An evaluation of the profitability of promising irrigated and dryland cotton farming systems developed at AG-CARES is conducted in this study. An optimization model for a representative farm in Dawson County, Texas was developed. Optimal decision rules of cotton farming systems use are found under alternative irrigation water availability scenarios over a twenty-year planning horizon. It was found, that optimal solutions do not include conventional cotton production practices currently used in the area. Also, it was found that producers could increase present value of net returns by adopting cotton farming systems being developed at AG-CARES.