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Abstract

Cotton ginning represents an agribusiness that is heavily dependent on production agriculture. Recent changes in farm legislation and other government policies may have a long run impact on the variability of cotton production. This paper examines the potential impacts of increased production variability on the cotton ginning industry in Mississippi. A programming model is used to derive the optimal structure of the ginning industry under certainty. Potential implications of production variability are discussed and extensions to the model are proposed.

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