Great American Cotton Plan Focused on Bolstering Farm Economy

Smith: The USDA recently announced a new plan to help U.S. cotton growers weather the various economic challenges facing their sector. Faith Parum, an economist with the American Farm Bureau Federation, said the Great American Cotton Plan is a great step toward bolstering the cotton market.

Parum: The Great American Cotton Plan is an initiative by the USDA that is going to promote more use of American cotton for things like textiles and bio-product. It's all a way to help boost that domestic demand for U.S. cotton.

Smith: Parum said one of the cotton industry's biggest challenges is trade disruptions.

Parum: Cotton is specifically very export-dependent, with around 80 percent of all of the cotton we grow in the United States being exported each year. So, anytime there's a trade disruption, it really hits our cotton growers hard. On top of that, we've largely exported our manufacturing base. For example, in 1980, we had over 2,250 cotton gins. In 2024, we only had 446.

Smith: Increasing America's cotton processing capacity and demand will also help the overall agricultural economy.

Parum: As these markets are reliant on exports, anytime, again, there's that trade disruption, it does hit our producers hard. So, anytime we can boost that domestic demand and make more stable markets, it just helps improve the entire stability of the farm economy.

Smith: Chad Smith, Washington.