
2024 in review: Cotton growers face growing economic pressures
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 $300 per acre, amounting to more than $2.5 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.