Cotton producers are grappling with severe economic challenges as costs continue to rise and market prices remain low. Since the 2018 Farm Bill, cotton production costs have surged by 27%, with key expenses like fertilizer, labor, and chemicals increasing significantly. Interest expenses have skyrocketed by more than 200%.
Meanwhile, global cotton demand has declined by 3.2 million bales since 2018, while cotton production in countries like Brazil and Australia has grown substantially.
This, coupled with a 12% drop in cotton prices from planting to harvest in 2024, has deeply affected U.
S. cotton growers.
Despite the USDA’s efforts to assist, the current seed cotton reference price of $0.367 per pound has not provided adequate financial relief.
Over the past two years, growers have faced combined losses exceeding 0 per acre, amounting to more than .
5 billion in total. As the 2024 Farm Bill negotiations continue, the need for a robust safety net for cotton farmers has never been more urgent. Without additional assistance, many farmers may struggle to secure the necessary credit for the 2025 crop season.
