I do not believe that anyone would argue the fact that federal policies and programs have a tremendous impact on the cotton industry, especially in times of large supplies and low prices such as we are now experiencing.

Some of the direct impacts include: 1. Income protection through the target price and deficiency payments; 2. market price protection through the loan program; 3. Disaster protection through crop insurance, emergency loans, and disaster payments; 4. Crop production loans; 5. Acreage restrictions; 6. Diversion payments; 7. Conservation cost share assistance under ACP, the Great Plains Conservation Program, etc.

In addition, there are a number of indirect impacts, such as: 1. Export credit and PL-480 programs which are very important in increasing imports; 2. Cooperation with industry groups in sponsoring trade teams to foreign counties to encourage use of U.S. cotton; 3. Co-sponsoring, with Cotton Council International, the annual orientation tour of foreign mill executives; 4. Publication of crop reports, prices statistics, supply-demand estimates, etc; 5. Restricting imports of many items; 6. Agricultural research; 7. Boll weevil eradication program.