Tuesday, September 11, 2007

Effects of Proposed Farm Bill Changes to Cotton Producers

Dr. Steven W. Martin1, Dr. John Anderson2, and Dr. Swagata "Ban" Banerjee1. (1) Delta Research & Extension Center, Mississippi State University, PO Box 69, Stoneville, MS 38776, (2) Miss State University, P O Box 9755, Miss State, MS 39762

Farm programs are an integral part of Mid-south cotton producers’ ability to maintain profitable levels of farm returns. The 2002 Farm Bill continued the flexibility of the 1996 Farm Bill as well as added a counter-cyclical target price which provides cotton producers with price protection in years when cotton prices are low.  The 2002 Farm Bill has served cotton producers well since its inception. In 2007, USDA proposed amendments to the 2002 Bill as a guideline for the next Farm Bill as the 2002 Farm Bill is set to expire in 2007. Likely, world trade issues brought against US farm programs as well as other commodity interests have influenced the proposed framework. However, there are unique issues related to cotton production especially in the Mid-south compared to other regions and crops. Therefore, it is imperative to have analyses based on cotton farms in order to fully understand the effects of potential Farm Bill changes and/or adjustments. This poster seeks to provide analyses of the effects of the various proposed changes on cotton producers.