Cotton Management Economic Notes, Volume 2, No. 4

Abstract

Competition in the production of cotton has greatly changed in the past few years and these changes are very important for Arizona growers. These changes are changing the competitive advantage of various areas within the US. Some areas are experiencing conditions that are reducing the cost of production and other areas are experiencing conditions that are increasing costs. Weather and other cyclical or uncertain factors play a major part in cost of production differences among areas. Other factors are more structural in nature and renew the signal for farmer diligence and innovation. Before we think a bit about Arizona, lets examine some recent history from the major producing areas of the US as shown in the chart to the right.