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Abstract
Following the decoupling of the cotton
subsidies in 2006 the production system has become less
intensive in input usage with an average yield reduction
of 40 per cent. Albeit the farm income has not been
reduced, the reform has had a negative effect on the
economy of some rural areas of Southern Spain, where
there are few productive alternatives to cotton, with a
39% reduction of direct farm labour. Besides, the
reform has been borne by the ginning industry (60%
reduction), the agrochemical suppliers and the auxiliary
sector. On the other hand, the environment has benefits
from the extensification of the cotton production since
three quarter of the production is now carried out under
integrated production that implies a reduction in the
amount of fertilizers and pesticides that farmers can use.