Cotton farmers are expected to increase acreage by about 7% this year as they try to take advantage...
Higher Costs and Lower Prices Driving U.S. Cotton Acreage Decline
Jody Campiche with the National Cotton Council (NCC) says lower prices are the reason U.S. farmers say they’ll be planting less cotton this spring. “While there are some changes to the farm safety net that will provide higher government support this year, it’s still not enough to cover all the losses.”
According to Campiche, production costs are 30 percent higher for cotton compared to previous growing seasons. “It makes it really hard to make the economics work for cotton, but part of the issue is when you look at other prices of commodities, they’re not great either.”
The results from a grower survey, conducted by the NCC, says U.S. farmers intend to plant nine million acres, a decline from last year. Campiche says looking at the regional breakdowns, she was surprised to see a large decline in cotton acres expected in the mid-South.
“Maybe the magnitude of the loss is a little higher than we expected, but you never know, by the time planting season comes around, growers might change their minds, maybe they won’t come down quite so low. In the past, we’ve had good yields in those areas.” She says it was also a surprise to see Georgia’s cotton planting intentions lower.
The USDA will also release its official acreage estimates in its planting intentions report, scheduled for March 31.
EDITOR’S TAKE:
Although the U.S. may not be the largest cotton producing country, as China and India account for nearly 50% followed by Brazil, it is still considered a major supplier. To witness dramatic reductions in acreage is concerning. Losing production often leads to loss of other important infrastructure. Our hope is that 2026 will be an anomaly or hopefully a “normal” planting outcome. Cotton is an important commodity in several parts of the country and contributes to keeping rural America strong.
If your dealership happens to be in a cotton producing area, make sure to emphasize AgPack®, which can help lower operating costs for those cotton farmers. Also, consider what your parts and service departments might offer to help ensure that their current vehicles remain in good condition until it is time to trade them in for that new model. Anything to help them save a little money now is sure to be appreciated!
