A Web-Based Cotton Harvesting Cost Calculator

Introduction

Extension staff who work with cotton producers know that a combination of recent economic and farm conditions has resulted in reduced profits. Cotton producers have been subject to volatile cotton prices, changes in government support programs, increasing input costs, and unfavorable farming conditions. Because producers have no control or influence on any of these economic or farm conditions, it has become increasingly important for them to manage their costs more efficiently. Cotton producers have expressed concern regarding the costs associated with the harvesting process. The multiple alternative harvesting options that are currently available to producers make it difficult for them to determine the harvesting equipment configuration that would result in minimized harvesting costs given their individualized production scenario.

This article describes a program designed to help producers determine the least-cost stripper or picker harvesting systems given their individualized production scenario. The Web-based software, Cotton Harvesting Cost Calculator (CHCC), can be used to estimate harvesting costs under a variety of operating conditions. CHCC provides default values, including purchase costs of equipment, maintenance costs, operating costs, performance rate, etc., for each component of the harvesting system.

These values can be used as estimates in the calculation of harvesting costs. CHCC is designed to utilize user-supplied data to calculate harvesting costs by allowing each of the default values to be changed. This allows the calculated harvesting costs to be specific to the user's individualized production scenario. It is a valuable tool Extension staff can use as they work with cotton producers to help them improve their bottom line.

Software Overview

The CHCC can be used in two ways. First, the user can determine the harvesting cost of a specific stripper or picker harvesting system. The CHCC allows the user to choose from three types of strippers (four-row, six-row, and eight-row) and pickers (two-row, four-row, and six-row). The three types of cotton strippers can be chosen with or without bur-extractors. Additional equipment may also be used in combination with the stripper and picker harvesting machines, such as a boll buggy and module builder. The user can specify the number of each type of equipment so that the configuration exactly conforms to his production scenario.

The second application of the CHCC allows the user to compare costs associated with up to three alternative stripper or picker harvesting systems. The harvesting system with the lowest cost, given the specified production scenario, is determined and presented to the user along with the costs of other harvesting systems.

Cost Calculations

The CHCC computes the fixed, variable, total, and average costs associated with the harvesting equipment system(s) that is specified by the user. The fixed costs include equipment costs, which are amortized over the life of the machine, and taxes, housing, and insurance. The variable costs calculated by the CHCC include maintenance, fuel, and labor costs. The cost calculation procedure used in the CHCC is similar to that described by Nelson, Misra, and Brashears (2000).

CHCC Output

The average harvesting cost is presented in three units: cost per lint pound (cents), cost per acre (dollars), and cost per bale (dollars). The results also identify the number of days that would be required for the chosen harvesting system to harvest the acreage specified by the user.

When the user attempts to determine and compare the harvesting costs of multiple harvesting systems, the user must enter what he thinks to be an optimal number of days that would be required to harvest his acreage, given his unique scenario. This number of days that the user considers to be optimal acts as a time constraint when the least-cost alternative is identified by CHCC. When comparing multiple stripper or picker harvesting systems, the output consists of a list of each of the three stripper or picker harvesting systems, corresponding cost per lint pound, cost per acre, cost per bale, and the number of days required for each system to harvest the specified acreage.

The least-cost harvesting alternative is identified based on both the actual harvesting costs and the time constraint. Therefore, the CHCC first identifies the harvesting alternatives that meet the time constraint. From these choices, the alternative harvesting system with the lowest cost is identified as the optimal harvesting system, given the production scenario. In this case, one alternative will be highlighted as the least-cost alternative.

However, another alternative may have a slightly lower cost, but may require a few more harvest days than the time constraint. If the number of days required to harvest a given acreage is not constrained by time, the user may consider choosing the next best alternative. Once an optimal harvesting system and associated harvesting cost has been identified, the user can make a comparison between the owner's harvesting cost and the local harvesting charges.

Conclusion

The CHCC is a Web-based calculator designed to provide cotton producers with a user-friendly means to estimate the harvesting cost associated with a specific harvesting equipment configuration. As economic and farm conditions continue to negatively affect cotton producers, Extension staff can expect questions regarding minimizing costs, specifically harvesting costs, to increase in frequency.

Many producers may question the feasibility of a harvesting system that is currently owned, while others may attempt to identify a future harvesting equipment purchase that might minimize their harvesting costs. For example, many producers have questioned whether an eight-row or two four-row strippers is more efficient. This question, along with many others, can be quickly answered using the CHCC.

The CHCC is available on the Internet at http://www.aeco.ttu.edu/cer-institute/cottonharvesting/default.htm. Anyone with access to the Internet can easily use this software.

Acknowledgment

The authors acknowledge the comments of Phil Johnson and Alan Brashears on this report and the funding provided by Cotton Incorporated. College of Agricultural Sciences and Natural Resources Publication Number T-1-549.

References

Nelson, J.M., Misra, S.K., & Brashears, A. (2001). Cost comparison of alternative stripper and picker cotton harvesting systems. Texas Tech University, College of Agricultural Sciences and Natural Resources Publication Number T-1-532 (CER-00-13).