The message that PCG has been stressing to our government officials, along with other cotton organizations, led Sen. John Boozman (R-AR) to call on Congress and the administration to provide a “timely and urgent response” to the looming farm crisis in the form of emergency assistance to farmers. He also called for a redoubling of efforts to pass a farm bill before the end of the calendar year in a speech on the Senate floor.
The Looming Farm Crisis (according to a study by National Cotton Council):
• Since passage of the 2018 Farm Bill, cotton production costs have increased by 27%.
• 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.
• Brazil and Australia add a combined production of 10 million bales of cotton to the market.
• Many growers are suffering deep losses in 2023 and 2024, with USDA indicating losses of more than $200 per acre, or $1.8 billion in total.
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.