Estimating the Economic Incentive to Adopt FiberMax Cotton Variety

Authors

  • Srinivas Malladi
  • Donald M. Nixon

Keywords:

FiberMax 832, Deltapine 20B, Deltapine Pearl, Deltapine 33B

Abstract

FiberMax is the brand name for cotton varieties marketed by Aventis Crop Science.  To estimate profit potential for an individual farmer who might adopt the FiberMax 832 variety, various factors are to be considered such as yield potential, fiber quality, response to management, consistency, crop maturity, disease resistance, insect resistance, stress tolerance, and market acceptance.  Introduction of new varieties in the market place increases the complexity of variety selection, but offers opportunity to improve profitability.  The approach assumes that farms are in perfect competition.  The price per pound of lint was estimated based on the quality parameters of fiber.  Budget analysis was done to estimate the net benefit to farmers taking into consideration the variable and fixed costs for a typical cotton farm in Nueces County, Texas.  The data analyzed from the four locations (Prince Farms, Kocurek Farms, Meaney Annex Farms, and Perry Foundation) in the coastal bend region indicated that yields of four varieties (FiberMax 832, Deltapine 20B, Deltapine Pearl, and Deltapine 33B) tested for performance, were not statistically different.  FiberMax 832 had the highest average yield of 751 lb/acre followed by Deltapine 20, Deltapine Pearl, and Deltapine 33B.  The price received by FiberMax 832 per pound of lint was highest in all locations. FiberMax 832 produced exceptionally high fiber quality.  FiberMax 832 had the highest mean average price per pound of lint (54.17 cents/lb), followed by Deltapine Pearl, Deltapine 20B, and Deltapine 33B.  The net projected returns estimated for these four varieties across the four locations, assuming the same costs of operations, showed that FiberMax 832 had the highest mean value of 23.91 dollars/acre followed by Deltapine 20B (-12.93 dollars/acre), Deltapine Pearl (-17.64 dollars/acre) and Deltapine 33B (-48.17 dollars/acre).  FiberMax was the only variety with positive mean returns.

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Published

2016-05-05

How to Cite

Malladi, S., & Nixon, D. M. (2016). Estimating the Economic Incentive to Adopt FiberMax Cotton Variety. Texas Journal of Agriculture and Natural Resources, 15, 1–6. Retrieved from https://txjanr.agintexas.org/index.php/txjanr/article/view/147

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Section

Research Articles