Our industry is in crisis threatened by world surplus conditions that have lowered prices substantially below production costs. World cotton prices, as measured by the Liverpool Cotton Outlook A Index have declined from a high of 103.80 cents per pound on September 8, 1980 to 70 cents per pound on August of 1984. Under 60 cents per pound on August of 1985 and to a low of 47.70 cents per pound on November 28, 1985.

The world's increased production can, to a large extent, be attributed to U.S. farm programs. American support prices in the past became the world floor prices. Our nonrecourse loan programs, intended to limit the risk to American farmers, have bad the effect of limiting the risk to other countries, therefore encouraging them to increase production.