An economist with the National Cotton Council says fewer cotton acres are expected across the United States this year.
“A recent economic report shows U.S. growers intend to plant 9.6 million acres, which is 14.5 percent lower than last year. We’re seeing the effects of what growers are feeling right now, as far as financial pressures.”
Jody Campiche tells Brownfield unfavorable market conditions and an inadequate safety net are contributing factors with the biggest acreage reductions in Texas and Georgia.
“Last year, Texas acres were almost 6 million. This year, the survey is projecting 5 million. We were about that low in 2015 and that’s 10 years ago,” she says. “Georgia acres were expected to be 165,000. Georgia has rarely been under 1 million acres and they haven’t been this low since 1993.”
She says while the Mississippi Delta is expected to have fewer cotton acres “Arkansas cotton acres are expected to be down 7 percent. The rest of the Mississippi Delta down around 9 percent and Tennessee down about 6 percent.”
The Mississippi Delta cotton yielded better last year, which means cotton could pencil out better than corn or soybeans.
Campiche says corn prices remain attractive in the mid-south and in other areas “like the southeast, particularly Georgia, I think we’ll see more corn and peanuts. In Texas, I think we’ll see a switch to sorghum and wheat.”
USDA will preview planting intentions in the Prospective Plantings report on March 31.