Part 1 of the paper showed that the integration of a lucerne/cotton interplant system with supplementary food sprays retained and increased populations of predatory insects in the cotton crop. The strategic use of biopesticides (Bacillus thuringiensis (Bt), nuclear polyhedrosis virus (NPV)) reduced the use of synthetic insecticides by 50% without sacrificing cotton yield and profitability. In economic terms, the average gross margin for the IPM plot was A$3255 compared with A$3020 and A$3218 for the plots treated with (1) conventional insecticides on transgenic (Ingard®) cotton and (2) conventional insecticides on non-transgenic cotton. The use of transgenic cotton affected a 25% saving on synthetic insecticide usage. The results clearly indicate that a refined IPM approach could have a distinctive advantages in terms of economic and environmental impacts on cotton production. The success of such an approach lies in a strict adherence to its methodology.