Cotton production plays a central role in the economy and the livelihood of cotton growers in the Koutiala area of Mali. Despite all the investment made in the cotton zones, the cotton farmers in Koutiala suffer substantially from uncertainties in the cotton subsector linked to prices, timely payment, and to the future structure of the industry. This study analyzes empirically how cotton growers with different agricultural characteristics coped with these uncertainties over the period 2006-2010. The data used in this study were collected during the survey that covered 150 households in the Koutiala area during three cropping seasons: 2006-07, 2008-09 and 2009-10.The results show that despite income diversification among the households surveyed in Koutiala, agricultural production remains the main source of income. The findings also show that the farmers who continued to grow cotton during the three years of the survey and those who started producing cotton after year one diversified within the agricultural sector by producing more peanuts and cowpeas while the farmers who dropped out of cotton production after year one of the survey diversified toward non-farm activities such as commerce and self. We also found that the non-cotton growers are the poorest group of farmers, with less agricultural equipment and labor as well as less overall wealth, limiting their potential to invest in farm activities and start an off-farm business.
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