A Survey of Cotton Income and Price Support Programs

T. Townsend, A. Guitchounts


Government policies dealing directly with cotton can be grouped into four broad categories: a) policies designed to boost farm income while interfering as little as possible with the level of market prices; b) policies designed to control the cotton sector through extensive state regulation; c) policies designed to manage domestic cotton prices so as to boost exports of textiles and apparel; and d) free market policies. Less than 10% of world cotton production occurs in countries pursuing free market policies. If free market agricultural policies were implemented worldwide, resulting in the elimination of price supports, income subsidies, government intervention in production decisions and barriers to trade in cotton and other agricultural commodities, there is a possibility that cotton production would increase and average prices might decline. Lower world cotton prices would encourage increased consumption.

Reprinted from Proceedings of the 1994 Beltwide Cotton Conferences pp. 401 - 405
©National Cotton Council, Memphis TN

[Main TOC] | [TOC] | [TOC by Section] | [Search] | [Help]
Previous Page [Previous] [Next] Next Page
Document last modified Sunday, Dec 6 1998