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Cotton Acreage in Response to Government Programs

Olga Isengildina, O.A. Cleveland, Terry Townsend


This study analyzes of a relatively simple method for incorporating the effect of government programs into supply response models. An econometric model of cotton supply response was estimated for three major producing states of the Delta region of the US (Mississippi, Louisiana and Arkansas) using the annual time series from 1982 to 1994. The estimates show that more then 90% of the annual variation in Delta cotton plantings can be explained by the acreage diverted from cotton production, government program payments ratio and plantings in the previous year.

Reprinted from Proceedings of the 1996 Beltwide Cotton Conferences pp. 419 - 421
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998