Economic Drivers of the Cotton Acreage Shift in Louisiana

This research attempts to address the economic factors that influence the shift away from cotton plantings in the northeastern region of Louisiana in favor of corn and soybean crops. Aside from the increase in grain prices that began in 2007, the current market outlook for corn and soybeans indicates that cotton can compete economically for a larger share of acreage in this region. Planted acreage, yield level, MYA price data, and enterprise budgets were examined for corn, cotton, and soybeans across selected cotton-producing parishes so that net returns could be calculated. By coupling the returns generated per crop with the trend in planted acres over time, an explanation can be prescribed as to some of the factors contributing to the decline in cotton acreage.