This study analyzes the effects of eliminating direct payments paid to cotton farmers in the U.S. Our results suggest that while the impact of eliminating direct payments on domestic production is offset to some extent by rising prices, the more significant effect is on farmers’ net income.

Paper presented at 69th ICAC Meetings, Lubbock, TX, September 2010

Economic Fundamentals - Real GDP growth is projected to be stable at about 2.1% per year in developed countries and 5.8% in developing nations. A more favorable exchange rate between Chinese Yuan and the U.S. dollar may make U.S. cotton more affordable to China’s growing cotton textile industry.

The implications of and export tax on sectoral economic growth in the cotton and yarn sectors in Pakistan are examined. Pakistan utilized an export tax on raw cotton fiber from 1988-1995 in order to lower input cost to domestic yarn spinners. The growth effects are simulated based on the results...

The proposed 2007 farm bill contains fundamental shifts in policy option mainly dictated by a desire to render the U.S. agriculture “more market oriented’ and the programs less costly to the U.S. treasury. The proposal adopts a revenue-based counter cyclical payment while maintaining the...

The 1995 Agreement on Textiles and Clothing (ATC) provided for the calculated liberalization of the textiles and apparel sectors over a 10-year period except for some safeguard measures ending on December 31, 2008. These safeguard measures allowed for import restrictions by the U.S. on certain...

Domestic subsidies for cotton and other commodities have been a major topic of interest, especially during the Doha Round of the World Trade Organization trade negotiations. Many developing countries have insisted that domestic subsidies in countries like the United States represent significant...

The Ministerial Declaration that emerged from the recently concluded World Trade Organization (WTO) ministerial conference in Hong Kong continued the efforts of members to reform and liberalize the world cotton market “…ambitiously, expeditiously, and specifically” (WTO, 2005). The special...