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USDA Unveils Great American Cotton Plan To Revive US Cotton And Textiles

• By  Textile Excellence
• May 31, 2026

The US Department of Agriculture (USDA) has launched the Great American Cotton Plan, a wide-ranging initiative aimed at restoring profitability for cotton farmers, rebuilding domestic textile manufacturing and boosting demand for American-grown cotton.

Announcing the plan, US Agriculture Secretary Brooke L. Rollins said US cotton growers have been hit by rising costs, foreign competition and growing use of synthetic fibres. “American cotton should once again become the fibre of choice,” she said, adding that the programme aims to strengthen rural economies and bring cotton back into everyday consumer products.

The initiative comes at a difficult time for the industry. Cotton producers are facing a fifth consecutive year of negative returns, with the USDA forecasting losses of US$ 2.6 billion across 9 million planted acres in the coming crop year. The country also lost its position as the world's largest cotton exporter to Brazil in 2023.

The plan places strong emphasis on promoting cotton as a natural alternative to synthetic fibres. Through the “Plant Not Plastic” campaign, the USDA and the Department of Health and Human Services will encourage consumers to choose cotton products over petroleum-based synthetic materials. The move also aligns with growing concerns over microplastics and sustainability.

Cotton remains a major contributor to the US economy. According to USDA estimates, every US$1 generated on a cotton farm creates around US$15 in economic activity across the wider supply chain.

Four Key Pillars

The Great American Cotton Plan is built around four priorities:

Boosting domestic consumption: Continued support for the BioPreferred programme, higher marketing loan rates for cotton and consumer awareness campaigns promoting natural fibres.

Expanding manufacturing: Increased support for cotton processors and textile manufacturers through loan programmes, while payments under the Economic Adjustment Assistance for Textile Mills programme will rise from 3 cents to 5 cents per pound of cotton processed.

Growing exports: USDA will expand market access efforts and strengthen trade ties. Recent commitments from Indonesia and Bangladesh are expected to support future purchases of US cotton and textiles made from American cotton.

Reducing grower risk: Measures include expanded insurance options, research to combat the cotton jassid pest and a 14% increase in the seed cotton reference price under federal farm support programmes beginning in 2026.

The USDA said it will continue working with cotton growers, manufacturers, retailers and policymakers to strengthen the cotton value chain from farm to finished fabric.

Announcing the plan, US Agriculture Secretary Brooke L. Rollins said US cotton growers have been hit by rising costs, foreign competition and growing use of synthetic fibres. “American cotton should once again become the fibre of choice,” she said, adding that the programme aims to strengthen rural economies and bring cotton back into everyday consumer products. The initiative comes at a difficult time for the industry. Cotton producers are facing a fifth consecutive year of negative returns, with the USDA forecasting losses of US$ 2.6 billion across 9 million planted acres in the coming crop year. The country also lost its position as the world's largest cotton exporter to Brazil in 2023.