USDA Announces Crop Insurance and Cotton Trade Changes
USDA plans multiple crop insurance endorsements for 2027 and a new process to support U.S. cotton trade with four countries.
The U.S. Department of Agriculture (USDA) has announced two actions under its Great American Cotton Plan, including expanded crop insurance options for the 2027 crop year and a change in responsibility for administering a cotton tariff-rate quota process.
U.S. Secretary of Agriculture Brooke L. Rollins announced the actions October 16 during a visit to Giesenschlag Farms in Caldwell, Texas.
“Under the last administration, the United States lost our title as the world’s top cotton exporter. Our cotton growers have been squeezed by foreign competitors for too long, which is why we launched the Great American Cotton Plan in May,” said Secretary Brooke L. Rollins. “Today we are advancing that plan to give our producers more protection to manage their risks and improve opportunities for trade. We are not going to stop until we restore America’s cotton industry.”
What Farmers Need to Know
Crop insurance: For the 2027 crop year, producers, including cotton growers, will be allowed to purchase multiple endorsements on a crop insurance policy. The USDA's Risk Management Agency (RMA) plans to release final details to Approved Insurance Providers and crop insurance agents by November 30, 2026.
Cotton trade: The USDA's Foreign Agricultural Service (FAS) is developing a process to verify purchases of U.S. cotton by Bangladesh, Indonesia, Cambodia, and Malaysia. The process will support preferential tariff treatment for imports of apparel produced using U.S. cotton and textile inputs.
Timing: The new cotton trade mechanism is scheduled to launch in 2027.
Expanded Crop Insurance Options
RMA will allow producers to purchase multiple endorsements on a crop insurance policy for the 2027 crop year. The change is intended to provide additional risk protection for cotton growers and other eligible crops.
The Working Families Tax Cuts Act, signed into law by President Trump on July 4, 2025, expanded and increased the affordability of many crop insurance products. According to USDA, the law also removed restrictions and expanded the options available to producers seeking crop protection.
RMA will provide final implementation details to Approved Insurance Providers and crop insurance agents by November 30, 2026.
USDA to Oversee Cotton Tariff-Rate Quota Process
FAS is developing a mechanism intended to encourage purchases of American cotton, with a planned launch in 2027. Under the process, FAS will help verify U.S. cotton purchases by Bangladesh, Indonesia, Cambodia, and Malaysia in exchange for preferential tariff treatment on imports of apparel made with U.S. cotton and textile inputs.
Tariff-rate quotas establish the conditions under which specified quantities of imported products can enter at designated tariff rates. USDA said assigning the process to FAS aligns responsibility with the agency's broader agricultural trade mission.
About the Great American Cotton Plan
Launched in May 2026, the Great American Cotton Plan has four pillars: promoting domestic cotton consumption, providing affordable cotton by increasing domestic demand and production, improving cotton trade, and protecting cotton growers from adverse risk.
The two latest actions address crop insurance flexibility and international cotton trade.
The full plan is available in the Great American Cotton Plan PDF.
