In Mississippi, tobacco budworm, Heliothis virescens, and bollworm, Helicoverpa zea, destroyed more bales of cotton than any other insect in 1995. Mississippi cotton producers, especially in the hills (eastern) area of Mississippi, suffered an unusual amount of budworm/ bollworm damage. In 1995, cotton producers in the hills of Mississippi suffered yield reductions of 23.27 percent or 101,503 bales due to budworm/ bollworm. Producers in Mississippi as a whole had yield reductions of 8.03 percent or 144,413 bales due to budworm/bollworms (Layton et al., 1996). Bt cotton gives producers an option to help reduce the risk of budworm/bollworm damage. Therefore, complete economic analysis must be performed to determine the viability of Bt as a risk management tool.