WASHINGTON, D.C. (RFD NEWS) — The U.S. Department of Agriculture (USDA) is launching a new Great American Cotton Plan to improve cotton demand, rebuild textile manufacturing, and address years of financial pressure on growers.
The department says cotton producers face a fifth straight year of negative returns, with projected losses of about $2.6 billion across 9 million planted acres. USDA also says the number of U.S. cotton gins has fallen from 2,254 in 1980 to 446.
The plan includes four main areas: promoting domestic cotton use, increasing domestic demand and production, improving trade, and protecting growers from risk.
USDA will elevate its “Plant Not Plastic” initiative, promote American cotton over synthetic fibers, prioritize cotton processors through Rural Development loans, and increase textile mill assistance from 3 cents to 5 cents per pound.
The department also points to trade work with Indonesia and Bangladesh, expanded insurance tools, and a higher seed cotton reference price beginning this fall.
Farm-Level Takeaway: USDA’s cotton plan aims to rebuild demand, expand markets, and support growers facing sustained losses.
Tony St. James, RFD News Markets Specialist
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