USDA Launches Great American Cotton Plan to Revitalize the Cotton Farm Economy

U.S. Secretary of Agriculture Brooke L. Rollins today announced the Great American Cotton Plan (PDF, 2.7 MB), a comprehensive USDA initiative to strengthen the cotton farm economy, restore domestic textile manufacturing, expand cotton trade opportunities, and increase demand for products made with American-grown cotton.

"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," said Secretary Rollins. "The Trump Administration is committed to ensuring American cotton once again becomes the fiber of choice with the Great American Cotton Plan - a bold effort to restore profitability for cotton producers, strengthen rural economies, rebuild domestic textile manufacturing, and bring American cotton back into the products families use every day. Supporting natural fibers like cotton also aligns with the Make America Healthy Again agenda as Americans grow increasingly concerned about microplastics and synthetic materials in everyday products. Cotton is natural, breathable, biodegradable, and proudly grown by American farmers - not manufactured from petroleum-based plastics that can shed microplastics into our soil, water, and bodies."

The announcement comes as cotton producers face a fifth consecutive year of negative returns driven by rising input costs, trade distortions, and increasing competition from synthetic materials. 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 fibers rather than synthetic plastic-based alternatives.

Cotton remains one of the most economically significant crops in the United States, supporting producers and rural communities. 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 U.S. 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 percent of the world's textile fibers are now synthetic, most of them plastic-based materials such as polyester.

Cotton is a natural fiber harvested from the cotton plant's seedpods and has been used in clothing and household products for thousands of years due to its breathability, softness, durability, and comfort. Unlike synthetic fibers such as polyester, nylon, and acrylic, which are petroleum-based and chemically manufactured, cotton is biodegradable and naturally breathable.

As part of the Administration's broader Make America Healthy Again priorities, USDA and HHS are promoting greater awareness around natural fibers and the potential impacts of synthetic materials. Cotton's natural structure allows for strong air circulation and moisture absorption, helping keep consumers cooler and more comfortable. Cotton can absorb up to 27 times its weight in water, making it especially effective at pulling moisture away from the skin during hot weather and physical activity. By contrast, synthetic materials often trap heat and reduce breathability.

The Great American Cotton Plan addresses these challenges through four key pillars:

Promoting Domestic Cotton Consumption

• USDA and HHS are promoting the "Plant Not Plastic" initiative to encourage consumers to choose products made with American cotton
• USDA is ensuring the BioPreferred Program remains funded so biobased products, including cotton products, can continue using the BioPreferred label
• USDA is implementing increased marketing loan rates for upland and extra-long staple cotton authorized through the Working Families Tax Cuts Act

Providing Affordable Cotton by Increasing Domestic Demand and Production

• USDA is prioritizing cotton processors and manufacturers within Rural Development's Business and Industry Guaranteed Loan Program to increase domestic production capacity
• The Economic Adjustment Assistance for Textile Mills program payment rate will increase from 3 cents to 5 cents per pound of cotton processed
• USDA will continue working with Congress to support the bipartisan Buying American Cotton Act

Improving Cotton Trade

• USDA is implementing the Administration's Three-Point Trade Plan to expand export opportunities for U.S. cotton
• Cotton Council International participated in an Agribusiness Trade Mission to Indonesia for the first time in program history earlier this year
• USDA and USTR secured commitments from Indonesia and Bangladesh that will support future U.S. cotton purchases and textile production using American cotton
• USDA continues supporting cotton exports through the Market Access Program and COTTON USA™ licensing initiatives

Protecting Cotton Growers from Adverse Risk

• USDA Agricultural Research Service scientists are advancing research efforts to combat the spread of the cotton jassid pest
• 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 ARC and PLC programs by 14 percent beginning in fall 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.