The U.S. cotton industry faces mounting challenges that are intensifying the need for an enhanced safety net in the next farm bill. Global cotton demand has dropped by 3.8 million bales since 2018, and Brazil has emerged as the leading cotton exporter. Synthetic fibers also continue to outcompete cotton in demand.

Producers are confronting significant financial losses. The USDA data revealed combined losses exceeding $300 per acre over the past two years.

Production costs have risen 27% since the 2018 Farm Bill. Adverse weather has further impacted growers across the Cotton Belt. At the same time, cotton prices in 2024 fell 12% from planting to harvest.

National Cotton Council Vice President of Economics and Policy Analysis Jody Campiche warns that the current farm bill safety net and market prices have failed to cover production costs for two consecutive years. Without timely intervention, producers may face difficulties securing operating loans. This threatens the industry’s stability.

Read more about the financial pressures facing cotton farmers here.