Increasing incomes of cotton farmers in Mali: Effects of price increases, productivity gains, and alternative crops

In a WTO battle and the press the argument is often made that eliminating US cotton subsidies would have a large effect on the incomes and competitive position of farmers in developing countries. In Mali and in Francophone West African cotton production productivity has stagnated after rapid gains in the first two decades after independence (1960-1980). Constructing a farm model based upon farmers' definition of their decision making framework we compare the effects of the elimination of US subsidies with various productivity increasing measures for cotton and cereals such as sorghum in Mali. Farmers' income gains from eliminating US subsides are as much as 20 percent. Increased fertilization levels for cotton, and the introduction of a new technology and marketing package for sorghum all have even higher returns for cotton farmers in the West African site of Dioila, Mali. Productivity improvements, including the introduction of Bt cotton increases farmers' incomes by 179 percent. When combining price increases with productivity improvements farmers' incomes increase by an additional 38 percent to 217 percent. Productivity improvements in cotton and cereals such as sorghum need to be given a greater emphasis in the programs to increase cotton farmers' incomes.