The announcement comes as US cotton producers face a fifth consecutive year of negative returns driven by rising input costs, trade distortions, and increasing competition from synthetic materials, an USDA release said.
USDA has launched the Great American Cotton Plan to bolster the cotton farm economy, restore textile manufacturing, expand cotton trade opportunities and raise demand for products made with American-grown cotton.
The Plan will promote domestic cotton consumption; provide affordable cotton by increasing domestic demand and production; improve cotton trade; and protect cotton growers from adverse risk.
As part of the plan, USDA will elevate the ‘Plant Not Plastic’ initiative to encourage consumers to purchase products made with healthy natural American cotton fibres rather than synthetic plastic-based alternatives.
USDA estimates every $1 generated at the cotton farm gate creates approximately $15 in direct economic activity across related industries.
However, the cotton industry continues facing severe economic pressure. USDA forecasts producers could lose approximately $2.6 billion across 9 million planted acres during the upcoming crop year. Since 1980, the number of US cotton gins has declined from 2,254 to 446, while domestic textile production facilities have sharply contracted over the last two decades.
At the same time, nearly 70 per cent of the world’s textile fibres are now synthetic.
As part of the government’s broader ‘Make America Healthy Again’ priorities, USDA and the Department of Health and Human Services are promoting greater awareness around natural fibres and the potential impact of synthetic materials.
The Great American Cotton Plan has four key pillars: promoting domestic cotton consumption; providing affordable cotton by increasing domestic demand and production; improving cotton trade; and protecting cotton growers from adverse risk.
USDA is ensuring the BioPreferred Programne remains funded so bio-based products, including cotton products, can continue using the BioPreferred label.
It is implementing increased marketing loan rates for upland and extra-long staple cotton authorised through the Working Families Tax Cuts Act.
The department is prioritising cotton processors and manufacturers within Rural Development’s Business and Industry Guaranteed Loan Programme to increase domestic production capacity.
The Economic Adjustment Assistance for Textile Mills programme payment rate will increase from 3 cents to 5 cents per pound of cotton processed.
USDA is implementing the US administration’s three-point trade plan to expand export opportunities for US cotton.
USDA and the US Trade Representative secured commitments from Indonesia and Bangladesh, which will support future US cotton purchases and textile production using American cotton.
Cotton producers now have expanded access to supplemental coverage option insurance tools.
The Working Families Tax Cuts Act increased the seed cotton reference price for USDA’s Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programmes by 14 per cent beginning in autumn 2026.
Fibre2Fashion News Desk (DS)
