Cotton ginning charges, harvesting practices, and selected marketing costs, 1992/93 season

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Material Information

Title:
Cotton ginning charges, harvesting practices, and selected marketing costs, 1992/93 season
Series Title:
Statistical bulletin ;
Physical Description:
1 v. (unpaged) : ill. ; 28 cm.
Language:
English
Creator:
Glade, Edward H
Johnson, Mae Dean
Meyer, Leslie A
United States -- Dept. of Agriculture. -- Economic Research Service
Publisher:
U.S. Dept. of Agriculture, Economic Research Service
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Cotton gins and ginning -- Economic aspects -- United States   ( lcsh )
Cotton picking -- United States   ( lcsh )
Cotton -- Marketing -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Caption title.
General Note:
"February 1994."
Statement of Responsibility:
Edward H. Glade, Jr., Mae Dean Johnson, Leslie A. Meyer.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004725459
oclc - 30410900
sobekcm - AA00005263_00001
System ID:
AA00005263:00001

Full Text
4-J, I / )


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United States
Department of
Agriculture

Economic
Research
Service
Statistical
Bulletin
Number 877
February 1994


Edward H. Glade, Jr.,


7AY 31 o06
M. Dean Johnson, Leslie A. Meyer


Unirar;ij. ~~-,


Ginning Charges

The average charge for saw-ginning and wrapping a
480-pound net-weight bale of cotton in the United
States was $42.50 during the 1992/93 season, com-
pared with $42.61 per bale in 1991/92. This was the
fifth consecutive season of declining average ginning
charges. The lower charges in recent years reflect
larger production throughout the Cotton Belt, improved
average gin volumes, and the effects of relatively low
inflation and interest rates. Also, the sale of cotton-
seed has helped boost gin revenues (fig. 1).

Average charges declined in seven States and in-
creased in seven States. The largest drop in ginning
charges occurred in Tennessee, where average
charges fell by $1.40 per bale, while Alabama experi-
enced the largest increase with average charges up by
$3.01 per bale. For most other States, 1992/93 ginning
charges remained around year-earlier levels. In Texas,
where ginning charges are based primarily on the vol-
ume of seed cotton required to yield a 480-pound net
weight bale, the average charge increased by $1.16
per bale to $50.09. Poor growing and harvesting condi-
tions caused the volume of seed cotton required per
Figure 1
Ginning charges aided by
cottonseed values


S/bale


0'
1983/84 85/86 87/88
Crop Year


bale to increase about 50 pounds under the machine-
stripped method of harvest to approximately 2,234
pounds.

Active Gins

There were a total of 1,383 active cotton gins operating
in the 14 traditional cotton-producing States during the
1992/93 season, compared with 1,500 the previous
season. In addition, four gins operated in Florida and
two in Virginia. A decline in production in 1992/93 of
1.4 million bales, was primarily responsible for the un-
usually sharp drop in the number of gins operating dur-
ing 1992/93. The largest decline in numbers occurred
in Texas where 67 fewer gins operated than in the
1991/92 season. The number of gins declined in all
States in 1992/93, except in Georgia, Oklahoma, and
Mississippi. The average volume processed per gin
was 11,340 bales in 1992/93, only 32 bales below last
season, but sharply above the average of recent years
(fig. 2). The increasing proportion of production ginned
from modules has allowed fewer gins to process larger
volumes by extending the ginning season. Gin vol-
umes varied from a high of 25,116 bales in California to
a low of 2,900 bales in New Mexico during the 1992/93
season.

Method Of Harvesting


The proportion of the 1992/93 cotton crop harvested by
the machine-picked method averaged 84 percent, an in-
crease of 5 percentage points from the 1991/92 sea-
son. Machine-stripping, used primarily in Texas and
Oklahoma, accounted for 16 percent of the overall har-
vested volume, compared with 21 percent in 1991/92.
Lower 1992/93 production in these two States, and
relatively higher production in many other States were
responsible for the increase in the machine-picking
share during 1992/93. Machine-scrapping still ac-
counts for less than 0.5 percent of the harvested vol-
90/91 92/93 ume, but is practiced in a number of States, especially
in Arizona.


*Eatimated 800 pounds of seed per 480-pound bale ginned.


Cotton Ginning Charges,

Harvesting Practices, and

Selected Marketing Cos,

1992/93 Season















Average charges for saw-ginned iupand cotton, average charges for selected marketing services, arn

Item Unit U.S. AL AZ AR CA


Bales ginned (running bales) 1/

Active gins 1/

Average volume per gin

Ginning and wrapping charges:
Total charge per 480-lb. net-
weight bale 2/

Method of harvesting:
Nachine-picked

Machine-stripped

Nachine-scrapped

Eight of seed cotton per 480-lb.
net-weight bale:
Nachine-picked

Nachine-stripped

Machine-scrapped

Cotton ginned from:
Trailers

Modules

Charges for warehousing and related
services: 6/
Charge per bale for receiving

Charge per bale per month for
insured storage

Charge per bale for compressing
to universal density

Charge per bale for outhandling


Thou. 15,683


No.

Bale


1,383

11,340


805 1,646


68

8,765


81

9,938


121

13,603


Dol. 42.50 38.11 41.49 36.68


Pct.

Pct.

Pct.



Lbs.

Lbs.

Lbs.


Pct.

Pct.



Dol.


Dot.


84

16

3/



1,452

2,233

1,739


33

67



3.11


1.85


Dot. 7.80

Dot. 6.24


95 100


4/ 1,464



1,753


31

69



3.02


1,450



1,638


--- 3.17


1.72 2.00 1.94


7.00 6.50 8.00

5.21 5.16 8.30


--- = Zero.
1/ Based on report of May, 1993, by National Agricultural Statistics Service, USDA, and includes
4 active gins in Florida, and 2 in Virginia. 2/ Includes bagging and ties, drying of seed cotton,
to warehouses, industry organization dues, or cotton classing fees. 3/ Less than 0.5 percent. 4/


3,039

121

25,116



46.42


1,442



5/


1.86


6.50

5.17














lated information, by State, 1992/93 season

GA LA MS NO N NC OK SC TN TX


722 1,296 2,074


59

12,237


77

16,831


181

11,459


530

41

12,927


58 461


20

2,900


42

10,976


204

64

3,187


212

41

5,171


813 3,227


62

13,113


405

7,968


42.03 36.18 36.50 38.71 56.63 50.15 52.35 46.40 32.70 50.09


1,407






51

49


2.91 4.03


3.76


99



1



1,474



1,625


34

66



1.52


94

6





1,488

2,050




79

21


100 20

--- 80


100 100

3/


1,593

2,230




44

56


1.84 3.41


1,478

5/




62

38


30

70





1,495

2,234




14

86


2.25 2.66 3.55 2.57


1.64 2.07 2.02 1.91


8.50

8.70


7.75


1.73


7.50


8.28 4.71


1.48


1.78 1.51


1.96


-- 7.75 --- 8.25

3.11 4.05 3.68 8.37


th American-Pima and uptand cotton. Excludes bates ginned in Florida, and Virginia, also excludes
nt cleaning, and insurance, but does not reflect any partonage dividends, rebates, transportation
ed cotton usually not weighed. 5/ No data available. 6/ Based on published tariffs.


7.75

8.12


1.68


8.75

4.55







Figure 2
Modules improve ginning efficiency


1,000 bales


UNIVERSITY OF FLORIDA


3 1262 08229616 0
Figure 3
Charges for cotton warehousing services
vary by region, 1992/93 season
Percent


IU OU
14- Average ginned % Moduled -70
12 -60
10- 50
8- -40
6- II 30
4 -20
2 I I I 10
0 o
1983/84 1986/87 1989/90 1992/93
Crop year


The use of modules as a method of temporary field
storage of seed cotton continues to increase across
the Cotton Belt. A record 67 percent of the 1992/93 cot-
ton crop was ginned from modules. The remaining 33
percent was ginned from traditional seed cotton trailers
(fig. 2). By State, use of modules ranged from 86 per-
cent of the crop in Texas to 21 percent in New Mexico
during 1992/93.

Pounds Of Seed Cotton Required for a 480-Pound
Net-Weight Bale

The average volume of seed cotton necessary to yield
a 480-pound net-weight bale for each of the three har-
vesting technologies changed only slightly during
1992/93 compared with last season. Under the ma-
chine-picked method of harvest, an average of 1,452
pounds of seed cotton were required, 14 pounds less
than a year earlier. Cotton harvested by machine-strip-
ping required 2,233 pounds of seed cotton to produce
a 480-pound net-weight bale--48 pounds more than in
1991/92. Machine-scrapping required that 1,739
pounds of seed cotton be harvested per bale ginned,
compared with 1,795 pounds during 1991/92.



The United States Department of Agriculture (USDA) pro-
hibits discrimination in its programs on the basis of race,
color, national origin, sex, religion, age, disability, politi-
cal beliefs, and marital or familial status. (Not all prohib-
ited bases apply to all programs.) Persons with
disabilities who require alternative means for communi-
cation of program information (braille, large print, audio-
tape, etc.) should contact the USDA Office of
Communications at (202) 720-5881 (voice) or (202) 720-
7808 (TDD).

To file a complaint, write the Secretary of Agriculture,
U.S. Department of Agriculture, Washington, DC 20250,
or call (202) 720-7327 (voice) or (202) 720-1127 (TDD).
USDA is an equal employment opportunity employer.


$/bale
40-


- Receiving
II Compression
01 RQ


i Storage
- Outhandling


-I 16.39
13.59
10 8.76


Southeast Mid-South Southwest West *
Region
*Compresalon charges not made. except in Alabama at $7.00 per bale.
--Receiving charges not made.

Selected Marketing Services

After ginning, most cotton bales are moved to local
warehouses for storage and other services necessary
for marketing. Universal density compression is now
performed at many gins. Some bales, therefore, are
shipped directly to textile mills and ports from gin
points. This can result in considerable savings as ware-
house charges can vary greatly by region (fig. 3).


Charges for each of the four primary warehousing serv-
ices increased modestly for the 1992/93 season. Ware-
house receiving charges averaged $3.11 per bale in
1992/93, compared with $2.88 in 1991/92. Storage
charges averaged $1.85 per bale per month, up 5
cents from the 1991/92 season average. Charges for
compressing cotton to universal density increased only
3 cents per bale to an average of $7.80 in 1992/93.
Warehouse charges for outhandling or shipping serv-
ices averaged $6.24 per bale during 1992/93, com-
pared with $5.92 per bale a year earlier.

For more information, call Edward H. Glade, Jr., (202) 219-
0840, or write: Commodity Economics Division, Economic
Research Service, U.S. Department of Agnculture, Room
1034, 1301 New York Avenue, NW., Washington, DC 20005-
4788.


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Ask for Cotton Ginning Charges, Harvesting Practices,
and Selected Marketing Costs, 1992/93 Season, SB-877.

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__