shurley, an Extension
Service economist with the University of Georgia College of
Agricultural
and Environmental Sciences.
Shurley figures farmers need at least 65 cents per pound just
to break even.
It Looked Good for a
While
Historically, Shurley said, cotton prices tend to improve during
January and February. The fall in prices since December is
unusual.
When prices do fall, they tend to fall later in the growing
season,
closer to harvest. Cotton is harvested in autumn.
In the past two months, world and domestic cotton conditions have
taken a turn for the worse for U.S. growers.
Late last year, the U.S. Department of Agriculture estimated
world
production at 86.7 million bales. (A bale equals 480 pounds of
cotton lint).
Adding the leftover stocks, this would be the smallest supply
since 1996. Leading cotton- producing countries, such as India,
Pakistan and China, were expected to decrease production for the
2000 crop.
That was good news for growers. When the supply goes down, the
price goes up.
However, Shurley said, the latest estimates show world production
at 88.1 million bales. The expected drop in production did not
materialize. So supplies are higher than expected.
Things Don't Always Go as
Planned
Cotton farmers around the world plan to grow just as much or more
cotton in 2001. This includes U.S. cotton farmers.
Early conservative estimates say U.S. growers will plant about
15.9 million acres of cotton this year, about 400,000 more than
last year. The USDA will release final cotton estimates in
March.
World market conditions look gloomy. Domestically, things don't
look much better. The U.S. textile industry, which buys 60
percent
of the total U.S. cotton production, is hurting.
"We've lost about 1.5 million bales of our own textile
business
since 1997," Shurley said. That means 720 million pounds
of U.S. cotton in 2001 will have to find a buyer somewhere else
in the world.
Americans still like cotton. In fact, U.S. retail consumption
is growing strong, Shurley said. However, a higher percentage
of that consumption is coming from imports of fabric and finished
products, such as shirts and jeans. This makes U.S. growers
depend
more on exports and foreign textile mills.
If the U.S. textile industry continues to suffer losses, and if
world cotton production continues to increase, U.S. cotton
farmers
face tough decisions in the future.
Published on 02/21/01
Georgia Cotton Growers Face Tough Decisions
Brad Haire is the former news editor with the University of Georgia College of Agricultural and Environmental Sciences.
Experts/Sources:

UGA receives multiyear grant to address obesity in Georgia
12/06/23 Lauren Baggett
The University of Georgia has been awarded $804,000 by the Centers for Disease Control and Prevention to improve access to healthy foods and physical activity in Georgia counties with high rates of obesity. Two decades after being named an epidemic, high rates of obesity persist nationwide. In Georgia, one-third of adults are obese, and therefore, are at higher risk for a number of negative health outcomes – heart disease, stroke, Type 2 diabetes, chronic pain and more.

Should you be composting?
12/05/23 Laura Ney
Composting has become a popular topic in recent years, and many of us have heard that it is something we should be doing in some form. But why? There are many reasons that individuals, communities and governments promote composting, with some focused on diverting compostable waste from landfills and others who are in it for the dirt.
.png)
CAES researchers spearhead development of new soybean cyst nematode-resistant cultivars
12/01/23
Plant-parasitic nematodes cause billions of dollars in annual yield losses and represent a major impediment to meeting the challenge of feeding an ever-growing global population. One plant-parasitic nematode, the soybean cyst nematode (SCN), has been a long-standing focus of research and innovation in the Melissa G. Mitchum Lab at the University of Georgia College of Agricultural and Environmental Sciences (CAES).

Across the Southern border: Migrant labor on Georgia farms
11/30/23 Emily Cabrera
Georgia is consistently one of the top five states to use the H-2A visa program, employing workers for 60% of agricultural jobs. Last year, the U.S. Department of Labor passed legislation to raise the Adverse Effect Wage Rate (AEWR), which establishes the minimum wage for H-2A workers, by a sharp 14% for several states including Georgia. For University of Georgia Professor Cesar Escalante, this poses the question: How do you balance supporting the interests of farm businesses while fairly compensating the people doing the hard work in the field?

UGA Extension experts celebrated among 2023 Fruit and Vegetable 40 under 40
11/29/23 Emily Cabrera
Two faculty members in the University of Georgia College of Agricultural and Environmental Sciences and UGA Cooperative Extension were named to the Fruit and Vegetable 40 under 40 Class of 2023. The award ceremony will be held during the Great Lakes Fruit, Vegetable and Farm Market EXPO on Tuesday, Dec. 5, at the DeVos Place Convention Center in Grand Rapids, Michigan.

CAES alumnus returns as associate dean for academic affairs
11/28/23 Claire Sanders Kinnard
For Dean Kopsell, newly appointed associate dean for academic affairs for the University of Georgia College of Agricultural and Environmental Sciences, moving to Athens is like coming home. Currently professor and chair of the Environmental Horticulture Department at the University of Florida Institute of Food and Agricultural Sciences, Kopsell, a two-time UGA alumnus and devoted Georgia Bulldog fan, is eager to return to the Classic City and excited about the opportunity to serve his alma mater and the students of CAES.