Expectations are a link between the present and future and they are keys to study processes by which decisions are made. In the empirical investigation carried out in the present study, it had been found that farmers did anticipate future prices. The estimates of acreage response could be greatly improved if it was known what prices had actually been expected by different farmers in different size groups for cotton crop in the study area of Tamil Nadu. The findings of the present study reveal that majority of farmers expected that price alone was the motivating factor in deciding acreage allocation.

KEYWORDS: cotton, cotton crop, cultivation, crop area,