Why grow cotton? For Milton Prince, it's simply a matter of economics. Even with low cotton prices, he's able to make a profit. With grain crops, it's a losing proposition for this eastern North Carolina producer.
He's put a pencil to it and shares the numbers.
If he could get September corn at $2.40 a bushel, plus the one-cent LDP on yields of 132 bushels per acre, he'd gross $3.16 in corn. “That's zero profit.”
With soybeans at $5.53 per bushel, on yields of 39 bushels per acre, Prince would still be looking at no profit.
On cotton, however, it's a different story. “With cotton at an average price of 62 cents per pound and an average yield of 950 pounds per acre, I'm still looking at $66.
“Even with the low price of cotton I can still make a profit,” Prince says. “My financial posture has improved significantly since I began growing cotton.”