Cotton Farming in the US: Market Size, Businesses & Forecast 2026

The Cotton Farming industry in the United States comprises agricultural establishments primarily engaged in the cultivation and harvesting of upland and extra-long staple cotton crops. According to the U.S. Department of Agriculture (USDA) Economic Research Service, the industry is highly export-reliant, facing significant shifts from domestic mill consumption to international buyers amidst increasing foreign competition. For the 2025/2026 marketing season, total U.S. cotton production is forecast at 13.9 million bales (USDA Economic Research Service), representing a 3.5 percent decline from the prior season while average upland cotton farm prices are projected at 61 cents per pound in 2025/

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What does the Cotton Farming in the US industry cover?

The industry comprises agricultural establishments dedicated to the commercial planting, cultivating, and harvesting of raw cotton fibers, including upland and extra-long staple (ELS) varieties. The scope spans the primary cultivation phase up until the crop is transported to ginning facilities for fiber and seed separation. Operations are heavily concentrated across the geographic southern region of the country, traditionally referred to as the Cotton Belt.

• •Covers the production of both short/medium staple upland cotton and high-value extra-long staple varieties.
• •Primary output includes raw cotton lint packaged into standard bales and associated byproduct cottonseed.
• •Excludes post-harvest activities such as cotton ginning, which is categorized under agricultural support services.

Who operates in the industry and how is it structured?

The U.S. cotton farming market is predominantly composed of family-owned farms and grower-owned marketing cooperatives that aggregate, warehouse, and market the harvest globally. These centralized cooperatives handle a substantial portion of national output to enhance individual grower returns and manage logistics risk. Production is distributed across four major regions: the Southeast, Delta, Southwest, and West, each possessing distinct climate profiles and yield averages.

• •Grower-owned marketing cooperatives, organized under associations like Amcot, handle approximately 40% of the annual U.S. cotton crop.
• •The Southwest region, particularly Texas, represents the largest planted acreage but experiences higher abandonment rates due to weather volatility.
• •Regional yields vary widely, with the Delta region achieving a record projected yield of 1,423 pounds per harvested acre in the 2025/2026 season (USDA Economic Research Service).

What drives demand in the industry?

Demand for U.S. cotton is overwhelmingly driven by international export markets, as domestic textile mill consumption has experienced a multi-decade structural contraction. Global economic growth, apparel retail trends, and industrial textile needs dictate procurement volumes from overseas spinning mills. Furthermore, cotton faces intense price and performance competition from synthetic alternative fibers, such as polyester.

• •U.S. cotton exports are projected at 12.0 million bales for the 2025/2026 crop year, accounting for the vast majority of total demand (USDA Economic Research Service).
• •Domestic mill use is forecast at just 1.6 million bales in 2025/2026, marking the lowest level in more than 145 years (USDA Economic Research Service).
• •The U.S. share of global trade is forecast at 27 percent in 2025/2026, constrained by rising export volumes from competitive nations (USDA Economic Research Service).

Who are the notable companies in the industry?

The upstream farming sector itself is highly fragmented with thousands of independent producers, meaning no single farming corporate entity commands dominant market share. Instead, competition manifests through large-scale grower cooperatives and major multinational agribusinesses that supply inputs or manage international trade flows. These entities vie for global market share against alternative crop options and rising production volumes from southern hemisphere producers.

• •Plains Cotton Cooperative Association (PCCA) operates as a major grower-owned marketing cooperative based in Texas supplying global markets.
• •Staple Cotton Cooperative Association (Staplcotn) is America's oldest and largest cotton cooperative, handling 2 to 3 million bales annually across 11 states.
• •Calcot, Ltd. and Carolinas Cotton Growers Association operate as key regional marketing cooperatives providing integrated risk management and logistics.
• •The industry competes directly with global agricultural giants like Archer-Daniels-Midland Company and Bunge Global SA in broader international commodity trading and crop logistics.

What are the recent trends and outlook?

Recent seasons have been characterized by fluctuating abandonment rates caused by severe weather patterns in the Southwest alongside a general increase in international ending stocks. Global production increases, led by record yields in Brazil and China, are outpacing worldwide mill consumption and placing downward pressure on farmgate prices. Moving forward, operators are focused on yield optimization and participation in sustainability tracking programs to differentiate their product.

• •U.S. cotton ending stocks are forecast to rise to 4.4 million bales in 2025/2026, leading to a higher stocks-to-use ratio of 32 percent (USDA Economic Research Service).
• •The projected average U.S. upland cotton farm price for 2025/2026 is 61 cents per pound, down from 63.2 cents in 2024/2025 and 76.1 cents in 2023/2024 (USDA Economic Research Service).
• •Growers are increasingly enrolling in the U.S. Cotton Trust Protocol to provide verified supply chain traceability to global brands.

How is the industry regulated?

The industry operates under a comprehensive framework of federal agricultural policies, environmental mandates, and trade agreements. Farm safety net programs administered by the federal government provide financial protection against severe price drops or crop failures through subsidized insurance and marketing assistance loans. Compliance also involves meeting strict environmental standards regarding water usage, pesticide application, and biotechnology use.

• •Grower cooperatives act as Cooperative Marketing Agents to facilitate compliance and timely utilization of the USDA Marketing Assistance Loan program.
• •Farms comply with USDA Federal Crop Insurance Corporation provisions to mitigate financial fallout from regional droughts or weather anomalies.
• •Genetically modified (GM) seed regulations governed by the EPA and USDA oversee the utilization of insect-resistant and herbicide-tolerant cotton traits.

Government, statistical and trade sources used for this Claight analysis.

• USDA Economic Research Service Cotton and Wool Outlook 2026 ·
• USDA National Agricultural Statistics Service Crop Production Report 2025 ·
• U.S. Census Bureau North American Industry Classification System 2022