The U.S. lost its number one cotton exporter status to Brazil in 2023, but a USDA plan is trying to reclaim the number one spot by supporting cotton farmers through a number of government policies and boosting the demand of U.S. cotton domestically and abroad.
The Great American Cotton Plan will focus on promoting domestic consumption and demand, improving international trade, and supporting growers from adverse impacts.
The USDA is implementing the administration three-point trade plan – which included the America First Trade Promotion Program, Trade Reciprocity for U.S. Manufacturers and Producers missions, and boosting export financing – to grow international trade. The U.S. already secured trade commitments from Indonesia and Bangladesh on purchase of cotton.
On the domestic policy front, the USDA is increasing the Economic Adjustment Assistance for Textile Mills program by increasing the support from three to five cents per pound of processed cotton. Also, starting in fall 2026, the seed cotton reference price for Agriculture Risk Coverage and Price Loss Coverage will be increased by 14%.
Additionally, the USDA is urging Congress to support the bipartisan Buying American Cotton Act (BACA), which would provide tax incentives to brands and retailers that use U.S. cotton.
A cornerstone of the plan is the USDA’s and HHS’ “Plant not Plastic” initiative, which touts the benefit of natural fibers over synthetic ones, to boost cotton demand. The Great American Cotton Plan aligns with the broader Make America Healthy Again movements, U.S. Secretary of Agriculture Brooke Rollins, shared in a press release.
Many consumers purchase clothing made from synthetic fibers like polyester and nylon due to more affordable prices, but environmental groups and researcher have raised concerned about how the clothing sheds microplastics. Synthetic fibers account for nearly 70% of global fiber production, compared to 19-20% for cotton today.
“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,” Rollins stated.
She added, “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.”
Cotton growers face demand, drought challenges
Today, the U.S. is the fourth largest cotton producing, growing around 12 million acres annually However, over the years, U.S. cotton industry has shrunk, with operating gins shrinking from 2,254 in 1980 to 419 in 2025, per USDA data.
The USDA criticized the Biden administration in the Great American Cotton Plan, stating that exports “rapidly dropped” under his tenure. During the Biden administration, cotton farmers in Southwest U.S. faced drought conditions, which brought down yields.
Cotton groups respond to Great American Cotton Plan
Trade group National Cotton Council (NCC) commended USDA’s plan and thanked the administration for tax provisions in the Working Families Tax Cuts Act for cotton growers, which help farmers manage rising input costs and invest in their operations.
“Measures like BACA, along with the USDA’s Great American Cotton Plan and other recently implemented cotton initiatives, demonstrate key progress for America’s cotton industry. At a time when cotton producers are facing pressure from high input costs and market uncertainty, these steps are critical to the long-term success of our industry,” said NCC Chairman Nathan Reed.
