Nineteen-ninety-eight marked the first year of a three year study designed to examine the cost and returns associated with alternative pest control systems using transgenic and conventional cotton varieties. Nine varieties of conventional and transgenic seed were grown using Best Management Practices with the goal of maximizing profits. Per acre cost of insect and weed control and returns were determined for each treatment. The conventional varieties performed very well against the transgenic varieties in 1998. The Roundup Ready varieties resulted in some of the lowest returns.