TUCSON, Ariz. (RFD NEWS) — Agriculture Secretary Brooke Rollins is traveling to Arizona on Thursday to meet with cotton producers and discuss recent developments impacting the industry.
Rollins is scheduled to visit a farm outside Tucson, where she will participate in a roundtable conversation with local farmers focused on recent cotton policy wins and broader issues facing agriculture in the region.
The U.S. Department of Agriculture (USDA) recently announced it would be issuing payments under the 2026 Pima Cotton and Wool Trust Funds, providing financial support to domestic textile manufacturers and helping sustain demand for U.S.-grown cotton and wool.
The programs, authorized under the 2014 Farm Bill, are designed to offset trade-related disadvantages facing U.S. manufacturers, particularly tariff structures that favor the import of finished goods over domestic production. Payments aim to strengthen the domestic supply chain by supporting yarn spinners, fabric producers, and apparel manufacturers.
At the event, Rollins will be joined by Small Business Administrator Kelly Loeffler. The roundtable is expected to begin at 1:00 p.m. Eastern and will cover agriculture, rural business issues, and support for cotton producers.
RFD News will monitor the event in Arizona and provide a full recap on Friday’s Market Day Report.
USDA, Army Corps Push Domestic Fertilizer Expansion
Beyond cotton policy, the administration is also addressing broader agricultural supply concerns tied to global instability and rising input costs. Rollins’ USDA is also working with the U.S. Army Corps of Engineers to accelerate domestic fertilizer production in response to rising global supply concerns.
Officials say the agencies are streamlining permitting efforts for new production facilities, including the proposed Blue Point project in Louisiana.
The roughly $4 billion facility is expected to increase domestic fertilizer production by approximately 4.5 million tons annually and could support an estimated 400,000 producers across more than 200 million acres of farmland once operational.
The administration’s push to expand domestic fertilizer production comes as global tensions continue to raise concerns about long-term farm input costs. As the war with Iran continues, and its impact on agriculture grows, economists warn that the ongoing conflict could create longer-term pressure on farm margins.
Researchers in Illinois recently updated crop budgets for farmers, factoring in higher commodity prices for current crops. However, economists say the bigger concern may be how elevated energy and fertilizer costs will affect production costs in the years ahead.
Nick Paulson with the University of Illinois says the conflict has already forced analysts to adjust budget expectations.
“We did make some adjustments based on that, and this is in no way meant to downplay the impact on costs that it’s going to have for fuel, fertilizer, and even extending to other inputs if the effects of the conflict are ongoing here over the next few months.”
Paulson says fertilizer costs for the 2026 crop are not expected to rise dramatically in the near term because many producers already secured portions of their supply. However, he warns that prolonged volatility could become a much larger issue heading into 2027.
“In terms of averages, we are not expecting that to have a big impact on fertilizer costs for that 2026 crop. That is more of a big concern going into 2027, if prices remain at the elevated levels we are currently seeing.”
Diesel Costs Becoming a Bigger Concern
While fertilizer costs may remain manageable in the short term, Paulson says fuel expenses are already becoming a significant concern for producers.
“We would expect a bigger impact even on 2026 fuel costs.” He says diesel prices have surged in recent months and could put meaningful pressure during harvest season if prices remain elevated. “We are looking at 50 percent higher diesel fuel costs than we had three months ago.”
Paulson notes fuel is not the largest input expense for corn and soybean growers, but rising diesel prices still increase overall per-acre production costs and could further squeeze margins if the conflict continues.
Rising Energy Costs Give Cotton an Edge Over Polyester
Analysts say those same global pressures may also be reshaping competitiveness within the textile industry — and cotton is coming out strong with an advantage over synthetic fibers. Even as fertilizer and fuel costs jumped after the Strait of Hormuz disruption tied to the Iran war, cotton margins have improved modestly in recent months.
Terrain’s Marc Rosenbohm says the net effect of higher input costs and stronger cotton prices has left projected U.S. average cotton operating margins slightly better than they were before the conflict began.
Cotton may be regaining a competitive advantage as rising energy costs and supply chain disruptions challenge polyester’s long-held price edge. Textile industry analyst Bob Antoshak says global events are shifting the economics of fiber markets.
Polyester has historically benefited from cheap energy, efficient shipping, and low-cost direct imports. But conflict in the Middle East is disrupting trade routes and raising costs for petrochemical-based materials tied to crude oil.
