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Economic Models for Cotton Ginning

Author

Listed:
  • Looney, Zolon M.
  • Wilmot, Charles A.

Abstract

As plant size increases, operating costs per bale decline, revealing economies of scale in ginning throughout the range of gin sizes studied. This and other findings were noted in an analysis of capital investment requirements and operating costs for 10 ginning models ranging in hourly rated capacities from 6 to 36 bales. Seed cotton assembly, traditionally a producer- borne cost, could be an obstacle to the successful establishment and operation of a 36-bale gin--which was determined to be the optimal size--because of the greater hauling distances involved. The analysis shows, however, that with a uniform area ginning charge and other seemingly realistic assumptions, a 36-bale gin could either absorb the assembly cost or take over the assembly function completely and still compete favorably with smaller plants able to furnish only the ginning service.

Suggested Citation

  • Looney, Zolon M. & Wilmot, Charles A., 1971. "Economic Models for Cotton Ginning," Agricultural Economic Reports 307447, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:307447
    DOI: 10.22004/ag.econ.307447
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    File URL: https://ageconsearch.umn.edu/record/307447/files/aer214.pdf
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    Cited by:

    1. French, Ben C., 1977. "PART II. The Analysis of Productive Efficiency in Agricultural Marketing: Models, Methods, and Progress," AAEA Monographs, Agricultural and Applied Economics Association, number 337214, january.
    2. Lanier, Eleanor B., 1974. "Economics of Agriculture: Reports and Publications Issued or Sponsored by USDA's Economic Research Service, July 1971-June 1972," Miscellaneous Publications 321804, United States Department of Agriculture, Economic Research Service.

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