The focus of this study was to examine the nature of cotton acreage response in the presence of government programs and to develop a supply response model which would reflect the impact of major determinants of cotton acreage. The acreage response analysis for the period from 1975 to 1994 was conducted on the state level to recognize the differences in physical restraints, average yields, and returns above costs for different regions of the United States. The results of the empirical estimation indicated that a 10 percent increase in government payments to cotton relative to other crops would cause a 0.37 percent decrease in cotton acreage, ceteris paribus. This finding was consistent with the design of the U.S. farm policy and the results of the previous research.