U'S' Cotton: International Cost Competitiveness

1
U.S. Cotton International Cost Competitiveness

• By
• Joel Peters
• Ag Economics
• and
• Cole McNair
• Ag Business

2
How do U.S. cotton producers compete?

• High cost has caused U.S. farmers to lose money
• High cost has caused a loss of U.S. cotton
  farmers
• U.S. farmers need to be subsidized in order to
  compete in world markets

3
Hypothesis One

• U.S. cotton producers face higher total costs
  than foreign producers
• U.S. farms are on the decline

4
Cost of Producing one Hectare of Cotton (U.S. )
5
Number of Farms
6
Hypothesis Two

• U.S. farmers spend more money on chemicals and
  overhead costs

7
Cost of Chemicals and Overhead in US
8
Conclusions

• U.S. cotton farmers have higher cost than China
• The U.S. and Australia have similar cost
• U.S. farms are on the decline