Using Expected Returns for Estimating Regional Cotton Acreage Response

Bradley M. Crowder


 
ABSTRACT

Regional acreage response is estimated for upland cotton from 1960-87 using ordinary least squares. Expected net returns for cotton and competing crops are used to explain fluctuations in plantings. Expected net returns are constructed using futures prices, lagged market prices, and a combination of lagged market and support prices and Government program variables. Elasticities of cotton acreage vary considerably among regions with respect to expected returns to cotton and competing crops. Elasticities also differ according to which model is specified.



Reprinted from Proceedings: 1989 Beltwide Cotton Research Conferences pp. 434 - 440
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998