Post-Step 2 for US Cotton

Since Step 2 was designed to facilitate the use and ex port of US cotton, most people would expect that the program should encourage exports, raise US prices and marginally lower world prices. In the absence of Step 2, the reverse should happen. US exports should likely be negatively affected by the loss of Step 2, with the actual amount of the impact being determined by the downward adjustment in US prices relative to prices of competing growths. Some tend to think that the overall loss i…