NASHVILLE, TENN. (RFD NEWS) — U.S. cotton producers are getting a new policy push aimed at strengthening the industry as USDA rolls out what it’s calling the “Great American Cotton Plan,” a program designed to reduce financial risk for growers and boost domestic demand.
The initiative comes as economists warn that cotton’s heavy reliance on global buyers leaves producers exposed to trade disruptions and shifting international demand.
“Cotton is specifically very export-dependent, with around 80 percent of all of the cotton we grow in the United States being exported each year,” said Farm Bureau economist Dr. Faith Parum. “So anytime there’s a trade disruption, it really hits our cotton growers hard.”
Parum also pointed to the long-term structural changes in the industry, including a shrinking domestic processing footprint. “In 1980, we had over 2,250 cotton gins. In 2024, we only had 446,” she said, underscoring how much of the value chain has shifted over time.
Despite those headwinds, some traders and analysts say there are still reasons for cautious optimism in the cotton market, even after recent price pullbacks.
“We’re still friendly, the market,” said cotton trader Kevin Huddleston. He pointed to global factors such as China’s reserve activity and increased import interest from countries like India as supportive signals for demand.
Huddleston added that cotton markets tend to move in cycles.
“Cotton always stair step up, elevator down,” he said, noting that recent weather conditions could have been expected to pressure prices further.
Even so, he emphasized that long-term demand trends, including consumer interest in U.S.-made cotton products, continue to support the industry’s outlook.
