Enterprise budgets were developed for ultra narrow row and conventional cotton on five farms participating in field tests of UNR cotton in 1996. The results indicated a positive per acre return over variable and fixed costs for UNR cotton on all five farms. The per acre return over variable and fixed costs for UNR cotton was lower than the per acre return over variable and fixed costs for conventional cotton on only one of the five farms in the study. Fixed costs per acre were lower for UNR cotton than for conventional cotton. Variable cost per acre for UNR cotton was lower than for conventional cotton on two farms and higher on three farms. Yield differential between UNR and conventional cotton seemed to be the most important factor in determining relative profitability between UNR and conventional cotton. Farms that experienced a substantial yield increase of UNR over conventional cotton had lower per pound cost of production and higher profits for UNR cotton relative to conventional cotton.