Establishing a Cotton-Ginning Cooperative in the Southeast

Donald M. Simon, William R. Garland and Jan Halkett

No 52023, Research Reports from United States Department of Agriculture, Rural Development

Abstract: The producer-members of the proposed Albemarle Cotton Growers Cooperative presently experience costly and dangerous conditions in transporting seed cotton to distant ginning sites. These growers seek to acquire locally a cooperatively owned and operated cotton gin. This study of the proposed venture reports on producer surveys and financial projections, and estimates member benefits and return on investment. This cotton-ginning cooperative may considerably improve the net farm incomes of local producers. The feasibility analysis concludes that it is possible for these North Carolina growers to earn a respectable return on their cooperative investment. However, firm volume and equity commitments on the part of growers will be required. This study may be applicable to similar situations in other parts of the Southeast.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 25
Date: 1981
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Persistent link: https://EconPapers.repec.org/RePEc:ags:urdbrr:52023

DOI: 10.22004/ag.econ.52023

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