Cotton and Wool Outlook No. (CWS-0601-01) 11 pp

August 2001

Cotton: Background and Issues for Farm Legislation

Since passage of the 1996 farm legislation, U.S. cotton production and demand have nearly equaled each other, keeping stocks virtually unchanged. However, U.S. cotton producers have experienced deteriorating product prices coupled with declining yields during this period. Farm prices for upland cotton dropped 40 percent from their recent peak in 1995/96 to 45 cents per pound in 1999/2000, prompting considerable concern for the industry as the new farm legislation debate develops.

Keywords: Cotton, production, consumption, trade, costs and returns, farm programs, WTO

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