A suite of Australian cotton industry gross margin budgets are available for the 2023-24 season. The budgets are updated biennially and are provided for both those within and outside of the industry to gain an understanding of the operations, production costs and margins for the cotton industry.
The gross margin budgets represent the difference between gross income and the variable costs of producing the crop. They do not take into account risk, overhead costs (such as machinery depreciation, interest payments or permanent labour) and they do not calculate farm profit. Operations will vary from field to field, and between farms and regions. These budgets provide an indication only and cotton growers are advised to tailor their own budgets to the requirements of individual paddocks.
The 2023-24 cotton gross margins include:
- Furrow irrigated
- Furrow irrigated (all operations contracted)
- Overhead irrigated
- Semi-irrigated (double skip)
- Northern Australia rain grown
- Northern Australia furrow irrigated
- Notes and assumptions
This season, we have included gross margin budgets for the emerging cotton regions in the North (QLD, NT and WA), including raingrown and irrigated. The gross margins were based on inputs from farmers, researchers, agronomists and industry specialists across QLD, NT, and WA.
The Australian cotton industry gross margins are bought to you by the cotton industry’s joint extension program, CottonInfo, and are compiled by George Revell and Janine Powell of AgEcon.