ABSTRACT
Cottonseed processing has a major influence in raising the wholeseed price level. Aggregate earning on cottonseed can potentially increase by having more efficient allocation between processing and wholeseed markets. Depending on cottonseed products' prices, the largest opportunities to aggregate earnings would arise from processing more of the crop when production is above average. Such allocation was also contribute to maintaining the industry's processing capacity, which is a critical issue for long-term prospects for cottonseed prices. A marketing order could provide an institutional mechanism for coordinating this type of allocation, and for implementing it in situations where all producers child benefit.
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