When Prices Improved, Producers Responded
Tommy Horton
It takes patience to be part of the cotton industry – no matter where you're connected to the supply chain. For producers, that doesn't even begin to describe the scenario they face every year. It's one thing to plant the right seed, employ the most effective production technique and have a handle on problems such as insects and weeds. But along comes something called prices, and that can turn your world upside down if you're trying to maximize profits.
Such is the situation that has confronted U.S. cotton for the the last three years. When the ethanol boom started back in 2007, it had an immediate impact on corn and soybean prices which soared to incredibly high levels. Thus, when many cotton producers looked at the balance sheet, they decided to make the obvious choice – moving acreage out of cotton and into other crops.
source : cottonfarming
Tommy Horton
It takes patience to be part of the cotton industry – no matter where you're connected to the supply chain. For producers, that doesn't even begin to describe the scenario they face every year. It's one thing to plant the right seed, employ the most effective production technique and have a handle on problems such as insects and weeds. But along comes something called prices, and that can turn your world upside down if you're trying to maximize profits.
Such is the situation that has confronted U.S. cotton for the the last three years. When the ethanol boom started back in 2007, it had an immediate impact on corn and soybean prices which soared to incredibly high levels. Thus, when many cotton producers looked at the balance sheet, they decided to make the obvious choice – moving acreage out of cotton and into other crops.
source : cottonfarming
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