This paper looks at the economic impacts or organic cotton within the Texas economy and measures the net effects of shifting production from conventional to organic cotton. The paper focuses on how demand, income, and employment will be affected within the state as acreage is converted from one alternative to another. First, a general overview of how organic cotton might affect the economy will be discussed. Second, the magnitudes of these effects will be estimated; third, some extensions of the analysis will be presented; and finally, the regional aspects of the shift in production inputs will be discussed.