LUBBOCK, TX (KCBD) - Cotton prices per pound are currently up to a little more than a dollar, which is something that hasn't happened since 1995.
This year was already expected to be a record year for crops just like this one, but with this news, not only is this a win-win for farmers, but it's a win-win for the whole South Plains community.
With harvest season right around the corner, cotton topping at more than a dollar per pound only thrills experts in our area.
"We grow so much cotton here, that it is important for us to get those good prices because it just adds to the bottom line of both producers and then they turn around and spend that money in the local economy," said Shawn Wade with Plains Cotton Growers.
Wade says the increased trade has to do with reduced acreage world wide and then in turn increased demand.
"So you put all those together and you end up with higher prices in the futures market in cotton basically trading for something north of one dollar," said Wade.
But while other parts of the world may be hurting, here on the South Plains Wade says there's a good chance six-million bales will be produced this year.
"What makes this even better is not only the cost of it, but also the quality. This year's crop is going to be extremely good quality," President of the Lubbock Chamber of Commerce Eddie McBride.
McBride says it's important to remember just how important the ag business is to our community.
"It has a direct positive impact on our sales tax, that's collected in our economy, so it's very positive for us," said McBride.
"We could be looking at a couple of billion dollars worth of farm level value kind of turning around and begin to percolate through the Lubbock economy," said Wade.
Wade says not every pound of cotton produced this year will be sold for a dollar. Some growers have already established prices for their crop months ago. However he says it's still going to be a very good overall value.
Copyright 2010 KCBD. All rights reserved.