Optimal gin industry structure in Mississippi under cotton production variability

Changes in farm policy are having direct impacts on production agriculture. It is likely having indirect impacts on agribusiness support industries as well. The general objective of this research is to determine the impact of production uncertainty on the ginning industry in Mississippi.; Using survey techniques and a non-linear programming model, the optimal number of gins in Mississippi was determined to be 35 gins. By adding uncertainty to the analysis, the results obtained from the model indicate the optimal number of gins in Mississippi is 67 gins. Industry costs were also affected by production uncertainty. When uncertainty about production levels were taken into account, the total cost to the Mississippi ginning industry increased by {dollar}39.94 million.; The analysis concludes that by adding uncertainty to the analysis, the results obtained from the model provide a more realistic view of the industry.