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Cotton gin operating costs in the Midsouth were analyzed for 1972/73 and 1973/74 on the basis of a sample of 48 and 50 plants, respectively, representing about 7 percent of the total ginning capacity of the region. Average capacity utilization of the sample gins decreased from 64 percent in 1972/73 to 58 percent in 1973/74. Average total cost per bale increased 16 percent, from $19.28 to $22.45. When adjustments were made for the differences in volumes ginned, the cost increase for 1973/74 was $0.43, compared with a $1.41 increase during the 1972/73 season. Total out-of-pocket cost for 1973/74 rose $1.42 per bale over the previous year.


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