Project overview

The profitability of cotton farming depends on the complex interaction between yield, price, input costs, and seasonal risk. The Economic Assessment of Australian Cotton Systems project analysed data collected by CSD and CRDC to identify the factors that have the greatest impact on grower margins and long-term sustainability. 

By combining agronomic performance data with financial and resource-use records, the project highlighted where improvements in water and nutrient use efficiency could generate the best returns. The study also explored how different production systems perform under varying seasonal conditions, providing a clearer picture of where and how profitability can be improved. 

The outcomes from this work are now helping growers and consultants benchmark their own performance against national trends and supporting industry discussions about the future economics and sustainability of Australian cotton.

Outcomes and achievements

• Developed a detailed economic framework linking yield, cost, and gross margin performance
• Identified yield as the primary driver of profitability, but also the greatest risk factor
• Mapped relationships between water use efficiency (WUE) and nitrogen use efficiency (NUE) across farm types
• Produced benchmark datasets and ‘size of the prize’ analyses for CSD extension and CottonTracka integration
• Provided a foundation for RWI016 – Economics and Carbon Analysis, linking economic and emissions performance. 

Project status

Economic Assessment of Australian Cotton Systems was finalised in 2024.

Resources

AgEcon Findings Presentation

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