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Abstract

Arkansas cotton acreage has followed declining trends in U.S. acreage during the latter years of the previous decade. In Arkansas, the primary crops competing for cotton acreage are corn, soybeans, and rice. Farm managers and land owners are interested in optimizing long-term financial returns while capitalizing on short-term opportunities in acreage allocations. Long-term acreage allocations are mostly due to soil characteristics and crop rotation considerations that determine suitability for crops. Short-term acreage allocations are responses to economic considerations related to commodity prices and production costs. Results indicate consistent long-term acreage responses with a shift in response magnitude between cotton and rotation crops. The shift in magnitude is attributable to relative relationships among commodity prices that were less favorable to cotton for the period beginning in 2007.

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