Without Proper Safety Net, Pressure Mounts for Cotton
Pressures are mounting in the U.S. cotton industry, setting up a crucial timeline for the next farm bill. Jody Campiche, Vice President of Economics and Policy Analysis for the National Cotton Council…
“It’s been a tough few years for the U.S. cotton industry. Market prices are struggling as world cotton demand has fallen by 3.8 million bales since 2018 while export competition has increased as Brazil continues to expand cotton acreage. Brazil has now surpassed the U.S. as the world’s largest cotton exporter. In addition, cotton continues to face strong demand competition from manmade fibers.”
The production side has also been a struggle with many producers suffering deep losses this year and last with USDA data indicating combined losses of over $300 per acre over the two years…
“Since the 2018 Farm Bill was passed, cotton production costs are up by 27% with input prices up for most major categories. Over the last few years, growers across the Cotton Belt have been severely impacted by weather issues. In 2024, cotton prices fell by 12% between planting and harvest.”
Campiche says the farm bill safety net and current market prices have been well below production costs for the last two years and expressed concern that we may soon be getting into a position where, without proper action, producers could struggle to secure operating loans.
