Home / Knowledge / News / Textiles / Criticisms of cotton farm programs unwarranted
Criticisms of cotton farm programs unwarranted
11
Jul '08
Criticisms of U.S. cotton farm programs are unwarranted. The truth: U.S. farm programs have operated as designed, supporting farmers' incomes in times of low prices while allowing them to react to market signals.

A report that dispels myths about U.S. farm law support to America's cotton farmers can be found on the National Cotton Council's website.

A key misconception among the general press is that the 2002 U.S. cotton program drove world cotton prices down hurting some cotton-producing developing countries while U.S. cotton production and exports increased. Not true.

Independent studies by Texas Tech University, the Food and Agricultural Organization of the United Nations, and the International Monetary Fund found very low price impacts from the presence of the U.S. cotton program 1 to 3 percent.

In fact, Council economists point to world cotton prices that generally increased over the life of the 2002 farm law. At the same time, the U.S. share of world cotton production has remained stable and even declined in recent years.

Another myth is that the cotton program led to a rise in U.S. cotton exports. Not so. Exports have increased in response to U.S. textile manufacturers' steady decline in cotton use as a result of Asian competition.

U.S. cotton fiber that was once being spun in U.S. textile mills is now being spun in Asian textile mills as the U.S. textile sector continues to shrink.

Even though some U.S. cotton fiber found a new home in Asian spinning mills, the United States still consumes more cotton apparel and textile products than it produces cotton fiber, with cotton product consumption exceeding fiber production by 4 million bales in 2007.

Critics also contend that the U.S. cotton program does not allow America's cotton farmers to respond to market signals and plant other crops.

“The reality is that U.S. farmers responded to expected market prices in recent years by planting more cotton when cotton prices looked more attractive than competing crops and less cotton when cotton looked less attractive,” said Dr. Gary Adams, the Council's vice president of Economics & Policy Analysis.

“U.S. farm programs have operated as designed, supporting farmers' incomes in times of low prices while allowing them to react to market signals.”

Another falsehood is that the U.S. cotton program is causing economic injury to West African cotton producers. Even when cotton prices are rising, as they have been for several years, those countries' producers receive only a small portion of the world cotton price as a result of internal production and marketing problems and as a result of the link between West African currency and the Euro.

“Strength in the West Africa currency has negated all price improvement since 2002,” Adams said, “and, unfortunately, those countries' yields are not keeping pace with those in other developing countries that produce cotton.”


Must ReadView All

Textiles | On 20th Sep 2017

India needs to double cotton farmers’ income: top official

India needs to double the income of cotton farmers and non-farmers...

Textiles | On 20th Sep 2017

Pakistan seeks more JVs with China: textile minister

The Pakistani Government wants to forge more joint ventures (JVs)...

Apparel/Garments | On 20th Sep 2017

Egypt’s garment exports touch $941 million in 8 months

Egypt's garment exports touched $941 million in the first eight...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search