Cotton Research and Promotion Program Proves Beneficial to Growers and Importers

According to a press release dated June 6, 2017, from the Cotton Board, a third-party evaluation recently took place to evaluate the Cotton Research and Promotion Program (the Program) which is done every five years. The release stated,

“The analysis found strong, positive returns to cotton producers and importers as a result of the Program.”

The release also included some prominent results of the evaluation that serve as a good indication of the work the Cotton Research and Promotion Program carries out:

• Producer revenues are up $175 million annually, on average, or 3.2 percent.
• Annual farm program costs have been reduced $168.4 million, on average.
• The return on investment (ROI) for cotton producers and government is seven to one.
• The Program generates a benefit-cost ratio of 3.6 for producers.
• Importer after-tax profits increased by $732.9 million on average.
• Importer benefit cost-ratio is 14.0 over the life of the Program.
• Increase in importer sales revenue as a percentage of historical retail revenue is 12 percent.

According to the release, Janet Ydavoy, current Cotton Board chairman and cotton importer, said the Program has bettered cotton in many areas.

“The report concludes that the program has enhanced cotton demand, augmented U.S. cotton yields and production over time, generated a positive return to both cotton producers and importers, and reduced the dependence of cotton producers on government farm programs,” Ydavoy said. “We believe this is a very positive report and is a strong, objective measure of the returns generated by the program.”