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COST OF GINNING COTTON furnished useful cost data.

These gins were separated into


William Mayfield four regions representing the (1) Mid-South, (2) Southeast,
National Program Leader - Cotton (3) Southwest, and (4) California. These data from each
USDA-CSREES region were segregated into three groups according to gin
Memphis, TN capacity. The three groups are (1) 15 bales/hr or less; (2)
Herbert Willcutt 16-24 bales/hr; and (3) 25 bales/hr and up (Tables 1-12).
Extension Agricultural Engineer Average variable costs by region for each size category are
Mississippi State University summarized in Table 13.
Mississippi State, MS
Kelley Green This survey confirms previous surveys and research reports
Texas Cotton Ginners’ Association which indicate that the cost of electricity and drier fuel
Austin, TX depend more on the design of the individual ginning system
Lee Todd and on management than on the capacity. Repair costs also
Southern Cotton Ginners Association do not vary consistently with capacity. The higher repair
Memphis, TN cost associated with ginning the stripper harvested
Roger Isom Southwest crop is obvious.
California Cotton Ginners Association
Fresno, CA Ginning capacity has more effect on seasonal labor than on
Dusty Findley any other variable cost component. Note from Table 13 that
Southeastern Cotton Ginners Association average seasonal labor cost ranged from $10.14/bale for
Dahlonega, GA small Southwestern gins to $4.88 in large California gins
and $5.27 for large Mid-South gins. This is due primarily
Abstract to automation and higher capacities in newer gins.

In order to make their gins more cost efficient, gin managers The cost for seed cotton insurance is about $.50/bale. There
compare their component costs to industry averages. Also, are also other costs such as office expense, travel,
potential gin investors use cost estimates to help determine telephone, etc. which must be included. Thus, $3.00/bale
the economic feasibility of purchasing ginning systems. was added as miscellaneous costs.
Variable costs from 221 gins for the 1997 crop were
determined by survey and grouped according to cotton Any costs associated with transporting seed cotton to the
production region and according to gin capacity. Fixed gin are not included in these estimates. Independent studies
costs were estimated by using a traditional economic model. indicate that seed cotton transportation costs can add
Straight line depreciation over useful lives of 10 and 20 significantly to ginning costs, and these costs should be
years and a 10 percent annual interest rate were assumed. included in any economic feasibility study.
Property taxes, insurance, and miscellaneous costs were
also included. The cost of seed cotton transportation, which Fixed Costs
gins incur in most areas, are not included in these estimates.
Fixed costs are about the same regardless of how much the
Introduction gin is used. They include depreciation, interest on
investment, taxes, insurance, and salaries for permanent
To be successful, any business must keep costs low. A employees.
good way for a business manager to analyze costs is to
compare each cost component to similar businesses. Also, Depreciation is a large component of the cost of ginning
investors who are considering purchasing an existing gin, cotton. The useful life of new gin machinery should be at
erecting a new or used system, or significantly increasing least 20 years. The useful life of a used gin may be no more
the capacity of an existing gin need estimates of operating than 10 years. Thus, costs are estimated for both 10 year
costs. The total cost per bale for ginning cotton varies and 20 year useful lives. In each case, a salvage value of 10
widely with the total investment, annual volume, interest percent of the initial investment is assumed. Also, annual
rates, labor costs, energy costs, etc. interest costs of 10 percent of the remaining value are
calculated and then averaged over the life of the machinery.
Variable Costs
From previous surveys and informal validation, annual
A survey of actual variable costs from active cotton gins property taxes and insurance on the machinery and
was conducted following the 1997 crop. A total of 221 gins buildings combined are estimated at 1.0 percent of the initial
investment.

Reprinted from the Proceedings of the Beltwide Cotton Conference


The combined annual salaries for permanent employees,
Volume 1:419-429 (1999) including the gin manager, permanent ginner and office
National Cotton Council, Memphis TN

419
staff normally varies with the total investment in the gin. 2. Anthony, W. Stanley and William Mayfield, 1984.
Estimates of fixed labor and management costs are included Influence of Bale Volume on Ginning Costs.
in the total costs. Proceedings of Beltwide Cotton Production Research
Conferences, National Cotton Council, Memphis, TN.
Total Costs 3. Wolfe, Wesley, O. A. Cleveland, Earl A. Stennis, and
Craig L. Slay, 1989. GINMODEL: An Economic-
The estimated total cost of operating a cotton gin (excluding Engineering Simulation of Cotton Ginning Costs.
seed cotton transportation costs) are presented in Tables 14, Mississippi State University, Mississippi Agricultural
15 and 16. and Forestry Equipment Station, Technical Bulletin No.
166, Mississippi State, MS.
Obviously the total cost per bale of operating a cotton gin 4. Mayfield, William, 1992. Cost of Ginning Cotton.
decreases with higher annual volumes. However, this Proceedings of Beltwide Cotton Conferences. Pages
incremented decrease in cost becomes smaller at higher 1406-1407.
annual volumes. For example, consider the $2.0 million 5. Mayfield, William, Herbert Willcutt, and Roy Childress,
investment, Southeast gin, 20 year life. With an annual 1996. Cost of Ginning Cotton. Proc. of Beltwide Cotton
volume of 10,000 bales, the estimated cost is $55.17 per Prod. Res. Conf. PP.1609-1618.
bale (Table 15). If the volume increases to 12,000 bales, the 6. To, S. D. Filip and Herbert Willcutt, 1998. Gin Model
cost decreased $5.36 to $49.81 per bale. However, the with Windows-95, a Technology Update. Proc. of
difference in cost between 34,000 and 36,000 bales per year Beltwide Cotton Prod. Res. Conf. PP 1720-1722.
is only $.52 per bale.

When gins first adopted modules, the decrease in ginning


costs due to the added volume paid for the module expenses
and improved the profitability of the gin. But as volumes
get higher, the differences in costs decrease, and the
additional volume does not improve the profitability nearly
as much. Thus, this gin cannot profitably move modules as
far in order to increase the annual volume from 34,000 to
36,000 bales as it could from 10,000 to 12,000 bales.

Using These Estimates

Generally, this information has two uses. The most obvious


use is for potential investors in a gin. In this case, the cost
estimates from Tables 14, 15 and 16 should be used only as
a general guide because they may not accurately predict
ginning costs in any particular location or situation. If cost
estimates from these tables compare favorably with
potential returns in a particular location, an economic
feasibility should be developed using component costs and
returns specific to the situation. GINMODEL, an economic
engineering simulation of cotton ginning cost (Reference 3
and 6) are excellent tools for this purpose.

The other potential use of these results may be very


important to current ginners. Component costs from this
survey are good benchmarks for evaluating your costs. For
example, if your labor costs are well above the average for
gins similar to yours, that might be an area that needs to be
evaluated in your operation.

References

1. Shaw, Dale L., 1978. Economic-Engineering Simulation


of Cotton Ginning Costs. Texas Tech University,
College of Agriculture Science Publication No. T-1-174,
Lubbock, TX.

420
Table 1. Cotton ginning cost survey for Southeast (1997) - 15 or less bales/hr
Bales Average Drier Drier Fuel Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
1 2,163 9 -- 3.31 -- 2.29 9.76 6.19 6.09
2 1,071 5 -- 3.78 L 0.68 8.35 2.92 8.64
3 5,471 11.5 52.8 3.93 N 0.47 10.99 3.25 1.37
4 5,940 12.5 61.8 4.13 N 1.94 8.70 4.17 3.21
5 6,060 13.5 -- -- N 0.51 9.07 3.23 1.32

9 12,644 12 32.4 2.11 L 1.75 8.78 3.26 1.68


14 16,404 15 30.7 2.94 L 1.32 8.16 3.85 3.75
11 14,008 5 40.6 1.44 L 0.41 12.29 3.68 1.72
34 7,010 11 41.6 3.94 L 0.98 6.84 3.13 3.85
35 5,796 10 -- 4.49 -- 1.17 17.20 3.75 5.10
Avg 7,657 10.5 43.3 3.34 1.15 10.01 3.74 3.67

Table 2. Cotton ginning cost survey for Southeast (1997) - 16-24 bales/hr
Bales Average Drier Drier Fuel Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
6 11,166 18 4 2.80 L 0.51 10.22 3.15 4.48
8 12,619 16 37.8 2.38 L 1.16 8.17 3.15 3.96
10 13.000 22 33.3 2.23 -- 0.72 8.89 2.80 7.00
12 15,249 18 41.8 2.47 N 0.95 7.90 3.80 2.62
13 16,000 16 -- 5.36 -- 1.05 8.44 4.23 4.57

15 17,039 16 44.0 2.58 N 1.53 13.21 3.50 5.87


16 17,677 18 -- 3.38 L 2.08 14.53 4.95 5.81
17 17,850 16 33.2 3.30 L 0.87 7.31 2.79 3.56
18 20,050 18 43.7 1.89 N 0.90 7.54 3.60 2.99
19 20,906 22 35.9 2.20 L 1.52 7.79 3.09 1.77

22 24,232 20 40.9 2.81 L 0.98 6.88 3.39 6.19


24 25,570 24 39.5 1.98 N 1.25 7.05 3.50 1.94
28 33,835 21 -- 1.81 N 1.20 7.57 3.70 2.75
29 36,317 16.8 46.2 1.87 L 1.63 13.01 3.10 4.13
37 32,696 23.7 33.5 1.68 L 1.07 5.29 -- 2.29

39 22,704 24.3 52.0 4.39 N 1.51 3.29 2.92 8.64


Avg. 21,057 19.4 40.5 2.70 1.18 8.57 3.44 4.29

Table 3. Cotton ginning cost survey for Southeast (1997) - 25 and above bales/hr
Bales Average Drier Drier Fuel Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
7 12,000 30 38.1 2.53 L 1.03 8.75 3.00 3.50
20 22,326 28 42.4 2.78 N 1.04 9.41 2.50 4.59
21 23,535 36 37.2 2.37 L 0.56 9.31 3.00 3.19
23 25,542 25 40.2 2.13 L 1.45 7.53 2.95 0.44
25 30,086 27 -- 2.23 -- 0.62 4.59 2.86 2.49

26 31,496 25 -- 2.86 L 1.25 4.29 3.20 3.18


27 33,079 36 46.8 2.27 N 1.98 6.16 -- --
30 52.393 27 33.5 1.72 -- 0.94 3.63 3.30 2.09
31 53,000 53 39.6 2.22 N 1.41 3.90 2.77 3.65
32 54,003 38 40.8 2.45 L 1.83 5.76 2.75 3.80

33 55,510 30 37.7 1.17 N 1.88 8.20 2.79 1.23


36 11,402 36 56.2 5.45 L 1.39 4.92 3.17 5.70
38 66,690 30 45.3 1.86 N 0.93 4.90 2.76 2.60
Avg. 36,236 32.4 41.6 2.46 1.25 6.26 2.92 3.04

421
Table 4. Cotton ginning cost survey for Mid-South (1997) - 15 or less bales/hr
Bales Average Drier Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Drier Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
1 6,262 7.0 43.0 2.71 N 1.30 12.35 3.50 4.72
7 12,775 12.0 32.2 1.28 N 1.16 9.94 3.38 2.33
8 9,402 14.0 -- 5.24 N 2.33 8.40 1.441 4.73
10 5,172 14.0 48.9 5.38 N 1.64 9.85 1.771 1.84
12 18,319 13.0 -- -- N 0.83 8.38 -- 1.20

13 4,911 13.8 45.3 3.66 N 1.37 6.22 3.35 3.66


17 8,312 12.0 48.0 2.72 N 1.84 2.49 -- 6.86
21 9,912 12.0 47.5 3.89 L 1.41 12.31 4.25 1.51
34 10,283 11.0 36.8 4.46 L 0.90 9.24 1.701 2.92
46 6,036 15.0 46.4 3.25 N 1.00 10.34 3.10 5.11

47 1,057 11.0 -- 7.38 -- 2.06 10.22 3.85 1.74


49 9,307 15.0 -- 2.07 L 1.43 8.06 3.15 4.25
59 12,984 15.0 -- 1.44 N 2.60 5.34 -- 5.45
61 5,212 12.0 44.8 4.72 -- 0.48 18.23 4.00 12.47
62 5,230 15.0 51.4 4.09 N 1.00 7.65 3.27 3.11

63 910 10.0 50.6 2.36 L 2.20 4.40 3.55 0.55


64 6,349 14.0 35.6 1.31 N 1.00 2.78 1.40 2.41
65 7,846 12.0 43.7 3.47 N 1.03 9.56 3.27 5.10
AVG 7,793 12.7 44.2 3.50 1.42 8.65 3.51 3.89
1
Strapping material only; not included in averages.

Table 5. Cotton ginning cost survey for Mid-South (1997) - 16-24 bales/hr
Bales Average Drier Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Drier Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
2 14,098 19.3 41.0 3.12 N 0.82 8.60 3.25 4.83
4 16,218 18.0 36.5 2.55 N 0.68 8.85 3.02 5.72
5 24,829 21.0 37.2 3.56 N 1.15 5.64 2.95 7.05
6 22,362 20.0 36.7 3.64 N 1.18 10.90 2.80 5.90
9 21,769 20.0 43.0 3.58 N 0.52 4.59 3.00 8.54

11 10,596 20.0 26.3 3.87 L 1.83 7.32 4.34 1.70


14 10,592 18.0 39.4 3.98 N 1.08 7.08 4.25 2.83
16 13,850 16.0 35.9 3.51 L 1.27 7.52 1.061 4.47
18 7,465 19.1 46.1 1.81 N 0.62 8.39 3.36 7.55
23 14,994 20.0 56.6 5.43 N -- 7.07 3.70 3.00

24 15,062 18.0 -- 3.01 L 0.75 4.35 4.25 4.78


25 8,524 18.0 -- 3.75 L 0.79 5.98 2.35 8.82
26 26,140 21.0 32.9 2.70 L 1.47 5.59 -- 3.25
28 13,581 19.0 32.6 1.75 L 2.15 4.09 4.99 2.72
32 20,184 20.0 48.0 4.67 L 1.73 9.81 3.45 3.13

35 25,204 23.0 38.8 4.42 L 0.97 6.65 2.88 4.18


36 21,060 21.0 39.2 3.27 N 0.36 5.28 3.36 3.91
37 17,917 18.0 42.1 1.49 N 0.86 7.04 -- 4.11
38 8,914 19.0 45.4 4.58 L 1.02 5.99 4.20 3.67
40 24,407 22.8 38.7 3.40 N 0.66 6.60 -- 2.69

48 11,942 20.0 34.9 1.66 L 1.20 5.73 -- 5.34


50 18,694 20.0 40.5 3.97 N 0.82 6.60 3.53 5.62
52 33,470 22.0 40.5 2.76 N 0.81 6.01 -- 1.30
53 9,710 16.0 34.1 1.30 N 1.13 10.30 3.15 5.15
54 22,234 24.0 -- 3.70 L 1.62 7.87 3.35 3.21

55 9,580 18.0 48.2 4.04 N 1.17 7.61 3.00 5.26


60 16,208 17.0 36.4 3.52 L 0.69 5.40 -- 3.42
66 20,264 19.0 35.2 3.44 L 1.77 8.00 2.75 6.42
AVG 17,057 19.4 39.4 3.33 1.06 7.10 3.22 4.54
1
Strapping material only; not included in averages.

422
Table 6. Cotton ginning cost survey for Mid-South (1997) - 25 or more bales/hr
Bales Average Drier Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Drier Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
3 21,385 33.0 51.9 4.03 N 0.72 7.46 1.511 3.71
15 46,193 32.0 37.2 3.55 L 1.35 6.55 4.06 2.90
19 34,746 36.0 40.3 3.79 L 1.01 7.88 1.631 5.02
20 21,473 26.0 51.3 3.79 L 1.16 5.30 -- 2.84
22 30,099 29.0 50.0 5.92 L 0.50 3.10 2.75 3.19

27 19,863 25.0 35.7 2.52 N 0.17 4.38 1.501 8.84


29 26,215 26.0 -- 2.95 ? 0.80 5.61 3.33 3.78
30 30,721 29.0 44.3 3.11 N 0.51 3.20 1.851 7.16
31 57,326 45.0 61.3 4.09 -- -- -- -- --
33 26,349 32.0 35.7 3.54 N 0.52 3.69 2.44 3.42

39 26,741 25.0 34.7 3.34 N 0.87 3.26 4.31 4.81


41 56,395 55.0 33.1 3.13 N 0.91 4.99 1.381 3.37
42 34,223 25.0 44.5 3.36 N 1.46 6.87 1.501 3.50
43 14,280 25.0 51.5 4.79 -- -- 11.27 2.79 2.79
44 27,758 30.0 46.0 2.59 N 0.90 4.21 1.401 1.90

51 49,177 40.0 28.4 1.02 N 0.53 4.30 2.83 2.74


56 40,432 26.0 31.5 2.41 L 0.69 3.74 3.00 1.30
57 43,686 34.0 27.7 1.20 N 1.39 4.77 5.00 4.58
58 26,917 31.0 45.1 4.43 N 0.45 4.29 3.33 3.05
AVG 33,367 31.8 41.9 3.35 N 0.82 5.27 3.38 3.83
1
Strapping material only; not included in averages.

423
Table 7. Cotton ginning cost survey for Southwest (1997) - 15 or less bales/hr
Bales Average Drier Drier Fuel Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
1 1,071 12 -- -- N 1.49 7.46 3.90 1.87
2 1,464 10 46.2 7.13 N 1.29 16.35 5.00 8.20
3 1,685 13 52.5 4.24 N 0.74 5.53 3.90 3.33
4 2,861 8 36.9 4.87 N 0.39 16.46 4.04 6.25
5 3,003 12 30.9 4.02 L 0.51 9.07 3.23 1.32

6 3,184 6 72.9 5.25 N 2.41 13.03 3.82 7.59


7 4,063 9 55.6 4.57 N 0.86 10.64 3.40 7.38
8 4,089 13 61.1 3.46 N 1.15 3.65 4.34 6.47
9 4,252 8 43.9 3.49 N 1.12 15.01 4.95 13.41
10 4,383 8.5 -- 2.73 N 0.52 16.00 3.99 2.28

11 4,872 14 -- -- -- -- 7.59 3.95 4.93


12 4,887 9 56.4 4.10 N 0.94 14.54 3.80 6.20
13 4,913 10 49.8 4.49 N 1.20 17.36 4.01 --
14 4,931 10 46.5 4.23 N 0.85 6.48 3.90 4.23
15 5,437 11 42.8 2.83 N 0.68 9.30 3.70 2.91

16 5,527 13 42.4 4.63 N 0.97 9.97 -- 4.64


17 5,642 12 48.4 5.26 L -- 20.76 3.95 2.13
18 6,156 9 68.3 2.47 N 1.66 8.28 3.50 3.83
19 6,507 13 47.0 3.43 N 0.56 9.17 3.91 2.39
20 6,711 10 40.7 2.82 N 0.52 17.50 3.65 2.66

21 7,017 -- 42.1 3.76 N 0.31 7.43 -- --


22 7,224 14 -- 3.05 -- 1.74 10.17 3.10 8.08
53 18,400 15 43.5 2.81 N 1.29 6.95 3.72 3.77
54 397 11 41.1 3.18 L 1.21 -- 3.65 1.90
25 8,627 10 51.9 4.14 -- 0.83 -- 3.40 4.52

26 8,868 8 52.7 3.54 N 0.46 13.89 3.74 11.15


27 8,903 15 56.5 6.08 N 0.75 7.86 3.25 --
28 8,959 12 41.3 3.00 N 0.94 6.54 3.60 6.54
29 9,279 12 47.8 4.19 L 0.61 6.19 3.65 1.64
55 18,798 13 52.2 3.60 N 0.63 7.29 3.70 --

31 9,726 13 61.7 4.28 N 0.73 11.42 3.70 9.26


66 23,150 12 68.1 3.98 N 2.09 6.91 3.83 8.64
84 13,416 15 43.5 2.53 L 1.05 10.49 3.90 5.96
34 10,277 15 45.5 3.01 L 0.61 9.81 3.71 4.75
35 10,407 13 47.2 3.44 L 0.68 6.55 3.70 2.49
36 10,571 13 35.5 2.06 N 0.60 8.00 3.10 4.82

37 11,017 13 49.0 2.77 L 0.41 5.95 3.40 1.82


38 11,030 11 48.5 3.08 L 0.70 8.14 3.85 7.53
39 11,638 10 48.1 4.03 N 0.86 7.40 2.75 2.65
40 11,722 12 -- -- L 1.12 6.65 3.45 5.03

85 3,050 10 67.6 5.32 N 1.50 12.57 3.70 1.80


42 12,141 12 55.5 3.96 N 1.18 -- -- 7.50
43 12,916 15 40.2 3.51 N 0.88 8.13 3.50 4.98
44 13,672 12 50.5 3.50 N 1.17 7.77 3.43 4.32
45 13,991 10 47.4 3.04 N 0.76 9.80 3.73 5.52

46 14,049 14 49.5 5.64 N 0.32 8.66 4.00 3.35


47 15,014 15 61.2 3.50 N 0.87 11.26 3.70 6.89
89 5,238 8 42.5 4.88 L 2.18 16.34 3.78 8.42
Avg 12,607 11.7 49.6 3.86 0.96 10.14 3.73 5.12

424
Table 8. Cotton ginning cost survey for Southwest (1997) - 16-24 bales/hr
Bales Average Drier Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Drier Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($Bale)
24 7,848 16 53.4 4.14 -- 0.96 6.52 3.60 7.52
30 9,527 17 40.5 2.58 N 0.99 6.30 2.86 2.57
32 9,728 17 49.7 4.08 N 0.57 9.63 3.82 8.50
33 9,908 18 51.7 4.19 N 0.59 8.23 3.50 4.55
41 11,728 18 33.7 2.42 L 0.55 7.12 4.25 2.34

48 16,353 16 40.5 2.25 N 0.43 7.43 3.45 2.70


49 16,375 18 30.1 1.78 N 0.50 7.26 3.50 3.65
50 16,519 16 57.8 3.87 N 1.96 7.41 3.45 2.27
52 17,435 17 47.8 2.66 N 0.98 7.60 3.76 6.19
56 18,886 20 41.5 2.10 N 1.22 10.72 3.92 5.82

57 19,482 24 67.9 4.69 N 0.65 7.23 3.60 6.43


58 17,686 18 48.9 5.28 L 1.21 6.51 3.70 7.07
61 20,274 20 56.7 3.02 N 0.62 6.91 4.08 7.25
62 20,961 22 52.6 3.81 N 1.11 6.53 3.60 7.20
65 22,757 16 45.3 2.21 N 2.85 5.93 3.60 4.39

68 25,219 16 59.7 3.83 N 0.35 6.13 3.50 2.38


69 25,470 19 45.4 3.13 N 1.25 8.06 3.70 3.28
70 26,771 21 61.1 4.10 N 0.55 6.40 3.81 6.72
72 28,057 21 45.7 2.46 N 0.45 5.81 3.70 8.91
77 41,559 24 32.7 1.68 N 0.92 2.92 3.70 1.95

78 43,255 22 46.9 3.53 N 0.67 6.36 4.50 3.46


80 44,465 24 46.5 2.42 N 1.00 13.74 3.48 6.54
86 9,847 19 56.0 3.64 L 1.69 8.40 4.04 6.78
Avg 20,874 19.1 48.4 3.21 0.96 7.35 3.70 5.15

Table 9. Cotton ginning cost survey for Southwest (1997) - 25 or more bales/hr
Bales Average Drier Drier Fuel Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) (KWH/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
23 7,464 28 50.2 3.80 L 0.48 4.04 3.83 3.83
51 16,561 25 33.8 2.52 L 2.06 5.13 -- --
59 20,049 27 34.8 2.05 N 0.69 6.89 3.90 6.47
60 20,130 40 35.5 2.50 N 0.22 6.40 3.75 6.22
63 21,404 31 29.8 2.34 L 2.21 7.66 3.35 2.07

64 22,597 35 36.1 2.75 L 1.57 4.94 3.63 3.66


67 23,437 30 36.3 2.27 L 0.56 7.52 3.50 5.11
71 17,665 27 44.6 2.75 N 0.68 8.31 4.04 5.90
73 28,115 30 55.7 4.07 N 1.36 9.56 3.65 6.73
74 33,050 30 40.8 3.37 N 0.48 3.82 3.58 5.20

75 38,062 30 48.4 2.63 N 1.54 9.37 3.69 --


76 41,119 26 44.4 2.76 N 0.82 6.08 3.70 4.52
79 44,248 27 37.4 2.36 N 0.98 10.28 3.60 4.18
81 54,748 30 46.3 2.40 N 0.62 7.27 3.50 5.48
82 60,439 47 48.5 3.14 N 1.23 9.77 3.70 4.14

83 67,959 42 71.5 4.05 N 0.72 9.36 3.60 8.05


87 16,031 30 42.8 2.83 N 1.01 8.77 3.93 6.81
88 27,358 28 -- 6.51 N 0.35 10.32 3.80 5.44
90 29,417 30 42.0 2.79 N 0.91 8.62 3.93 6.81
AVG 31,045 31.2 43.3 3.05 0.97 7.58 3.70 5.33

Table 10. Cotton ginning cost survey for California (1997) - 15 or less bales/hr
Bales Average Drier Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Drier Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
4 5,586 14 52.8 6.64 L 1.59 12.73 2.95 4.34
7 18,988 10 43.6 4.50 N 0.74 5.79 3.26 5.37
8 11,708 10 55.5 4.54 N 0.59 4.61 3.20 3.16
9 14,537 12 54.6 4.75 L 0.59 10.16 3.25 1.63
12 23,732 14.5 50.3 4.03 L 0.84 4.19 3.92 3.37

14 12,325 13.2 45.8 3.84 L 0.61 6.49 3.37 4.56


AVG 14,779 12.3 50.4 4.72 0.83 7.33 3.33 3.74

425
Table 11. Cotton ginning cost survey for California (1997) - 16-24 bales/hr
Bales Average Drier Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Drier Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
1 50,776 24 51.9 3.60 N 0.59 4.70 4.00 4.92
5 30,587 17.5 42.4 3.19 L 2.11 6.51 3.27 5.12
6 37,391 19.1 43.0 3.53 N 1.21 6.15 3.03 3.56
10 14,322 16.5 52.6 4.07 -- 0.00 6.80 3.40 2.59
15 26,639 22 47.7 3.79 N 0.47 3.83 3.50 3.90

17 28,868 20 40.7 3.39 L 0.29 3.50 3.72 2.88


18 24,245 21.3 54.3 4.60 L 1.11 4.73 3.50 4.25
19 38,969 22 43.0 3.25 L 1.00 4.24 3.34 1.72
21 22,412 17.9 47.4 4.07 N 0.61 5.43 3.65 2.69
24 31,268 20 52.5 4.57 L 1.17 4.57 3.70 2.40

25 23,137 16 40.9 3.37 L 1.17 4.97 3.70 2.25


26 20,740 16 40.3 3.21 L 0.92 4.85 3.70 2.27
AVG 29,113 19.4 46.4 3.72 0.89 5.02 3.54 3.21

Table 12. Cotton ginning cost survey for California (1997) - 25 or more bales/hr
Bales Average Drier Seasonal Bale Pkg.
Gin Ginned Ginning Rate Electricity Usage Electricity Cost Fuel Drier Fuel Cost Labor Material Cost Repair Cost
No. (No.) (Bales/Hr) (KWH/Bale) ($/Bale) Type ($/Bale) ($/Bale) ($/Bale) ($/Bale)
2 31,346 25 53.3 3.81 N 0.21 6.39 4.21 4.41
3 31,347 25 53.3 3.81 N 0.21 6.39 4.21 4.41
11 33,936 38 57.6 5.16 N 0.29 5.13 4.00 5.00
13 34,465 30.9 38.6 3.18 N 0.64 3.23 3.27 4.10
16 45,685 29.5 54.5 4.26 N 0.70 4.95 3.40 3.17

20 42,974 28 37.4 2.61 N 0.47 3.08 3.50 4.56


22 95,575 30 44.6 3.51 N 0.80 3.89 3.23 1.37
23 34,599 35 53.6 4.44 L 1.17 5.98 3.70 --
AVG 43,791 30.2 49.1 3.85 0.56 4.88 3.69 3.86

Table 13. Average electrical usage and variable costs by region, 1997.
Electricity Drier Seasonal Seed Cotton Total
Capacity Usage Cost Fuel Labor Bale Pkg. Repair Ins. & Misc. Variable
REGION Gins (Bales/hr) (Avg.) (kw/Bale) ($/Bale) ($/Bale) ($/Bale) ($/Bale) ($/Bale) ($/Bale) ($/Bale)
SOUTHEAST 10 15 or less (10.5) 43.3 3.46 1.26 10.01 3.99 3.12 3.00 24.84
16 16-24 (19.4) 40.5 2.70 1.18 8.57 3.44 4.29 3.00 23.18
13 25 or more (32.4) 41.9 2.46 1.25 6.26 2.92 3.04 3.00 18.93

MID-SOUTH 18 15 or less (12.7) 44.2 3.50 1.42 8.65 3.51 3.89 3.00 23.97
28 16-24 (19.4) 39.4 3.33 1.06 7.10 3.22 4.54 3.00 22.25
19 25 or more (31.8) 41.9 3.35 0.82 5.27 3.38 3.83 3.00 19.65

SOUTHWEST 48 15 or less (11.7) 49.6 3.86 0.96 10.14 3.73 5.12 3.00 26.81
23 16-24 (19.1) 48.4 3.21 0.96 7.35 3.70 5.15 3.00 23.37
19 25 or more (31.2) 43.3 3.05 0.97 7.58 3.70 5.33 3.00 23.63

CALIFORNIA 6 15 or less (12.3) 50.4 4.72 0.83 7.33 3.33 3.74 3.00 22.95
12 16-24 (19.4) 46.4 3.72 0.89 5.02 3.54 3.21 3.00 19.38
8 25 or more (30.2) 49.1 3.85 0.56 4.88 3.69 3.86 3.00 19.84

426
Table 14. Estimated total cost of ginning cotton, 19971, 15 or less capacity bales per hour
Total Fixed Labor & Southeast Total Cost Mid-South Total Cost Southwest Total Cost California Total Cost
Investment Management Annual Volume ($/Bale) ($/Bale) ($/Bale) ($/Bale)
(Millions $) (Thousand $/Yr) (Thousand Bales) 10 Yr Life 20 Yr Life 10YrLife 20YrLife 10 Yr Life 20 Yr Life 10 Yr Life 20 Yr Life
0.5 50 4 56.71 51.09 55.84 50.22 58.68 53.06 54.82 49.20
5 50.34 45.84 49.47 44.97 52.31 47.81 48.45 43.95
6 46.09 42.34 45.22 41.47 48.06 44.31 44.20 40.45
7 43.05 39.84 42.18 38.97 45.02 41.81 41.16 37.95
8 40.78 37.96 39.91 37.09 42.75 39.93 38.89 36.07

9 39.01 36.51 38.14 35.64 40.98 38.38 37.12 34.62


10 37.59 35.34 36.72 34.47 39.56 37.31 35.70 33.45
0.75 50 4 66.40 57.96 65.53 57.09 68.37 59.93 64.51 56.07
5 58.09 51.34 57.22 50.47 60.06 53.31 56.20 49.45
6 52.54 46.92 51.67 46.05 54.51 48.89 50.65 45.03

7 48.59 43.77 47.72 42.90 50.56 45.74 46.70 41.88


8 45.62 41.40 44.75 40.53 47.59 43.37 43.73 39.51
9 43.31 39.56 42.44 38.69 45.28 41.53 41.42 37.67
10 41.46 38.09 40.59 37.22 43.43 40.06 39.57 36.20
11 39.95 36.88 39.08 36.01 41.92 38.85 38.06 34.99
12 38.69 35.88 37.82 35.01 40.66 37.85 36.80 33.99

Table 15. Estimated total cost of ginning cotton, 19971, 16-24 capacity bales per hour
Total Fixed Labor & Annual Volume Southeast Total Cost Mid-South Total Cost Southwest Total Cost California Total Cost
Investment Management ($/Bale) ($/Bale) ($/Bale) ($/Bale)
(Millions $) (Thousand $/Yr) (Thousand Bales) 10 Yr Life 20 Yr Life 10 Yr Life 20 Yr Life 10 Yr Life 20 Yr Life 10 Yr Life 20 Yr. Life
1.0 60 8 50.05 44.43 49.12 43.50 50.24 44.62 46.25 40.63
10 44.68 40.18 43.75 39.25 44.87 40.37 40.88 36.38
12 41.09 37.34 40.16 36.41 41.28 37.53 37.29 33.54
14 38.54 35.32 37.61 34.39 38.73 35.51 34.74 31.52
16 36.62 33.80 35.69 32.87 36.81 33.99 32.82 30.00

18 35.12 32.62 34.19 31.69 35.31 32.81 31.32 28.82


20 33.93 31.68 33.00 30.75 34.12 31.87 30.13 27.88
22 32.95 30.91 32.02 29.98 33.14 31.10 29.15 27.11
24 32.14 30.26 31.21 29.33 32.33 30.45 28.34 26.46

1.5 80 8 62.24 53.80 61.31 52.87 62.43 53.99 58.44 50.00


10 54.43 47.68 53.50 46.75 54.62 47.87 50.63 43.88
12 49.22 43.59 48.29 42.66 49.41 43.78 45.42 39.79
14 45.50 40.68 44.57 39.75 45.69 40.87 41.70 36.88
16 42.71 38.49 41.78 37.56 42.90 38.68 38.91 34.69

18 40.54 36.79 39.61 35.86 40.73 36.98 36.74 32.99


20 38.80 35.43 37.87 34.50 38.99 35.62 35.00 31.63
22 37.38 34.31 36.45 33.38 37.57 34.50 33.58 30.51
24 36.20 33.39 35.27 32.46 36.39 33.58 32.40 29.59
26 35.20 32.60 34.27 31.67 35.39 32.79 31.40 28.80

2.0 100 10 64.17 55.17 63.24 54.24 64.36 55.36 60.37 51.37
12 57.34 49.81 56.41 48.91 57.53 50.03 53.54 46.04
14 52.46 46.03 51.53 45.10 52.65 46.22 48.66 42.23
16 48.80 43.18 47.87 42.25 48.99 43.37 45.00 39.38
18 45.95 40.95 45.02 40.02 46.14 41.14 42.15 37.15

20 43.68 39.18 42.75 38.25 43.87 39.37 39.88 35.38


22 41.81 37.72 40.88 36.79 42.00 37.91 38.01 33.92
24 40.26 36.51 39.33 35.58 40.45 36.70 36.46 32.71
26 38.95 35.49 38.02 34.56 39.14 35.68 35.15 31.69
28 37.82 34.61 36.89 33.68 38.01 34.80 34.02 30.81

30 36.84 33.84 35.91 32.91 37.03 34.03 33.04 30.04


32 35.99 33.18 35.06 32.25 36.18 33.37 32.19 29.38
34 35.24 32.59 34.31 31.66 35.43 32.78 31.44 28.79
36 34.57 32.07 33.64 31.14 34.76 32.26 30.77 28.27

427
Table 16. Estimated total cost of ginning cotton 19971, 25 or less capacity bales per hour
Total Fixed Labor & Southeast Total Cost Mid-South Total Cost Southwest Total Cost California Total Cost
Investment Management Annual Volume ($/Bale) ($/Bale) ($/Bale) ($/Bale)
(Millions $) (Thousand $/Yr) (Thousand Bales) 10 Yr Life 20 Yr Life 10 Yr Life 20 Yr Life 10 Yr Life 20 Yr Life 10 Yr Life 20 Yr Life
3.0 150 12 70.17 58.92 70.89 59.64 74.87 63.62 71.08 59.83
16 57.36 48.92 58.08 49.64 62.06 53.62 58.27 49.83
20 49.68 42.93 50.40 43.65 54.38 47.63 50.59 43.84
24 44.55 38.93 45.27 39.65 49.25 43.63 45.46 39.84
28 40.89 36.07 41.61 36.79 45.59 40.77 41.80 36.98

32 38.15 33.93 38.87 34.65 42.85 38.63 39.06 34.84


36 36.01 32.26 36.73 32.98 40.71 36.96 36.92 33.17
40 34.30 30.93 35.02 31.65 39.00 35.63 35.21 31.84
44 32.91 29.84 33.63 30.56 37.61 34.54 33.82 30.75
48 31.74 28.93 32.46 29.65 36.44 33.63 32.65 29.84

52 30.76 28.16 31.48 28.88 35.46 32.86 31.67 29.07


56 29.91 27.50 30.63 28.22 34.61 32.20 30.82 28.41
60 29.18 26.93 29.90 27.65 33.88 31.63 33.88 31.63
64 28.54 26.43 29.26 27.15 33.24 31.13 30.09 27.84
68 27.97 25.99 28.69 26.71 32.67 30.69 28.88 26.90

4.0 170 12 84.75 69.75 85.47 70.47 89.45 74.45 85.86 70.66
16 68.30 57.05 69.02 57.77 73.00 61.75 69.21 57.96
20 58.42 49.42 59.14 50.14 63.12 54.12 59.33 50.33
24 51.84 44.34 52.56 45.06 56.54 49.04 52.75 45.25
28 47.14 40.91 47.86 41.43 51.84 45.41 48.05 41.62

32 43.61 37.99 44.33 38.71 48.31 42.69 44.52 38.90


36 40.87 35.87 41.59 36.59 45.57 40.57 41.78 36.78
40 38.68 34.18 39.40 34.90 43.88 38.88 39.59 35.09
44 36.88 32.79 37.60 33.51 41.58 37.49 37.79 33.70
48 35.39 31.64 36.11 32.36 40.09 36.34 36.30 32.55

52 34.12 30.66 34.84 31.38 38.82 35.36 35.03 31.57


56 33.04 29.82 33.76 30.54 37.74 34.52 33.95 30.73
5.0 190 12 99.33 80.58 100.05 81.30 104.03 85.28 100.24 81.49
16 79.23 65.17 79.95 65.89 89.93 69.87 80.14 66.08
20 67.17 55.92 67.89 56.64 71.87 60.62 68.08 56.83

24 59.13 49.76 59.85 50.48 63.83 54.46 60.04 50.67


28 53.39 45.35 59.11 46.07 58.09 50.05 54.30 46.26
32 49.08 42.05 49.86 42.77 53.78 46.75 49.99 42.96
36 45.73 39.48 46.45 40.20 50.43 44.18 46.64 40.39
40 43.05 37.43 43.77 38.15 47.75 42.13 43.96 38.34
5.0 190 44 40.86 35.74 41.58 36.46 45.56 40.44 41.77 36.65
48 39.03 34.34 39.75 35.06 43.73 39.04 39.94 35.25
52 37.48 33.16 38.20 33.88 42.18 37.86 38.39 34.07
56 36.16 32.14 36.88 32.86 40.86 36.84 37.07 33.05
60 35.01 31.26 35.73 31.98 39.71 35.96 35.92 32.17

64 34.01 30.49 34.73 31.21 38.71 35.19 34.92 31.40


68 33.12 29.81 33.84 30.53 37.82 34.51 34.03 30.72
6.0 210 12 113.92 91.42 114.64 92.14 118.62 96.12 114.83 92.33
16 90.17 73.29 90.89 74.01 94.87 77.99 91.08 74.20
20 75.92 62.42 76.64 63.14 80.62 67.12 76.83 63.33

24 66.42 55.17 67.14 55.89 71.12 59.87 67.33 56.08


28 59.64 50.00 60.36 50.72 64.34 54.70 60.55 50.91
32 54.55 46.11 55.27 46.83 59.25 50.81 55.46 47.02
36 50.59 43.09 51.31 43.81 55.29 47.79 51.50 44.00
40 47.43 40.68 48.15 41.40 52.13 45.38 48.34 41.59

44 44.84 38.70 45.56 39.42 49.54 43.40 45.75 39.61


48 42.68 37.05 43.40 37.77 47.38 41.75 43.59 37.96
52 40.85 35.66 41.57 36.38 45.55 40.36 41.76 36.57
56 39.28 34.46 40.00 35.18 43.98 39.16 40.19 35.37
60 37.93 33.43 38.65 34.15 42.63 38.13 38.84 34.34

64 36.74 32.52 37.46 33.24 41.44 37.22 37.65 33.43


68 35.69 31.72 36.41 32.44 40.39 36.42 36.60 32.63
1
Average cost for bale packaging materials, repairs, electricity, drier fuel, and seasonal labor by capacity from table 13 are included in total costs.

428

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