Cotton Ginning Template as Producer Cooperative

8/3/2019 Cotton Ginning Template as Producer Cooperative

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Cotton Ginning Cost and Returns Template

Developed for: Ag Marketing Resource Center

Developed by: Phil Kenkel and Rodney Holcomb, Oklahoma State U

This templates is designed to assist you in assessing the feasibility of a typicThe template assumes that the operation purchases forage and hay and then

Input cells are shaded in green.

Each sheet is currently protected allowing you to only input information in thThe template can also be modified and expanded to meet your particular situ

If you choose to modify the template we would advise you to save it under an

To get started go to the "Input Page"

For comments or suggestions contact: Phil Kenkel, [email protected] 405-744-9818John Park, [email protected] 979-845-1751

MENU

INPUTS

UTILITIES

MARKET PROJECTION

LOAN AMORITIZATION

PERSONNEL EXPENSES

EXPENSE PROJECTION

OPERATIONS SUMMARY

DEPRECIATION

EFFICIENCY

EQUIPMENT

RETURN ON INVESTMENT

Cotton Gin

How to Use TTemplate



iversity

l alfalfa dehydration operation.ells alfalfa pellets and/or alfalfa meal.

input cells.tion by turning off the protection.

ther name and retain the original for reference.

ning Costs

is



INPUT CAPITAL STRUCTURE AND UTILITIESEXPENSE INFORMATION Electricity cost per KilowattPercent Financed 50.00%Long Term Interest Rate 7.5% Gas Cost per MCF

Loan Term 10 MCF Gas Needed/baleTotal Plant Property & Equip 5,629,631$ Total Utilities/ YearLoan Amount 2,814,816$ Total Utilities/ bale

Working Capital 1,675,420$

Short Term Interest Rate 6% OTHER

Expense Inflation Rate

TAX INFORMATION Maintenance as % of PP&EProperty Tax as % of PP&E 0.50% Insurance as % of PP&EIncome Tax Rate 60.00% Discount rate for NPV calc

PAYROLL INFORMATION WORKING CAPITAL% of Payroll Tax to Salaries 5.00% WC req. for Seed Purchases% of Retirement Tax to Salaries 15.00% Additional WC as % of Sales

% of Employee INS Tax to Salaries 10.00% Additional WC in DollarsBenefits as % of Salaries 30.00% Additional WC for ContingencyWage Inflation 1.00% Total Working Cap Requirement

Hours of Operation 18

Fee

Transportation Ginning

Module hauling distance 12 Bagging and Ties

Module hauling cost/mile 1.14$ Compression

Gin to warehouse distance 44 Seed Cotton sales

Warehouse trucking cost/mile 0.27$ Module transportationBales/Semi 100 Bales to whs transport

Module Transportation cost/ module 43.95$ FarmerPayment from warehouse

Cotton Seed Sales/tonSales growth



































































































































0.08$

3.00$

25.00 238,574.72$

$4.88

Cost of Goods Sold

1.00% Cotton $/unit

1% Cotton seed purcha 130.00$1% Bags and Ties 5.00$

10% Tarp Expense/modu 25.00$

1,198,959$8%

476,461$ -$1,675,420$

$2.25 ##

$7.50

$8.00

$12.25

$55.00

$3.50$10.00

$140.001%

EXPENSE PROJECTIONS

DEPRECIATION

MENU: Click Below to Move to the Indicated Page

FORWARD TO RESULTSOTHER INPUTS ENTRIES ARE IN

PERSONNEL EXPENSES







































































































































































































































































































































































































Depreciation



































































































































Return On Investment

Quality Percent 0%

Discount Rate 0.00%



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Bale Needs Natural Gas

Tons of seed cotton delivered 18,446 Water removed/ton 100.00Moisture Content of seed cotton 0.13 BTU's/lb. water 1500Moisture target-bale 0.08 BTU's needed/ton 150000Dry matter/ton seed cotton 1,740 BTU's needed 2,766,827,755Dry matter/ton ginning cotton 1,840.00 MCF Gas needed 2766.827755Water removed per ton seed cot 100 Gas Cost/MCF 3.00$Water removed per bale ginned co 0.04 Gas Cost/ Year $8,300

Gas Cost/Bale $0.06

Other UtilitiesCost per year and bale Water Cost/Year 3,000$Electricity Cost/ Year 224,874.24$ Water Cost/ Bale 0.06$Electricity Cost/ bale 4.60$ Telphone Cost/Year $2,400

Water Cost/ Year 3,000.00$ Telephone Cost/Bale 0.05$Water Cost/ bale 0.06$Natural Gas Cost/ Year 8,300.48$Natural Gas Cost/bale 0.06$

Telephone Cost/ Year 2,400.00$Telephone Cost/ bale 0.05$



Electricity

Horse Power Req./Hour 3,925.00 Horse Power use per year 3,768,000.00Electricity Cost/KW 0.08$KW/HP 0.746

Electricity Cost/ Year 224,874

Electricity Cost/ Year $17,990Electricity Cost/ Bale $4.60

Variable Costs TransportationModule Hauling 42,323$Transportation to Warehouse 5,806.67$



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This sheet calculates loan amortization and interest. There are no inputs on this sheet.

Total Investment $5,629,631Long Term Interest Rate 7.50%

Percent Financed 50.00%

Loan Amount $2,814,816

Loan Term 10

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Beginning Balance $2,814,816 $2,615,848 $2,401,957 $2,172,025 $1,924,848 $1,659,132Interest Rate 7.50% 7.50% 7.50% 7.50% 7.50% 7.50%

Interest $211,111 $196,189 $180,147 $162,902 $144,364 $124,435

Annual Payment $410,079 $410,079 $410,079 $410,079 $410,079 $410,079

Principal $198,968 $213,890 $229,932 $247,177 $265,715 $285,644

Ending Balance $2,615,848 $2,401,957 $2,172,025 $1,924,848 $1,659,132 $1,373,488

Working Capital $1,675,420Short Term Interest Rate 6.00%

Interest Amount $100,525

Total Interest Expense $311,636 $296,714 $280,672 $263,427 $244,889 $224,960



Year 7 Year 8 Year 9 Year 10$1,373,488 $1,066,421 $736,324 $381,469

7.50% 7.50% 7.50% 7.50%$103,012 $79,982 $55,224 $28,610

$410,079 $410,079 $410,079 $410,079$307,067 $330,097 $354,855 $381,469

$1,066,421 $736,324 $381,469 $0

$203,537 $180,507 $155,749 $129,135



MENU There are no inputs on this page 1

BACK TO INPUTS 36,354 48,878

FORWARD TO RESULTS start with number of bales- use inflation rate

Total Bales 48,878 48,878 48,878Total tons of Seed Cotton 39,684 39,684 39,684

Total Modules 3,094 3,094 3,094Total Tons of Cotton Seed 18,446 18,446 18,446

Year 1 Year 2 Year 3Ginning Fees $1,785,782.20 $1,785,782.20 $1,785,782.20Bagging and Ties fees $/bale $366,582.86 $366,582.86 $366,582.86Compression fee $391,021.71 $391,021.71 $391,021.71Seed cotton sales $2,582,372.57 $2,582,372.57 $2,582,372.57Module transportation fees $170,158.90 $170,158.90 $170,158.90

Warehouse paymbner-bales transporation $171,072.00 $171,072.00 $171,072.00Farmer payments-bale transportation $488,777.14 $488,777.14 $488,777.14Total Gross Margin $5,955,767.39 $5,955,767.39 $5,955,767.39



0

48,878 48,878 48,878 48,878 48,878 48,87839,684 39,684 39,684 39,684 39,684 39,684

3,094 3,094 3,094 3,094 3,094 3,09418,446 18,446 18,446 18,446 18,446 18,446

Year 4 Year 5 Year 6 Year 7 Year 8 Year 9$1,785,782.20 $1,785,782.20 $1,785,782.20 $1,785,782.20 $1,785,782.20 $1,785,782.20

$366,582.86 $366,582.86 $366,582.86 $366,582.86 $366,582.86 $366,582.86$391,021.71 $391,021.71 $391,021.71 $391,021.71 $391,021.71 $391,021.71

$2,582,372.57 $2,582,372.57 $2,582,372.57 $2,582,372.57 $2,582,372.57 $2,582,372.57$170,158.90 $170,158.90 $170,158.90 $170,158.90 $170,158.90 $170,158.90

$171,072.00 $171,072.00 $171,072.00 $171,072.00 $171,072.00 $171,072.00$488,777.14 $488,777.14 $488,777.14 $488,777.14 $488,777.14 $488,777.14

$5,955,767.39 $5,955,767.39 $5,955,767.39 $5,955,767.39 $5,955,767.39 $5,955,767.39



48,87839,684

3,09418,446

Year 10$1,785,782.20

$366,582.86$391,021.71

$2,582,372.57$170,158.90

$171,072.00$488,777.14

$5,955,767.39



This sheet allows you to input salaries and overtime assumptions for various positions.

Benefit calculations are based on the percentage you entered on the "Input" sheet.

There are 45 total employees including all shifts that are seasonal and 5 permanent employees.

Occupation Total # of Employees Salary Tot Salary Benefits Overtime%

Manager 1 $60,000 $60,000 $18,000 4%Assistant Manager 2 $40,000 $80,000 $24,000 3%Maintenance Foreman 2 $30,000 $60,000 $18,000 1%

Total Personnel 5 $130,000 $200,000 $60,000

Cost

Occupation Total # of Employees Wage Tot Salary Benefits All ShiftsGinner 1 $12 $21,600 $6,480 20 Ginner Helper 1 $12 $21,600 $6,480 20 Press Operator 3 $10 $54,000 $16,200 20 Module Feeders 2 $10 $36,000 $10,800 20 Lift Truck Operators 2 $10 $36,000 $10,800 20 Cleaners $0 $0 -

$0 $0 - $0 $0 -

Total Cost 10 $54.00 $169,200 $50,760.00

Occupation Total # of Employees Salary Tot Salary Benefits All Shifts

Seed & Bale Movement 1 10.00$ $9,000 $2,700 101 10.00$ $9,000 $2,700 10

$0 $0 10Total Cost 2 20.00$ 18,000$ $5,400.00

7 other Operating 12 hours shiftsOccupation Total # of Employees Salary Tot Salary Benefits All Shifts

Seed Truck Driver 1 10.00$ $9,000 $2,700 10Bale Truck Driver 1 10.00$ $9,000 $2,700 10Burr Truck Driver 2 10.00$ $18,000 $5,400 10Mechanic 1 10.00$ $9,000 $2,700 10

Superintendent 1 10.00$ $9,000 $2,700 10

Scale Clerk 1 10.00$ $9,000 $2,700 10Total 7 60.00$ 63,000$ $18,900.00

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Total Expense $613,160.00

Overtime Total

$2,400 $80,400$2,400 $106,400

$600 $78,600

$5,400 $265,400

Overtime% Overtime A.M. Hours Overtime% Overtime P.M. Hours Overtime% Overtime0% $0 10 0% $0 10 $00% $4,320 10 0% $0 10 2% $4,3200% $0 10 0% $0 10 $00% $7,200 10 2% $7,200 10 $00% $10,800 10 3% $10,800 10 $00% $0 0% $0 $00% $0 0% $0 $00% $0 0% $0 $0

22,320.00$ ######## 4,320.00$

Overtime% Overtime Total

2% $180.00 $11,7002% $180.00 $11,700

$0.00 $0$360.00 23,400.00$

Overtime% Overtime Total2% $180.00 $11,880

$0.00 $11,700$0.00 $23,400$0.00 $11,700

$0.00 $11,700

$0.00 $11,700$180.00 82,080.00$



Total$28,080$32,400$70,200$54,000$57,600

$0$0$0

$242,280



The only inputs on this page are for "supplies and Miscelaneous expen

in year 0 and 1

This Sheet summarizes expenses. The only input is for "supplies and miscellaneous" expenses.

Labor Year 0 Year 1 Year 2 Year 3Administrative and OverheadSalaries $80,400 $81,204 $82,016 $82,836Benefits $106,400 $107,464 $108,539 $109,624Overtime $78,600 $79,386 $80,180 $80,982

Total Fixed Labor $265,400 $268,054 $270,735 $273,442

Ginning LaborSalaries $169,200 $170,892 $172,601 $174,327Benefits $50,760.00 $51,268 $51,780 $52,298Overtime $22,320 $22,543 $22,769 $22,996Total Ginning Labor $242,280 $244,703 $247,150 $249,621

Seed and Bale MovementSalaries 18,000$ $18,180 $18,362 $18,545Benefits $5,400 $5,454 $5,509 $5,564Overtime $360 $364 $367 $371Drivers

Salaries 63,000$ $63,630 $64,266 $64,909Benefits $18,900 $19,089 $19,280 $19,473

Overtime $180 $182 $184 $185Total Logistics Labor 105,840$ 106,898$ 107,967$ 109,047$

Total Variable Labor 348,120$ 351,601$ 355,117$ 358,668$

Total Labor $613,520 $619,655 $625,852 $632,110

Production ExpensesGinningBags and Ties 244,388.57$ 244,388.57$ 244,388.57$

CompressionSeed Cotton Purchase 2,397,917.39$ 2,397,917.39$ 2,397,917.39$Module Transportation 135,972.43$ 135,972.43$ 135,972.43$Tarp Expense $77,345 $77,345 $77,345Gin to Warehouse trucking $11,613 $11,613 $11,613

Total Production Expenses 2,867,236.69$ 2,867,236.69$ 2,867,236.69$

UtilitiesElectricity 224,874.24$ $227,123 $229,394

Natural Gas 8,300.48$ $8,383 $8,467Water 3,000.00$ $3,030 $3,060

Telephone 2,400.00$ $2,424 $2,448Total Utilities 238,574.72$ 240,960.47$ 243,370.08$

Total Variable Expenses $613,520 $3,725,467 $3,734,049 $3,742,717

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FixedMaintenance 55,296$ $55,849 $56,408

Insurance 55,296$ $55,849 $56,408

Property Tax 56,296$ $56,859 $57,428

Depreciation $599,982 $986,043 $701,459

Interest $311,636 $296,714 $280,672

Total Fixed 1,078,508$ 1,451,315$ 1,152,375$

Other Expenses

Supplies $0 $0 $0

Miscellaneous $0 $0 $0

Total Other Expenses $0 $0 $0

Total Expenses $4,803,974 $5,185,363 $4,895,092



e"

Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$83,665 $84,501 $85,346 $86,200 $87,062 $87,932$110,720 $111,827 $112,946 $114,075 $115,216 $116,368$81,791 $82,609 $83,435 $84,270 $85,113 $85,964

$276,176 $278,938 $281,727 $284,545 $287,390 $290,264

$176,070 $177,831 $179,609 $181,405 $183,219 $185,052$52,821 $53,349 $53,883 $54,422 $54,966 $55,515$23,226 $23,459 $23,693 $23,930 $24,169 $24,411

$252,118 $254,639 $257,185 $259,757 $262,355 $264,978

$18,731 $18,918 $19,107 $19,298 $19,491 $19,686$5,619 $5,675 $5,732 $5,790 $5,847 $5,906

$375 $378 $382 $386 $390 $394

$65,558 $66,214 $66,876 $67,545 $68,220 $68,902$19,667 $19,864 $20,063 $20,263 $20,466 $20,671

$187 $189 $191 $193 $195 $197110,138$ 111,239$ 112,351$ 113,475$ 114,610$ 115,756$

362,255$ 365,878$ 369,536$ 373,232$ 376,964$ 380,734$

$638,431 $644,816 $651,264 $657,776 $664,354 $670,998

244,388.57$ 244,388.57$ 244,388.57$ 244,388.57$ 244,388.57$ 244,388.57$

2,397,917.39$ 2,397,917.39$ 2,397,917.39$ 2,397,917.39$ 2,397,917.39$ 2,397,917.39$135,972.43$ 135,972.43$ 135,972.43$ 135,972.43$ 135,972.43$ 135,972.43$

$77,345 $77,345 $77,345 $77,345 $77,345 $77,345$11,613 $11,613 $11,613 $11,613 $11,613 $11,613

2,867,236.69$ 2,867,236.69$ 2,867,236.69$ 2,867,236.69$ 2,867,236.69$ 2,867,236.69$

$231,688 $234,005 $236,345 $238,709 $241,096 $243,507

$8,552 $8,638 $8,724 $8,811 $8,899 $8,988$3,091 $3,122 $3,153 $3,185 $3,216 $3,249$2,473 $2,497 $2,522 $2,548 $2,573 $2,599

245,803.78$ 248,261.81$ 250,744.43$ 253,251.88$ 255,784.39$ 258,342.24$

$3,751,472 $3,760,314 $3,769,245 $3,778,265 $3,787,375 $3,796,577



$56,972 $57,542 $58,117 $58,698 $59,285 $59,878

$56,972 $57,542 $58,117 $58,698 $59,285 $59,878

$58,002 $58,582 $59,168 $59,760 $60,357 $60,961

$387,757 $387,429 $362,974 $191,632 $45,401 $45,401

$263,427 $244,889 $224,960 $203,537 $180,507 $155,749

823,130$ 805,983$ 763,336$ 572,325$ 404,836$ 381,868$

$0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0

$4,574,602 $4,566,297 $4,532,581 $4,350,590 $4,192,211 $4,178,444



Year 10

$88,812$117,532$86,823

$293,167

$186,902$56,071$24,655

$267,628

$19,883$5,965

$398

$69,591$20,877

$199116,913$

384,541$

$677,708

244,388.57$

2,397,917.39$135,972.43$

$77,345$11,613

2,867,236.69$

$245,942

$9,078$3,281$2,625

260,925.66$

$3,805,870



$60,477

$60,477

$61,570

$45,401

$129,135

357,061$

$0

$0

$0

$4,162,931



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This sheet shows the cost per bale. There are no inputs on this page

Margin/bale 1 2 3 4 5 6Ginning Fees $36.54 $36.54 $36.54 $36.54 $36.54 $36.54Bagging and Ties fees $/bale $7.50 $7.50 $7.50 $7.50 $7.50 $7.50Compression fee $8.00 $8.00 $8.00 $8.00 $8.00 $8.00Seed cotton sales $52.83 $52.83 $52.83 $52.83 $52.83 $52.83less Seed Cotton Purchases (49.06)$ (49.06)$ (49.06)$ (49.06)$ (49.06)$ (49.06)$Module transportation fees $3.48 $3.48 $3.48 $3.48 $3.48 $3.48Warehouse paymbner-bales transporati $3.50 $3.50 $3.50 $3.50 $3.50 $3.50Farmer payments-bale transportation $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

Total Grosss Margin $72.79 $72.79 $72.79 $72.79 $72.79 $72.79

Production Expenses

Bags and Ties 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$Module Transportation 2.78$ 2.78$ 2.78$ 2.78$ 2.78$ 2.78$

Total Production Expenses 7.78$ 7.78$ 7.78$ 7.78$ 7.78$ 7.78$

Personnel Expense 1 2 3 4 5 6Fixed Labor $5.43 $5.48 $5.54 $5.59 $5.65 $5.71Ginning Labor $4.96 $5.01 $5.06 $5.11 $5.16 $5.21Logistics Labor 2.17$ 2.19$ 2.21$ 2.23$ 2.25$ 2.28$

Total Variable Labor 7.12$ 7.19$ 7.27$ 7.34$ 7.41$ 7.49$Total Labor 12.55$ 12.68$ 12.80$ 12.93$ 13.06$ 13.19$

Total Variable Expenses 20.33$ 20.46$ 20.59$ 20.71$ 20.84$ 20.97$

Fixed ExpenseElectricity 4.60$ 4.65$ 4.69$ 4.74$ 4.79$ 4.84$Natural Gas 0.17$ 0.17$ 0.17$ 0.17$ 0.18$ 0.18$Water 0.06$ 0.06$ 0.06$ 0.06$ 0.06$ 0.06$Telephone 0.05$ 0.05$ 0.05$ 0.05$ 0.05$ 0.05$

Total Utilities $4.88 $4.93 $4.98 $5.03 $5.08 $5.13Maintainence 1.13$ 1.14$ 1.15$ 1.17$ 1.18$ 1.19$Insurance 1.13$ 1.14$ 1.15$ 1.17$ 1.18$ 1.19$Property Tax 1.15$ 1.16$ 1.17$ 1.19$ 1.20$ 1.21$Depreciation 12.28$ 20.17$ 14.35$ 7.93$ 7.93$ 7.43$Interest 6.38$ 6.07$ 5.74$ 5.39$ 5.01$ 4.60$

Total Fixed Expense 31.83$ 39.55$ 33.54$ 26.90$ 26.65$ 25.88$

Total Expense per Bale 52.16$ 60.01$ 54.12$ 47.61$ 47.49$ 46.85$



7 8 9 10$36.54 $36.54 $36.54 $36.54$7.50 $7.50 $7.50 $7.50$8.00 $8.00 $8.00 $8.00

$52.83 $52.83 $52.83 $52.83(49.06)$ (49.06)$ (49.06)$ (49.06)$$3.48 $3.48 $3.48 $3.48$3.50 $3.50 $3.50 $3.50

$10.00 $10.00 $10.00 $10.00

$72.79 $72.79 $72.79 $72.79

5.00$ 5.00$ 5.00$ 5.00$2.78$ 2.78$ 2.78$ 2.78$

7.78$ 7.78$ 7.78$ 7.78$

7 8 9 10$5.76 $5.82 $5.88 $5.94$5.26 $5.31 $5.37 $5.422.30$ 2.32$ 2.34$ 2.37$

7.56$ 7.64$ 7.71$ 7.79$13.32$ 13.46$ 13.59$ 13.73$

21.11$ 21.24$ 21.37$ 21.51$

4.88$ 4.93$ 4.98$ 5.03$0.18$ 0.18$ 0.18$ 0.19$0.07$ 0.07$ 0.07$ 0.07$0.05$ 0.05$ 0.05$ 0.05$

$5.18 $5.23 $5.29 $5.341.20$ 1.21$ 1.23$ 1.24$1.20$ 1.21$ 1.23$ 1.24$1.22$ 1.23$ 1.25$ 1.26$3.92$ 0.93$ 0.93$ 0.93$4.16$ 3.69$ 3.19$ 2.64$

22.07$ 18.75$ 18.38$ 17.98$

43.18$ 39.99$ 39.76$ 39.49$



This sheet summaries income, expenses and net profit. There are no inputs on this sheet

Gross Sales


Gross Margin $0 5,955,767.39$ 5,955,767.39$ 5,955,767.39$ 5,955,767.39$ 5,955,767.39$

Total $0 $5,955,767 $5,955,767 $5,955,767 $5,955,767 $5,955,767

Expenses

Variable $613,520 $3,725,467 $3,734,049 $3,742,717 $3,751,472 $3,760,314

Fixed $0 $1,078,508 $1,451,315 $1,152,375 $823,130 $805,983

Other $0 $0 $0 $0 $0 $0

Total Expenses $613,520 $4,803,974 $5,185,363 $4,895,092 $4,574,602 $4,566,297

Before Tax Profit ($613,520) $1,151,793 $770,404 $1,060,676 $1,381,166 $1,389,470

Tax ######## 691,076$ 462,242$ 636,405$ 828,699$ 833,682$

After Tax Profit ($245,408) $460,717 $308,162 $424,270 $552,466 $555,788

Estimate of Cash Flows


After Tax Profits ######## 460,717$ 308,162$ 424,270$ 552,466$ 555,788$

Depreciation -$ 599,982$ 986,043$ 701,459$ 387,757$ 387,429$

Principle -$ 198,968$ 213,890$ 229,932$ 247,177$ 265,715$Cash Flow ######## 861,732$ 1,080,314$ 895,797$ 693,046$ 677,502$

(does not consider increase or decrease in working capital loan)

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Year 6 Year 7 Year 8 Year 9 Year 10

5,955,767.39$ 5,955,767.39$ 5,955,767.39$ 5,955,767.39$ 5,955,767.39$

$5,955,767 $5,955,767 $5,955,767 $5,955,767 $5,955,767

$3,769,245 $3,778,265 $3,787,375 $3,796,577 $3,805,870

$763,336 $572,325 $404,836 $381,868 $357,061

$0 $0 $0 $0 $0

$4,532,581 $4,350,590 $4,192,211 $4,178,444 $4,162,931

$1,423,187 $1,605,178 $1,763,556 $1,777,323 $1,792,837

853,912$ 963,107$ 1,058,134$ 1,066,394$ 1,075,702$

$569,275 $642,071 $705,423 $710,929 $717,135

Year 6 Year 7 Year 8 Year 9 Year 10

569,275$ 642,071$ 705,423$ 710,929$ 717,135$

362,974$ 191,632$ 45,401$ 45,401$ 45,401$

285,644$ 307,067$ 330,097$ 354,855$ 381,469$646,604$ 526,636$ 420,726$ 401,476$ 381,067$



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This sheet calculates depreciation. You enter descriptions and values for buildings, equipment and

DepreciationBuildings 39 year Straight LineSpecial Purpose Buildings 10 year Straight LineEquipment and Heavy Rollin 7 Yr MACRS with half year conventionLight Trucks and Vehicles 5 Yr MACRS with half year convention

BuildingsDescription Value Salvage

#1 Buildings 1,520,653.00$ 50,000.00$#2 Site Improvement 300,000.00$#3 -$#4 -$#5 -$

Total Buildings 1,820,653.00$ 50,000.00$

Equipment and Heavy Rolling StockDescription Value

#1 Ginning Equipment 3,178,714.00$#2#3 Installation 80,000.00$

#4 Miscellaneous 20,000.00$#5 -$Total Equip and Heavy Rolling Stock 3,278,714.00$

Total Plant Property and Equipment 5,529,631.00$

Land 100,000.00$

Total Land, Plant Property and Equipment 5,629,631.00$

Annual Total Depreciation

Year 1 2 3 4Buildings $45,401 $45,401 $45,401 $45,401Special Purpose Buildings $0 $0 $0 $0Equipment and Heavy Rolling S $468,528 $802,957 $573,447 $292,789Light Truck and Vehicles $86,053 $137,684 $82,611 $49,566

Total Depreciation $599,982 $986,043 $701,459 $387,757

Buildings 39 year Straight LineSpecial Purpose Buildings 10 year with percentage from tableEquipment and Heavy Rollin 7 year with percentage from tableLight Trucks and Vehicles 5 year with percentage from table



BuildingsCost $1,820,653Life 39Salvage 50,000.00$

Period 39Depreciation per year for 39 ye $45,401

Special Purpose BuildingsCost $0Life 10

Year Depreciation Rate1 $0 10%2 $0 14%3 $0 14%

4 $0 14%5 $0 14%6 $0 14%7 $0 14%8 $0 14%9 $0 14%

10 $0 14%

Equipment and Heavy Rolling StockYear Depreciation Rate

1 $468,528 14.29%2 $802,957 24.49%3 $573,447 17.49%

4 $409,511 12.49%5 $292,789 8.93%6 $292,461 8.92%7 $292,789 8.93%8 $146,231 4.46%

Light Trucks and VehiclesYear Depreciation Rate

1 $86,053 20.00%2 $137,684 32.00%3 $82,611 19.20%4 $49,566 11.52%

5 $49,566 11.52%6 $24,783 5.76%



other property.

Special Purpose BuildingsDescription Value

#1 -$#2 -$#3 -$#4 -$#5 -$

Total Special Purpose Building -$

Light Trucks and VehiclesDescription Value

#1 Forklifts 80,264.00$#2 Trucks and trailers 350,000.00$#3 -$

#4 -$#5 -$Total Light Trucks and Vehicles 430,264.00$

5 6 7 8 9 10$45,401 $45,401 $45,401 $45,401 $45,401 $45,401

$0 $0 $0 $0 $0 $0$292,461 $292,789 $146,231 $0$49,566 $24,783

$387,429 $362,974 $191,632 $45,401 $45,401 $45,401



0.0613



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This sheet allows you to compare the relationship between input and output.

Module weight 25000Bale weight-lbs/bale 480

Picker Strip/Extr Stripper AverageHarvest Compostion 30% 30% 40%

Lint/seed cotton 35% 32% 24%Cotton seed /bale 55% 50% 38%

Trash 10% 18% 38%Lbs. seed cotton/bale 1,371 1,500 2,000 1,624

Lbs. Cotton Seed/Bale 754 750 760 755 Efficiency relative to Picker 100% 91% 69%

Bales/Ton Cotton Seed 0.69 0.75 1.00 0.81 Bales/module 18.23 16.67 12.50 15.80Average bales/ module 15.80

Total Modules 3094 110.64Total Tons of Cotton Seed 60201 0.636363636Rated hourly capacity 60.00 1272Percent downtime 11%Actual capacity w downtime 53.33Gin capacity actual/rated 88.89%Actual capacity by type 88.89% 81.27% 60.95%Effective daily capacity 960 878 658

Average daily capacity 815

Bales/Hours 6Ginning/Days 2Transportation cost /# bales 38.60$Capacity.



OPERATIONAL SUMMARY

Season Length (days) 60 Rated Capacity (bph) 60 Hours Ginned Daily 18 Daily Downtime Hours 2 Max. Seasonal Capacity (bales) 48,878 Hiring Period-Ginning Crew 90

bph=bales per hour

815



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This sheet list the equipment used along with the quantity, horsepower and dollars.

Quantity Equipment Horsepower Dollars In Use

15 Green boll and rock trap 175 25,000.00$ 11 Air-line Cleaner 25 25,000.00$ 11 Feed Control 25 25,000.00$ 11 Tower Drier 25 50,000.00$ 11 Cylinder Cleaner 25 25,000.00$ 11 Stick Machine 25 25,000.00$ 1

1 Extractor Feeder 25 25,000.00$ 18 Gin Stand 75 50,000.00$ 12 Lint Cleaner 25 50,000.00$ 11 Press 25 300,000.00$ 11 Unloader 25 25,000.00$ 11 Module Trucks 100,000.00$ 11 Distributor 25 25,000.00$ 11 Overflow system 25 25,000.00$ 11 Cotton seed storage 25 100,000.00$ 1

1 Mote Fan 100 25,000.00$ 11 Mote Cleaner 25 25,000.00$ 11 Mote Trash Fan 100 25,000.00$ 11 Battery Condenser and Baling System 25 250,000.00$ 11 Master Trash Fan 100 25,000.00$ 11 Bale Storage 25,000.00$ 11 Cyclone robber system 25 25,000.00$ 1

1Total 925 1,275,000.00$ 1



Horsepower in use Total Dollars

2625 375,000.00$25 25,000.00$25 25,000.00$25 50,000.00$25 25,000.00$25 25,000.00$

25 25,000.00$600 400,000.00$50 100,000.00$25 300,000.00$25 25,000.00$0 100,000.00$

25 25,000.00$25 25,000.00$25 100,000.00$

100 25,000.00$25 25,000.00$

100 25,000.00$25 250,000.00$

100 25,000.00$0 25,000.00$

25 25,000.00$

03925 2,025,000.00$



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This sheet summaries the feasibility of the project. It provides net present value, benefit cost r

The only input is the discount rate. Page down to enter the B44results of your sensitivity analy

Discount Rate 10.00% Scale Down 0.6

Year 0 1 2Gross Margin 5,955,767$ 5,955,767$

Discount Factor 1.000000 0.909091 0.826446

PV of Income 59,557,674$ -$ 5,414,334$ 4,922,122$

Total Expense 5,629,631$ 4,803,974$ 4,803,974$Less Depreciation and Term Interest 811,094$ 1,182,231$

Cash Expenses -$ 5,629,631$ 3,992,881$ 3,621,743$

Discount Factor 1.000000 0.909091 0.826446

PV of Expenses 46,673,305$ 5,629,631$ 3,629,892$ 2,993,176$

Benefits Less Costs -$ (5,629,631)$ 1,962,887$ 2,334,025$

PV Benefits Less PV Costs (5,629,631)$ 1,784,442$ 1,928,946$

Total PV of Income 96,153,286$

Total PV of Expenses 77,402,969$

Net Present Value 18,750,317$

Internal Rate of Return 31.86%

PV Benefit/PV Cost Ratio 1.2422

Payback Period 3

*Payback Period only displayed if less than 10 years

Return on Assets (based on after tax profit) 12.28% 8.21%(after tax profits/PP&E investment)Average Return on Assets 15.04%Return on Equity (after tax profits/equity) 24.55% 16.42%

Average Return on Equity 30.09%

NPV IRR B/C ROAPicker-Strip/Extr-Stripper 18,750,317$ 31.86% 1.2422 15.04%15-30-55 6,954,870$ 15.68% 1.0641 7.27%25-30-45 8,296,243$ 17.67% 1.0743 8.16%

30-30-40 8,966,929$ 18.64% 1.0792 8.60%

35-30-35 9,637,615$ 19.60% 1.0839 9.04%40-30-30 10,308,301$ 20.55% 1.0885 9.49%

48,877.71$ 18,750,317$ 31.86% 1.2422 15.04%

NPV IRR B/C ROABales/ Days of operation40731/50 3,975,120$ 11.02% 1.0406 5.32%

48,877/ 60 8,966,929$ 18.64% 1.0792 8.60%52950/65 11,462,833$ 22.18% 1.0948 10.25%57288/70 13,958,738$ 25.58% 1.1085 11.89%



Breakeven volume is 65% of full 60 day day capacity or 31,771 bales/yearSeed Margin NPV IRR B/C ROA

$10.00 18,750,317$ 31.86% 1.2422 15.04%

20.00$ 8,966,929$ 18.64% 1.0792 8.60%15.00$ 5,667,418$ 13.71% 1.0486 6.42%10.00$ 2,367,906$ 8.35% 1.0198 4.25%

5.00$ (931,605)$ 2.30% 0.9924 2.07%

Interest Rate NPV IRR B/C ROA7.5% 18,750,317.41$ 31.86% 1.2422 15.04%6.5% 9,002,864$ 18.68% 107.95% 8.80%

7.5% 8,966,929$ 18.64% 107.92% 8.60%8.5% 8,931,580$ 18.60% 107.88% 8.40%9.5% 8,896,813$ 18.56% 107.85% 8.19%

1 2 3 4**** 3 4



tio and internal rate of return

sis+B7

3 4 5 6 7 8 95,955,767$ 5,955,767$ 5,955,767$ 5,955,767$ 5,955,767$ 5,955,767$ 5,955,767$0.751315 0.683013 0.620921 0.564474 0.513158 0.466507 0.424098

4,474,656$ 4,067,869$ 3,698,063$ 3,361,875$ 3,056,250$ 2,778,409$ 2,525,827$

5,185,363$ 4,895,092$ 4,574,602$ 4,566,297$ 4,532,581$ 4,350,590$ 4,192,211$881,606$ 550,659$ 531,793$ 487,409$ 294,644$ 125,383$ 100,626$

4,303,757$ 4,344,433$ 4,042,809$ 4,078,889$ 4,237,937$ 4,225,207$ 4,091,585$0.751315 0.683013 0.620921 0.564474 0.513158 0.466507 0.424098

3,233,477$ 2,967,306$ 2,510,266$ 2,302,426$ 2,174,732$ 1,971,090$ 1,735,232$

1,652,010$ 1,611,335$ 1,912,958$ 1,876,879$ 1,717,830$ 1,730,560$ 1,864,182$1,241,179$ 1,100,563$ 1,187,797$ 1,059,449$ 881,519$ 807,319$ 790,595$

11.30% 14.72% 14.81% 15.17% 17.11% 18.80% 18.94%

22.61% 29.44% 29.62% 30.34% 34.22% 37.59% 37.89%

ROE Payback30.09% 314.55% 616.32% 5

17.20% 5

18.09% 518.98% 5

30.09% 3

ROE Payback

10.63% 7

17.20% 520.49% 523.78% 4



ROE Payback30.09% 3

17.20% 512.85% 68.49%

4.14%

ROE Payback30.09% 317.60% 5

17.20% 516.80% 516.39% 5

5 6 7 8 9 105 6 7 8 9 10 1



105,955,767$0.385543

2,296,206$

4,178,444$74,012$

4,104,433$0.385543

1,582,437$

1,851,335$713,770$

19.11%

38.22%

Documents

Cotton Ginning Template as Producer Cooperative