Stability in net farm income resulting from direct government deficiency payments has historically affected the optimum crop mix combination that results in risk-efficient portfolios. This paper illustrates the degree to which cotton deficiency payments affect the risk-return relationship for optimal production mixes of cotton and soybeans for a representative farm in each of Louisiana's three cotton production areas. Results suggest that the impact of the decline and eventual elimination of cotton deficiency payments on the risk-return relationship of Louisiana cotton producers will vary by cotton production region within the state.