CAES Newswire

 College of Agricultural & Environmental Sciences UGA Cooperative Extension
Menu
Published on 09/11/14

Cotton prices unfavorable for Georgia farmers

By Clint Thompson

Improved crop conditions across the nation have played a major role in driving cotton prices down dramatically over the past four months, says a University of Georgia economist.

Since early May, when 2014 cotton was selling for more than 80 cents per pound, the price of cotton has dropped 18 cents, or about 20 percent. It is now well below the 80-cent barometer that UGA Extension agricultural economist Don Shurley believes all farmers strive for to cover their production costs.

“Let’s remember that we’ve had two or three years of consecutive drought situations in Texas, plus the fact that we’ve had two good years where China was buying a lot of cotton and building stocks. That combination led to some real good prices — 80, 85 cents or better,” Shurley said. “This drought situation in Texas is much relieved. The crop conditions are much better than they have been in previous years.”

Some 17.5 million bales of cotton are expected this year, up 46 percent from last year’s 12.9 million bales, Shurley said.

An improved crop means supply is outweighing demand, though China is still forecasted to import eight million bales. In years past, Texas farmers abandoned 40 percent of their acreage after receiving little, if any, rainfall. That’s not the case this year, Shurley said.

At the current price of 67cents per pound, cotton farmers are not making a profit. They’re not even breaking even.

“If you take the cost of production — seed, fertilizer, chemicals, fuel — and then you add higher labor and added land rent on top of that (for some), at 60 to 65 cents, cotton farmers are losing money big time,” Shurley said. “A lot of folks are starting to wonder what we’re going to be like in 2015.”

Prices for the 2015 crop are currently in the 68 to 70 cents per pound range. Enduring back-to-back years of below-average prices could be devastating for Georgia cotton farmers, and there may not be any alternatives for farmers to grow.

All row-crop commodities are experiencing a dip in prices, especially corn, which has fallen below $4 per bushel. Soybeans have been hurt the least by the market but are not a good fit for regular rotations used by many Georgia farmers.

Shurley said 10.7 million bales of cotton are expected to be exported from the United States this year, a little more than the 10.5 million recorded last year.

For more cotton news, go to ugacotton.com.

Clint Thompson is an agriculture writer based in Tifton, Georgia.

Authors:
Clint Thompson
Experts/Sources:
Don Shurley
The picture shows a cotton picker traveling down a cotton plot at the Gibbs Farm in Tifton on Wednesday, Oct. 30, 2013.
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Download Image
HurricaneHeleneGreenhouseDamageCropped CAES News
UGA Extension supports resilience in Georgia farm communities after Hurricane Helene 12/19/24 Emily Cabrera
Hurricane Helene wrought sweeping devastation across Georgia’s agricultural sector in late September, leaving an indelible mark on both the land and the people who tend it, bringing focus to vulnerabilities in Georgia’s farming industry and the need for more robust safety nets. In addition to the physical destruction, the hurricane took an emotional toll on Georgia’s farmers. In response, UGA Extension has prioritized mental health support.
A groundbreaking ceremony for a green stormwater demonstration site was held on Nov. 22 at the UGA Research and Education Garden at UGA-Griffin. This site will allow visitors to get a firsthand look at the green infrastructure technology that can be used both in the green industry and in private homes. Pictured are (l-r): Rolando Orellana, urban water management state agent in the UGA Center for Urban Agriculture; Jeffrey Dean, Assistant Provost and Campus Director for UGA Griffin; Bethany Harris, Director of the UGA Center for Urban Agriculture, Joy Hinkle, Grants Unit Manager for Georgia EPD, and Martin Wunderly, UGA Northeast District Extension Area Water Agent. CAES News
UGA-Griffin breaks ground on green stormwater demonstration site 12/11/24 Ashley N Biles
Industry professionals, researchers and the public will soon have access to the latest in sustainable infrastructure technology with the construction of a green stormwater demonstration site at the University of Georgia Research and Education Garden on the UGA Griffin campus. The groundbreaking ceremony was held Nov. 22 with plans to complete several demonstration areas by the end of 2024.
At the 2024 Georgia Life Sciences Summit held Oct. 21-22 in Atlanta, Professor Quingguo “Jack” Huang of the College of Agricultural & Environmental Sciences received the Golden Helix Innovation Award for his research in technologies to mitigate “forever chemicals” in water resources. (Photo by Andrew Davis Tucker) CAES News
Nothing lasts forever: CAES professor finds solutions to break down ‘forever chemicals’ 12/05/24 Carson McAfee
University of Georgia Professor Qingguo “Jack” Huang always wanted to do one thing: solve problems. Growing up in a small city in central China, Huang’s favorite subject in elementary school was math, granting him the opportunity to work on many problems. In high school, his passion transitioned to science, where he learned he could feed those same interests in a way that benefited others. He was finishing high school in the 1980s when Rachel Carson’s Silent Spring made its way to Chinese newspapers, capturing Huang’s attention.
Georgia Simmons at the office of U.S. Sen. Warnock CAES News
Georgia 4-H alum, CAES student spends semester serving at the nation's Capitol 12/03/24 Josie Smith, Cooper Hardy
Third-year University of Georgia student and Banks County 4-H alum Georgia Simmons has been in the center of the political action this fall with the Georgia 4-H Washington DC Intern Program. Simmons, an environmental resource science major in the College of Agricultural and Environmental Sciences, works in the office of U.S. Sen. Raphael Warnock. As an intern on his staff, she interacts directly with policy experts and lawmakers, participating in the legislative process while earning a semester of credit hours.
Longtime faculty member George Vellidis was named the first permanent director of the Institute for Integrative Precision Agriculture. IIPA was launched in 2022 and has grown to include more than 70 faculty members. (Photo by Paul Privette for UGA CAES) CAES News
Vellidis named director of Institute for Integrative Precision Agriculture 12/02/24 David Mitchell
University of Georgia College of Agricultural and Environmental Sciences Professor George Vellidis has been named director of the Institute for Integrative Precision Agriculture (IIPA). His term began on Nov. 1, and he will serve as the unit’s first permanent director. “Dr. Vellidis has been a vital member of our UGA faculty for years and played a key role in launching IIPA,” said Chris King, interim vice president for research. “Whether it’s his impact as a first-class researcher and educator or the work he does behind the scenes to elevate our reputation in the field abroad, his presence has made UGA a hub for precision agriculture research.”
In Georgia alone, there are nearly 400,000 individuals employed in some segment of hospitality. With the unique mix of leisure travel in coastal Georgia and convention travel in Atlanta, HFIM students have a wealth of opportunities to choose the area that suits them best. CAES News
UGA redefines Southern hospitality through a thriving degree program 11/27/24 Claire S. Kinnard
There are nearly 400,000 individuals employed in some segment of hospitality in Georgia. With the unique mix of leisure travel in coastal Georgia and convention travel in Atlanta, University of Georgia hospitality and food industry management students have a wealth of opportunities to choose the area that suits them best. This versatile experience — with its focus on quality curriculum, meaningful interaction with local and national business, and experiential learning — has already begun graduating the next generation of hospitality leaders.