Standardized Performance Analysis of Cotton Production in the Texas High Plains 19998

The Standardized Performance Analysis (SPA) management tool was applied to a sample of cotton farming operations in the Texas High Plains (THP) in order to determine the usefulness of the program in analyzing multiple enterprise operations. Financial benchmarks for the 1995 and 1996 dryland and irrigated crops have been established on both an income statement and balance sheet basis. Other financial indicators of performance were also determined for both crops. Comparing crop enterprises across the two years in the study showed that in both 1995 and 1996, irrigated cotton enterprises in the THP were more financially successful than dryland cotton enterprises. In addition, looking at balance sheet and performance measures in the two years, irrigated cotton farms were more financially viable than dryland cotton farms.