Profitability and Resource Allocation Among Cotton and Peanuts When Considering Planting and Harvest Timeliness

Journal of Agricultural and Applied Economics, Apr 2005 by Meeks, Timothy A, Flanders, Archie, Shurley, W Don, White, Fred C, Gunter, Lewell F

Harvest timeliness is a continual problem in the rotation of cotton and peanuts. Efficient allocation of land and labor resources during production of cotton and peanuts requires decisions be made on allocating resources throughout the growing season. Of particular concern is efficient allocation during planting and harvesting. Through economic analysis and linear programming optimization, planting and harvesting timeliness issues are addressed and compared with prevailing practices. Results for a representative farm indicate that cotton planting should increase during the early period of the planting season as compared with current practice, and most cotton should be harvested before peanut harvest begins.

Key Words: cotton, harvest timeliness, linear programming optimization, peanuts, planting timeliness

JEL Classification: Q12, Q18

Profitability for agricultural producers is dependent on their ability to properly allocate resources across various commodities. In Southern Georgia, most cotton producers incorporate peanuts into their rotation, and efficient management strategies are required to sustain profitability. Although producers can realize a profit, they may not be obtaining their maximum profit potential. Profitable strategies require making decisions concerning the variety of seed to grow and the tillage practice to incorporate, as well as formulating a costeffective input regime, deciding when to plant and when to harvest, and estimating the number of laborers to employ. This research focuses on decisions related to the timeliness of planting and harvesting cotton and peanut crops in a rotation program.

Traditionally, producers begin cultivating the land to prepare for planting in the early spring. They first plant their peanut crop, delaying cotton planting. This type of planting strategy matures the peanut crop approximately 2 weeks before complete cotton maturity, which allows producers to harvest peanuts before cotton and prevents the deterioration of peanuts.

Due to the tomato spotted wilt virus (TSWV) in peanuts, this strategy has lost much of its effectiveness. The University of Georgia (UGA) Extension Service reports that delaying planting of peanuts until May 1-20 gives the greatest chance of reducing the intensity of the virus among the crop (Brown et al.). Cotton planting in Georgia usually begins around April 20, with most of the planting occurring during the month of May (GASS). Therefore, planting of the two crops generally occurs within the same time period when attempting to avoid TSWV in peanuts.

Physiologically, the plants mature at approximately the same rate, with harvest occurring at the same time. Producers have generally delayed cotton harvest until peanut harvest is completed or nearly completed. This overlap of planting and harvest creates a resource allocation conflict for producers. The amount of available labor, equipment, and work hours can be the most binding constraints that producers face in accomplishing all production activities. A model that determines the optimal planting and harvest combinations for producers, therefore, is beneficial for optimizing net returns under timeliness considerations. Of primary concern is the harvest timeliness issue associated with delaying cotton harvest and the lessened returns due to quality reductions.

During the 1990s, TSWV became the most damaging disease problem for peanuts in Georgia and Florida. Research indicates peanut yields are significantly affected by spotted wilt severity such that for each 10% increase in final TSWV severity, yields are reduced by 250.1 Ibs/acre (Luke et al.). This demonstrates the need for TSWV control, but currently, chemical control or immune varieties are not available.

Fortunately, researchers have discovered different strategies to control the spread of the virus. The transmission of TSWV is believed to be through certain species of thrips, and controlling the transmitter helps control the virus. Although there are a few chemicals that help control thrip populations, they are ultimately ineffective in controlling TSWV. In 1996, the UGA Extension Service introduced the TSWV Risk Index for evaluating the potential for infestation. Recent research shows this index to be the best tool for reducing the severity of TSWV and the resulting yield decline.

Researchers have discovered that optimum planting dates vary from year to year for reducing the incidence of TSWV, but early-planted peanuts tend to have higher levels of TSWV than peanuts planted after the middle of the planting season. The TSWV Risk Index is based on risk points associated with different production decisions. For example, the variety of peanuts a producer selects is associated with a certain number of risk points. Currently, no variety is immune to the virus, but the cultivar Georgia Green has one of the lowest anticipated-risk points (Brown et al.). It was selected as the variety for this study because of its TSWV tolerance and the prevalence of its usage in Georgia peanut production.