It’s not a good time for cotton growers and the crop.
Uncooperative conditions marked by heavy rainfall and cold spells caused planting delays and stunted growth in many Georgia and US cotton fields. Though the crop has struggled to get going and growing, the outcome doesn’t appear hopeless. Yes, the crop is behind. It won’t be until mid- to late-November before the majority of cotton will be harvested, while usually the majority has been harvested by early to mid-November. Yet, the yield projections are decent, producing 700 to 900 pounds per acre on some fields and 1,200 to 1,300 pounds on others.
But the delays aren’t the only bad news on the cotton crop…
Cotton prices are way down. There are many reasons for this price drop, including heavy speculative long liquidation, a record crop yield in India, weak US export sales, poor US crop conditions and the harvest running behind, and the US government shutdown (which may have caused some traders to become nervous as many cotton growers lost USDA loans and FSA loans).
It’s a bad economic and environmental climate for cotton. Yet, despite the tough weather conditions this year, the grades are coming in well above average. As for the value of cotton, it is thought that some recovery is on the horizon. Time will tell what’s in store for this struggling crop.
Was your government backed farm loan suspended in the wake of the government shutdown? If you’re a cotton grower, you may have to turn to a private ag lending company such as Bankers South. Extra funds are often needed when the harvest begins. Contact Bankers South regarding our AgAmerica Lending Program. These farm loans cover all facets of farming, from smaller hobby farms to vast agricultural operations. When it’s time to plant your next row crop, expand your cotton fields, or refinance, these ag loans are a great option.