• The 1989 Upland Cotton Program: How Profitable for Arizona Producers?

      Ayer, H. W.; Silvertooth, Jeff; Isbell, Joan (College of Agriculture, University of Arizona (Tucson, AZ), 1989-03)
      The profitability of full and "50/92" participation in the 1989 upland cotton program was estimated for representative farms in Maricopa, Pinal, LaPaz and Yuma counties. Special attention was given to the effect on profits of the reduction in permitted acreage, and to farm size and multiple-partner ownership. Full participation was more profitable than "50/92" or nonparticipation given the assumptions used here. The expected profitability of the crops used on 'free acres" in the large farm case -- alfalfa or pima cotton --has a major positive effect on program profitability. The possible use of upland base acres to produce pima cotton or durum wheat, given the current high prices of those crops, is also discussed.
    • Outlook on Cotton Markets and Marketing for 1989

      Firch, R. S.; Silvertooth, Jeff; Isbell, Joan (College of Agriculture, University of Arizona (Tucson, AZ), 1989-03)
    • Strategies to Capture Higher Gross Revenues

      Firch, R. S.; Silvertooth, Jeff; Isbell, Joan (College of Agriculture, University of Arizona (Tucson, AZ), 1989-03)
      Research on futures price behavior indicates that farmers may find it feasible to use selective hedging or forward contracting to increase gross receipts from the sale of their commodities. University economists have been telling farmers for many years that selective hedging-hedging only in some years rather than all years or no years -- should not be considered as an alternative to hedging every year or never hedging. If selective hedging is to be a feasible strategy for farmers, they must have some system for correctly predicting the direction of futures price changes during the production period in most years.