The period of operation of the CRDC Strategic Plan 2003–2008 ended in 2008 as it had begun in 2003: with the continuation of an unprecedented, lengthy drought, exacerbated by low cotton prices and increasing competition for available water from irrigated grains, which are enjoying a price boom. In addition, the industry faced uncertainty in its terms of trade with a volatile Australian dollar exchange rate. Despite this, Australian cotton growers continued to produce the highest yields per hectare of premium quality cotton in the world. The low water availability did however mean that the total crop area was the smallest in 30 years. The latest forecast for the 2008 harvest is a crop of 0.6 million bales, estimated to be worth $275 million in export value, compared with a historical average of near $1 billion. Looking further back, cotton production in Australia has been well below normal levels for the last six drought-affected years. In the final year of operation under the Strategic R&D Plan, the Corporation was able to maintain R&D investments at a level that underpinned the achievement of the Plan’s strategic outcomes. This report highlights the importance of those outcomes to the industry and Australia.