INTRODUCTION: U.S. is the world second largest cotton producer and the largest exporter, which regularly ships 40 to 60% of its produced cotton abroad. Currently, U.S. accounts for more than 50% of the world's exported cotton.

Modern technology has played a major role in the crop production. In recent decades, productivity in cotton production has increased dramatically, as a result of increased uses of fertilizers, improved pest management, improved cultivars, and irrigation practices. Currently, cotton production is facing challenges, such as increasing costs of production, shortage of irrigation water, and increased public concern on the impacts of agricultural production on the environment. Price pressures also keep cotton producers finding ways to make the production more competitive. Cotton price dropped from around 90 cents per pound in 1990 to 48 cents per pound in 1997 and bottomed at 28 cents in 2000. In recent years, the price of cotton stayed around 50 cents per pound.

In the U.S., there are seventeen states that produce cotton. The production practices and advantages in these states vary greatly, resulting in significant differences in acreage, yield and production costs. Many factors, such as weather, water, soil, input costs, etc., have contributed to the disparities among different regions.

OBJECTIVE: The primary objective of this study is to evaluate the comparative advantage of upland cotton production in different states within the U.S. in 1990-2005.

METHODS AND PROCEDURES: This study will quantify the comparative advantage of upland cotton production by comparing different states in the U.S. by using four different indices: Efficiency Advantage Indices (EAI), Scale Advantage Indices (SAI), Aggregate Advantage Indices (AAI), and Value Advantage Indices (VAI).

EXPECTED RESULTS: This study will reveal the changes in efficiency, scale, value and overall advantages, among the different states in upland cotton production in 1990-2005. This will help to understand the performance and advantages of cotton production in different regions.