A suite of Australian cotton industry gross margin budgets are available for the 2019-20 season. The budgets are provided for both those in and out of the industry to gain an understanding of the operations, production costs and margins for the cotton industry.
The gross margin budgets represent the difference between gross income and the variable costs of producing the crop. They do not take into account risk, overhead costs (such as machinery depreciation, interest payments or permanent labour) and they do not calculate farm profit. Operations will vary from field to field, and between farms and regions. These budgets provide an indication only and cotton growers are advised to tailer their own budgets to the requirements of individual paddocks.
The 2019-20 Cotton gross margins include:
- Furrow irrigated
- Furrow irrigated - all operations contracted
- Overhead irrigated
- Semi-irrigated - double skip
- Notes & assumptions
The Australian cotton industry gross margins are bought to you by the cotton industry’s joint extension program, CottonInfo, and are compiled by Jon Welsh and Janine Powell of AgEcon.