USDA Launches Great American Cotton Plan to Support Cotton Producers

The U.S. Department of Agriculture (USDA) has announced a new initiative aimed at supporting cotton producers as the industry faces continued economic pressure from rising costs, global competition and declining profitability.

Announced May 28 by U.S. Secretary of Agriculture Brooke L. Rollins, the Great American Cotton Plan is intended to strengthen the cotton farm economy, increase demand for U.S.-grown cotton, support domestic textile manufacturing and expand trade opportunities.

The announcement comes as cotton growers face a fifth straight year of negative returns. According to USDA, producers could lose approximately $2.6 billion across 9 million planted acres during the upcoming crop year.

“Since 1607, cotton has helped build and sustain rural America. Our farmers grow some of the highest-quality cotton in the world, but over the last several years America’s cotton growers have been crushed by rising costs, unfair foreign competition, and a flood of cheap synthetic products. In 2023, we lost our status as the world's top cotton exporter to Brazil. This change starts today,” said Secretary Rollins.

“The Trump Administration is committed to ensuring American cotton once again becomes the fiber of choice with the Great American Cotton Plan — a bold effort to restore profitability for cotton producers, strengthen rural economies, rebuild domestic textile manufacturing, and bring American cotton back into the products families use every day.”

USDA said the plan focuses on four key areas designed to improve conditions for cotton growers and strengthen demand for American cotton.

1. Increasing demand for American cotton

USDA and the U.S. Department of Health and Human Services (HHS) are expanding the “Plant Not Plastic” initiative, which encourages consumers to purchase products made from natural fibers such as cotton instead of synthetic, plastic-based materials.

Key actions include:

• Continuing funding for the BioPreferred Program, allowing cotton-based products to carry the BioPreferred label.
• Increasing marketing loan rates for upland and extra-long staple cotton through the Working Families Tax Cuts Act.
• Encouraging greater consumer demand for products made with American-grown cotton.

2. Supporting domestic cotton processing

USDA said the plan includes steps to strengthen domestic textile manufacturing and cotton processing.

Key actions include:

• Prioritizing cotton processors and manufacturers through Rural Development’s Business and Industry Guaranteed Loan Program.
• Increasing the Economic Adjustment Assistance for Textile Mills payment rate from 3 cents to 5 cents per pound of cotton processed.
• Continuing to support the bipartisan Buying American Cotton Act.

3. Expanding cotton trade opportunities

USDA said the plan aims to improve export opportunities for U.S. cotton producers.

Recent and ongoing efforts include:

• Implementing the Administration’s Three-Point Trade Plan to expand export markets.
• Supporting Cotton Council International’s participation in an agribusiness trade mission to Indonesia earlier this year.
• Securing commitments from Indonesia and Bangladesh to support future purchases of U.S. cotton and textile production using American cotton.
• Continuing export support through the Market Access Program and COTTON USA™ licensing initiatives.

4. Reducing risk for cotton growers

The plan also includes measures intended to help producers manage pests and financial risk.

USDA highlighted:

• Ongoing research by Agricultural Research Service (ARS) scientists to combat the cotton jassid pest.
• Expanded access to Supplemental Coverage Option (SCO) insurance tools.
• A 14% increase in the seed cotton reference price for Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs beginning in fall 2026 through the Working Families Tax Cuts Act.

Why it matters

According to USDA, cotton remains one of the nation’s most economically important crops. The agency estimates that every $1 generated at the cotton farm gate creates approximately $15 in direct economic activity across related industries.

USDA also noted the challenges facing the industry:

• Cotton producers are facing a fifth consecutive year of negative returns.
• USDA forecasts growers could lose approximately $2.6 billion across 9 million planted acres during the upcoming crop year.
• The U.S. lost its position as the world’s top cotton exporter to Brazil in 2023.
• Nearly 70% of the world’s textile fibers are now synthetic, most of them plastic-based materials.

USDA said it will continue working with cotton growers, manufacturers, retailers, industry stakeholders and Congress to advance policies supporting the cotton supply chain from production through finished products.