Journal of Food, Agriculture and Environment

Economic analysis of cotton production and adoption of harvest mechanization: A case study of the Aegean Region of Turkey

Author(s):

Ferruh Isin ^*, Sule Isin, Ayse Uzmay

Recieved Date: 2009-01-17, Accepted Date: 2009-03-30

Abstract:

The countries’ factor endowments and use of advanced technology are important parameters for decreasing costs relating to agricultural production. As regards competitiveness in cotton markets, reducing cost of production is no less a requisite than attaining a high level of productivity. Mechanization of harvest is of immense importance for decreasing cost of cotton production. Manual harvesting is the most common harvesting method in Turkey. However, harvest mechanization is becoming more commonplace, owing to higher costs. This study performs an economic analysis of cotton production on basis of farms utilizing various methods of harvesting in Turkey. Moreover, in the study, the factors affecting producers’ adoption of harvest mechanization were investigated. There are two different methods adopted for harvest mechanization, the first one being through use of rented harvesting machines and the second one through using proprietary equipment. According to research, the mean of cotton areas harvested using manual methods, rented equipment and proprietary equipment are 7.44 ha, 14.12 ha and 44.55 ha, respectively. The corresponding unginned cotton yields are 3717.37 kg ha^-1, 3444.05 kg ha^-1 and 3426.76 kg ha^-1, respectively. The average total cost is 3855.98 US$ ha^-1 for farms harvesting manually, while 3412.38 US$ ha^-1 for farms opting to rent a harvesting machine and 3610.63 US$ ha^-1 for farms utilizing their own harvesting machines. The gross margins are 159.69 US$ ha^-1, 306.54 US$ ha^-1 and 374.75 US$ ha^-1, respectively, with net profits being -1155.69 US$ ha^-1, -970.55 US$ ha^-1 and -1226.98 US$ ha^-1, respectively. The net profits of farms utilizing rented equipment become positive with government subsidies. Cotton farmers are able to continue producing only with government support. Renting a harvesting machine is the most suitable method for harvesting, vis-à-vis owning the equipment. Cotton harvesting using rented equipment is becoming commonplace. The size of the cotton field, the experience of the farmer and age of farmer are important variables affecting farmers’ decision to adopt mechanized harvesting. The size of cotton area and farmer’s age have a positive effect on farmers’ preference for harvesting using rented equipment, rather than harvesting manually.

Keywords:

Cost analysis, harvest methods, net profit analysis, gross margin, multinomial logit

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Journal: Journal of Food, Agriculture and Environment
Year: 2009
Volume: 7
Issue: 2
Category: Agriculture
Pages: 387-393

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