LUBBOCK, Texas — The price of cotton is now 81 cents per pound, the highest it has been in more than two years, according to data from Market Insider.
Farmer Steven Brosch said 2020 was a difficult year.
“Really all year struggled with very little moisture. We had enough at planning time to bring a crop up but then it stopped,” Brosch said. “We didn’t harvest most of our dry land out here, what we did was very low yields.”
Brosch said he is cautiously optimistic about the price increasing.
“It can go down just as quickly as it’s gone up, especially, we’ve learned that from this past year,” Brosch said.
Kody Bessent, Vice President of Operations and Legislative Affairs for Plains Cotton Growers, said the reason for the increase in price is due to weather related conditions, thus supply of cotton was low. This created an influx in price, and an increase in demand for cotton.
“Just because the crop year that we’ve had as of late was significantly reduced the last couple of months compared to what USDA estimates and the trade estimates was looking at going in to the first part of the growing season,” Bessent said.
Bessent described what this could mean for farmers, although said the prices can change.
“It gives producers an opportunity to look at a good crop mix of what could be beneficial to their operation as a whole,” Bessent said.
For now, Brosch said he plans to play it safe. He doesn’t plan to change his input or make new purchases. He said he is happy about the price, and if it were to stay until harvest, it would help.
“80 cents gives us a little cushion, we can have a little lower yield and still maybe make a little profit or at least break even, which is nice,” Brosch said.
Brosch said he remains hopeful for 2021, and following the snow, he said it’s off to a good start.
“We’ll just have to see what happens from here on out, but right now, yeah, we’re alright,” Brosch said.