Cotton price policy and foreign production

Recent increases in foreign cotton acreage—occurring along with the accumulation of American surpluses, declining U. S. raw cotton exports and reduced consumption by domestic mills—cannot be attributed simply to U. S. cotton price policies, according to this study. Acreage increases since World War II by the three largest foreign free-world cotton exporters (Mexico, Brazil and Egypt) were not associated with U. S. export price changes, although acreage increases in some of the other important cotton-producing countries could be related to these changes. Increasing acreage and production trends for cotton in several of the newly developing countries probably reflect strong efforts by their governments to increase agricultural output and export earnings, regardless of world market conditions.