Bt cottons will be widely adopted in Arkansas only if reduced insecticide costs and/or yield increases are sufficient to recover the technology charge and other added costs associated with producing them. In 1996, five farmers at four locations in Arkansas provided data for the economic evaluation of Bollgard cotton. The change in net income per acre of the Bt fields versus the non-Bt fields was determined by partial budgeting . The changes in net income attributable to the Bollgard variety ranged from a $15.70/acre decrease to a $176.80/acre increase. More research is needed to reduce yield variability in Bollgard cotton.