The challenges facing U.S. cotton farmers today are easy to see. It’s basic economics: demand for cotton is weak, therefore prices are, too.
The challenges facing U.S. cotton farmers today are easy to see. It’s basic economics: demand for cotton is weak, therefore prices are, too.
The answer is simple, too: build demand.
Certainly, consumers need to buy more cotton products. But changing their behavior is easier said than done. However, public policy can help. That’s why the Buying American Cotton Act of 2025 is so important.
At a farm bill meeting Sept. 11 at the East Carolina Agriculture & Education Center in Rocky Mount, Robbie Minnich, vice president of Washington operations for the National Cotton Council, said the council is doing whatever it takes to get the Buying American Cotton Act passed into law.
“We’ve got to have demand. We have to figure out how we get demand. I will fight every day for economic assistance and farm programs, but at the end of the day we got to get demand,” Minnich said.
The Buying American Cotton Act was introduced by Senator Cindy Hyde-Smith, a Republican from Mississippi. Minnich said the bill has eight cosponsors in the Senate. The council is working to get a bipartisan bill in the House.
The legislation is designed to enhance demand for U.S.-grown cotton and U.S.-manufactured cotton products through transferable tax credits to incentivize the consumption of U.S. cotton products.
Entities claiming the tax credits must be able to demonstrate proof of U.S. origin through a trustworthy supply chain tracing system that certifies the provenance and volume of the cotton in the eligible article, or of the yarn or fabric if either of those credit options are selected.
Minnich cites GAP as an example of how the bill could help with demand for U.S. cotton products. “GAP goes out there and places an order for a million pairs of cotton khaki pants. They go to their supplier, ‘I want a million pairs of cotton khaki pants, I want them these colors, these cuts, these sizes. How much is it going to cost?’” Minnich said.
That supplier will seek the cheapest cotton they can find that meets the quality characteristics they need. Minnich said they don’t care if it’s from Brazil, India, China or the U.S.
Minnich said the goal of the legislation is to incentivize GAP and other retailers to buy U.S. cotton. If GAP proves that the khaki pants they manufacture are made from U.S. cotton, they will receive a tax credit.
Hopefully, the Buying American Cotton Act will become law and provide incentive for GAP and other retailers to purchase U.S. cotton for their khaki pants and other products. But the real solution is to build consumer demand for goods that contain U.S. cotton. Easier said than done.
Source: https://www.farmprogress.com/