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Abstract

The economic conditions for cotton farmers have been on a downward spiral for the past 4 years. China’s accumulation of stocks, falling world market price, flat demand, and the retraction of direct government payments have made for a situation that have people within the US cotton industry worried about the future. The cotton industry’s current position has renewed calls to support cotton farmers in the US. Policy makers, farmers, and other industry professionals have been working together to propose a potential solution to help farmers in a time of need. This proposal has brought about the idea of a new support program for cotton by classifying cotton as an “other oilseed” and allowing direct government payments. By evaluating the effects and implications of this program may have, this analysis will provide the industry with relevant information on the possible outcomes of implementing this policy.

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