1. Cotton Situation, Outlook & Market Risk Management 2001-02 Charles Curtis, Jr. Clemson University

3. Global Cotton Situation Supply, Use, End Stocks

4. U.S. Cotton Acreage Planted and Harvested

6. State20002001Change --- (1,000 Acres) ---(%) Alabama53060514.2% Florida 10612417.0% Georgia1,3501,49010.4% Louisiana69590029.5% Mississippi1,2801,68031.3% North Carolina9251,05514.1% South Carolina2902962.1% Tennessee5656057.1% Virginia108104-3.7% Texas4,4004,5002.3% Total Southern Region10,24911,35910.8% Total US12,88414,1049.5% Percent Southern Region 79.6%80.5% Source: USDA, NASS, Crop Production, August 10, 2001 Upland Cotton Area Harvested, Selected States, 2000 and 2001

7. U.S. Cotton Yields Pounds per Acre

8. U.S. Cotton Yields Lbs. Lint per Acre

9. 8/78/6 State20002001Difference Alabama41% 9% -32% FloridaN/A Georgia30% 6%-24% Louisiana20% 4%-16% Mississippi13% 8%-5% North Carolina3% 4%1% South Carolina13% 3%-10% Tennessee2% 7%5% Texas24% 45%21% Virginia0% 5% US (14 States)18%23%5% Source: USDA, NASS, Crop Progress, August 7, 2000, and August 6, 2001. Upland Cotton Crop Percent Poor or Very Poor Comparison, 2000 to 2001

10. State20002001Change (Pounds per Acre) Alabama 492682190 Florida 480650170 Georgia 59168089 Louisiana 62969364 Mississippi 642743101 North Carolina 742701-41 South Carolina 62768154 Tennessee 60364340 Texas 43046939 Virginia 7387435 Total US 62666135 Source: USDA, NASS, Crop Production, August 6, 2001 Upland Cotton Forecasted Yield by Selected Southern Region State, 2000 and 2001

11. State20002001Change (Thousand Bales)(%) Alabama54386058% Florida10616858% Georgia1,6632,11027% Louisiana9111,30043% Mississippi1,7312,60050% N. Carolina1,4291,5408% S. Carolina37942011% Tennessee71081014% Texas3,9404,40012% Virginia166161-3% Total Southern Region11,57814,36924% Total US16,79919,41016% Percent Southern Region of US72%74% Source: USDA, NASS, Crop Production, August 6, 2001 Upland Cotton Estimated Production by Southern Region State, 2000 and 2001

12. U.S. Cotton Production Million Bales

14. U.S. Cotton Supply Million Bales

16. U.S. Cotton Uses Million Bales

21. U.S. Cotton Ending Stocks Million Bales

23. U.S. Cotton Stocks-to-Use Ratio

25. U.S. Cotton Price Vs. Stocks-to-Use Ratio

26. U.S. Cotton Prices Crop Year Average

28. Jul-02 Cotton Probabilities (June 20, 2002 Expiration)

29. 5 cents

32. Cotton Seasonal Price Tendencies December Futures Contract

33. AWP less Nearby Futures Basis 1998-2001

37. Possible Marketing Strategies SELL AT HARVEST Sell & be done Sell & Buy a Call –(9/21/01 42 July ’02 call for $0.0240) STORE (loan) and SELL LATER Nothing till end Hedge July ’02 –(9/21/01 July ’02 Futures for $0.3995) Put Option –(9/21/01 40 July ’02 put for $0.0323)

40. Jul-02 Cotton Probabilities (June 20, 2002 Expiration)

41. Whole Farm Estimate of LDP Receipts

42. Acreage Calculator for Loan Deficiency Payment Limits