US launches Great American Cotton Plan to support farmers and revive demand

The U.S. Department of Agriculture (USDA) has unveiled a new initiative called the Great American Cotton Plan (2026) aimed at boosting cotton demand, strengthening domestic textile manufacturing, and easing long-term financial pressure on growers. As part of the programme, the USDA will expand its “Plant Not Plastic” (“Plants, not plastic”) campaign, promoting American cotton as an alternative to synthetic fibres.

According to the USDA, U.S. cotton farmers are facing their fifth consecutive year of negative returns, with total losses estimated at around $2.6 billion across roughly 9 million planted acres. At the same time, the country’s cotton processing capacity has been shrinking for decades, with the number of cotton gins falling from 2,254 in 1980 to just 446 today.

The plan outlines four key priorities: increasing domestic cotton consumption, expanding production and demand, improving trade opportunities, and reducing risks for growers. A particular focus is placed on supporting rural textile processors through targeted lending programmes.

The USDA also plans to raise support for textile mills from 3 cents to 5 cents per pound of processed cotton, while stepping up trade engagement with Indonesia and Bangladesh. In addition, the programme includes expanded insurance tools for farmers and an increase in the seed cotton reference price starting this fall.

Officials say the initiative is designed to restore competitiveness in the U.S. cotton sector, rebuild manufacturing capacity, and stabilise farm incomes amid prolonged market pressure.

Tags: USA