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

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Information Technology | On 25th Apr 2017

Self-repairing fabrics to be the future of fashion

It is the era of smart. Intelligent materials like self-repairing...

Textiles | On 25th Apr 2017

Indonesia revitalising textile sector

With exports of textile and textile products rising in Indonesia, the ...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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