USDA’s Great American Cotton Plan receives strong industry support

At a Glance

  • USDA announces Great American Cotton Plan to restore profitability.
  • Plan promotes domestic consumption through “Plant Not Plastic” initiative.
  • Cotton producers face fifth consecutive year of negative returns.

U.S. Agriculture Secretary Brooke Rollins announced the Great American Cotton Plan on May 28, marking a pivotal moment for America’s struggling cotton industry. She made the announcement while meeting with Arizona farmers and ranchers at Post Farms in Marana, Ariz.

The comprehensive initiative aims to restore profitability for cotton producers, rebuild domestic textile manufacturing and reclaim America’s position as the world’s leading cotton exporter.

Critical industry challenges

Rollins emphasized the need for intervention, noting that U.S. cotton growers have endured a number of different challenges in recent years.

“Since 1607, cotton has helped build and sustain rural America,” Rollins said. “Our farmers grow some of the highest-quality cotton in the world, but over the last several years, America’s cotton growers have been crushed by rising costs, unfair foreign competition and a flood of cheap synthetic products. In 2023, we lost our status as the world’s top cotton exporter to Brazil. This change starts today.”

Signaling the Trump administration’s commitment to supporting U.S. farmers, she explained the effort to restore profitability for cotton growers.

USDA estimates that every dollar generated on the American cotton farm creates approximately $15 in direct economic activity throughout the cotton supply chain. However, producers face a fifth consecutive year of negative returns, with USDA forecasting potential losses of approximately $2.6 billion across the 9 million planted acres during the upcoming crop year.

Pillars of recovery

The Great American Cotton Plan operates through four strategic pillars. First, it promotes domestic cotton consumption through the “Plant Not Plastic” initiative, encouraging consumers to choose U.S. cotton over synthetic alternatives. The plan ensures continued funding for the BioPreferred Program and implements increased marketing loan rates authorized through the Working Families Tax Cuts Act.

Second, the initiative focuses on increasing domestic demand and production by prioritizing cotton processors within USDA Rural Development’s Business and Industry Guaranteed Loan Program. The Economic Adjustment Assistance for Textile Mills program payment rate will increase from 3 cents to 5 cents per pound of cotton processed.

Third, the plan improves cotton trade through the administration’s Three-Point Trade Plan, with USDA and the U.S. Trade Representative securing commitments from Indonesia and Bangladesh for future U.S. cotton purchases. Finally, it protects growers from adverse risk through expanded insurance tools and increased reference prices for Agriculture Risk Coverage and Price Loss Coverage programs.

“I’m excited for what lies ahead,” said Cassie England, Pinal County, Ariz., cotton farmer and current president of the Arizona Cotton Growers Association. “The four pillars feel like a step toward strengthening cotton that is American-grown, American-made and American-consumed. This plan not only supports the farmer, but the entire supply chain. I think it’s time we bring cotton back to being recognized as a true American product, one that we value, support and take pride in.”

Industry endorsement

The National Cotton Council enthusiastically welcomed the announcement as well. 

“At a time when cotton producers are facing pressure from high input costs and market uncertainty, these steps are critical to the long-term success of our industry,” NCC Chairman Nathan Reed said.

NCC emphasized support for the bipartisan Buying American Cotton Act, which would increase domestic demand and production, encourage investment in U.S. textile mills and create American jobs. The organization also highlighted its ongoing “Plant Not Plastic” campaign, which reinforces cotton as a natural, renewable alternative to synthetics.

Health and environmental benefits

Aligning with the Make America Healthy Again agenda, Rollins emphasized cotton’s natural advantages over petroleum-based synthetic materials. Cotton is biodegradable, breathable and can absorb up to 27 times its weight in water, making it superior for comfort and moisture management. This contrasts sharply with synthetic materials that may shed microplastics into soil, water and human bodies.

The Great American Cotton Plan represents a comprehensive approach to revitalizing an industry that has been integral to rural America for centuries, promising renewed prosperity for cotton farmers and strengthened rural economies nationwide.

Source: https://www.farmprogress.com/