Start talking about high commodity prices, and everyone wants to throw in their two-cents’ worth, which is logical considering the money driving the discussion is not a typical scenario. We received numerous comments related to the October question and tried to squeeze in as many as possible. Here’s a sampling of what the Web Poll respondents had to say:
• “Dollar cotton will net about 90 cents to the farmer. In the Delta, that will compete with $5.50 corn, but not $6 corn. Six dollar corn wins over $1 cotton in the Delta. And you don’t have the risk exposure in corn as in cotton. Corn wins. But, if 2011 December cotton gets to $1.20, then look out.”
• “It’s been 140 years since prices have gone this high. Cotton will be planted in large numbers, but will it be king? Higher inputs will lower net, and supply and demand will dictate the 2012 crop and further.”
• “Producers who still own cotton equipment and/or an interest in a gin will definitely increase cotton acreage by a large proportion. In west Texas, rotation will be out next year with all available acres going to cotton. Also, there won’t be a cut in acreage among those who ordinarily grow cotton.”
• “In the Florida panhandle and south Alabama, farmers are not looking at corn as an option. It depends on the 2011 peanut contracts and which crop has the most profit potential. I think cotton acres will be up in this area next year if farmers can get 90 to 95 cents. They have been surviving on a lot less than that for a long time!!”
• “Based on producer feedback in the Winter Garden of Texas, we think our cotton acreage could double if cotton stays at or above $1.”
• “Dollar cotton will result in increased cotton acres in the Southeast, particularly our dryland acres. Cotton will compete against peanuts if contracts are pushed to $600 a ton. The loser will be soybeans. Corn will be thrown in the mix simply for the rotation. However, $6 corn will compete for irrigated acres.” (South Carolina)
• “I don’t think cotton can compete with $6 corn, and if soybeans get to $14, that tops both.”
• “There is a lot of time between now and next spring, and what happens to the grain/cotton price relationship will be the largest factor. Another consideration, especially for dryland, is that cotton is generally accepted as the most stress tolerant of the three major crops. If La Niña persists through the winter and early spring, cotton will be the logical choice.”
• “The relative prices of corn and beans still favor these crops from a net return standpoint.”
• “It depends on how the other commodity prices react to $1 cotton around the first of the year. It will also depend (at least in my case) on how astronomical fertilizer and seed prices become. And, oh yeah, look out land rent!!!”
• “There are a lot of farmers who grow corn and soybeans in the Delta who will now plant cotton. I plan to put every available acre in cotton.”
• “Many acres that have the potential to raise cotton have already had grain crops booked at the elevator. It won’t really matter what the price of cotton does on these acres because they are already sold.”
• “The demand for cotton products is increasing. This is a great time for the producers. A great time.”
Go to www.cottonfarming.com to cast your vote and share your comments. The results of the December poll will be reported in the February issue of Cotton Farming.
Web Poll Results
In October, we asked: Do you think $1-plus cotton prices will contribute to increased cotton acres in 2011?
Yes — 79 %
No — 9 %
It Depends — 12%
December Web Poll Question
Do you think the outcome of the November 2010 elections will have a positive effect, negative effect, or is it too soon to tell? Please share your thoughts in the “Comments” section of the Web Poll.
(1) Positive effect
(2) Negative effect
(3) Too soon to tell
Register your vote at www.cottonfarming.com.
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