USDA Announces Payments Under the 2026 Pima Cotton and Wool Trust Funds

March 15 of each year is the application deadline for the Pima Cotton Trust, and March 1 of each year is the application deadline for the Wool Trust. The law mandates trust payments by April 15. More information about these programs is available at www.fas.usda.gov/programs.

usda logo.png

United States Department of Agriculture

(Washington, D.C., April 14, 2026, USDA) – The U.S. Department of Agriculture (USDA) announces payments under the 2026 Pima Agriculture Cotton Trust Fund and the 2026 Agriculture Wool Apparel Manufacturers Trust Fund. The U.S. textile industry has historically enjoyed strong support and assistance from the U.S. Government; however, various trade agreements and other unfair practices during the last 20 years have resulted in a decline not just in textiles, but across domestic manufacturing in general.

Currently, U.S. fabric and clothing manufacturers must comply with a tariff inversion — a tariff policy that reduces the cost of moving production overseas and exporting finished goods back into the United States compared with importing fabric and manufacturing domestically. The annual Pima Cotton and Wool trust payments provide financial support to U.S. companies equal to the benefits manufacturers would receive if duty reductions remained in effect, allowing them to grow payrolls, increase production, and regain market share.

“U.S. textile companies produce world-renowned quality products and employ a highly skilled workforce,” said Deputy Secretary of Agriculture Stephen A. Vaden. “These payments strengthen our domestic manufacturers and ensure a fair playing field for American textiles, helping rebuild this important industry. More American companies should take advantage of this program and manufacture more of the clothing we all wear here in the U.S.A.”

Section 12314 of the 2014 Farm Bill established the Pima Cotton Trust, which USDA administers. The Pima Cotton Trust is currently funded through 2031 with $16 million in Commodity Credit Corporation funds each year.

The purpose of the Pima Cotton Trust is to reduce the economic injury to domestic cotton manufacturers resulting from tariffs on cotton fabric that are higher than tariffs on certain apparel articles made of cotton fabric.

The law mandates payments under the Pima Cotton Trust as follows:

  • 25 percent to one or more nationally recognized associations established for the promotion of Pima cotton for use in textile and apparel goods.
  • 25 percent to yarn spinners of Pima cotton that produce ring-spun cotton yarns in the United States.
  • 50 percent to manufacturers that cut and sew cotton shirts in the United States and that certify that they used imported cotton fabric in the preceding year.

Section 12315 of the 2014 Farm Bill established the Wool Trust, which USDA also administers. The Wool Trust is currently funded through 2031 with up to $30 million in CCC funds per year.

The purpose of the Wool Trust is to reduce the injury to domestic manufacturers resulting from tariffs on certain wool fabric that are higher than tariffs on certain apparel articles made of wool fabric.

The Wool Trust provides four types of payments:

  1. Payments to manufacturers of certain worsted wool fabrics.
  2. Monetization of the wool tariff-rate quota.
  3. Duty compensation payments for wool yarn, wool fiber and wool top.
  4. Refunds of duties paid on imports of certain wool products.

March 15 of each year is the application deadline for the Pima Cotton Trust, and March 1 of each year is the application deadline for the Wool Trust. The law mandates trust payments by April 15. More information about these programs is available at www.fas.usda.gov/programs.

###

Press release provided by the U.S. Department of Agriculture

Related Stories
Producers across the country balanced winter weather disruptions, shifting export demand, and tightening margins as year-end decisions come into focus.
Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
Small, locally focused wineries are finding resilience through direct sales and regional loyalty rather than scale alone.
Concerns over Chronic Wasting Disease are fueling a long-standing legal battle between Minnesota regulators and deer farmers. The case could soon reach the state’s Supreme Court with broader implications for agriculture.
USDA Undersecretary Luke Lindberg told RFD-TV News that we can only guess what Congress will do down the road. Still, the USDA recognizes its responsibility to spend resources efficiently and effectively.
In Minnesota, a legal and legislative battle has reached a tipping point. For over a decade, the state’s Department of Natural Resources (DNR) and the private deer-farming industry have been locked in a dispute over the management of Chronic Wasting Disease (CWD).

LATEST STORIES BY THIS AUTHOR:

University of Nebraska President Dr. Jeffrey Gold joined us to share insights on building healthy habits and improving rural health in the year ahead.
Dr. Rosslyn Biggs with the Oklahoma State University Center for Rural Veterinary Medicine shares insight into biosecurity, preparedness, and animal health concerns facing livestock producers as New World screwworm outbreaks continue in Mexico.
Tennessee Rep. John Rose joined us to pay tribute to his friend and colleague, Rep. Doug LaMalfa, a true Champion of Rural America.
China continues to buy U.S. soybeans toward its 12 MMT commitment, as analysts cite data gaps, delivery timing questions, and muted market reaction.
FarmHER Nikki Boxler, aka The Maple Farmer, blends tradition with innovation, tapping into a bold new future for maple syrup.
As the new year begins, both farmers and rural families are taking stock of their finances and planning ahead for 2026.