Comparison of Cotton Production Costs in the U.S. with Costs in Competing Countries
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The long-run competitiveness of the U.S cotton industry in the world market is probably affected by the industry's production costs relative to other countries costs more than any other factor. Estimated costs of production cotton in the U.S and nine competing cotton exporting countries over the period 1970-1985 are presented. Production costs in the major exporting countries are adjusted for differences in input subsidies between and for fluctuations in exchange rates. Implications for the U.S. competitive position in the world cotton market are examined.