Soybean plantings in the Delta and Southeast fell from a peak of 23.6 million acres in 1979 to 12.6 million in 1987 in part because grower net returns to soybeans declined sharply relative to cotton, the most profitable alternative crop for many southern farmers. Returns to soybeans have dropped due to falling prices and constant yields, while returns to cotton have risen because of greater program benefits and increasing yields. A soybean acreage response function estimated for 1974-87 using OLS shows that soybean plantings in the South are influenced by the expected net returns to soybeans relative to cotton and the previous year's soybean plantings.