Utilization of sample gin plant capacity in the Lower Rio Grande Valley of Texas averaged 29 percent for 197 and 43 percent for 1971, based on a rated hourly capacity of 15.3 bales for the sample average. Generally, fuller utilization of plant capacities the second year resulted in a reduction in weighted average operating cost totals from $29.64 per bale in 1970 to $23.62 per bale in 1971. Capacity utilization and operating costs covering the 1970 and 1971 seasons were analyzed for a sample of 21 gins representing well over one-third of both the total ginning capacity and the annual ginning volumes for the Lower Rio Grande Valley.