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The standard cost is $0.70 to $0.80 per bale; an example is an average bale of cotton at 470 pounds = $329.00. Higher quality cotton bales, could be $0.90 to $1.10 per pound.
This year, that cotton is selling for about 60 cents a pound. That means each acre is worth about $500 per acre, counting money earned from selling the cotton seeds as well. The problem is, it costs an average of $600 an acre to plant cotton, tend it as it grows, and then harvest tens of thousands of pounds' worth.
An average dryland cotton yield of 500 lbs/acre can return a profit of $147 per acre.
With a projected 2017 crop year yield of 809 pounds of cotton per planted acre and a midpoint projected price of $0.69 per pound, farmers would receive $588.32 for their cotton. Adding $117 for cottonseed, the total revenue for cotton is projected to be in the range of $705 per acre.
Producers usually sell their cotton to a local buyer or merchant who, in turn, sells it to a textile mill either in the United States or a foreign country. The seed usually is sold by the producer to the gin.
The average price received by farmers for Upland cotton in July was 60.40 cents per pound in the 2019-2020 marketing year. The 2018-2019 marketing year average price was 70.30 cents, compared to the 2017-2018 marketing year of 68.60 cents, according to the National Agricultural Statistics Service, USDA.
The average price received by farmers for Upland cotton in July was 60.40 cents per pound in the 2019-2020 marketing year. The 2018-2019 marketing year average price was 70.30 cents, compared to the 2017-2018 marketing year of 68.60 cents, according to the National Agricultural Statistics Service, USDA.
By buying cotton from farmers when they want to sell, and selling cotton to the mills when they want to buy, the merchant effectively creates a market where cotton can be bought and sold at all times. Cotton is traded as much as 24 months forward.
Producers usually sell their cotton to a local buyer or merchant who, in turn, sells it to a textile mill either in the United States or a foreign country. The seed usually is sold by the producer to the gin.