Project Summaries

12-179  Project Manager: J. M. Reeves


James Richardson, Texas A&M University

The overall objective of this study is to quantify the economic impacts resulting from cotton production and ginning in the Cotton Belt. Specifically, the objective is to prepare a report showing the direct, indirect and induced number of jobs supported by cotton producers and ginners and the direct, indirect and induced economic growth that is stimulated by growers and ginners in each state.

The methodology used for the analysis will be input/output modeling. The Minnesota IMPLAN (IMPact analysis for PLANning) Group's latest IMPLAN data set and latest IMPLAN modeling software will be used to develop state level I/O (input/output) models for cotton producers and ginners. Output from the state level cotton IMPLAN models will show the number of jobs supported by each state's cotton producers. Additionally, the state I/O models will quantify the contributions in each state that the cotton industry makes directly and indirectly to the state's gross product. The I/O approach quantifies the direct, indirect and induced contributions that an industry makes to the state's economy. The results of the models will be useful as the 2013 farm bill is debated.

There will be a tighter budget when Congress debates the 2012 Farm Bill. During tight budget times Congressmen want to know how important an industry is to their state in terms of promoting economic growth and job creation. State level input/output analyses of the contributions that cotton farmers and ginners have on the state's economic growth and job creation will be useful for answering this question by policy makers.

In 2012, a database of cotton budgets was developed that includes: cotton planted and harvested acres, and yields for major cotton production regions. These data will be used in the state level I/O models with other local information for 2012 to develop economic input/output models for cotton in each state. The 2012 version of IMPLAN was purchased in the Fall of 2012 when it first became available to insure that the latest multipliers were used. The IMPLAN multipliers are based on the latest Census of Manufactures. Input for ginners has proven hard to obtain and various sources are being searched to obtain a 2012 list of cotton ginners by state and to develop budgets for this sector of the cotton industry.

Outcomes from this research will be made available on the Texas A&M Agricultural and Food Policy Center Web site ( and presented at grower meetings, nationally, and other forums of interest.


Project Year: 2012

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