Key Takeaways
- USDA has launched the Great American Cotton Plan, a four-pillar initiative to restore profitability for US cotton producers, rebuild domestic textile manufacturing, expand export opportunities, and increase consumer demand for American-grown cotton.
- USDA forecasts cotton producers could lose approximately $2.6 billion across 9 million planted acres in the upcoming crop year, marking a fifth consecutive year of negative returns driven by rising input costs, trade distortions, and competition from synthetic materials.
- Since 1980, the number of US cotton gins has declined from 2,254 to 446, while domestic textile production has contracted sharply over the past two decades.
- The plan includes increased marketing loan rates for upland and extra-long staple cotton, a rise in the Economic Adjustment Assistance for Textile Mills payment rate from 3 to 5 cents per pound, and a 14% increase in the seed cotton reference price for ARC and PLC programs effective fall 2026.
- USDA will elevate the “Plant Not Plastic” consumer awareness initiative as part of the broader Make America Healthy Again agenda, positioning cotton against synthetic petroleum-based fibers.
USDA Launches Great American Cotton Plan Amid Fifth Year of Producer Losses
USDA Secretary Brooke L. Rollins has announced the Great American Cotton Plan, a comprehensive federal initiative designed to address what the department describes as a deepening economic crisis in the US cotton sector. The plan targets four areas: domestic consumption, production capacity, trade expansion, and risk protection for growers.
The announcement comes as cotton producers face a fifth consecutive year of negative returns. USDA forecasts producers could lose approximately $2.6 billion across 9 million planted acres during the upcoming crop year, driven by rising input costs, trade distortions from foreign competition, and growing market share held by synthetic materials. According to USDA estimates, every $1 generated at the cotton farm gate creates approximately $15 in direct economic activity across related industries.
“In 2023, we lost our status as the world's top cotton exporter to Brazil. This change starts today. The Trump Administration is committed to ensuring American cotton once again becomes the fiber of choice with the Great American Cotton Plan,” said Secretary Brooke L. Rollins.
The Four Pillars of the USDA Great American Cotton Plan
The plan is structured around four pillars. On domestic consumption, USDA and HHS will elevate the “Plant Not Plastic” initiative to encourage consumers to choose products made with American cotton over synthetic plastic-based alternatives. The BioPreferred Program will remain funded to allow cotton products to continue using the BioPreferred label, and marketing loan rates for upland and extra-long staple cotton are being increased under the Working Families Tax Cuts Act.
On production capacity, USDA is prioritizing cotton processors and manufacturers within Rural Development's Business and Industry Guaranteed Loan Program. The Economic Adjustment Assistance for Textile Mills payment rate will increase from 3 cents to 5 cents per pound of cotton processed, and USDA is supporting the bipartisan Buying American Cotton Act in Congress.
On trade, USDA is implementing its Three-Point Trade Plan to expand export opportunities, following Cotton Council International's first-ever participation in an Agribusiness Trade Mission to Indonesia. USDA and USTR also secured commitments from Indonesia and Bangladesh to support future US cotton purchases and textile production using American cotton.
On risk protection, ARS scientists are advancing research to combat the cotton jassid pest, cotton producers now have expanded access to Supplemental Coverage Option insurance tools, and the Working Families Tax Cuts Act increased the seed cotton reference price for ARC and PLC programs by 14% beginning fall 2026.
Context: US Cotton Industry Structural Decline
The plan addresses structural shifts that have accumulated over decades. The number of US cotton gins has declined from 2,254 in 1980 to 446 today, while domestic textile production facilities have contracted sharply over the past two decades. Nearly 70% of the world's textile fibers are now synthetic, most of them petroleum-based materials such as polyester.
USDA frames cotton's natural properties — biodegradability, breathability, and moisture absorption — as both a market differentiator and a health-relevant distinction from synthetic fibers, situating the plan within the Administration's broader Make America Healthy Again agenda. The full plan is available on the USDA website.
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