Named the Great American Cotton Plan, it was announced by Secretary of Agriculture Brooke L. Rollins on 28 May 2026 as a “comprehensive USDA initiative” in response to mounting economic pressures that include rising production costs, shrinking profit margins, and increasing competition from synthetic textile materials.
According to USDA forecasts, US cotton producers could lose an estimated $2.6bn across 9 million planted acres in the upcoming crop year.
The sector’s challenges are underscored by the decline in processing capacity, with the number of US cotton gins falling from 2,254 in 1980 to 446 today. Domestic textile manufacturing facilities have also “sharply contracted” in recent decades, compounding concerns around the industry’s long-term stability.
The federal government attributes a major share of the sector’s difficulties to the rapid expansion of synthetic fibre use. Approximately 70% of global textile fibres are now synthetic and are mainly produced from petroleum-based materials like polyester and nylon.
Secretary Rollins said: “Since 1607, cotton has helped build and sustain rural America. Our farmers grow some of the highest-quality cotton in the world, but over the last several years, America’s cotton growers have been crushed by rising costs, unfair foreign competition, and a flood of cheap synthetic products. In 2023, we lost our status as the world's top cotton exporter to Brazil. This change starts today.”
The Great American Cotton Plan outlines four main actions
First, it targets domestic consumption. USDA and the Department of Health and Human Services are promoting the “Plant Not Plastic” initiative.
The USDA also plans to keep the BioPreferred Programme funded so eligible biobased goods, including cotton products, can continue to use the BioPreferred label. It is also implementing higher marketing loan rates for upland and extra-long staple cotton authorised under the Working Families Tax Cuts Act.
Second, it aims to support domestic demand and output. The USDA will prioritise cotton processors and manufacturers in Rural Development’s Business and Industry Guaranteed Loan Program to expand production capacity. It will also raise the payment rate in the Economic Adjustment Assistance for Textile Mills programme from $0.03 to $0.05 per pound of cotton processed. The department said it will continue working with Congress on the bipartisan Buying American Cotton Act.
Third, the plan focuses on trade. The USDA is implementing the Administration’s Three-Point Trade Plan to increase export opportunities for US cotton.
Cotton Council International joined an Agribusiness Trade Mission to Indonesia earlier this year for the first time in the programme’s history. The USDA and the Office of the United States Trade Representative secured commitments from Indonesia and Bangladesh that it said would support future purchases of US cotton and textile production using American cotton. The USDA plans to keep backing exports through the Market Access Program and the COTTON USA licensing initiatives.
Finally, it includes measures to limit adverse risks for growers. USDA Agricultural Research Service scientists are working on research to combat the spread of the cotton jassid pest. Producers now have expanded access to Supplemental Coverage Option insurance tools. The Working Families Tax Cuts Act also increased the seed cotton reference price for the ARC and PLC programmes by 14% from autumn 2026.
“USDA will continue coordinating with industry stakeholders, manufacturers, cotton growers, retailers, and Congress to advance policies that strengthen the cotton supply chain from the field to the fabric,” the Department stated.
