Dow AgroSciences and Zeneca Ag Products, Inc. co-sponsored studies in 1998 and 1999 to compare the economics of a Karate™ Z/Tracer™ program on conventional cotton with a Bt cotton program. Approximately 50 sites in 6 states throughout the Cotton Belt were selected for the studies each year. Thirty-one consultants completed the trials each year and provided data for application costs, technology fees, insect numbers, and yields at the end of each season. Input costs were higher in the conventional cotton plots each year, but conventional cotton treated with Karate™ Z and Tracer™ had higher yields than Bt cotton in 1998 and 1999 This additional yield provided an advantage of $3.12/acre and $42.08/acre for the Karate™ Z/Tracer™ program in years of heavy (1998) and light (1999) bollworm/budworm larval pest pressure, respectively. The Karate™ Z/Tracer™ program on conventional cotton provided a higher overall net return than Bt cotton in two years of testing.