Analysis of the Comparative Advantage of Texas Upland Cotton

Introduction

Cotton is most valuable crop in Texas, generating about 9% of the state's total agricultural receipts and 29% of the nation's cotton revenues (Texas Net State, 2016). On average, Texas grows 5.9 million acres and produces 27.5 billion bales of cotton annually, which represents about 48% of acreage and 47% of production in U.S. Texas cotton statistics reveals that cotton production acreage, total production and yield in the state keeps growing trend for last 20 years. According to USDA Crop Production Report in September 2017, Texas Upland Cotton production totaled 9.30 million bales, which is 15 percent higher than 2016. Yield averaged 757 pounds per acre, compared with 748 pounds in 2016. Acreage harvested, at 5.90 million acres, is up 13 percent from 2016.

Objectives

The objectives of this study are: (1) to evaluate the comparative advantage of upland cotton production in Texas from 1997 to 2016; (2) to compare the comparative advantage between different main crops production in Texas from 1997 to 2016, (3) to evaluate the compare advantage in main cotton producing state in the 20 years.

 

Data and Methods

The National Agricultural Statistics Service (NASS) website is used to collect all the data for the study, which include yield, planted acres, production, harvest acres, and etc. for last 20 years in Texas.

This study will quantify the comparative advantage of upland cotton production by comparing different crops in the Texas from 1997 to 2016, by using three different indices: Efficiency Advantage Indices (EAI), Scale Advantage Indices (SAI), and Aggregate Advantage Indices (AAI).

Expected Results

This study will reveal the changes in efficiency, scale and integrated advantages, among the main cotton states in upland cotton production and the main crops production in Texas from 1997 to 2016.