Cotton Grower | December 2024 | CottonGrower.com
Photo: Naypong Studio / stock.adobe.com
Year In Review
2024
Cotton Growers Continue
to Face Increasing
Economic Pressures
Higher production costs and lower market prices and world demand continue
to dampen U.S. cotton growers’ finances for the second year in a row.
BY JODY CAMPICHE
INCE PASSAGE of the
2018 Farm Bill, cotton
production costs are
up by 27%, with input prices
up for most major categories.
Interest expenses are up
by more than 200% while
fertilizer costs have almost
doubled. Expenses for labor, seed, and chemicals
are up by approximately 50%.
Market prices are struggling as world cotton
demand has fallen by 3.2 million bales since 2018,
while Chinese polyester production is up by 35.5
million bales and Brazil and Australia combined
to add 10.4 million bales of cotton production.
In 2024, growers across the Cotton Belt have
been severely impacted by weather issues along
with a 12% drop in cotton prices between
planting and harvest.
The financial situation of U.S. cotton farmers
continues to deteriorate as the farm bill safety
net and current market prices have been well
below production costs for the last two years.
Unfortunately, the current seed cotton reference
price of $0.367 per pound does not provide an
adequate safety net for cotton growers.
Many growers have suffered deep losses in 2023
and 2024, with USDA data indicating combined
losses of more than $300 per acre over the two
years, or $2.5 billion in total.
With current deliberations underway for
economic assistance, disaster assistance, as well
as the 2024 Farm Bill, the importance of a strong
safety net cannot be overstated. Congress must act before
year’s end to both address the immediate economic
needs, as well as strengthen farm policy for the years
ahead. Without new assistance, some farmers will not be
able to secure operating credit for the 2025 crop. n
Jody Campiche is Vice President, Economics & Policy Analysis, National Cotton Council.
Jody Campiche
Photo: NCC
Cotton Production Costs
(USDA ERS)
Cotton NY Dec 24 Futures